From Serious Eats' Ed Levine: "Last week (Aug 8, 2008) we began talking about farmers and farmers' markets and the crucial role they play in the food culture (as far as we're concerned, they're heroes). Yesterday we met one of our favorite farmers, Rick Bishop of Mountain Sweet Berry Farm in Roscoe, New York, who grows strawberries and vegetables and sells them at the Union Square Greenmarket in New York City."

Today, thanks to the good folks who work on behalf of Serious Eats advertiser Pure Kraft Salad Dressings, we are proud to bring you a video portrait of Bishop. It's beautifully shot and edited by our friends at Optic Nerve, and it chronicles both Bishop's story and the story of farmers' markets in general. So thank you, Kraft, thank you, Optic Nerve, and thanks in advance, serious eaters, for taking the time to watch.

 

 

From William Neuman, New York Times: Just in time for football season, the Lion’s Head Tavern in New York City stopped selling 25-cent chicken wings on Monday nights. In Tucson, a sports bar called O’Malleys on Fourth scrapped its fall special of a dozen wings on Monday nights for $4.

And in restaurants from Sarasota to Seattle, an improbable poultry part is showing up on menus: a little chunk of chicken breast that is fried and sauced and sold, with marketer’s brio, as a “boneless wing.”

All this is happening because wholesale chicken prices have turned upside down. The once-lowly wing is selling at a premium over what has long been the gold standard of poultry parts, the skinless boneless chicken breast.

Like the tail that wags the dog, the wings are now flapping the chicken.

Mike Bell knows chicken prices. The logistics and purchasing manager for Buffalo Wild Wings, a national chain with about 600 restaurants, Mr. Bell will buy 57 million pounds of chicken wings this year. Describing recent conversations with poultry processors, he said: “Basically a whole bunch of them are throwing their hands in the air and saying, ‘I don’t know what’s going on. We’ve never seen it this way.’ ”

In seven of the last 11 months, wholesale wing prices have been higher than breast prices, a reversal in a market where breasts usually reign supreme. In September, the average wholesale price for whole chicken wings in the Northeast was $1.48 a pound, according to the Agriculture Department. Yet skinless boneless breasts were $1.21 a pound.

A year earlier, wings sold for 94 cents and breasts for $1.15, and as recently as May 2008, skinless boneless breasts were selling for 57 cents more than wings.

The wholesale price shift has generally not been reflected in supermarkets, where grocers appear to be trying to preserve their margins on breast meat. Nationally on average, breasts are $2.80 a pound at retail, still 83 cents more than wings. However, some grocers are exploiting the wholesale price drop to run aggressive sales on breasts.

The recession is the cause of the price flip-flop.

Restaurants, normally big buyers of breast meat, slashed orders as millions of people cut back on eating out, and breast prices slumped. But demand for wings has remained strong, partly because people perceived them as a cheap luxury.

Adding to the demand: the brisk growth of restaurant chains focusing on wings, like Atomic Wings, Wingstop and Wing Zone. Several chains have been remarking this year about how much business is up in the recession. The major public company in this group, Buffalo Wild Wings, reported a 27 percent earnings jump in the first half of the year.

Eventually, as the economy improves, wing and breast prices may return to their traditional places. But for now, the triumph of wings over breasts has wing partisans celebrating. Full Story  

From Sarah E. Lockyer of Nation's Restaurant News: Despite another jump in the national unemployment rate and conflicting economic indicators released last month, a new survey shows that consumers' plans to spend at restaurants are only improving as confidence in the economy grows.

According to Atlanta-based RBC Capital Markets' September restaurant spending survey, restaurant spending plans rose 3 percentage points from the prior survey in May, and 14 percentage points from the same September survey a year ago. The survey, which is completed by the investment bank quarterly with ChangeWave Research, taps more than 2,000 consumers.

Looking out over the next 90 days, 16 percent of respondents said they planned to spend more on dining out, up from the 13 percent in May and just 8 percent in February who responded similarly. A reduced 33 percent of respondents said they planned to spend less on dining out during the next 90 days, down from 39 percent in May and 50 percent in February who answered that way.

"Confidence in the economy is improving, as those planning to spend more at restaurants cited better job security and less need to save money," said the report from RBC restaurant securities analyst Larry Miller. "Value is driving consumers to eat out more, as are having less time to cook and an uptick in workers per household."

Brands that stand to benefit, according to survey respondents, include Red Lobster, Chipotle, Olive Garden, Maggiano's Little Italy and Panera Bread. Concepts that respondents said they would not frequent more often included Denny's, Golden Corral and Morton's, The Steakhouse.

The recession is pushing more people back into the workforce, Miller noted, meaning certain families have less time to cook at home, a typical driver of eating out at restaurants. In addition, research showed that respondents pointed to better job security and less need to save money as reasons behind increased tendencies to eat out.

Still, the primary reason for increased plans to dine out rests on value. The surge in dollar menu items, bundled three-course meals or fixed price menus have helped spur restaurant traffic.

"The increased value restaurants have been offering has not gone unnoticed; it's the No. 1 incremental reason for eating out more," Miller noted.

In the September survey, consumers said they were using coupons more since the May survey, had reduced instances of skipping beverages or ordering less-expensive items, and had reduced their tendencies to eat at less expensive restaurants — all because of the various value deals being offered.

As consumers begin to dip their toes back into the spending pool, a focus on value is perhaps the lasting takeaway from this "great recession," sources say. 

"The consumer's focus on value will remain and signifies a shift in consumer behavior that must be addressed," the latest industry newsletter from mid-market investment bank The Cypress Group highlighted. "Concepts must effectively communicate their value proposition and become ‘top of mind' when consumers evaluate choices."

The Englewood, Colo.-based firm noted that while price value is important, successful restaurant brands also will look to service, menu quality and experience as part of the value equation.

For example, while Red Lobster currently is promoting its Endless Shrimp deal for $19.99 in most markets, Chipotle, which raised prices last year in the midst of the recession's depths, focuses on its quality of food, convenient online or text ordering, and in-store service.

Addressing whether additional price increases might be forthcoming, even as consumers continue to focus on value, Chipotle's chief financial officer said during its latest call that the chain could boost prices even more.

"We still think we offer, and our research says [that] we offer, a compelling value to our customers," John Hartung said.

Read more: http://www.nrn.com/breakingNews.aspx?id=372578#ixzz0R9s8ZNYV

Four years after Hurricane Katrina devastated this historic city, its chefs and restaurant owners have shaken off the sucker punch and are swinging back stronger than ever.

In fact, the New Orleans Metropolitan Convention and Visitors Bureau said more restaurants are open now than before the fatal storm.

“Our observations are that despite our drop in population from pre-Katrina numbers, the city reports 1,031 restaurants open today,” said Mary Beth Romig, director of communications and public relations for the CVB. “This is more than ever in our city’s history, not just since August 2005.” Romig cites the educated count of restaurants by Tom Fitzmorris of the nomenu.co website.

Hurricane Katrina plowed ashore east of New Orleans on Aug. 29, 2005, killing 1,836 people along the Gulf Coast through the storm surge itself and ensuing weeks of flooding after levees protecting New Orleans were breached. Damages were in excess of $100 billion, making it the costliest natural disaster in U.S. history.

But like boxers shaking off standing eight counts, existing restaurateurs are expanding with additional eateries, and newcomers are entering the market.

Donald Link, chef-owner of Herbsaint, has opened the highly touted Cochon and attached Butcher. John Besh, chef-owner of Restaurant August, has opened several restaurants, including Luke in the business district, and plans in the first full week of September to open Domenica with chef-partner Alon Shaya in the 504-room Hotel Roosevelt. The hotel underwent a $145 million renovation and was re-opened in July by the Hilton Hotel Corp.’s upscale Waldorf-Astoria portfolio.

Frank and Marna Brigtsen bought and reopened the neighborhood staple Charlie’s Seafood Co. in suburban Harahan, La. Also, chef Scott Boswell, whose Stella! just received the top-rated fifth bean from the New Orleans Times-Picayune restaurant reviewer, has enjoyed steady business at his breakfast-and-sandwich restaurant, Stanley, located in the French Quarter’s historic Jackson Square.

 

Chefs are still using these high-end ingredients, but many have modified their menus or opened lower-priced offshoots to woo people who are concerned about costs.

"At Del Posto, our fanciest restaurant, we have taken some of the luxury items off and dropped the fancy menu from $275 to $150," Mario Batali said at the annual Food & Wine Classic this summer in Aspen, Colo.

"There's less caviar, foie gras and truffles, but they're still there. They're just not on nine courses. They're on one course."

Marcus Samuelsson, chef/owner of Aquavit and Riingo in New York and C-House in Chicago, says that over the past two years, he has done "menu engineering" to offer more price diversity. Pork belly and ox tail dishes, for example, are more wallet-friendly than a ribeye.

"Our menus should be something for everyone," Samuelsson says. "You should be able to sit at the bar and eat a great meal for maybe 20 or 25 bucks, and then if you really want to celebrate, there should be something for you, too."

The recession seemed non-existent at The Bazaar by José Andrés, judging by the food served to well-heeled diners on a recent August evening. Small plates of caviar buns and cotton candy foie gras flew out of the kitchen at the bustling restaurant inside the luxurious SLS Hotel at Beverly Hills.

"I don't have a sense that I've been cutting more because of the economy," says chef Andrés, who also owns restaurants in Washington, D.C., Maryland and Virginia. "Over the past 15 or 20 years, I've been moving more slowly toward vegetables, but that doesn't necessarily mean (they) are any cheaper. "

Rather than eliminate high-priced fare, some chefs/owners are opening separate, lower-cost restaurants inside their high-end eateries. This year, chef/owner Tom Colicchio, the mastermind behind Craft restaurants across the country, opened Damon: Frugal Friday with Craft executive chef Damon Wise, serving nothing over $10. The event started as a once-a-week affair in Craft New York's adjacent private dining room but has since grown to six times a week.

Colicchio also started Halfsteak in Craftsteak New York's bar area, where menu prices are kept under $15.

"We were never a big proponent of luxurious ingredients," says Colicchio, whose sides of asparagus at Craft New York sell for $11. "We do use some white truffles when they're in season and occasionally have some caviar and foie gras, but other than that, we use basic ingredients. We just make sure we buy the best. ... We feel we shouldn't cut back on that."

Ming Tsai, chef/owner of Blue Ginger in Wellesley, Mass., was ahead of the game. In May 2008, he doubled his space with the addition of a 50-seat bar/lounge area featuring an Asian street-food menu with a price point of about $25 a person, as opposed to Blue Ginger's $55 to $60.

"I've still got foie gras and caviar and truffles when they're in season (at Blue Ginger)," Tsai says, "because at the end of the day, people need two hours of relaxation and not to think about their problems."

What's not selling, Tsai says, are bottles of Cristal rosé, Grand Dame Champagne and $600 bottles of (Penfolds) Grange Shiraz. "People are not buying the big wines because they don't want to be seen with that bottle on their table," he says. "It's tacky and gauche now."

And Batali is one chef who believes that attitude may remain. "The period between 1989 and 2005 will be looked back upon as kind of like Roman excess," he says. "Everybody went crazy. I don't think it will happen like that again, which is good."

http://www.usatoday.com/life/lifestyle/2009-08-25-restaurant-cutbacks_N.htm

From Sarah E.  Lockyer, Nation's Restaurant News: Steak 'n Shake Co. and Western Sizzlin Corp., two restaurant companies led by one-time activist investor Sardar Biglari, plan to merge, with Western Sizzlin set to become a subsidiary of Steak n Shake, the companies said Thursday.

The net transaction value payable to Western Sizzlin shareholders is about $23 million. The deal still is subject to shareholder approval, and neither company had filed as of press time any deal materials or proxy information.

Steak n Shake, based here, operates or franchises 486 family-dining restaurants that together tally systemwide sales of about $700 million. Western Sizzlin, based in Roanoke, Va., operates or franchises 105 steak buffet restaurants and boasts systemwide sales of $200 million.

In a statement, the companies said the letter of intent to merge calls for Western Sizzlin to distribute to its stockholders all of its Steak n Shake shares, which total a 5.4-percent stake. At the merger’s closing, each share of Western’s common stock would be converted into the right to receive an amount equal to $8.11 in the principal amount of debentures, or unsecured debt, issued by Steak n Shake. It is anticipated that Steak n Shake’s debt will hold a term of five years, will hold a 14-percent interest rate and will be pre-payable without penalty after one year from the date of issuance.

Biglari, who swept into the restaurant industry starting in 2006 with investments at such companies as Steak n Shake, Friendly Ice Cream, Applebee’s and Western Sizzlin, is the chairman and chief executive at both Steak n Shake and Western Sizzlin. He has worked with both companies for more than a year to close underperforming locations, increase shareholder value and drive customer traffic.

Western Sizzlin’s latest quarter ended June 30 included earnings of $1.9 million, or 68 cents per share, versus a loss of $2.0 million, or 72 cents per share, in the same quarter a year earlier. Revenue fell 2.5 percent to $4.4 million. Same-store sales at franchised locations, which make up the majority of the chain, fell 4.4 percent. Full Story 

From Cassell Bryan-Low, The Wall Street Journal: On the reality TV show "Kitchen Nightmares," foul-mouthed celebrity chef Gordon Ramsay helps unknown chefs turn around troubled restaurants. But the brash advice he dishes out to others hasn't helped keep his own fine-dining empire out of trouble.

As well-heeled diners went into hibernation, four of Mr. Ramsay's high-profile restaurants -- in Los Angeles, New York, Paris and Prague -- "were starting to hemorrhage" cash last year, Mr. Ramsay said. He breached terms on £10.5 million, or $15.7 million, in loans that were partially backed by his personal fortune. An auditor recommended his company, Gordon Ramsay Holdings Ltd., file for bankruptcy. Mr. Ramsay sold his Ferrari and considered unloading his multimillion-dollar London home.

"All of a sudden, this whole thing was nothing to do with cooking," Mr. Ramsay said in an interview from the Los Angeles set of his show. "I had my own personal nightmare."

Now, Mr. Ramsay is being forced to restructure. The 42-year-old chef has exited Prague and handed back ownership of the kitchens in Los Angeles and Paris to the hotels they are housed in, though he still supplies the chefs and menus. He has fired about 15% of his roughly 1,200-person staff and is swapping out rib-eyes for cheaper cuts like shank and brisket. Mr. Ramsay and his father-in-law have plowed £5 million of their own money into the business.

The tousled-haired Mr. Ramsay runs one of the biggest global networks of expensive restaurants, with 20 outposts from New York to Tokyo. During the boom of the past decade, Mr. Ramsay amassed 12 Michelin stars, making him the third-most-decorated chef behind France's Joël Robuchon and Alain Ducasse. His success helped Britain put to rest its reputation as a culinary backwater and win a reputation as a serious destination for foodies.

The super-chef's current troubles illustrate the intense pressure facing high-end restaurateurs these days. Diners are eating out less often and spending less when they do, particularly on wine and spirits, where the fattest profit margins are. Corporate entertaining, which can account for as much as a third of a luxury restaurant's business, has fallen sharply.

Annual revenue growth in the roughly $1.5 trillion global restaurant industry is expected to slow to 1.1% this year, down from 4.9% in 2008, according to London-based research firm Datamonitor Ltd. The figures include restaurants, cafes and fast-food chains, but industry insiders say the priciest restaurants are among the hardest hit.

FULL STORY From Wall Street Journal

From Sarah E. Lockyer of Nation's Restaurant News: The total number of restaurant locations in the United States shrunk during the past year, as smaller chains and independents in particular had difficulty weathering the economic storm.

According to the latest NPD Group ReCount, which tallies all commercial restaurant locations in the United States, the number of restaurants fell 1 percent this spring to 577,178 locations. A little more than 4,000 restaurants were closed from a year ago, when the United States boasted 581,201 restaurants, according to NPD research. The latest data was collected from April 1, 2008, to March 31, 2009.

The hardest-hit categories were fine-dining independents, which saw unit counts fall 7 percent. Smaller family-dining chains were close behind, with a 6-percent drop in locations among chains of between 50 and 99 units and a 5-percent drop in locations among chains that numbered between 100 and 499 locations.

“It’s clear that independent restaurants and smaller chains have been most impacted by the slower economy,” said Susan Kleutsch, director of product development for foodservice at The NPD Group, a market research firm based in Port Washington, N.Y. “The recession appears to have weeded out restaurants performing poorly prior to the economic downturn, and this seems most true for independents and smaller chains that are likely having a hard time competing with the resources and marketing power of major chains.”

Restaurants have been battling such economic pressures as slowed sales from reduced consumer spending and increased operating costs, especially for commodities, as well as higher rent and labor expenses. The past year has brought high-profile unit closures at such chains as Bennigan’s, Steak & Ale, Ruby Tuesday and Ryan’s Grill Buffet & Bakery.

The largest chains, which NPD classifies as those with more than 500 units, posted unit growth in all segments except family dining, where growth remained flat. Among the largest chains, the number of total restaurant locations rose 1 percent, reflecting a 1-percent uptick in quick-service locations and a 2-percent increase in casual-dining restaurants.

In Nation’s Restaurant News 2009 Top 100 report, which covers the largest of restaurant chain operations ranked by total domestic foodservice sales, the aggregate restaurant unit count hit 195,227 for those ranked Nos. 1-100 in size, a 1.6-percent increase from a year ago. Read More 

From Elissa Elan of Nation's Restaurant News: Restaurant industry guest traffic fell 2.6 percent for the quarter ended May 31, the largest decline since 1981, as consumers continued to cut spending and families with children reduced dining out, a report by market research firm The NPD Group said Monday.

The traffic decline is compared with an increase of 0.5 percent during the same quarter a year earlier, NPD officials said.

The newest report blamed the restaurant traffic decline mostly on reduced visits among parties with children, which typically represents one-third of all industry traffic. NPD’s Consumer Reports on Eating Share Trends said that more than half of the industry’s decline in the May quarter could be traced to fewer dinner visits from parties with children at restaurants throughout all industry segments. Restaurant visits by adults in households without children remained stable in the May quarter, NPD said.

Rising unemployment also took its toll on consumer spending, the report showed.

“The commercial foodservice industry has been struggling since last fall, and it appears that as unemployment increases the struggle is increasing,” said Arnie Schwartz, president of U.S. foodservice for NPD.

According to the report, guest traffic was down 2 percent at quick-serve restaurants, 4 percent at casual dinnerhouses and 6 percent at family-dining operations.

The biggest decline was felt during the dinner daypart, where most consumers pulled back on visits to both quick-service and full-service restaurants, the report indicated. Breakfast and lunch also declined, but those served at quick-service outlets fared better than their full-service counterparts.

Looking forward, Schwartz said that operators that utilize coupons, offer value meal deals and re-engineer menus will have better luck in attracting consumers.

“It’s going to take continued innovation, creativity and perseverance to capture share in a market where the pie may not be growing in the near term,” he said.

For the May-ended quarter, NPD said that restaurant industry check averages rose 2 percent, compared with the same quarter last year, suggesting that diners are willing to spend about the same on a restaurant meal as in the past, but are reducing the number of times they do it. The higher check average was unable to offset the steep decline in foot traffic, so total restaurant spending fell 1 percent across the industry, NPD said. Nations Restaurant News

The informal, sit-down restaurant chains that blanket the nation are fighting their most intense price war in years. Applebee’s is offering dinner for two for $20. Ruby Tuesday is handing out coupons for two entrees for the price of one. Chili’s, not to be outdone, is promoting some entrees for $7 or less.

“It’s a tit-for-tat pricing war right now,” said Steve West, an analyst with Stifel Nicolaus, a brokerage firm in St. Louis. “Each one’s trying to outdo the other in a battle for consumers.”

The sit-down casual segment of the restaurant industry has traditionally competed more on advertising and location than price, but these days, the chains appear to have little choice. Consumers hurt by the recession are eating out less. So the restaurants are fighting one another for that shrinking pool of diners, using deep discounts, heavily advertised on television, to attract them.

The customers who do venture forth are delighted. “This is really an incentive for us to go out,” said Norma Rosado Blake, 38, an archivist, as she stood outside a T.G.I. Friday’s restaurant in Clifton, N.J., with her husband the other night, for an offer entitling her to $8 off.

But even as the chains compete to come up with the best deal, some of the analysts who follow them are worried. They fear that, as was the case with merchandise retailers that sold luxury goods for 80 percent off, the restaurants are hurting their long-term prospects by training customers to eat out only when they are offered a bargain.

“The problem with that is once you start dealing, you’ve got to deal forever,” said Harry Balzer, the chief food industry analyst for the NPD Group, a consumer marketing research company.

The heavy discounting is leading to tensions between the people who, as independent franchisees, operate many of the restaurants, and the corporate officers who control the brands, menus, advertising and strategy. The franchisees agree that discounts can get customers in the door, but wince at what they can do to profit margins. NEW YORK TIMES FULL STORY

Read more: http://www.post-gazette.com/pg/09163/976871-28.stm#ixzz0JrJp53P1&C   

From CNNMoney.com: Restaurants could see their margins squeezed as inflationary pressures return to the commodity markets, especially as the chains find it harder to wean customers off a steady diet of meal deals.

Analysts expect higher ingredient and energy costs for restaurants in 2010, with inflation returning to normal levels after a year when costs increases moderated and, for some items, fell from year-ago levels. That could make it harder for chains to continue with the aggressive stream of coupons, buy-one- get-one-free offers and other promotions to bring customers into their doors.

"There's no sign of a pullback yet on discounting," Barclays Capital analyst Jeffrey Bernstein said in an interview. But, "if you see a return to inflation in 2010, it'll prove more challenging to offer these deals."

Consumers are responding to those deals, said Morgan Keegan & Co. restaurant analyst Robert Derrington, who believes that Brinker International Inc.'s (EAT) Chili's Grill & Bar deal offering 10 items for $7 or less is putting more customers in its seats.

But as ingredient costs rise, restaurants may find it harder to raise menu prices to protect their profit margins, especially since consumers have grown accustomed to deals. Derrington termed the casual-dining environment as a competitive "flea-market" for consumers, who are going out to eat when they get coupons or see a good deal advertised on television.

"Consumers are being extremely frugal," Derrington said.

With aggressive menu price increases no longer in their arsenal, restaurants may face margin pressures in 2010, when most chains will see their current purchasing contracts expire and they encounter a pricier market for their basket of goods.

The challenge could damp the rally that casual-dining stocks have had so far this year, with some chains bouncing off multiyear lows to post big gains. Go to Full Article