1 / 12

Caribbean Update

Caribbean Update. Liz Wunderlich November 11, 2009 Denver, CO. Issues First Market Totally Open EXCEPT. Recession Results. Caribbean didn’t feel crunch till Aug Beg of 2009—tourists still came—false sense of “no problem mon ” By June/July started to slow down

apu
Download Presentation

Caribbean Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Caribbean Update Liz Wunderlich November 11, 2009 Denver, CO

  2. Issues FirstMarket Totally Open EXCEPT

  3. Recession Results • Caribbean didn’t feel crunch till Aug • Beg of 2009—tourists still came—false sense of “no problem mon” • By June/July started to slow down • Layoffs began; foodservice sales declining • USA remittances are way down (#2economy) • By August/Sept, crashed (15% occup.) • Construction to a halt; hotels laying off • Spin off from hotel service charge spurs economy • Now buy staples instead of extras • Tourists don’t book ahead—can’t plan • Overall: downsize, downgrade, economize

  4. Market Trends: General • Cat Hanging On: Survival • No new buildings, hotels, golf courses, offices, condos • Many are shutting for renovations (RIU , Club Med) • Or letting staff off (Atlantis) • Not spending anything! • Tightening inventory • Now is not the time to introduce a huge inventory of new cuts • 1 cut=20 ways: chuck roll/cushion • Corporate image of cutting back • No lunch per diems—catering • Christmas parties shrinking

  5. Fighting Back with: • Discounted rooms • Fairmont Southampton did $99/99 hours and sold 14,000 bed nights • “Friends and Family” rates for locals • Tuckers Pt.=$250 • Not spa  wellness • AIG spill-off • It’s hip to be frugal • Ritz (40%) • Four Seasons Exuma closed • Opportunity to show profitability of various cuts • Govt. Concessions • Jamaica dropped duties from 86%  43% • Barbados removed duty

  6. Foodservice Trends • White Tablecloth/Fine Dining Suffering • Chefs are acutely aware of costs • Khalid—signaturespinalis COP  app • Opportunity: keep protein on menu! • Hold c-o-p with tenderloins  flat irons • Introduce high end pork or pork anything! • Mid-range restaurants: holding own • Chefs looking for extension items • Opportunity: • Brisket at Latin = tostado/wrap/sandwich • Pork butt as Panamanian croquette; pulled pork in tostado; or as entree

  7. Value, Value, Value • Buffets carvery • Opportunity: • Carving stations: steamship leg of pork, butt; shoulder clod heart, tri-tips, baseball “log” • Menus are downsizing • Tapas, small portions, sharing, fun, funky, smoked, pulled, flavor infused, sliders • Opportunity: • Pork shoulder/butt, fresh leg • Beef sliced philly style, • Low and slow: short rib sliders • Gourmet burgers

  8. Value, Value, Value • New Idea for “Old Cut” • Opportunity: • Split strip • filet of pork sirloin • New cut for “Old Idea” • Opportunity • Marriott Grand Cayman—didn’t displace filet mignon, but brides on a “chicken” budget  filet of top sirloin • Surf & Turf (beef scored with shrimp)

  9. Comfort Food is In! • Comfort food relieves stress! • Simple foods like grilled meat w/peas & rice or macaroni, mash pot., or coucou • Giving away rooms: so pressure on F&B for costing • Holiday Inn Aruba@$50/night • Brisket & Boston Butt are saviors • Looking for local business—when tourists are scarce • Opportunity: • BBQ is the ultimate comfort food • Marriott Grand Cayman is now the hip place with locals due to their Beach BBQ (brisket, St. Louis ribs)

  10. Retail Trends • In general: eating less and trading down (choice  NR) • However, steaks sales are up occasionally because people are eating them at home! • Locals not traveling so eating at home • Challenge: Cuts that can be cooked to well done! Serr. Vent. • Pumped Beef and pork • Two-tiered promotions • Hi Lo Select and CAB • 4 beef & pork brands at Lindo’s

  11. Final Retail Trends • Retail stores continue to be built with fresh imports in mind • Deli shops are up • USMEF focus has to be on maximizing SKU’s from one cut • Opportunity: • USMEF’s new Beef Cuts Brochure

  12. Good News • Foodservice  20% in most markets; balance held by retail sales which  = net exports were up • There is never a better time to offer profit making advise because EVERYONE IS LISTENING! • The Caribbean is begging for ideas! • We’ll have to help them deliver the right message with their merchandising!

More Related