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Tickling Taste Buds—and Loosening Purse Strings. Curt Archambault VP- People and Performance Strategies Nelson Lafayette SVP- Entegra Procurement Services. Agenda. Pricing and Inflation Trends Q&A Final Thoughts. 1- Weak US Dollar 2- Higher energy costs
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Tickling Taste Buds—and Loosening Purse Strings Curt Archambault VP- People and Performance Strategies Nelson Lafayette SVP- Entegra Procurement Services
Agenda • Pricing and Inflation • Trends • Q&A • Final Thoughts
1- Weak US Dollar 2- Higher energy costs 3- Higher feed costs: Corn, Wheat and Soy 4- Higher Consumption in the BRIC countries 5- Governments from Beijing to Belgrade are boosting imports and limiting exports to curb price rises 6- Lower crop yields even if weather remained constant 7- Weather disruptions (drought in Russia and China, rain in Asia and Brazil, etc.) 8- Speculative forces in the commodities markets
What’s caused prices to soften? • China and India slow down • Weak U.S. job market • EU economic turmoil • Consumers not spending is holding back GDP and are cautious about the future • Reduced investments in commodities are helping keep inflation in control for the moment • Stronger U.S. dollar helping control exports But there’s a… • U.S. historic drought / heat wave driving costs through the supply chain
2.8 gallons of gas or 30 lbs. of chicken or 22 lbs. of Turkey or 20 lbs. of Pork or 9 lbs. of beef 1 Bushel of corn = 56 Pounds =
9/2010 - $4.37 / Bushel 10/2012 - $7.59 / Bushel A 73.7% Increase
This is the trajectory of the past two years This is the price range on which the US livestock has been built
What’s the impact on the golf industry? Wheat 19.9% Beef 4% Cheese 13.2% Fries 3.2% For here or to go? Packaging 3.2%
1- Buy on contract- National and manufacturer programs Entegra protein vs. external indices
The Better Tomorrow Plan is made up of three core pillars: 2- Reduce your pre-consumption food waste
You Can’t Manage What You Don’t Measure The Better Tomorrow Plan is made up of three core pillars:
Kitchen Serveries The Better Tomorrow Plan is made up of three core pillars: Tracking Station Garbage Disposal Pot Wash
Top Ten Reasons to Buy Local 10. Local foods offer more variety. 9. Local foods preserve the countryside. 8. Local foods protect the environment. 7. Local foods don’t stop with fruits and vegetables. 6. Local foods aren’t as expensive as you think. 5. Local foods let you be creative with your menu. 4. Local foods are great for restaurant marketing. 3. Local foods support local economies. 2. Local foods taste better. 1. Local foods are fresh.
http://www.restaurant.org/pdfs/research/WhatsHotAlcohol2013.pdfhttp://www.restaurant.org/pdfs/research/WhatsHotAlcohol2013.pdf
Customer Quality Costs Service
What is going in the trash? • Expensive doesn’t always mean profitable. • Kid’s Menu – forgotten real estate? • Can I eat in the Bar? • Learn from fast food…combo deals.
Suggestive Sell with a future visit in mind – AKA Don’t Over Do It! • Hire smart! Your team is key to your success.
Closing Thoughts! • There’s no silver bullet • Get involved • Be creative • Be who you are! • Create a budget /work with your suppliers • Focus on food quality and hospitality
“If I had asked what they wanted, they would have told me faster horses” Henry Ford