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News in Review
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Food Quiz
Industry Discussion
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Be Consistent
By: Dr. Jerry Newman
Keeping a steady hand on all levels of business takes brands like McDonald’s to the top.
Shortly after My Secret Life on the McJob was released, I began fielding phone calls from quick serves asking me to speak at their annual conventions. One of the Majors was cautious, however, and asked me to interview with its chief people officer first.
We spent an hour together, one I thoroughly enjoyed, even when he asked a question that caught me somewhat by surprise: “Why didn’t McDonald’s get mentioned very much in your book?” he asked. “You talked about Burger King and Arby’s, Wendy’s and Krystal, but almost nothing interesting about McDonald’s.”
I thought about this for a minute and realized he was right. Sure, I had a few comments about McDonald’s, but considering I had worked undercover at two of its stores, they weren’t very well-represented in the book. If I could answer the question now, I think I would do a much better job than I did back then.
Think about the people who tell good stories at parties. None of these stories follow the pattern: “Yeah, nothing much happened today, and yesterday was pretty much the same.” No, good stories always recount unusual events, either bad or good. My book has lots of Burger King stories both great and not so good. And it also has sprinklings of other stories about events at other chains all documenting good or bad management experiences. I didn’t talk much about McDonald’s largely because, well, they were boringly consistent. Nobody did anything insanely bad nor did anyone overwhelm me with great managerial technique.
Here was my epiphany: To be great, first you must be consistent. Some months later I asked Rich Floersch, the executive vice president of human resources at McDonald’s, what he thought of my consistency theory. With a small smile, a bit of pride slipping out in an unguarded moment, Floersch granted that this was a major goal of McDonald’s.
Everything the company does in human resources—and I don’t think this is an exaggeration—is aimed first at eliminating the bad end of the behavior spectrum. McDonald’s wants to create a scenario in which everyone is average or better. When you stop to think about it, this is nothing more than a “zero defects” policy applied to crew and managers. And I don’t think it’s much of a stretch to say that McDonald’s is in continuous improvement mode.
In recent months I’ve also had the opportunity to talk extensively with other major brands about the path to excellence. Burger King, KFC, Pizza Hut, Subway, and Taco Bell have all given me great information that I will share with you in my future book, The Leadership Compass: Finding Your True North.
When I talk with these brands about the importance of consistency it’s...
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I have known not a few men who, after reaching the summits of business success, found themselves miserable on attaining retirement age. They were so exclusively engrossed in their day to day affairs that they had no time for friend making.
- B.C. Forbes
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View updated pricing and information each week on the website for the following food-commodity markets:
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Beef, Veal & Lamb |
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Beef production declined 3.7% last week but was 2.5% larger than a year ago. Year to date beef output is estimated to be 3.1% smaller than the previous year. The percentages of cattle grading choice and prime continue to trend well above prior years due in part to cattle staying on pasture longer. Consequently, October choice and prime beef output are estimated to have both been the largest for the month since 2002. Strong choice and prime beef production may mitigate any seasonal beef market increases this winter. Beef demand is fading and lower beef prices may be impending. Price USDA, FOB per pound.
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Dairy |
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The CME cheese barrel market has fallen sharply in recent days. This suggests that the cheese block market may move downward as well. Cheese demand is strong, which is the norm for November, but demand could wane some next month. The last two years the CME cheese markets moved notably lower in December. Any cheese market declines this year are likely to be tempered by the slowdown in milk output. The EU is reducing dairy export subsidies. World butter prices are trending upward pressuring the US domestic market. US butter exports may build. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The chicken markets remain relatively steady with chicken breast prices historically depressed. The production slowdown is anticipated to persist deep into next year, but the industry will almost certainly need an improvement in chicken breast demand to return profitability to normal. Typically, the boneless skinless chicken breast market bottoms during the next few weeks and then moves upward. Last December, the chicken breast market rose roughly $.05 and then jumped $.20 higher in January. The chicken wing markets are elevated due to limited output and rising demand. The egg markets typically remain inflated for holidays. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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Lower energy and feed prices have been encouraging for seafood fishing and farming during most of this year. However, capital constraints, disease and sluggish demand have all hurt the industry as a whole. If energy prices continue higher from here seafood output could falter which would be bullish for the seafood markets including shrimp, salmon and crab legs. The shrimp and crab leg markets remain at engaging price levels. Higher shrimp and crab prices may occur in 2010. Prices for fresh product, unless noted, per pound from Fisheries Market News.
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Pork |
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The pork markets are mixed but demand is reported to be mostly fading. The ham market usually moves notably downward next month as, by then, holiday supplies have been procured. The last two years the ham market declined plus 25% during December. Ham market deflation could occur earlier this year but be less intense due to the slowdown in production. Sow prices have jumped 23% in recent weeks which is almost a certain signal that swine breeding herd slaughter has slowed. Prices USDA, FOB per pound.
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Produce |
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The tomato harvests in both California and Florida are slowing but for different reasons. California?s harvest is seasonally decreasing while Florida?s output is being shortened by earlier weather challenges. US tomato shipments last week declined 23% and were 20% smaller than a year ago. Tomato prices could remain relatively inflated at least through the end of the month. Lettuce shipments remain short as well as the chief harvest area nears another transition. Lettuce supplies may be limited over the next three weeks. Potato demand could pick up soon for the holidays. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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The latest USDA report estimated the corn harvest to be the second largest on record. Corn supplies could tighten due to ethanol demand. Prices USDA, FOB.
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Canned and Frozen Food |
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Tomato Products, Canned - Overall canned tomato supplies are historically large. Paste based canned tomato product markets may weaken this winter. Prices per case (6/10) FOB, unless noted from ARA.
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Processed Fruits and Vegetables - Canned green bean and corn stocks are reported to be adequate to ample. The canned green bean and corn markets have weakened some. Prices FOB per case from ARA.
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A signature appetizer to give away at each table?
Community member Mark writes...
I'm looking for suggestions for an appetizer (litte ones) or tease to give to each table but does not have alot of cost associated with it.
Like soem steakhouses with free peanuts, mexican chains with chips and salsa. Or others who give free bread.
Any ideas and suggestions will be greatly appreciated.
...
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Almost laughed in the face of a RE Broker today
Community member Joe writes...
We have a casual dining Grill & Pub located in a strip center, and are not happy with our current location. Our option comes up next November, so we're scouting around now for a better location. There are a couple of prime locations open within a 1/2 mile of us. They both have been open for over 9 months now. I called on both of them today, and of course got recordings. One broker called me back and was extolling the virtues of his location. 4400 sq ft., with an under ledge patio facing...
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Name Ideas for family restaurant
Community member Mark writes...
Im looking for some names for a family restaurant but will be themed like a firehouse or with memorbilia to honor the fireman police and military. Im trying to find funny but catchy names and ideas.
I came up with the Hose House but being it would be in a religous community it may be preceived wrong.
Any ideas would be greatly appreciated.
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My seductive flavor will make you irresistible
A little off the beaten path, I grow on trees in the Himalayas of India, Italy, North Africa, China, and the Southwestern United States. I may not be the first thing you think of around Valentine's Day, but maybe I should be! My seductive flavor will make you irresistible to your sweetheart. Like the love of a good woman, I'm difficult to cultivate when out of my element, and I only bare my fruit once every two or three years. About the only way to harvest me is by hand, but the care is well worth the effort because one taste of me and your lover will go nutty over you. To eat just one of me is never enough; you'll crave me more and more. In fact, the second century Greek, Galen, recommended you eat 20-30 of me for three evenings in a row, and then my appealing erotic effects will let your desire arise to the occasion. My flesh is ivory and about one to two inches long. I am usually surrounded with a thin, red-tinged shell and my flesh is supple and luscious. Eat me however you want, drizzle me in honey, swallow me whole, dip me in confectioner, or eat me raw, my tender sweet flesh will keep you coming back for more. But be careful because my fat content is high, and I spoil easily. I'm easy to use because I am a sumptuous ingredient in sauces, a garnish or as a snack. Eating me might seem sinful, but I'm a plentiful source of magnesium, potassium and B6.
What am I?
The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.
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Welcome to the Foodservice.com Express newsletter, a weekly publication that provides a comprehensive review of the foodservice industry each and every friday.
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David Smania
Founder, Foodservice.com
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