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News in Review     Market Reports    Food Quiz     Industry Discussion

Study Predicts Wide-Sweeping Liquidity Crisis
America Has Overwhelming Response to Kentucky Grilled Chicken
Caribou brews up some more profits
Texas may lead restaurant industry in ‘09
Supreme Court sides with bar owners
NRA and Ecolab Offer H1N1 Response Program
Kitchen Chic : Women Chefs Shed Their Whites
McDonald's settles gay discrimination case
Lawsuit claims man got salmonella
Top Ten iPhone Food-centric Apps
Restaurant Outlook: Glimmers Of Improvement?
Burger King cooks fast-food deals
McDonald's Poised to Rival Starbucks Nationwide Starting Today
James Beard Award Winners Are Named
Texas Roadhouse 1Q profit up 11 percent
Sysco net income falls 6%
Take Cover! Marketing Blitz for McCafe Is on the Way
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Featured Article


The Celebrity Risk

By: Christopher Wolf

It’s not just the economy that’s taken a hit in the past several months: Celebrity endorsements are also down for the count, pummeled by the rapid-fire of media revelations about the personal lives of Michael Phelps, Chris Brown, and Alex Rodriguez. This time, however, the shocking news is not so much that these athletes and artists are human, but that the public is holding the sponsor companies like Kellogg’s, Subway, and Wrigley just as responsible as the celebrities themselves

A celebrity endorsement is obviously a mutually beneficial concept: Famous people get a load of money to associate with a particular brand, creating a very powerful halo effect that enhances people’s interest in and perceptions of a brand’s quality and relevance. But does this tactic really work? Mintel Research revealed in 2005 that out of nearly 1,000 consumers, less than 10 percent would buy celebrity-endorsed foods and drinks, even when it was someone they “admire or trust.”

 According to the Notable Names Database, McDonald’s has signed at least 41 celebrity endorsement deals over the years. Though associations with squeaky-clean personalities like Mary Lou Retton and Michael Jordan proved great for the company, Kobe Bryant was just one of many celebrities including the Olsen twins, Donald Trump, Dennis Rodman, Charles Barkley, and Britney Spears who gave the Golden Arches cause for disappointment at times.

But reputation fallout for some brands, of course, can be cool “props” for another. Burger King signed with Sean “Diddy” Combs in 2006, despite the musician’s past association with weapons and drugs. Similarly, Paris Hilton’s explicit videotape infamy is probably what gave her the street cred to star in an eye-popping car-washing commercial for Carl’s Jr.

Even White Castle’s brand experienced a relevance revival when it green-lighted the use of its trademark-protected name in “Harold & Kumar Go to White Castle,” a movie connecting pot smoking to cravings for the restaurant’s food.

Then there are other times that good or bad reputations are less of an issue than simply a lack of fit. A few years ago, award-winning celebrity chef Rick Bayless, known for his authentic haute-Mexican restaurants in Chicago, endorsed Burger King’s new low-fat chicken sandwich, causing a disapproving uproar in the foodie community (particularly the Slow Food Organization he had previously supported). Similarly, some Food Network fans were puzzled last year to see home cook Rachael Ray, who loves her EVOO, promoting Dunkin’ Donuts products in TV commercials

So what does the future hold? Should operators trade real people for fictional icons like Ronald McDonald and the King? Should lawyers write even...

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Notable Quotable


Obviously everyone wants to be successful, but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world.

- Sergey Brin (Google Co-founder)

Weekly Market Reports

View updated pricing and information each week on the website for the following food-commodity markets:

Beef, Veal & Lamb View Detail 
Many of the beef markets have moved lower during the past week as production has risen and nearby demand has slowed. Many choice beef markets typically move upward in the coming weeks due to late Memorial Day holiday feature buying. However, the percentage of cattle grading choice and higher remains well above prior year levels. This factor and seasonally rising beef production may temper any pending beef market increases. To date, 2009 choice (4%) and prime (5%) beef output are estimated to be greater than 2008 despite a downturn in overall cattle slaughter. Price USDA, FOB per pound.

Dairy View Detail 
The cheese markets are depressed. Cheese output has been solid as producers try to build inexpensive cheese stocks. Cyclical charts indicate that the cheese markets could move modestly upward soon. The current domestic butter market is at roughly a $.16 premium to international prices. Butter exports should remain lethargic which may mitigate any pending butter market increases. Dairy cow for slaughter prices are rising indicating that the reduction of the milk cow herd has slowed. Prices per pound, except Class I Cream (hundred weight), from USDA.

Poultry View Detail 
Tyson Foods, a major US chicken producer, announced this week that their chicken segment has been profitable since late February. Margins for overall chicken processors remain poor, however, which should cause chicken production cutbacks to persist. The H1N1 flu strain may be bullish for US chicken leg quarter exports. The chicken leg quarter market continues to seasonally firm. Leg quarter prices could gain another $.10 a pound or so in the coming months. The chicken breast markets are trying to move upward. Some additional modest chicken breast price increases are likely. First quarter 2009 whole (3%), white (1%), and yolk (4%) liquid egg production were all less than last year. Prices USDA, FOB per pound except eggs (dozen).

Seafood View Detail 
A market price dispute between Newfoundland fisherman and crab processors has appeared to have been settled although both parties may still be perturbed. Declining snow crab leg prices are making it more difficult for both the aforementioned parties to be profitable. The snow crab leg markets may be nearing a bottom. Salmon production out of Chile is expected to remain below 2008 levels due to disease challenges. Prices for fresh product, unless noted, per pound from Fisheries Market News.

Pork View Detail 
Nearby hog and pork markets have been pressured downward during most of the past week due to the unfortunate association with the H1N1 flu. Flu concerns and media attention appear to be abating which could bring some pork demand back in the coming weeks. That being said, some longer term demand damage has likely occurred which could limit the upside potential of various markets including hams. Buyers may want to visit pork contracts soon to take advantage of the recent market depreciation. Prices USDA, FOB per pound.

Produce View Detail 
The major lettuce harvest area transition to the Salinas region has been challenging due to inclement weather and tempered acreage. Iceberg lettuce shipments last week were 15% less than a year ago. Lettuce weights have also been poor which is causing processors to pull more of the open market supply. The lettuce harvest is expected to modestly improve in the coming weeks but lettuce prices may remain above 2008 levels. Tomato shipments are light as well but lethargic demand is helping influence the tomato markets lower. The potato markets are steady. Prices USDA FOB shipping point unless noted (terminal).

Oil and Grains View Detail 
US planting delays, South American crop challenges and aggressive Chinese buying have influenced the grain markets upward. Volatile grain prices may persist. Prices USDA, FOB.

Canned and Frozen Food View Detail 
Tomato Products, Canned - The industry is once again concerned about challenging Midwestern weather. The canned tomato markets are firm and should remain so into the new harvest season this summer. Prices per case (6/10) FOB, unless noted from ARA.

Processed Fruits and Vegetables - Vegetable for canning planting, in most areas of the country, is behind. Fairly elevated processed vegetable markets are expected to endure. Prices FOB per case from ARA.

Discussion Forums

Employee Bonuses

Community member Yvette writes...

After many years of being irritated by employees losing and breaking stuff, I made a change this year.  Every year I always do Christmas bonuses for all employees and it  has always been based on senority, the longer you work the more you get.  This year I am starting with the $7,500 that I usually give for employee bonuses.  Each time I have to buy new silverware, plates, spatulas, spoons,...

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Help with complaint resolution

Community member daisysmom writes...

So there is this long rambling message on the anwering machine regarding a steak dinner 4 days before. She was upset at the price because she didn't read it on the menu before ordering, said the well done steak was burnt, but slightly pink in one  area ( the steak had a coffee/herb rub on it which can have a slight crunch) She didn't complain or send it back before eating the WHOLE meal because she felt that if she started...

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Where to promote online?

Community member Mike writes...

We just started an independent in London, Uk, and I need to find better ways to promote my restaurant online. So far, I joined TopTable (it's a must in the UK) but results are mixed, I'm not sure I get a return on the investment.

Do you have any recommendations where to promote?

...

Read More

Food Quiz

Bitter Taste Prized by Some, Disliked by Others

I originated in the Middle East, grown in Spain during the 8th Century, and brought to the USA by the Spaniards. Although I am a rich source of iron as well as vitamins A and C, I also contain oxalic acid which inhibits the body’s absorption of calcium and iron, so my nutritional value is somewhat diminished. I have a slightly bitter taste, which is prized by some and disliked by others. I am flat, curly, a big vine, a baby leaf, but always green. I come fresh, canned or frozen. I can be used in salads, souffles, as a side dish, steamed, boiled, or stuffed like a grape leaf. Post 1929 my consumption increased 33% among children all for the love of Olive Oil.

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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