Battle of the Brands Local Flavour Procuring Change
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LOCAL PROCURING BATTLE OF FLAVOUR CHANGE THE BRANDS Artisanal cheese MTY commands Are grocery stores is wooing attention with a robust threatening the Canadian chefs acquisition strategy restaurant business? CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470 CANADIAN PUBLICATION foodserviceandhospitality.com $20 | JUNE 2015 Brand Culture Marketing & Promotions 14-5250 Satellite Drive, Mississauga, Ontario L4W 5G5 T: 905 361 0305 F: 905 629 9305 REVISION: FA DATE: MAY 11, 2015 DOCKET: FFC CLIENT: French’s Food Company COLOUR: CMYK PROJECT: Frank’s RedHot Honey Garlic and Stingin Honey Garlic TRIM SIZE: 8.125” x 10.875” DESCRIPTION: Foodservice & Hospitality (Kostuch) Full Page Ad - ENGLISH BLEED SIZE: 8.375” x 11.125” CONTACT: Barbara MacDonald DATE REQUIRED: 2015 LIVE AREA: n/a CALL US Introducing for FREE Samples 1 866 428 0119 PLUS we’ll send you a Rebate Offer TM TM & The #1 Hot Sauce in Canada now brings you the #1 Wing Sauce flavour in Canada Frank’s RedHot® Frank’s RedHot® Honey Garlic Sauce Stingin’ Honey Garlic™ Sauce • The wait is over – Operators now • Frank’s RedHot Stingin’ Honey Garlic™ Sauce have a one-stop-shop for their patrons’ kicks it up a notch by offering a perfect blend favorite wing sauces! of Heat & Honey Garlic • I Put That on Everything – Perfect • Frank’s RedHot Stingin’ Honey Garlic™ taps for Wings, Ribs and Chicken Fingers into the growing trend of infusing heat into traditional flavours** *Menu Incidence ~ Leading Wing Sauces Flavours (2014) PRODUCT SIZE / FORMAT UNIT UPC# Honey Garlic 49 Frank’s RedHot® Honey Garlic Sauce 2/3.78 L 56200-92823 Barbecue 39 Frank’s RedHot® Stingin’ Honey Garlic™ Sauce 2/3.78 L 56200-92824 Buffalo 37 www.frenchsfoodservice.ca [email protected] *Source: Technomic MenuMonitor 2014 **Source: McCormick Flavour Forecast 2014 © 2015 The French’s Food Company LLC VOLUME 48, NUMBER 4 JUNE 2015 CONTENTS 64 14 53 Features 14 CHEESE PLEASE 51 KING OF THE FOOD COURT 61 WHAT’S ON TAP Canadian cheese may be relatively An insatiable appetite for the quick- There’s no shortage of equipment young, but it’s winning favour among service market makes MTY Food Group innovations brewing in the beverage- local chefs and their customers an old pro at the acquisitions game, and dispensing category By Mary Luz Mejia that’s not likely to change anytime soon By Denise Deveau By Jackie Sloat-Spencer 23 INTRODUCING THE “TOP 100 REPORT” F&H’s annual “Top 100” previews the 53 BLURRED LINES Departments ingredients for ongoing industry growth The distinction between foodservice and By Brianne Binelli grocery isn’t as clear as it used to be, as the popularity and quality of grocery 2 FROM THE EDITOR 25 THE “TOP 100 REPORT” store home-meal replacement rises 5 FYI Compiled by Jackie Sloat-Spencer By Carol Neshevich 13 FROM THE DESK OF ROBERT CARTER 45 GAME CHANGERS 57 BROWN FADES TO WHITE 64 CHEF’S CORNER: Tony Fernandes, This year’s “Top 100” players are grow- Light-coloured spirits, such as tequila Royal Equator Inc., Toronto ing fast, expanding their concepts and and gin, are revving up cocktail menus reinventing their brands By Alan McGinty By Helen Catellier COVER DESIGN: MARGARET MOORE, PHOTOS: DREAMSTIME.COM [BRIE CHEESE WITH HONEY, ALMOND AND CHOCOLATE CHIPS], MARGARET MULLIGAN [TONY FERNANDES], DREAMSTIME.COM [BLURRED SHOPPING] ALMOND AND CHOCOLATE COVER DESIGN: MARGARET MOORE, PHOTOS: DREAMSTIME.COM [BRIE CHEESE WITH HONEY, FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2015 1 FROM THE EDITOR For daily news and announcements: @foodservicemag on Twitter and Foodservice and Hospitality on Facebook. POWER TO THE PEOPLE t no other time in history has so it’s clear a better educated and informed much power rested in the hands consumer will no longer put up with the Aof the consumer. In the past, same-old, same-old. Consumers are infi- consumer choice was dictated by what nitely more vocal about what they like businesses decided to offer. Today, the and don’t like, as evidenced by the grow- opposite holds true: consumers now fuel ing popularity and use of peer review what operators feature on their menu. sites such as Yelp. The reality is quickly altering the face of Today’s consumers are varied in their the restaurant industry and promises to demands: they want healthier offerings; further alter what the foodservice indus- they want ethically sourced products; try will look like in the future. they want to patronize businesses that Just look at the recent woes being are treating their staff properly and com- faced by McDonald’s Restaurants in the pensating them well; and, above all, they U.S., where the leviathan has been forced want innovative offerings. In fact, NPD to restructure domestic and interna- research shows 22 per cent of consum- tional units by shuttering hundreds of ers will visit restaurants to try unique restaurants, cutting costs and selling items. Furthermore, they want to dine in back corporate stores to franchisees — a casual environment, with fast-casual not to mention, of course, introducing now the fastest-growing segment in the healthier items on an already packed industry. In short, today’s consumers menu. In Canada, the giant is report- want what they want, when they want it. In today’s frenetic edly introducing kale salad and whole For operators struggling to increase “ time-starved world, grains to its menu, while, in the U.S., their share in an increasingly flat mar- change is being it’s testing sirloin burgers. As Robert ketplace, the challenge to steal business Carter of NPD noted at the Canadian from somewhere else is an ongoing fuelled by the rapid Restaurant Investment Summit held in battle. And, with the rate of change only rise of technology, Toronto last month, “Consumers are in expected to intensify, operators need to the growing need for control, and they’re changing the way evolve and deliver innovation quicker businesses operate.” than ever. convenience and the These days, it’s all about change. But, increasing influence while today’s consumers clearly want an of millennials increasing number of healthier choices, restaurant operators can’t afford to make ” changes just for the sake of it. First, they need to understand what’s driving it. More often than not, in today’s frenet- ic time-starved world, change is being fuelled by the rapid rise of technology, the growing need for convenience (see “Top 100 Report” overview story on p. 45) and the increasing influence of millenni- als. In fact, according to stats from NPD, millennials eat at restaurants more than any other age group, with the average one eating out of home 235 times a year. Rosanna Caira Take a look around at the burgeoning Editor/Publisher options on most restaurant menus, and [email protected] 2 FOODSERVICE AND HOSPITALITY JUNE 2015 FOODSERVICEANDHOSPITALITY.COM HOW DO YOUR SANDWICHES FOUNDER MITCH KOSTUCH STACK UP? Feb. 11, 1931– Oct. 23, 2014 EDITOR & PUBLISHER ROSANNA CAIRA [email protected] MANAGING EDITOR BRIANNE BINELLI [email protected] ASSOCIATE EDITOR HELEN CATELLIER [email protected] SPECIAL PROJECTS EDITOR JACKIE SLOAT-SPENCER [email protected] ART DIRECTOR MARGARET MOORE [email protected] MULTIMEDIA MANAGER DEREK RAE [email protected] DIGITAL CONTENT MANAGER MEGAN O’BRIEN [email protected] GRAPHIC DESIGNER COURTNEY JENKINS [email protected] SENIOR ACCOUNT MANAGER/U.S.A. WENDY GILCHRIST [email protected] ACCOUNT MANAGER/CANADA STEVE HARTSIAS [email protected] ACCOUNT MANAGER/CANADA MARIA FAMA VIECILI [email protected] ACCOUNT MANAGER CHERYLL SAN JUAN [email protected] SALES & MARKETING INTERN DANNA SMITH CIRCULATION PUBLICATION PARTNERS [email protected], (905) 509-3511 DIRECTOR JIM KOSTUCH [email protected] ACCOUNTING MANAGER DANIELA PRICOIU [email protected] OFFICE MANAGER TINA ALEXANDROU [email protected] ADVISORY BOARD CARA OPERATIONS KEN OTTO CORA FRANCHISE GROUP DAVID POLNY CRAVE IT RESTAURANT GROUP ALEX RECHICHI FAIRFAX FINANCIAL HOLDINGS LIMITED NICK PERPICK FHG INTERNATIONAL INC. DOUG FISHER FRESHII MATTHEW CORRIN JOEY RESTAURANT GROUP BRITT INNES KATIE JESSOP, REGISTERED DIETITIAN LECOURS WOLFSON LIMITED NORMAN WOLFSON NEW YORK FRIES & SOUTH ST. BURGER CO. JAY GOULD SCHOOL OF HOSPITALITY & TOURISM MANAGEMENT, UNIVERSITY OF GUELPH BRUCE MCADAMS SENSORS QUALITY MANAGEMENT DAVID LIPTON SOTOS LLP JOHN SOTOS MANITOWOC FOODSERVICE JACQUES SEGUIN THE HOUSE OF COMMONS JUDSON SIMPSON THE MCEWAN GROUP MARK MCEWAN UNILEVER FOOD SOLUTIONS NORTH AMERICA GINNY HARE To subscribe to F&H, visit foodserviceandhospitality.com Volume 48, Number 4 Published 11 times per year by Kostuch Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6. Tel: (416) 447-0888, Fax (416) 447-5333, website: foodserviceandhospitality.com. Subscription Rates: 1-year subscription, $55 (HST included); If you’d like to see your sales and profits reach new U.S. $80; International, $100. heights, contact Piller’s Foodservice Sales. Canada Post – “Canadian Publication Mail Product Sales Agreement #40063470.” Postmaster send form 33-086-173 (11-82). We’re experts at helping your foodservice programs climb Return mail to: Kostuch Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6. to their potential. Member of CCAB, a Division of BPA International, International Foodservice Editorial Council, Restaurants Canada, The American Business Media and Magazines Canada. We acknowledge the financial support of the Government of Canada, through the Canadian Periodical Fund Foodservice Sales • 1-800-265-2628 (CPF) of the Department of Canadian Heritage. Printed in Canada on recycled stock. www.pillersfoodservice.com PHOTOS: PATTY WATTEYNE MONTHLY NEWS AND UPDATES FOR THE FOODSERVICE INDUSTRY FYI GET WITH THE PROGRAM The foodservice industry is going through a metamorphosis, and successful operators will keep evolving as millennials become the spenders of an economy in flux BY BRIANNE BINELLI hange is pervasive, but it’s how foodservice opera- tors respond to the challenges it presents that makes Cthe difference.