Pizza, Pasta, & Profit

OBER 2018 T C O SmartChainSmartVENDOR RESOURCES / TRENDS / NEW PRODUCTS ® Dynamic Duo S2 Going Global S6 Pizza Power S7 Key Players S8 P A,IZZA, PAST Industry staples are adapting to new food trends ANY P AND to drive restaurant sales. BYV DA INA VAN BUREN DAKOTA GROWERS PASTA COM PROFIT SPONSORED SECTION | OCTOBER 2018 S1 SmartChain Pizza, Pasta, and Profit Dynamic Duo Pizza and pasta can help your quick serve stand out among a sea of sandwiches. izza and pasta are comfort foods that Hormel connect many of us to fond memo- Pries: Italian grandmothers who sim- mer the perfect sugo sauce, or Southern- style Sunday dinners with creamy macaroni and cheese served alongside crispy fried chicken. Even one of the most enduring love stories ever to be told on the silver screen—Lady and the Tramp—is most famous for the iconic spaghetti and meatballs scene. And who doesn’t love pizza? From grade-school cafeterias to hipster kitchens across the nation, the classic pie continues to reinvent itself. Both pizza and pasta have several attractive qualities with regard to taste and profitability, but equally important is the strong emotional connection Americans have to these foods. “Pasta is loved by nearly everyone,” says Liz Housman, director of marketing for Dakota Growers Pasta Company. “Its fans span all ages, ethnicities, regions, and cul- tural backgrounds.” In the most traditional sense, pasta is made with durum wheat semolina and water and is formed through a die to form its shape. There are hundreds of “Technology today allows operators who don’t have the shapes, but spaghetti, lasagna, penne, and equipment or labor to still serve great pasta, with pre- fettuccine are the most popular today. “Americans have had a long love affair and-par-cooked pasta that can be prepped in a third- with pasta,” says Robert A. Vermylen, vice party facility and delivered to the unit level ready to use.” president of Zerega. “In addition to being a comfort food, it is perceived as being easy to prepare, economical, and nutritious— especially when included in a healthier or a frozen square of Elios out of the home talgia while also experimenting with Mediterranean-style diet.” oven,” says Anthony Panichelli, foodser- bolder flavors. Many fast casuals are Americans also have a deep-rooted vice brand manager for pizza toppings expanding their menus to include more love for pizza. “Everyone remembers being at Hormel. “Nostalgic as ever, pizza is the pizza and pasta options, particularly for a kid and having a piece of pizza that ultimate comfort food.” health-conscious diners. was too hot and burned the roof of their As consumers become more educated Typically restaurant leaders and din- mouths—whether it was reheated in the about where their food comes from, many ers think of “clean” meats and plant-based deck oven of a New York City slice shop, quick serves are capitalizing on that nos- options when they think of healthy foods, HORMEL S2 OCTOBER 2018 | SPONSORED SECTION SmartChain Pizza, Pasta, and Profit but it’s important to note that the pasta pasta comes in dozens of shapes and sizes are also rising stars on pasta menus. “The and dough industries have evolved, too. and isn’t limited to Italian restaurants and long mafalda has a wide surface and curly Manufacturers—and restaurateurs—are cuisine—it’s at home on ethnic menus from edges that gives a dish a commanding listening to consumers who want ingre- coast to coast in iconic dishes. It can be seen presence,” Housman says. “It matches well dients that are minimally processed and in dishes like Vietnamese pho—typically with creamy sauces like alfredo or sugo contain less fat and sugar. On one hand, made with rice noodles—and fun takes on sauces made with braised meats.” this means consumers have more choices classic street snacks, like taco pasta. Another trend is the customization of than ever. On the other, the industry has In the last decade, the use of nontra- pasta shapes to improve pasta performance also seen tremendous consolidation. ditional flours has increased, allowing and customer satisfaction. “This includes “Where there may have been more for even more customization and healthy changing the pasta’s size or wall thickness than 50 regional pasta manufacturers options. “Whole-wheat pasta led the to enable it to hold up in a demanding food- in the mid-20th century, today there are movement, but more recently, gluten-free service environment,” Vermylen says. eight large pasta manufacturers in the pastas can be found on many menus for For pizza, trends also point to more U.S. operating fewer than 20 large pasta substitutions or in gluten-free only pasta healthy options—as seen in shaved fennel, plants,” Vermylen says. These modern, dishes,” Housman says. The same can be naturally-fermented doughs, and wilted highly-efficient operations produce mass said for pizza crusts. Ancient grains like greens as popular toppings—though the quantities of dry pasta products. buckwheat or teff are being added to tra- pendulum swings more broadly in this cat- The product mix has also changed over ditional or gluten-free semolina flours, egory. At the other end of the spectrum, the years. Twenty years ago, the major- which make for a heartier, more rustic fla- Wisconsin brick cheese, rough chop pork ity of retail and foodservice pasta sold con- vor, and are often more filling due to their sausage, and mounds of cupping pepperoni sisted of the most popular pasta shapes, higher fiber content. can take an already “guilty pleasure” dish such as elbow macaroni, spaghetti, rotini, While the “better for you” category to the next level of gooey deliciousness. and shells, and was made with one ingre- has garnered much attention over the When considering adding pizza or pasta dient: 100 percent durum semolina. Today, past several years, its sales still total less to an existing menu, quick-service opera- than 12 percent of the pasta category. For tors should keep a few key ideas in mind. “The science has shown now, quick serves and fast casuals that are First, it requires minimal equipment to looking to experiment with pasta on their make both dishes. Pasta lends itself to quick that pasta is a natural part menus may be best served to stick with service with the ability to cook off prod- of a healthy, sustainable traditional semolina varieties, but with uct in the morning and re-therm it to order a twist: offer new and interesting shapes, with added sauce and ingredients in as lit- diet.” such as cavatappi, pipette rigate, and tle as three minutes. twisted elbows. Pappardelle and mafalda “Finishing pasta in sauce onsite in a skillet and to order delivers the best experience,” says Yury Krasilovsky, foodservice chef for Barilla. “But technology today allows operators who don’t have the equipment or labor to do this to still serve great pasta, with pre- and par-cooked pasta that can be prepped in third- party facility and delivered to the unit level ready to use.” High-quality pizzas require a bit more equipment—a hearth deck or wood-burning brick oven— but come in surprisingly small sizes these days. If a restaurant has room, it can be well worth the investment. These comfort foods are also a familiar and “safe” way for diners to experiment with K C new flavors, allowing brands ISTO S4 OCTOBER 2018 | SPONSORED SECTION Pizza, Pasta, and Profit SmartChain to introduce a new ingredient or cook- ing technique in a friendly context. Both dishes lend themselves to creating new “Even a small amount menu options using ingredients already of innovation in terms in the pantry, whether it’s using freshly chopped vegetables, cooked meats, or of pasta cut, shape, made-in-house dough. Additionally, both or sauce outside of pizza and pasta can be cost-effective ways to stretch the budget by pairing with more the basic red or white expensive ingredients, like cream sauces, sauces and spaghetti specialty items, and seafood. “There’s a lot of sameness on menus, or penne can do a lot to especially in quick-service restaurants,” differentiate a brand.” Krasilovsky says. “Even a small amount of innovation in terms of pasta cut, shape, or sauce outside of the basic red or white sauces and spaghetti or penne can do a lot to differentiate a brand.” This is exactly what consumers are searching for—some- thing new and different, yet undoubt- edly familiar. Simple promotions centered around pasta, like “pick your pasta, pick your sauce, pick your protein” specials, can be popular with families mid-week and help use excess product. As for pizza, operators can capitalize on the techniques popularized by trendy pizza shops. Examples include the spicy square slice, Detroit-style pizza, New Jersey bar pie, and using two different types of mozzarella. “Pizza is essentially only a few ingredients, so to stay on top of the most craveable ways to put those ingredients together is to stay top of mind for consumers,” Panichelli says. Savvy restaurateurs will also stay in tune with the changing perceptions— and misconceptions—about these comfort foods over time. For years, bread and pasta makers have fought against the idea that these foods cause weight gain. Pizza release energy in our bodies—particularly ation of product line diversification with and pasta will always have their place on handy for endurance athletes—and glu- an emphasis on nutrition and perfor- “cheat day,” and like almost any food, they cose, which is crucial fuel for brain and mance in the operators kitchen, and even can be prepared in ways that are decadent muscle health and development.

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