Menu Essentials Menu/Product Essentials Are Determined By Our Patented Analysis Of The Top 100 Most Influential Restaurants, Cross Linked with Culinary and Trade Print Media Menu Innovator® 2020© is protected under U.S. Patent and Copyright Laws and is the exclusive property of Lagana Culinary Inc. Permission for reproduction of this information is allowed provided Menu Innovator® is referenced. Menu Essentials Introduction ● Economic uncertainty is beginning to have an impact on restaurant ● sales growth. ● Distribution and labor costs continue to rise, forcing new business ● models. ● Labor cost is predicted to increase 50%-100% within 5-7 years (Technomic). ● Skilled labor for national restaurants is difficult to find and keep. Menu Innovator 2 Menu Essentials The State of The Restaurant Industry ● Logistics are hampered by a shortage of drivers, pressuring further wage increases. ● Multi-use SKUs using fresh ingredients change the character of core items. ● Draught and unusual weather will drive up commodity cost. ● Regulatory compliance costs will go up 50% by 2020. ● An ever-demanding consumer wants to “have their cake and eat it too.” They want “innovative, yet familiar food” that is healthy, tasty, delivered quickly and cost effective. Menu Innovator 3 Menu Essentials The State of The Restaurant Industry Research and Development ● Ingredient advances through cleaner (natural) ingredients and methods help to create balanced nutritionals. ● Fruit and vegetable pulps/powders replace sugar, salt and fat. ● The flavor industry will flourish with the need to reduce cost and improve nutritionals. ● Flavors high in anti-oxidant value are used across all categories. Menu Innovator 4 Menu Essentials The State of The Restaurant Industry Research and Development ● Naturally modified functional starches to replace current starches. ● “Ready To Eat” ingredients will be essential to provide safety and the ability to cold mix multiple foods in restaurant. ● This is accomplished through shelf stable, hot fill, aseptic, and high pressure pasteurization. ● Automation in cooking will be a big push as labor rises. This means newer equipment, faster cooking, less time and resources to prepare in restaurant. Menu Innovator 5 Menu Essentials The State of The Restaurant Industry Research and Development ● Less use of classic Northern European cooking methods (i.e. cream and butter) and more of a move to warmer climate cooking with the use of vegetables, grains, chilies and spices. ● “Good for You” oils and citrus are the natural flavor enhancers. Super fruits will continue to flourish beyond desserts. ● High protein diets are the norm. Eggs and vegetable proteins stand side by side with traditional items. ● “New American,” “Local,” “Seasonal” is more of a philosophy than a style. All cuisine styles will incorporate this into their “ethnic” menus, while maintaining authenticity. Menu Innovator 6 Menu Essentials Strategies ● Simplification: Menus, with the exception of a few players, will get smaller with less offerings. “Signature” new menu categories will be like snacks, with less offerings. ● Fast Casual defends against quick service, drive through, mobile ordering, third party delivery. Quick service ups the ante. ● Proliferation of one dish where the protein is more of a garnish than the center of the plate. ● Abundance through the use of multiple textures, colors and flavors on each plate replaces large portions of protein. Menu Innovator 7 Menu Essentials Strategies ● Technology prevails. Restaurant apps, reward points and convenience all drive sales. ● Chef-run food halls continue to have great influence on all sectors. ● Contrary to the view towards health and wellness, there is the gastro movement, with a focus on meat, sausage etc. The emphasis here is high quality local offerings … All with a story. ● Kiosk ordering provides fast customized food and reduced labor . ● The restaurant experience equals “stress reduction.” With this, creativity in beverages will continue to expand and become the focal point in the dining occasion. Menu Innovator 8 Menu Essentials The Three Most Influential Cuisines #1 French ● After years of modernist cooking, we return to the French classics. ● All cuisines have embraced French-style sauces, preparations and desserts. ● At the same time, French cuisine has embraced lighter, healthier methods. ● Freshness cues in French menus of local, seasonal, named farms, mirror New American. ● French dessert methods continue to proliferate. ● Measured by Menu Mentions Menu Innovator 9 Menu Essentials The Three Most Influential Cuisines #2 Asian ● The rise in Asian sauces, noodle bowls, and spicy hot across all cuisines puts Asian cooking securely in the number two spot. ● The acceptance of sushi by all, especially millennials, has moved Asian cuisine well beyond the Chinese restaurants of the past. ● Southeast Asian herbs, chilies and spices are standard fare. ● Curries, especially Thai and Malaysian, have grown in popularity. ● Menus from all cuisines are influenced by spices, herbs and ingredients from Japan, Thailand, Korea, and India ● Measured by Menu Mentions Menu Innovator 10 Menu Essentials The Three Most Influential Cuisines #3 Italian ● Traditional Italian ingredients and sauces continue to hold a place on menus with bolognese, tomato and cream sauces. All have been updated, but go back to the roots of Nona’s cooking. ● Once, only Tuscany was of interest. Now, ingredients and styles span all regions of Italy. ● Italian cheeses have been on menus for years and continue to be. ● Antipasti, cold cured meats, cheese and vegetables have gained wide spread acceptance and are ready for prime time. ● Italian menus, like New American, tell a story around all ingredients, with sustainability, local produce and named farms for protein. ● Measured by Menu Mentions Menu Innovator 11 Menu Essentials Print Media Summary Top Ten Macro Trend Topics 1. Beverages – Craft brews, artisan whiskey, bourbon, rum, house made sodas, herb infused 2. Global Ethnic Cooking – Top cuisines in print are ethnic focused with many new spices and prep methods. 3. Day Parts – Doing more with less, adding excitement to existing dayparts, expanding times and offerings. 4. Seafood – Sustainability is a must. 5. Health and Wellness – No longer a trend, a “must have” giving a competitive edge. 6. Technology – Continually evolving from ordering and preparation to payment and delivery 7. Seasoning and Flavors – Ethnic focus delves deeper into cultural authenticity 8. Veggies – Vegetable protein, Vegetarian and Vegan 9. Meat and Poultry – Where does it come from? How is it made? Unique cuts 10. Comfort Food – In every cuisine … chicken, burgers, ribs, desserts Menu Innovator 12 Menu Essentials Print Media Summary Ten Macro Trend Topics –Cuisines 1. French: Preparations and classic sauces 2. Italian: Nona’s cooking 3. Asian: Spans across Japan, Thailand, India, Korea, Vietnam, Malaysia 4. New American: Established local sourcing for all styles 5. Latin: Making a come back 6. Mediterranean: A focus on eating well 7. Seafood: We are eating more seafood than ever 8. Steakhouse: The best steakhouses are reinventions of the past 9. Southern: Once a top cuisine, less of a focus now 10. Eclectic: Relegated to high end fine dining Menu Innovator 13 Menu Essentials Menu/Product Maker “Creativity Is Easy … Innovation Happens When That Creativity Is Channeled Into Profits” Menu Innovator 14 Menu Essentials Menu/Product Maker The first part of new product development is to focus on the fundamental shift in consumer awareness: ● Awareness of new flavors and cuisines and the overriding desire to feel what they are eating is good for them ● Food that has been prepared with honesty and integrity ● An assurance that all efforts are being made for the best possible product, at the best possible price ● No hidden ingredients, all natural, no preservatives ● Clean Label initiatives are an absolute must. What began back in 2005, is now being led by retail and fast casual. ● National restaurants, especially casual dining and Quick Service, are late to the show. Menu Innovator 15 Menu Essentials Menu/Product Maker Clean Label Targets for Removal Focus On The Three R’s –Reduction, Replacement, Redirection • MSG; flavor enhancer • Potassium sorbate, preservative, soy, jams, jellies, to prevent mold • I@G, msg replacer • Class 2,3,4 caramel colors • Propyl Gallate prevents fats from spoiling • Artificial colors, with numbers associated • BHA,BHT keeps fat and oil from going with them rancid • Sodium Nitrates, preservative in cured • HVP, hydrolyzed vegetable protein, meats, sausage, hot dogs, bacon flavorenhancer • TBHQ, antioxidant • Sodium Benzoate, preservative in softdrinks • Saccharin, Aspartame • Calcium disodium EDTA, preservative • Sodium tripoly phosphate, treatment in inmayonnaise shrimp • Potassium Bromate used in breads • Autolyzed Yeast extract • High Fructose Corn Syrup: Never,Never, • Sulfites, used in wines, dry fruits/ Never vegetables Menu Innovator 16 Menu Essentials Menu/Product Maker How it works ● We start by taking the top main categories from our menu analytics and add the: • Top proteins • The top herbs and spice • Top sauces • Top ingredients • Top preparation methods ● Then, we sprinkle these with ingredients from our Culinary Buzz, items that have not hit critical mass but are being talked about and seen on menus. Menu Innovator 17 Menu Essentials Menu/Product Maker Appetizers/Small Plates/Snacks ● Two Vegetable: One Mushroom and One Onion ●