Chick-Fil-A: The Harvard of Fast Food

The Washington Post: “Carrie Kurlander, vice president of public relations for Chick-fil-A, said the Georgia-based chain receives more than 40,000 inquires per year from people interested in becoming restaurant operators (the company’s term for ‘franchisee’). After filling out an initial “expression of interest” online, they complete a formal, written application. From there, the company conducts recorded live-video and in-person interviews with applicants, taking business experience and leadership skills into consideration.”

“The chain opens 100 to 115 new restaurants a year, Kurlander said, and operators typically run one restaurant each. The company runs more than 2,200 restaurants in 47 states, and the average restaurant makes more than $4 million in annual sales. Again: that’s 40,000 people who hope to become operators, and about 100 to 115 who make it through. To compare, of Harvard’s 42,749 applicants for the school’s incoming freshman class, it admitted 1,962.”

Kurlander comments: “We are very intentional with our selection process as we believe this model is the key to ensuring our customers receive the best care and experience possible.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Wendy’s Cultivates Better Tomato Experience

The Wall Street Journal: “By largely moving production to the U.S. from Mexico, where Wendy’s currently gets the majority of its tomatoes, and using the more controlled setting of greenhouses, the company says it expects to be able to deliver more ripe—and therefore more flavorful—tomatoes to its restaurants. There are also fewer insects and plant diseases to contend with when tomatoes are grown inside.”

“Whether consumers will care about the change in its tomatoes remains to be seen. Although fast-food rivals have been touting the quality and freshness of their food, consumers still want their meals at a low price.”

“Some tomato purists say nothing beats the flavor of a tomato grown in the soil. But field-grown tomatoes sold for commercial use are often sprayed with ethylene gas, a plant hormone that occurs naturally in fruit, just before they reach supermarket shelves or restaurants so that they appear ripe.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Decibel Diet: Loud Music is Fattening

The New York Times: “Behavioral scientists who ran a series of lab studies and real-life field experiments found participants selected more unhealthful or calorie-laden items like red meat and cake when the ambient music was loud, and were more likely to choose healthful items when softer music was played in the background. The genre of music did not appear to influence the choices, the researchers said: They found the same effects whether the background music was classical; a mix of pop, rock, soul, R&B and alternative music; or heavy metal.”

Dipayan Biswas, a professor of business and of marketing at University of South Florida in Tampa and lead author of the paper, comments: “High-volume music is more exciting and makes you physically more excited, less inhibited and more likely to choose something indulgent. Low music makes us more relaxed and more mindful, and more likely to go for the things that are good for us in the long run.”

“Loud background music in a supermarket similarly nudged customers toward less healthful purchases, compared with softer music … Dr. Biswas, whose earlier research found that patrons are more likely to order healthful items when restaurants are brightly lit and more likely to indulge in dimly lit restaurants, said the findings can help consumers be aware of unconscious factors affecting their choices.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Chick-fil-A-Pay: Not Chicken Feed

The Washington Post: “By 2022, the minimum wage in California will rise to $15. But the owner of a Chick-fil-A restaurant in Sacramento plans to go ahead and raise the wages of his employees now, offering a huge bump to $17 to $18 from the $12 to $13 he pays now. While analysts can’t say whether a $17 to $18 hourly wage is the highest in the country for front-line fast-food workers, it certainly appears to be among the higher ones, said David Henkes, a senior principal with Technomic, a restaurant research and consulting firm.”

Eric Mason, owner of the Chick-fil-A location in Sacramento, comments: “I’m looking at it big-picture and long-term. What that does for the business is provide consistency, someone that has relationships with our guests, and it’s going to be building a long-term culture.”

Warren Solochek, senior vice president of industry relations for the food service practice at NPD Group, adds: “You can’t have that high level of service when you continually hire people and have to train people. You need people who’ve been in their job for a while. That’s Chick-fil-A’s reputation, and that’s very true across the country.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

PF Chang: An American Bistro in China

The Wall Street Journal: “P.F. Chang’s may be seen as an upscale Chinese-food restaurant in the U.S. But the chain is calling its debut location in China ‘an American bistro’—which is exactly how its early customers there see it. ‘The food looks similar, but you eat the food and you know instantly it’s not Chinese,’ said Zhang Ji, 35, who works in finance … Animation designer Zhang Xue said she came because P.F. Chang’s got a shoutout on ‘The Big Bang Theory,’ the U.S. sit-com popular in China.”

“Like many upscale restaurants in China, the restaurant is in a shopping mall. There is a prominent white P.F. Chang’s sign on the 8th-floor entrance … Inside, the décor looks like a mix of old Shanghai meets American diner, with booths and tables … P.F. Chang’s created 10 new dishes for Shanghai customers, including Dusk ’Til Dawn Honey Chicken and Scallion Pancake, an Asian take on chicken and waffles that puts crispy chicken on top of a buttermilk pancake. The Duck Spring Roll features mozzarella, something a Chinese chef might consider sacrilege.”

“P.F. Chang’s is hardly the first foreign company to try selling a cuisine back to its native land. The Domino’s pizza chain arrived in Italy in 2015 and now has 11 locations there; South Korea’s Paris Baguette has two stores in Paris that sell bread back to the French … Yum Brands Inc., however, hasn’t had much success bringing Taco Bell to Mexico, despite two separate attempts.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Chik-fil-A ‘Secret Sauce’: Community

Business Insider: “Chick-fil-A’s recent dominance of the fast-food industry can be tied to one behind-the-scenes secret … It’s less expensive to open a Chick-fil-A than it is to open a location of almost any other chain. Chick-fil-A charges franchisees only $10,000 to open a new restaurant. However, unlike other franchises, it prohibits franchisees from opening multiple locations.” Industry expert John Hamburger says this franchise model puts “somebody in the store that was close to the customer. They’re dealing with the customer, they’re in the community. They’re active in the community. And that’s what Chick-fil-A does.”

“Chick-fil-A franchise owners are involved in hiring and firing employees. The company also encourages franchisees to get personally involved in the community through various local organizations. According to Hamburger, that allows Chick-fil-A to get a leg up on the competition in terms of quality and customer service.”

“Hamburger says chains such as Applebee’s are already seeing the negative impact of losing their community connections. The chain, which went to a 100%-franchised model in recent years, closed 99 stores in 2017 amid sinking sales … Chick-fil-A’s success as a rapidly expanding private company could help convince more public companies to follow in its footsteps.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Ordering Anxiety: The High Stress of Fast Food

The Wall Street Journal: “As menu choices multiply—and multiply and multiply—diners are suffering from option paralysis. Especially troublesome are assembly-line-style chains in “fast casual” restaurants where diners have just seconds to answer rapid-fire questions such as whether they want tahini or aioli sauce on their chicken shawarma, or prefer the turmeric almonds or pickled ginger on their beet falafel bowl.”

“People who get nervous at the counter say they worry about being judged for stumbling through their order, or feel pressured by having customers waiting behind them in line. They fret that their food will come out wrong, or that if they try something new they won’t like it. Others simply buckle under the pressure of too many choices. Sarah Anderson hates it when she gets to a restaurant counter thinking she knows what she wants, only to be asked ‘like 20 questions’ … Restaurant executives know this. They feel it themselves, sometimes.” Scott Gladstone, vice president of strategy at Applebee’s, admits: “I usually end up finding one thing on the menu I like and order it every time, because of the anxiety of the ordering process.”

“So, why do restaurant chains offer so many choices? Tom Ryan, the founder and chief executive of Smashburger, says if he didn’t, he would lose customers who yearn for new experiences.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Caviar Sandwich is Back!

The Wall Street Journal: “The caviar sandwich at the Grand Central Oyster Bar is back … the under-$15 sandwich, a novelty item that served as a kind of low-rent riff on the luxury lifestyle, disappeared from the menu several months ago. The reason? The cost of the bowfin caviar, a cheaper variety of fish eggs used for the sandwich, had suddenly soared. That left the restaurant with two options: Increase the price for the sandwich threefold or nix it from the menu altogether. Given that the whole point of the sandwich was the caviar-on-the-cheap aspect, the Oyster Bar chose the latter.”

“And Oyster Bar executive chef Sandy Ingber figured the situation would remain that way because he wasn’t finding any caviar purveyors cutting deals … The menu item, a fixture for more than 15 years, had never been a huge seller, as a typical day saw up to 10 orders. But those who liked it really seemed to like it, Mr. Ingber said. The appeal went beyond the novelty aspect, he added. The dish, with the caviar served on plain white toast and paired with chopped egg with a dollop of sour cream on the side, is a perfect study in contrasting textures and flavors: salty, creamy and crispy.”

“But Mr. Ingber still needed to find a source for low-cost bowfin caviar. Fortunately, one turned up at a trade show in Boston last month. The product is the same quality, he said, and only a tad more expensive when factoring in shipping. Mr. Ingber was able to reinstate the sandwich to the menu two weeks ago, raising the price by only a dollar to $13.95.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

7-Eleven: When Convenience Is Not Enough

The Wall Street Journal: “For 7-Eleven, Big Gulps and Slurpees are no longer enough. The convenience-store pioneer is falling behind rivals that are gleaning more sales from healthier snacks and freshly cooked meals … The company’s executives said they are working to come up with better foods to sell in their 9,700 North American stores. ‘Simply being open longer than the competitor … is not enough,’ said Raj Kapoor, referring to the stores’ extended hours. Mr. Kapoor, a 23-year veteran of 7-Eleven, is head of fresh food and proprietary beverages.”

“The effort to freshen up 7-Eleven’s business has run into resistance from the chain’s franchisees. Eight out of 10 7-Eleven stores are owned by franchisees, most of whom own fewer than five stores. Many say it is too expensive to maintain new equipment like ovens, and that 7-Eleven needs to pay to remodel their stores if they want them to sell more fresh and hot food. ‘Our stores don’t look like we are in the food business,’ said Hashim Sayed, who sold his store in Chicago back to 7-Eleven this week after 25 years as a franchisee.”

“7-Eleven says it has been addressing the shift in tastes for several years. But competitors have done more to sell fresh—and more profitable—foods, analysts said. Regional convenience chains Wawa Inc. and Sheetz Inc. make custom salads and hot meals at on-site kitchens. Iowa-based Casey’s General Stores Inc. is now one of the largest sellers of pizza in the U.S. CVS Health Corp. has reorganized its drugstores to display healthy food more prominently.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail