Weekly Roundup – Week of 1.23.2023
January 27, 2023
Discover the latest food and beverage-related industry news in this week’s roundup, curated by our team of strategists and food enthusiasts:
Booze For Breakfast?
The next generation of breakfast and brunch players have a thirst for building profits by adding more alcoholic libations to their morning menus. Robin Gagnon, CEO of We Sell Restaurants, tells FSR, “The average profit margins on alcoholic beverages can reach as high as 70 percent; food, on the other hand, hovers closer to 25 percent.” Beyond more common boozy breakfast beverages such as mimosas and Bloody Marys, restaurants that expand their spirit offerings and craft signature drinks are realizing financial gains by charging a premium. Another Broken Egg, for example, has expanded its beverage lineup to include seasonal LTOs and food and beverage pairings to entice repeat visitors, doubling alcohol sales since 2016. Both Snooze and The Toasted Yolk have had similar experiences by putting creative twists on classic favorites with unique ingredients. See FSR Article.
Video Technology Helps Deter Theft and Increase Checkout Time
Kelly Pedersen, Retail Leader at PwC informs The Food Institute, “In the grocery environment we’re seeing that about one in 15 items leave the store without being scanned. Some of it’s intentional and some of it’s unintentional.” New advancements in video analytics, such as cameras inside carts that alert customers of photos being taken of items in their cart, reminding them to purchase, will help combat this issue. In addition, these video enhancements are predicted to enable checkout-free shopping and reduce costs for retailers on a larger scale versus previous just-walk-out technologies requiring RFID tag scanning. Learn More.
Dollar Stores Offer More Bang For The Average Americans’ Buck
With soaring food prices, consumers continue to look for alternate resources for buying food, and dollars store are becoming a popular source. A recent study conducted by the American Journal of Public Health looked at data from 50,000 households and found that “dollar stores were the fastest growing retail channel for food purchases, with an 89.7 percent increase during the study’s time period.” Analysts noted that growth was higher in rural locations where “dollar stores increased their share of household food purchases by 102.9 percent.” While lower prices make these budget-friendly retailers an appealing destination, they also come with some drawbacks like a lack of fresh foods and more pre-packaged, less-healthy food choices. Read More.
No More Sides of Fries Or Onion Rings?
The potato and the onion industry are the latest to report supply chain shortages citing bad crops due to poor weather conditions. According to the National Onion Association, the 2022-23 onion crop was 5% below 2021-22 levels. U.S. potato harvest was also down 3% from 2021. Portillo’s CEO Michael Osanloo tells Bloomberg, “Supplies of onion rings and French fries have turned into a real “nightmare” this year.” And Andrew Lokenauth, a foodservice/restaurant analyst, said that “restaurants may have to look for alternatives, raise prices, reduce portion sizes, eliminate items or a combination of all of the above.” Potentially, these shortages could last the rest of the year causing restaurants to look at alternative veggies to replace their fries and onion rings offerings. Lokenauth adds that restaurants could experience lower profit margins due to the higher prices of these menu staples. Read Article.
Chefs In the Spotlight
Celebrating excellence and exceptional talent in the culinary and food industry starts with The James Beard Foundation announcing its 2023 Restaurant and Chef Awards Semifinalists. Categories include:
- Outstanding Restaurateur & Restaurant
- Outstanding Chef and Outstanding Pastry Chef
- Emerging Chef
- Best New Restaurant and Best New Bakery
- Outstanding Hospitality
- Outstanding Wine and Other Beverages Program
- Outstanding Bar
Clare Reichenbach, CEO of the James Beard Foundation says, “After a year of fundamental changes, we look forward to building on the progress made, celebrating those paving a better future for us all—through their talent and craft, service to others, and commitment to a better, more sustainable industry.”
Nominees will be announced on Wednesday, March 29, and winners will be celebrated at The James Beard Restaurant and Chef Awards Ceremony on Monday, June 5, 2023, at the Lyric Opera of Chicago.
Find all the categories and individual semifinalists for The James Beard Foundation 2023 Restaurant and Chef Awards here.
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