Fast-Food Restaurants Compete Over Breakfast

The food fight over the most important meal of the day has never been fiercer. Banking on breakfast being big business, fast-food chains are introducing new breakfast items and value meals in a hungry attempt to compete for cost-conscious consumers.

“There’s a breakfast war going on,” says Denny’s CEO Nelson Marchioli. “You can get a real breakfast with us, or spend the same and eat out of a wrapper.”  Stephen J. Caldeira, chief global communications and public affairs officer for Dunkin’ Donuts, has a different view. “Our customers know they can come to us any time of day for the best-tasting coffee in America.”

In these tough economic times, consumers are more apt to count their pennies than their pounds. Nutritionist Alyse Levine warns that while there are new, nutritious fast-food breakfasts, there are also treats that seem healthier than they really are. “Falling for that great deal may be one of the worst things you can do for your health,” says Levine.

Dunkin’ Donuts Waffle Breakfast Sandwich, $2.99

Dunkin’ Donuts doled out more than just donuts by introducing a waffle, egg, bacon and cheese sandwich, as well as a new $100 million ad campaign.

Levin warns consumers should count more than just an item’s calorie content. “A lot of restaurants are now listing calories next to the items. The Waffle Breakfast Sandwich only has 390 calories, fewer calories than a plain poppy seed bagel, but it has 14 grams of saturated fat…that’s as much as three slices of pizza.”

In a statement, Dunkin’ Donuts says their Smart Menu offers healthier options such as a turkey sausage and egg-white flatbread sandwich with 280 calories and 2.5 grams of saturated fat.

Watch the Video at ABC News

ABC News

Is 5 the New 1?

Paul Steinberg writes at BlueMauMau that the success of the Subway $5 footlong has led to other $5 promotions, redefining the “value menu.”

The dollar value menu disappeared long ago from high-cost urban areas, but the new $5 menu may have some staying power. Even in notoriously expensive Manhattan, a recent trip down 23rd Street showed a Subway, a Quizno’s, and a Boston Market offering $5 meal options.

In additon, Burger King has announced the rollout of a $4.99 Fire Grilled Rib, and Domino’s is offering a 5-5-5 deal on pizza/sandwich combos.

For franchise operators, the higher price point is a better alternative than angering customers who come in to their urban sites and expect to get the “national” dollar menu. In addition, the higher price point is less cannibalizing of the full-price menu, and is less likely to devalue the brand perception among consumers.

BlueMauMau

Survey Says, Management Training is a Priority

Training and developing staff remains an important priority for employers, despite the economic downturn; but budgets are being squeezed and prioritization of management and leadership development is the order of the day, according to the Chartered Institute of Personnel and Development (CIPD).

Seven in 10 employers say learning and development remains a high priority regardless of the financial situation — while almost half state that their economic/funding situation has worsened (46 percent), only a third (32 percent) say funding for training has been cut this year. A similar number (36 percent) also expect funding to decline next year.

The vast majority (81 percent) of learning, training and development managers in a survey of almost 900 have highlighted the development of management and leadership as the most important skill to embed in U.K. organizations in order to meet business objectives during the recession. Sixty-one percent of those surveyed are investing in new programs to develop the role of line managers to help them deliver effective training.

And despite government’s effort to ensure that skills gained from school, college or university qualifications directly relate to the world of business, 61 percent of respondents highlight business skills/acumen as deficient among this group. Business skills/acumen is also recognized as a key skill to develop in order to meet business objectives in the future.

“The recession is undoubtedly placing pressure on training budgets, but there is no evidence of budgets being slashed indiscriminately,” said Claire McCartney, learning, training and development adviser with the CIPD. “A skilled and motivated workforce will be essential to ensure organizations are well placed to take advantage of the recovery when it comes.

“Our evidence shows that employers recognize this and are doing what they can to ensure skills don’t stagnate despite the tough conditions. The importance of training line managers will also be crucial to building the resilience needed to emerge in good shape for recovery. With training budgets under pressure, they will have a big role to play in ensuring on-the-job learning is delivered and in prioritizing the training needs of their teams.

Chief Learning Officer Magazine

Chick-fil-A tests low-fat Breakfast Items in Knoxville

Knoxville has been selected by Chick-fil-A as one of three test markets across the country for new low-fat breakfast products.

From March 30 to May 30, consumers will have a chance to try such new items as fruit and yogurt smoothies and a yogurt parfait, as well as a breakfast kid’s meal and a new coffee blend. Feedback provided will help determine whether they will be added to menus nationwide.

Other test markets include Austin and Indianapolis. Knoxville was selected because it is home to a wide demographic range and a variety of styles of Chick-fil-A units including mall and stand-alone locations.

“Our customers have made it clear that they would like to have healthier alternatives for breakfast,” Woody Faulk, Chick-fil-A’s vice president of brand development and director of the chain’s menu strategy, said in a press release.

Smoothie flavors will include Blueberry Pineapple or Strawberry Banana Smoothie, which are made-to-order with fruit, vanilla yogurt, orange juice and lemonade.

The new yogurt parfait includes slices of strawberries, covered in vanilla yogurt topped with either Chick-fil-A’s own Harvest Nut Granola blend or chocolate cookie crumbs.

From April 13 through April18, all Knoxville-area all Chick-fil-A locations, including Alcoa, Maryville, Morristown, Oak Ridge and Sevierville, will host a Free Breakfast Week, during which time customers will receive a different complimentary breakfast item each day.

Knoxnews.com

QSRWeb Interviews McDonalds about McCafe Rollout

McDonald’s McCafe Line Exceeding Expectations

Specter Will Vote To Block Union Bill

Decision Is a Blow to ‘Card Check’

Sen. Arlen Specter (Pa.), the only Republican senator who did not actively oppose the Employee Free Choice Act in the previous Congress, said yesterday that he will vote to block it this year, dealing a blow to the pro-labor legislation.

Supporters of the bill need 60 votes in the Senate to stave off a filibuster. They were hoping to reach that by winning all 59 Democrats and independents (assuming Al Franken is seated from Minnesota before a vote occurs) and hanging onto Specter, a moderate from a state with a strong union presence.

But Specter is facing a primary challenge from the right, most likely a rematch against former congressman Pat Toomey, and a vote for the Employee Free Choice Act, dubbed “card check,” would only add to Republican ire against him. Recognizing this, the AFL-CIO raised the possibility of urging its members to back Specter in the general election if he supported the bill.

In his statement yesterday, Specter said he had always had reservations about the bill, which would make it possible for workers to form a union if a majority sign pro-union cards, without a secret-ballot election; stiffen penalties for employer violations; and require mandatory arbitration if a union and an employer can’t reach a contract in 120 days. While he agreed with unions that the current system is broken, he said he prefers more limited reforms, particularly during a recession.

Only if more limited reforms prove ineffective, he said, “then I would be willing to reconsider [card check] when the economy returns to normalcy.”

The announcement dismayed labor supporters, but they vowed to press on for 60 votes. Specter’s statement is “a disappointment and a rebuke to working people,” said AFL-CIO President John Sweeney. “We do not plan to let a hardball campaign from Big Business derail the Employee Free Choice Act or the dreams of workers.”

Business groups were triumphant. “No other Republican senator has given any indication he would be willing to vote [against a filibuster], and you need 60 votes,” said Keith Smith of the National Association of Manufacturers. “This is a key development.”

The Washington Post

Watch Arlen Specter’s Announcement at the US Senate:

Franchising takes hit as personal wealth, credit dip

Lisa van der Pool writes in the Boston Business Journal that the stock market’s dive and dried-up credit markets are battering the franchising business.

During previous recessions franchising had served as a bastion for laid-off workers seeking employment. But the lack of available credit today has made the franchise business — which requires a large outlay of cash to get started and maintain operations — a particularly tough prospect.

While the number of franchise starts in 2008 was unavailable, it’s clear that the franchising sector is taking its lumps. Last year, the number of bad loans tied to franchises spiked. And franchise failures for SBA 7(a) and 504 borrowers increased by 43 percent.

SBA loan losses to franchises totaled $93.3 million, a 167 percent increase for the year ending Sept. 30, 2008, according to a report by Colman Publishing in La Canada, Calif. The SBA does not break down franchise loan failures by geography.

“The challenge with this particular recession is the fact that there’s a credit crunch associated with it, plus you have the substantial decrease in assets. So now you have people who don’t have as much capital or net worth, so they can’t invest in a business they might have been able to invest in during the last recession,” said Jim Coen, executive director of the New England Franchise Association and president of the Dunkin’ Donuts Independent Franchise Owners.

Curves for Women, a chain of fitness centers, saw at least 11 of its franchises default on loans last year. Other national brands experiencing defaults among franchises include Domino’s Pizza, Subway and Carvel Ice Cream, according to the Coleman report.

Boston Business Journal

LEAN Act is Supported by DDIFO and Dunkin’ Brands

On March 10, 2009, Sen. Tom Carper (D-DE) and Sen. Lisa Murkowski (R-AK) introduced the Labeling Education and Nutrition (LEAN) Act of 2009, S. 558. Rep. Jim Matheson (D-UT) and Rep. Fred Upton (R-MI) introduced companion legislation in the House, H.R. 1398.

The LEAN Act looks to expand current packaged food labeling law to require a uniform national nutrition labeling standard for chain foodservice establishments, while providing a reasonable range of flexibility for the restaurant. While the LEAN Act would require a uniform national nutrition standard, the law also would provide for a single set of guidelines in how nutrition information is calculated and will provide legal protection for those restaurants that abide by the law.

THE ISSUE: Nationwide, more cities, counties, and states passing a wide array of laws mandating that chain restaurants put calories and other nutrition information on menus. The result is a growing patchwork of regulation that is not helpful to the consumer and is costly to restaurateurs.

The LEAN Act will create a single federal standard for nutrition-information disclosure for chain foodservice companies. It would also provide one menu board standard.  A uniform standard will allow consumers access to detailed nutrition information that meets their needs while providing clarity, consistency and flexibility for restaurants in how that information is provided.

While the LEAN Act would require a uniform national nutrition standard, the law also provides for a single set of guidelines in how nutrition information is calculated and will provide legal protection for those restaurants that abide by the law.

Take Action: Please call or email your elected officials and ask them to Support the LEAN Act. Simply click on CFA Votes! to send a customizable letter to your elected officials. You may also use the letter as a reference when calling offices.

For more DDIFO Information see: Murkowski & Carper Introduce LEAN Bill in the Senate

Menu Labeling: All For One and One For All.

Labeling Education and Nutrition Act of 2008 (LEAN Act)

Tim Horton’s Struggles for Growth in U.S.

Canada’s Beloved Doughnut Chain Faces Uphill Battle Against Dunkin,’ McD’s in the US

Emily Bryson York writes an interesting article in Advertising Age asking the question: “Just how important is it to be first?” Ask Tim Horton’s, the self-described McDonald’s of Canada, which is struggling for a foothold in the U.S. market.

Horton’s has built a massive following in Canada — and developed a small cult in the U.S. — based on high-quality coffee, indulgent doughnuts and what’s described as consistently good service. When it comes to the States, Darren Tristano, exec VP of Technomic, a Chicago-based restaurant-industry consultancy, said Tim Horton’s might be paying the price for being second.

“When you look at the Canadian marketplace, they were first to market, and that’s a big deal,” he said. “The opposite is true here. Dunkin’ Donuts is approaching 6,000 locations, and they’re coming into Dunkin’s backyard and trying to compete on quality.” Horton’s has about 500 U.S. locations, concentrated in Western New York, Ohio and Michigan. The chain has about 3,500 locations in Canada.

Dunkin’ is based in Canton, Mass., with a loyal following in the Northeast. Horton’s closed “underperforming” stores in New England late last year. Mr. Tristano added that Dunkin’ has conversely faced an uphill battle breaking into the Canadian market.

Still, it doesn’t seem to take much Horton’s exposure to make a fan. Anthony Claudia, a Telluride, Colo.-based film executive, tried the coffee while working on a project in Ontario. “It’s kind of like the Canadian version of Dunkin’ Donuts, but a lot better,” he said.

Read the Whole Story at Advertising Age

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