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News in Review     Market Reports    Food Quiz     Industry Discussion

Jimmy Dean, sausage king and country music star, dies at 81
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McDonald's Targets Emerging Markets With Restaurant Openings
Michelle Obama inspires chefs to serve schools
ESPN Zone to Close
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U.S. Foodservice Joins First Lady's Campaign to Reduce Childhood Obesity
iPad replaces menu in hotel restaurant
Eva Longoria Sued Over Las Vegas Restaurant
6 Markets You Don't Want to Miss
Mimi's Cafe's "Magnifique" Menu Makeover
Vegetables Are Hot on Chef's Dinner List
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Featured Article


Restaurant Solutions - Delivered Through Your Back Door

By: John Paré

Foodservice industry problems are everywhere! All restaurants, from small independents to national multi-unit chains have difficulties that rear their ugly heads on a daily basis. These issues range from stagnant sales and shrinking guest counts, to rising commodity prices and most every other operating expense, just to name a few. Wouldn't it be refreshing to see “problems” on your “86” board?

Welcome to the New Economy! Our industry faces a variety of “crisis,” each differing in magnitude. The economic crisis brought on by the Great Recession has left millions of Americans without employment. Job growth is ultimately the determining factor as to when the foodservice industry will experience renewed growth, since low unemployment is the motor that drives restaurant vitality. We are also witnessing an environmental crisis that has done insurmountable damage in the Gulf, while wiping out regional fishing as well as the beaches, businesses and communities that support this industry. A social crisis is boiling over the proposed handling of illegal immigration. And lastly, political crisis and policies have left restaurateurs paralyzed wondering how government intervention will affect future operations and profitability. Add these elements together and you can certainly see why operators are living in an environment of uncertainty.

Fortunately, problems and solutions come in equal pairs. Many restaurant owners look at problems as a roadblock, stifling their plans. Out of every problem, even every dire crisis, a chance arises to create a solution that may be better than what it replaced. Problems create opportunities to step back, think through, and prepare for renewal and growth.

Problem #1: Issues within the Restaurant

In this article, I’ll focus on independent and small multi-unit operations. In difficult times, many restaurants fail when they try to “save” their way to profitability. For example, operators might plug themselves into unit level positions, cut service hours and reduce the quality of ingredients. This “recipe” defies the reality that customers own your restaurants. It is the needs and expectations of your guests that must be satisfied to remain in business.

Equally important are your employees. These frontline workers serve as the lifeblood between you and your customers. Owners must invest time in developing policies and procedures to meticulously handle guests and then regularly train their staff so their actions become second nature. The same holds true for kitchen employees. Your staff represents you and reflects your values each and every time they confront a guest throughout their dining experience.

Over time, many operators become reactive rather than proactive. This is simply the difference between...

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Notable Quotable

It doesn't matter how many times you fail. It doesn't matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you because... All that matters in business is that you get it right once. Then everyone can tell you how lucky you are.

- Mark Cuban

Weekly Market Reports

View updated pricing and information each week on the website for the following food-commodity markets:

Beef, Veal & Lamb View Detail 
Most of the beef markets are trending modestly downward due to lethargic early June demand which is typical. There has been a lot of speculation that retailers may not heavily feature beef during the late spring and early summer. However, the six week total for forward beef sales is very close to the historical norm suggesting otherwise. That being said, the data implies that the bulk of pending beef retail feature activity is likely to be directed to ground beef products. The beef trimming and ground beef markets are expected to continue to trade above year ago levels this summer. Price USDA, FOB per pound.

Dairy View Detail 
The cheese markets continue to decline due in part to ample inventories, strong spring milk production and a rising US dollar. CME cheese prices are anticipated to be very close to a bottom. As summer cheese demand builds and milk output seasonally declines higher cheese prices are projected. Any forthcoming cheese market increases could be tempered though if the dollar continues to appreciate which would likely slow exports. The butter market is firm. But like cheese, a rising US dollar is reported to be curbing export demand. Butter prices may steady soon. Prices per pound, except Class I Cream (hundred weight), from USDA.

Poultry View Detail 
The chicken markets appear to be softening once again due in part to rising chicken production and slowed post Memorial Day Holiday demand. Typically, the boneless skinless chicken breast market will decline during the next week or so before demand picks up around the Fourth of July. Usually, the boneless skinless chicken breast market rises roughly 5% during the last week of June and the first week of July. However, building chicken production could push breast prices lower thereafter. Russia recently reallocated 25% of its US chicken import quota to other countries which suggests that US chicken trade may not resume to Russia anytime soon. Chicken producer margins could deteriorate this summer. Prices USDA, FOB per pound except eggs (dozen).

Seafood View Detail 
The Deepwater Horizon oil spill in the Gulf of Mexico is having a significant impact on the seafood industry for the region. Still, at this point, the overall effect on shrimp prices is anticipated to only be modest as roughly 90% of the shrimp consumed in the US is imported. The shrimp markets are firm. However, a rising US dollar and struggling US economy could temper any forthcoming shrimp market increases. Prices for fresh product, unless noted, per pound from Fisheries Market News.

Pork View Detail 
Due to the pork production slowdown in recent weeks, hog supplies have backed up which is influencing the hog market downward. Although pork output is anticipated to remain seasonally light during the early summer, pork production could build some over the next week or two which may be bearish for the pork markets. Thus, the USDA pork cutout has likely peaked early this year. The pork belly market is declining and further depreciation may be pending. Still, belly prices should remain well above 2009 levels. Prices USDA, FOB per pound.

Produce View Detail 
The lettuce markets have been erratic in recent weeks due to harvest interruptions. Iceberg lettuce shipments last week declined 9%. Cool weather is persisting this week in the chief lettuce growing areas but temperatures are forecasted to improve next week which could bring a boost to the lettuce harvest. Onion supplies continue to get better as California and New Mexico onion output improves. Lower onion prices may be impending. Tomato supplies are ample due to the surge in production from Florida. Fairly engaging tomato prices could persist throughout June. Prices USDA FOB shipping point unless noted (terminal).

Oil and Grains View Detail 
Crop development remains historically good and ahead of schedule which suggests big corn and soybean harvests this fall. The grains markets are weak. Prices USDA, FOB.

Canned and Frozen Food View Detail 
Tomato Products, Canned - Whole tomato supplies are tighter than other products but stocks should improve in July. Lower canned tomato prices may be pending. Prices per case (6/10) FOB, unless noted from ARA.

Processed Fruits and Vegetables - Crop conditions in the Midwest are generally excellent which should help vegetable yields this year. The markets are steady to soft. Prices FOB per case from ARA.

Discussion Forums

Father's day fast approaching

Community member StoramAbruwin writes...

Read somewhere maybe here and I want to say it was Kaff's idea. But where can I get rolls of duct tape I can give to all the fathers? I think they were mini rolls like 2"x100' or something I am trying to buy like 200 of them so was thinking about .25 -.50 cents a piece. Dunno.

Happy Fathers day to all. I am a happy father of 2 boys.
...

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Life after restaurant ownership

Community member Ramis writes...

Hi All,  I recently sold my restaurant looking for a lifestyle change, but now what? I am racking my brains to try and figure out my options, but I seem to keep hitting it against the wall.  Any ideas?
...

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Leasing

Community member lamael writes...

Our lease is up this year and I just received a copy of the new request for proposals from they city we lease from. They have changed quite a few things but one thing in particular has me wondering. They are requesting that the following

On or before December 15th of each year during the lease term and any renewal term, the Lessee shall provide a six-month compiled financial statement prepared by a Certified Public Accountant covering both the restaurant and all related...

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Food Quiz

The Greek Nut

There is evidence that the Assyrians and ancient Persians ate me, but the Greeks were probably the first to cultivate me. The Romans even referred to me as the "Greek Nut". I do know that I originated in parts of Western Asian, and from there spread to the Mediterranean. Now I also grow in California, Australia and South America. I require warm weather to grow, and take up to five years to reach my fruit baring age. People who cultivate me now often use honey bees because I am genetically self-incompatible and need the assistance of bees for my pollination. The Hebrews used me as a symbol for haste because I blossom suddenly, but the Greeks and Spaniards used me as a symbol for good luck. Medieval Europeans used me instead of cow's milk in order to avoid the rules of fasting days. Pliny, Plutarch and the Englishman, Gerard, thought that I was a reliable cure for drunkenness. My culinary value is unmatched. I can be used in anything from salads or chicken dishes, to danish and syrups. I can be fuzzy, green, and liquid, or I can be fuzzy green and solid, or I can be brownish and solid. Some of my varieties are considered toxic because I contain prussic acid when raw, and so my bitter form is banned from sale in the United States, but my sweet side provides a nutritional powerhouse because I am packed full of calcium, fiber, folic acid, potassium and Vitamin E.

What am I?

The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.

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