Coors Banquet keeps growing as other domestic beers decline

Bartender Sinead Talty pours a Coors Banquet from the tap at Mac's Wood Grilled in Chicago. (Chris Sweda / Chicago Tribune) By Greg Trotter Chicago Tribunecontact the reporter

Bartender Sinead Talty pours a Coors Banquet from the tap at Mac’s Wood Grilled in Chicago. (Chris Sweda / Chicago Tribune)
By Greg Trotter Chicago Tribunecontact the reporter

As Coors Banquet appears headed for its ninth straight year of growth, it’s also gaining traction among Chicago hipsters and other beer drinkers fond of an old yarn.

Strange but true: As similar domestic mainstream beers continue to decline amid the continued surge of imports and craft beers, Banquet just keeps growing.

The original Coors beer’s curious marketing success story is becoming almost a matter of routine, after turning around a more-than-20-year slide in 2006. Leaning on the beer’s retro style and its rustic history in the Rocky Mountains, Chicago-based MillerCoors has found gold in them hills — an old beer with a loyal following that’s attracting a growing number of drinking-age millennials. Continue reading

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As if hamburger-focused concepts in the UK did not already have enough competition, now the Americans are coming, bringing many of their better burger brands across the Atlantic in order to capitalise on one of Britain’s hottest restaurant segments.

Five Guys among US burger chains to enter - or set to enter - UK

Five Guys among US burger chains to enter – or set to enter – UK

In the past year, US chains Burger Fi, Smashburger and Fatburger have announced plans to open their first locations in the UK, joining peers like Shake Shack and Five Guys, which have two and about 30 units in the market, respectively.

The burger business is bound to only get better. According to Technomic’s 2015 Top 100 UKChain Restaurant Report, burger concepts grew significantly in 2014, including a collective sales gain of 5.8% at fast-casual chains and 37.4% at full-service restaurants. What’s more, UK pub culture favours burger sales, even as competition intensifies from emerging casual-dining chains that put the burger front and centreor from the fast-casual segment, which is still in its infancy in the UK.

Burgers remain a fantastic vehicle for culinary innovation and experimentation with new flavours. Meanwhile, chains in the UK, as in the US, have found success in building burger sales by simply marketing their ingredient quality as better and fresher. To date, Gourmet Burger Kitchen has built the largest system of fast-casual burger restaurants, with 63 locations and nearly GBP 50 min total sales at the end of 2014. But the rest of the field is wide open. There are already dozens of like-minded concepts in the United States that have been taking market share from quick-service brands like McDonald’s and Burger King.But those fast-food giants have held up better in the UK than they have in the United States -or even in the rest of Europe, for that matter. Continue reading

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Fast casual restaurants get a bump from alcohol service

Could adult beverage experiments by fast food giants lead to broader alcohol sales across more segments of the restaurant industry?

Cocktail
In an article this week, Forbes’ Scott Beyer analyzed Yum! Brands’ recent launch of a new iteration of its Taco Bell chain—a sleeker, more urban and Millennial-friendly version that serves alcohol (the first debuted earlier this summer in Chicago, a second unit in San Francisco will soon open). Beyer noted that while QSRs in Europe regularly serve alcohol, barriers in the U.S., including stricter government regulations, pressure from watchdog groups, local politics and a “NIMBY” mindset have made it harder for U.S. chains to do so. But Taco Bell isn’t alone. Other chains are bucking social conventions and pushing for liquor licenses. Burger King’s Whopper Bar in South Beach is one example. Continue reading

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Comment: How to meet changing demand in US foodservice

In a guest column, David Henkes, vice president at foodservice analysts Technomic, outlines how operators are responding to changing consumer demand, outlining how manufacturers serving the sector can react.

Technomic projects the foodservice industry will add US $700bn dollars in annual sales over the next ten years in the United States, impacting restaurants, retailers, suppliers and distributors. The potential for growth in these sectors is staggering but largely dependent on companies’ ability to recognise changing consumer preferences and commitment to investing in innovation.

Customisation, freshness and sourcing three areas on which US foodservice operators are focusing, Technomic says

Customisation, freshness and sourcing three areas on which US foodservice operators are focusing, Technomic says

Right now, Millennials are driving trends in the foodservice industry – not only in the US but globally – creating a shift in how operators are presenting foodservice options, presenting challenges and opportunities for suppliers already serving (or interested in serving) the sector. Continue reading

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Emerson to bring E360 Forum to Texas

Emerson Climate Technologies will host the third quarterly E360 Forum in support of its E360™ platform. The event will come to the Westin Dallas Fort Worth Airport, Sept. 3, in Irving, TX.

Emerson said the E360 Forum is part of the company’s broader initiative to create a meaningful HVACR industry dialogue and help customers address the many challenges facing them today. The timing of this particular event is especially relevant to the company. It follows the recent Environmental Protection Agency’s (EPA) July announcement of the final ruling on its significant new alternatives policy (SNAP) regulation that delists commonly used refrigerants in commercial refrigeration and AC applications as early as 2016. This daylong event figures to be timely for those interested in discussing the impacts of this ruling, particularly the future of refrigerants in the HVACR industry. Continue reading

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Brad Pitt and Angelina Jolie are helping deflect Subway’s Jared Fogle scandal

Brad Pitt and Angelina Jolie took their kids to Subway, and that’s great news for the brand.

The movie stars visited the sandwich chain’s Glendale, California location over the weekend.

Pitt-Jolie

The superstar sandwich outing was convenient timing for Subway.

The company dismissed its weight-loss pitchman last week after his house was searched in an FBI investigation and one woman accused him of making inappropriate comments about middle-school girls.

The investigation shocked many Americans, who see Fogle as a wholesome man who famously lost 245 pounds eating low-calorie Subway sandwiches.

Now, Pitt and Jolie’s stop at Subway is dominating headlines instead. The couple has six children.

“My co-worker went to the back to tell my manager, ‘Did you see who’s in the front?’ And she was like, ‘No.’ She was like, ‘It’s Angelina and Brad Pitt!’ She’s like, ‘Is it really them?'” Subway worker Grisell Gonzalez told the local ABC station.

The fact that the socially-conscious and wealthy couple took their children there sends the message that Subway is a family-friendly choice. With the Jared Fogle scandal looming, the brand needs this kind of exposure.

Fast food brands often use celebrities to boost sales.

Burger King hired soccer star David Beckham, McDonald’s works with basketball player LeBron James, and Carl’s Jr. featured supermodel Heidi Klum in commercials.

But Brangelina’s Subway outing has even more credibility with consumers because it’s not a staged advertisement or commercial. The couple has even been spotted taking their children there in the past.

Even before the scandal, Subway was struggling to keep up with competitors like Panera Bread and Chipotle.

“It’s really been a victim of its own success,” David Henkes, from the consulting firm Technomic, told Bloomberg. “It’s really saturated the market. It’s got over 27,000 (US) locations now. The unit economics are very tough. Competitors have really come in and provided some alternatives to consumers that have caused Subway to suffer some sales losses.”‘

While a celebrity visit to Subway might seem trivial, it actually provides Subway with much-needed good press.

http://www.businessinsider.com/brad-pitt-and-angelina-jolie-take-kids-to-subway-2015-7

Read the full article at Business Insider

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Subway is making a huge mistake that could undermine its business

Subway’s biggest problem has nothing to do with shamed former spokesman Jared Fogle.

The company dismissed its weight-loss pitchman last week after his house was searched in an FBI investigation and one woman accused him of making inappropriate comments about middle-school girls.

While the scandal with Fogle will pass, the company’s rapid expansion plan is a bigger issue that could hurt business, according to Jonathan Maze at Nation’s Restaurant News.

“It’s really been a victim of its own success,” David Henkes, from the consulting firm Technomic, told Bloomberg. “It’s really saturated the market. It’s got over 27,000 (US) locations now. The unit economics are very tough. Competitors have really come in and provided some alternatives to consumers that have caused Subway to suffer some sales losses.”‘

Subway has 44,000 restaurants worldwide, more than McDonald’s. Executives say the company eventually plans to reach 100,000 locations.

Subway’s US sales last year fell by 3%, the biggest fall for any of the top 25 fast-food chains, Drew Harwell reports at The Washington Post.

Subway also fell two spots to become the third-most-popular fast-food restaurant for the first time in seven years.

The expansion plan is backfiring, according to The Post.

Subway dropped Jared Fogle as the restaurant chain's spokesman amid an FBI investigation.

Subway dropped Jared Fogle as the restaurant chain’s spokesman amid an FBI investigation.

“More people have money to spend, and they’re choosing to spend a little bit more on better concepts where they get a better product,” Darren Tristano at Technomic told The Post. “Subway’s strategy has only been to open more stores, and ultimately those stores just cannibalize each other.”

In other words, Subway is so ubiquitous that customers leave one restaurant to go to a closer one.

Tristano also told Bloomberg that “if your goal is to have the most versus the best, you’ll eventually run into trouble.”

Subway should focus on innovating its menu instead, Maze said.

With its vegetables and lower calorie counts, Subway arguably invented the idea of “fresh” fast food two decades ago.

But while Subway stayed the same, better competitors got into the space.

Chipotle offers food that is raised without fillers or antibiotics and is prepared fresh in stores. Firehouse Subs and Potbelly offer elevated ingredients and side dishes such as gourmet kettle chips and potato salad.

Americans who once praised Subway’s low-fat offerings are now concerned the chain’s lunch meats and sauces are overly processed with fillers and additives.

“What Americans see as healthy has evolved,” Harwell writes. “Subway hasn’t.”

 
http://www.businessinsider.com/subways-rapid-expansion-could-hurt-business-2015-7

Read more at Business Insider.

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