Global Foodservice News – June 15th, 2024 (2024)

Foodservice Equipment

Taking Equipment to the Next Level
Equipment Evolution Aims to Leverage Synergies in AI, Automation and Robotics

In his 1998 hit song “Praise You,” pop artist Fatboy Slim sang “We’ve come a long, long way together; through the hard times and the good; I have to celebrate you baby; I have to praise you like I should.” In many respects, operators likely feel that way about how foodservice equipment and supplies have evolved over the past 20 years.

Indeed, advances in tech and the kitchen battery aim to solve the perennial challenges of balancing a foodservice operation’s bottom line against rising costs for food ingredients, supplies, utility, real estate and labor. But this year, the worker crunch is far more urgent than anything else.

“Labor cost and availability are the biggest sore spots,” notes Brian Ward, president of Target Market & Media Services and administrator of the Kitchen Innovations Awards program, which is celebrating its 20th anniversary in 2024. The 25 products that earned recognition in the 2024 KI Awards program will be on display during the National Restaurant Association Show, which takes place May 18-21 in Chicago.

“Minimum wages have been going up, which means wages for more senior workers have to go up too. And the pandemic shutdowns exacerbated labor shortages — foodservice outlets shut down, their workers were left to find work in other sectors, and many didn’t return. Robotics and all kinds of automation address that,” Ward says. “AI and recognition technologies are simplifying training by automating tasks. If an oven recognizes the food, it doesn’t even have to wait for a human to push the correct button.”

Evolution, Then Revolution
Much of the KI Award-winning equipment and technology demonstrates a big step up from the level seen at last year’s KI Pavilion. “Last year was a sea change, but this year, we saw articulated robotics performing significantly more complicated motion and tasks — as well as expansion of the tasks,” Ward says. “Last year, we had a robotic fryer; this year we have a system that also seasoned and packaged the fries for serving or holding. Two or three years ago, we had a straight-line automated pizza system; this year, there’s a new robotic pizza system that can be laid out in straight or cluster configurations, and connects to kitchen-display systems, point-of-sale systems and third-party delivery systems.”

Foster Frable Jr., FCSI, president of Clevenger Frable LaVallee and a long-tenured KI Awards judge, says the KI Awards are evidence that today’s foodservice kitchen is fundamentally different from that of the past. “There’s no such thing as a ‘basic’ kitchen anymore,” he says. “Menus and cuisine now incorporate ingredients, preparation and cooking methods that were unimaginable a decade ago.”

For that reason, there is a striking difference between this year’s winners and those of prior years, according to Richard Eisenbarth, FCSI, president emeritus of Cini-Little and another longtime judge for the KI Awards. “Eight years ago, the latest trends were multideck cooking platforms, peeling machines, frameless glass doors, and touchscreens to control equipment,” he says. “Those were innovative at the time, but technology to really reduce labor was nonexistent. At last year’s KI Awards, we the got the first retail merchandising touchless salad bar and untended robotic coffee kiosk. A kitchen management system that tracked key kitchen tasks was introduced for the first time last year. This year, all that has truly taken off. People are starting to embrace how the use of sensors, movement monitors, kitchen management software and AI will really help operators going forward.”

Practical Innovation
A third veteran KI Awards judge is Jim Thorpe, senior food service designer at Aramark, who sees the latest innovations in foodservice equipment and tech from the operator’s point of view. “At Aramark, when we feed 1,000 college students at a time in a hall with 10 or 12 concepts going at any one time, we’re using more robotics and automation than in the past,” he says. The contract foodservice provider seeks the type of automation that allows “an employee to be able to hit a button to start cooking a preprogrammed recipe, to produce a high-quality product with enhanced speed of service,” he says. “If the worker can cook something in 5 minutes instead of 20, that helps boost the overall efficiency of the kitchen.”

Accordingly, Thorpe’s impressed with KI Awards innovations that blend advancements in automation, robotics, monitoring software and cloud-based artificial intelligence. “An enhanced hamburger robot came out this year, with cloud-based software for quality control of the patties, and that makes for better quality control of the operation,” he says. “There’s a new pizza robot that makes pizza all day, pumps the sauce and adds the cheese and toppings.

The employee only has to take the pizza off the machine, cut it and take it to the customer, and that eliminates a lot of time-consuming work.”

All the judges interviewed for this article, including Thorpe, mentioned new smart, multifunctional ovens that do more and cook faster in a smaller footprint, and thus are well-adapted to today’s shrunken foodservice kitchens.

Thorpe cited an oven with four chambers, each providing a choice of impingement or convection cooking. “A lot of new ovens are hitting the market, and they’re especially useful for a company like Aramark that serves a lot of people,” he says. “We see different versions coming out with more enhancements each year, and I’m sure that next year there will be a new idea as well,” he says. “These types of ovens are game changers.”

Other KI Award winners address essential yet time-consuming maintenance and sanitation tasks. Thorpe calls out a new combi oven that comes with auto-dosing solid cleaner and solid deliming cartridges that are housed inside the unit, along with monitoring software. The combi “self-cleans internally and knows when to clean itself. The staff might do it twice a year, but this combi will clean itself three times a year if it senses that it’s needed,” Thorpe says. “It’s pretty impressive.”

Thorpe also was impressed by “a lot of smaller stuff” that solves relatively minor kitchen problems in inexpensive ways. “One company changed the nozzle in its bar gun. Those are notorious for breaking and requiring service almost monthly, but the new version is made of a different ceramic material that won’t break, and parts are more easily removable for cleaning and maintenance,” he says. “Products like these are simple solutions that make me ask, ‘Why didn’t I think of that?’”

Source fesmag.com

NACUFS Names Winners in Collegiate Foodservice Dining, Nutrition, Sustainability Awards
The National Association of College & University Food Services announced the gold, silver and bronze winners of the 2024 Loyal E. Horton Dining Awards, Nutrition Awards and Sustainability Awards.

Loyal E. Horton Dining Awards
Named after a NACUFS founder and past president, the Loyal E. Horton Dining Awards celebrate members’ innovative ideas and program implementation. Member institutions across North America submitted entries across a variety of categories. Following is a summary of the 2024 Loyal E. Horton Dining Awards by category. (Please note that not every category had a gold, silver or bronze winner.)

Retail Sales: Single Concept of the Year

Gold: SUNY at Buffalo, Campus Dining and Shops and SUNY Geneseo, Campus Auxiliary Services
Silver: Cal Poly – Pomona and Cal Poly – San Luis Obispo
Bronze: Carleton University, Stevens Institute of Technology, University of Arizona and University of Maryland
Retail Sales: Multiple Concepts of the Year

Bronze: University of North Carolina – Chapel Hill
Retail Sales: Marketplace of the Year

Silver: Florida Institute of Technology and University of North Texas
Catering Special Event of the Year

Gold: Marywood University and Texas Tech University
Silver: Babson College, Michigan State University and Texas Christian University
Bronze: Catawba College and Marist College
Honorable Mention: Carleton University, Montclair State University and University of Arkansas – Fayetteville
Residential Special Event of the Year

Gold: University of Montana and University of North Texas
Silver: Gettysburg College, Hendrix College, Monmouth University, Tufts University, University of Houston, University of Pennsylvania and University of Richmond
Bronze: Carleton University, Pennsylvania State University, SUNY at Cortland and University of California – Davis
Catering Program of the Year

Gold: University of North Texas
Silver: Johns Hopkins University
Renovation of the Year

Gold: University of California – San Diego
Silver: Southwestern University – Georgetown, University of Arizona, Virginia Tech and Washington University in St. Louis
Bronze: Rochester Institute of Technology
New Facility of the Year

Gold: Liberty University
Innovative Dining Program of the Year

Gold: University of Massachusetts and University of North Texas
Silver: Montclair State University, Simon Fraser University and University of Arizona
Bronze: Loyola University – New Orleans, Samford University and University of North Dakota
Employee Development Program of the Year

Gold: United States Naval Academy and University of California – Davis
Silver: Boston University, University of North Carolina – Chapel Hill and University of North Dakota
Bronze: Texas Tech University
Residential Dining Facility of the Year

Gold: Liberty University
Silver: Montclair State University, Rider University, Stevens Institute of Technology, The University of Alabama, University of Arizona, University of Florida and University of Lynchburg
Bronze: Carleton University
Outreach & Education Program of the Year

Gold: Duke University, Pennsylvania State University and Texas Christian University
Silver: Northeastern University, University of California – Merced and University of North Carolina – Chapel Hill
Bronze: Marist College and Montclair State University
Nutrition Awards
The NACUFS Nutrition Awards recognize the “outstanding nutrition and wellness programs implemented within collegiate foodservice programs to meet the needs of a dynamic student population.” Following are the winners of the 2024 Nutrition Awards:

Wellness and Nutrition Program of the Year

Gold: Boston College, SUNY – Stony Brook, Texas Christian University and University of Maryland
Silver: Rider University, The University of Pennsylvania and University of Richmond
Bronze: University of Utah
Honorable Mention: Northeastern University and University of North Carolina
Special Diet Program of the Year

Gold: George Mason University and Washington University in St. Louis
Silver: University of California-Davis and University of North Carolina
Special Diet Recipe of the Year

Gold: University of Connecticut
Silver: SUNY Geneseo (black bean), SUNY Geneseo (lentil tostada) and University of California-San Diego
Bronze: Elon University
Sustainability Awards
The NACUFS Sustainability Awards recognize the “role dining services have in the overall environmental sustainability and social responsibility of a campus.” Following is a list of the Sustainability Awards by category.

Diversity, Equity & Inclusion/Social Justice

Gold: Simon Fraser University
Silver: University of Michigan
Bronze: The University of Chicago
Waste Reduction

Gold: University of Michigan
Silver: University of North Carolina – Chapel Hill
Bronze: Boston College, SUNY Cortland Auxiliary Services
Sustainable Procurement

Gold: University of Michigan
Silver: University of North Carolina – Chapel Hill
Bronze: University of Montana
Carbon Neutrality

Gold: University of Mississippi
Silver: University of California, Berkeley
Bronze: Elon University
NACUFS will announce the grand prize winners in each category during its upcoming national conference.

Source fesmag.com

Rep Roundup for June 2024
One Source Reps adds to its line card, while Alto-Shaam, Refrigerated Solutions Group and Southern CaseArts update their rep networks. Plus, Elevate Foodservice Group adds to its sales team.

Alto-Shaam expanded its relationship with Master Marketing. As a result, Master Marketing now represents Alto-Shaam in North Carolina and South Carolina (MAFSI region 11). Master Marketing also represents Alto Shaam in Alabama, Florida Panhandle, Georgia, and East Tennessee (MAFSI region 12).

Elevate Foodservice Group hired Christopher Kasik, CFSP, to serve as a regional sales manager. Kasik comes to Elevate from VitaMix Commercial. His foodservice industry experience spans more than 15 years and includes working with Cadco and TecnoEKA.

Philadelphia-based rep firm One Source Reps has added warewashing equipment manufacturer Insinger Machine Co. to its line card.

Refrigerated Solutions Group (RSG) added Premier Foodservice to its rep network. Premier now represents RSG’s Norlake and Master-Bilt refrigeration lines in California and Nevada.

As part of its continued growth in the foodservice industry, Southern CaseArts, a maker of heated and refrigerated display equipment, added ten rep groups to its network. They include:

Platinum Marketing Company: MAFSI Region 4, which includes Pennsylvania (Except West of State College and Pittsburgh), New Jersey (Trenton and South), Delaware (MAFSI Region 4)

Lindox Siegel: MAFIS Region 12, which includes Alabama, the Florida Panhandle, Georgia and Tennessee (except West)

B & G Distributing: MAFSI Region 14, which includes Arkansas, Louisiana, Mississippi, Western Tennessee

Illinois Culinary Equipment: MAFSI Region 17, which covers the Chicago Metro area.

Food Service Alliance: MAFSI Region 22, which includes the California areas of Kern County South,

Los Angeles Metro; Clark County Nevada and Hawaii. FSA also has MAFSI Region 24 for Southern

CaseArts. This includes California, North of Bakersfield and Nevada, North of Clark County.

Pioneer Sales Co.: MAFSI Regions 1, which includes Connecticut, Maine, Massachusetts, New

Hampshire, Rhode Island, and Vermont. PSC also represents Southern CaseArts in MAFSI Region 2, which includes Upstate New York and Western Pennsylvania.

Florida Agents: MAFSI Region 13, which covers Florida, including The Panhandle.

SP Sales Canada: MAFSI Region 26d, which covers Ontario and Ottawa.

Agence Innov: MAFSI Region 26e, which includes Quebec and Ottawa, Region 26, the Atlantic portion of Canada.

Simpson-Wilson: MAFSI Region 26c, which includes the Canadian regions of Manitoba, Lakehead and Saskatchewan.

Source fesmag.com

Tabletop and Front of House

Restaurant Table Settings
Restaurant table settings are an essential aspect of creating a welcoming and professional dining experience for customers. From the arrangement of flatware and glassware to the placement of napkins and tablecloths, every detail plays a crucial role in the success of your catering business by setting the tone for a memorable meal. By carefully considering the layout and design of your table settings, you can enhance the overall ambiance of your restaurant or catering hall and leave a lasting impression on your guests.

The three most common types of table settings are formal, casual, and basic. Each place setting includes utensils and dinnerware pieces that would normally be used with the corresponding style of dining. For instance, a formal table setting will provide more utensils because there are more courses. A basic table setting provides fewer utensils because there is one course. Only provide the types of flatware or glassware that will be used during the meal. If there is no wine being served, you can remove the wine glasses.

Table settings are also useful for establishing the tone at wedding receptions, banquets, and events. Make sure to choose the right tableware for your settings. Formal settings should be set with elegant, high-quality pieces while practical, economical tableware is more suited for basic settings.

Silverware Rule
A general rule for silverware (or flatware) placement is that utensils are placed in the order they are used, from the outside in. For example, the salad fork will be used before the dinner fork, so it should be placed on the outside.

What Side Does the Fork Go On?
Forks always go on the left side of the plate, and knives and spoons are always placed on the right side. If you’re providing a dessert spoon and dessert fork, they are placed above the plate.

Table Setting Diagrams
Setting a table for your guests shows attention to detail and an indication that you care about their needs. Use our three table setting diagrams to learn how to set a formal, casual, and basic table.

1. Formal Table Setting
Formal table settings are used at fine dining restaurants, formal events, and black-tie weddings. Designed for a six-course meal including an appetizer, soup, salad, a starch, a protein, and dessert, this setting employs more flatware and glassware than the other settings.

Follow these steps to create a formal dinner table setting:

Begin by placing an ironed tablecloth on the table.
A serving plate goes in the center of the place setting. A charger plate can also be used beneath the serving plate.
A bread plate should be placed to the top left of the serving plate. Place a butter knife on top of the bread plate with the blade facing down, and the handle towards the right.
Flatware on the left side of the serving plate begins with the salad fork on the outside, and the dinner fork on the inside.
Flatware on the right side of the serving plate, from the inside out, will consist of a dinner knife, salad knife, soup spoon, and tea spoon.
All flatware should be evenly spaced, and the bottoms should line up with the bottom of the serving plate.
The dessert spoon should be placed directly above the serving plate, in horizontal alignment with the handle towards the right.
Place a water glass above the dinner knife.
Place the white wine glass below the water glass and slightly to the right.
Place the red wine glass above the white wine glass and slightly to the right.
A cup and saucer should be placed above the soup spoon and slightly to the right.

2. Casual Table Setting
Commonly used at banquets and luncheons, this setting is also referred to as an informal table setting. It’s a popular choice for wedding table settings and contemporary casual restaurants that want to elevate their dining room decor. This setting is similar to a formal table setting but is designed for three courses instead of six. The flatware provided will be enough for a soup or salad, main course, and dessert.

Follow these steps to create a casual table setting:

A serving plate should be placed in the middle of the table setting.
A bread plate should be placed to the top left of the serving plate. Place a butter knife on top of the bread plate with the blade facing down, and the handle towards the right.
Flatware on the left side of the serving plate begins with the salad fork on the outside, and the dinner fork on the inside.
Flatware on the right side of the serving plate, from the inside out, will consist of a dinner knife, soup spoon, and tea spoon.
Place a water glass above the dinner knife.
Place the wine glass to the right of the water glass.

3. Basic Table Setting
This simple table setting is appropriate for all types of restaurants and casual events. You’ll commonly see it used in diners and family restaurants along with a placemat or a coffee cup. Using a basic table setting makes your guests feel welcome and ensures they have the utensils they need.

Follow these steps to create a basic table setting:

A serving plate should be placed in the middle of the table setting.
A napkin is placed to the left of the plate.
The fork rests on top of the napkin.
A knife is placed to the right of the plate.
A water glass or coffee cup is optional, placed above the knife and slightly to the right.
Do You Need to Follow Table Setting Rules?
There are some long-standing rules when it comes to table setting etiquette, especially for formal dinner table settings. Some fine dining restaurants prefer to keep with tradition by following these rules exactly. However, the world of dining has evolved to a place where we can forego traditional expectations for creative license. Our place setting diagrams provide the framework for setting a table properly, but it’s a normal practice for restaurants or caterers to adjust napkin placement or other aesthetic details.

Once you have an understanding of the traditional table setting, you can add your own personal touches. Many restaurants choose not to use place settings and place wrapped flatware at each seat instead. While this is convenient, it doesn’t have the same visual effect as a beautifully set table. It’s up to you to decide what type of experience you want to create for your guests.

Source webstaurantstore.com

Fun Ideas to Increase Sales at Your Restaurant This Father’s Day
Father’s Day is just around the corner, and it’s the perfect opportunity for your restaurant to increase sales and bring in more customers. This year, why not celebrate dads in a fun and unique way, while boosting your revenue at the same time? In this article, we’ll explore some exciting and creative ideas to help your restaurant stand out and attract more diners this Father’s Day.

Offer a Special Father’s Day Menu
When it comes to increasing sales at your restaurant, it’s important to think outside the box and offer unique experiences that will entice customers to choose your establishment for their Father’s Day celebrations. From special menu items to themed decorations and promotional offers, there are countless ways to make this holiday a success for your business.

One idea that is sure to attract attention and increase sales is to introduce a special Father’s Day menu featuring dishes that celebrate the occasion. Consider offering hearty and indulgent options such as a prime rib dinner, a succulent steak, or a classic burger and craft beer pairing. By creating a mouthwatering and exclusive menu, you can entice families to choose your restaurant as their go-to destination for their Father’s Day festivities.

Incorporate Father’s Day Decorations
In addition to offering a special menu, you can also enhance the dining experience by incorporating themed decorations and interactive elements that cater to fathers. Consider decking out your restaurant with charming and masculine decor, such as vintage sports memorabilia or rustic wooden accents. You can also offer activities or games that dads and their families can enjoy, such as a fun trivia challenge or a photo booth with props and backdrops that capture the spirit of Father’s Day.

Offer Limited-Time Father’s Day Promotions
To further increase sales and draw in customers, consider implementing promotional offers and incentives that will make your restaurant stand out. Whether it’s a buy-one-get-one deal, a complimentary dessert for dads, or a discount for large parties, these special offers can incentivize customers to choose your restaurant over the competition and keep them coming back for future visits.

You could also introduce a “Dad’s Day Out” package, including a special meal, a complimentary drink, and a small gift for all the fathers who visit your restaurant on this special day. These special deals are sure to attract customers and increase sales for your business.

Source packnwood.com

10 top trends in light equipment and tableware
FEA’s recent Light Equipment and Tableware Forum shined a light on the latest trends and products currently being seen in the market. Here are 10 top trends and takeaways from the forum…

1. Colour

White is taking a back seat but colour is being seen everywhere front of house – from cutlery to buffet displays, from server ware to glassware. But come 2025, white may be back!

2. Sustainability

Almost every exhibitor was showing products designed to save energy or reduce waste. Reusable labels for plastic containers, induction hobs, hot air chafers, portioners, cutlery with recycled plastic handles, multiple alternatives to single use plastic. Companies are investing in sustainable and recyclable packaging and looking for ways to reduce the carbon footprint of their distribution systems.

3. Matt

Gloss may be more practical, but matt is absolutely on trend, especially when it comes to tableware.

Food & Beverage News

Snoop Dogg, Hulk Hogan, NFL’s Kelce Brothers Race to the Alcoholic Beverage Marketplace
Snoop and 19 Crimes introduce RTD Cali co*cktails, while Hulkamaniacs will be searching for the Hulkster’s Real American Beer, and Travis and Jason Kelce take ownership of Garage Beer.

Just in time for summer drinking, entertainment and sports icons are rushing into the alcoholic beverage marketplace, with Snoop Dogg, Hulk Hogan, and Jason and Travis Kelce launching new brands and acquiring ownership in ready-to-drink co*cktails and beers just this week.

Inspired by the laid-back California lifestyle, multi-talented artist and entrepreneur Snoop Dogg has partnered with wine brand 19 Crimes to launch Cali co*cktails, a ready-to-drink (RTD) line of drinks with an agave wine base, available in two varieties: Smokin’ Strawberry Margarita and Long Beach Lemonade.

The Cali co*cktails line represents the fifth time Snoop Dogg has partnered with 19 Crimes, and the drinks add a 9% alcohol-by-volume (ABV) RTD drink to his line of California-themed wines. That line includes Snoop Cali Red, Cali Rosé, Cali Gold and Cali Blanc.

Meanwhile, former professional wrestler, entertainment icon and businessman Hulk Hogan is looking to reinvigorate the lager market with the launch of Real American Beer, a premium American-style light lager made with 100% North American ingredients.

The beer, which officially launches June 13, has secured distribution across 17 states in retail locations such as Albertsons, Safeway, Sam’s Club, Walmart, and many more. Terri Francis, former vice president of the investment and innovation group within Anheuser-Busch InBev, will be the CEO of Real American Beer, joining Hulk Hogan in guiding the company moving forward.

Finally, the National Football League’s “family du jour” — Jason and Travis Kelce — have joined Garage Beer as significant investors, partners, owners and operators. The brothers are expected to be involved in brewing, distribution, sales, marketing and national expansion efforts for the small-batch brewed, light beer from their home state of Ohio.

The Kelces have been working on this deal for about two years, since becoming aware of the beer, which was created in Cincinnati but is now headquartered in Columbus, Ohio. Currently, Garage Beer is distributed in about a dozen states in the Midwest, Ohio Valley and a bit into the Rocky Mountain states and Mid-Atlantic. The Kelces plan to expand sales to dozens more states this year alone.

Source foodprocessing.com

Steal This Foodservice Idea: Make Room for Mushrooms
Neither a fruit nor a vegetable, these fungi can be presented several ways

Convenience-store retailers looking for a new addition to foodservice items should consider mushrooms. They’re low in calories with almost no cholesterol or fat and little sodium.

CSP sister publication Foodservice Director recently rolled out recipes incorporating mushrooms, from Mushroom Tacos with Pickled Peppers and Fried Avocado, to Grilled Black Cod with Escabeche of Mushrooms.

One recipe, Mushroom Melt with Carmelized Port Onions, combines umami-rich ingredients to “elevate the humble grilled cheese sandwich into a robust entree,” Foodservice Director wrote. “The carmelized onions and sauteed mushrooms can be prepared ahead and added to each sandwich to order.”

Source cspdailynews.com

Slideshow: Summer is heating up with new foodservice LTOs
Summer is bringing warmer weather and a deluge of seasonal-inspired limited-time offerings (LTOs) to retail and foodservice locations.

Tapping into the sweet-and-spicy, or “swicy,” trend that accelerated in popularity among consumers last year is 7-Eleven, which launched a mangonada donut. The swicy donut is inspired by the Mexican drink of the same name, and features a honeymooner donut, filled with a mixture of mango and chamoy and topped with Tajin.

At the National Restaurant Association Show, which took place May 18-21 in Chicago, Lizzy Freier, director of menu research and insights for Chicago-based Technomic, identified “creating controversy” as an opportunity to fuel menu innovation.

During her presentation on guest-winning menu trends, she named three ways to introduce controversy to menus, including through flavor mashups. One example she names is KFC’s Chizza, pronounced “cheet-za.”

The mashup features two white meat extra crispy fried chicken filets, topped with marinara sauces, melted mozzarella and pepperoni. Chizza first debuted on KFC menus in the Philippines in 2015, and has moved to menus in South Korea, Taiwan, India, Thailand, Germany, Spain and Mexico, among others, and it’s debuting in the United States for the first time.

Also looking toward flavor mashups are Taco Bell and Kellanova, who are partnering to launch new menu items that feature a Big Cheez-It cracker. The limited-edition menu items include a Big Cheez-It Crunchwrap Supreme and a Big Cheez-It tostada.

“Cheez-It has always been about more than just snacking – it’s about elevating cheese to new heights for salty snack lovers with an obsession for cheese and an appetite for excitement,” said Jessica Waller, general manager, away from home at Kellanova.

Source foodbusinessnews.net

HVAC & Plumbing

HVAC Equipment Prices Expected to Keep Rising
OEMs predict that prices will continue to increase on both A2L and R-410A systems

In recent years, the cost of HVAC equipment has increased significantly, driven by factors that include rising raw material prices, supply chain disruptions, higher consumer demand, and labor shortages. Regulatory changes are also a factor, as stricter environmental rules have necessitated the adoption of new low-GWP refrigerants and energy-efficient technologies, which are often more expensive to produce.

The introduction of mildly flammable (A2L) equipment is a prime example of the new regulations. As part of the AIM Act, manufacturers will no longer be allowed to produce R-410A systems after December 31, 2024, prompting the rollout of new A2L units this year. While these systems promise a reduced environmental impact, they will likely come with a higher price tag, putting additional pressure on consumer budgets.

“The average system was just over $6,000 for a residential replacement at the beginning of 2020, but today, the average price of a new residential system replacement is closer to $12,000.”
– Martin Hoover
Co-owner
Empire Heating & Air Conditioning

Homeowners are already experiencing some sticker shock when it comes to buying new R-410A systems. Since the beginning of 2020, equipment prices have gone up roughly 40%, but more importantly, the average system price has gone up almost 100%, said Martin Hoover, co-owner of Empire Heating & Air Conditioning in Atlanta, Georgia. He noted that the average system was just over $6,000 for a residential replacement at the beginning of 2020, but today, the average price of a new residential system replacement is closer to $12,000.

“Part of that increase has been the equipment pricing, but more importantly, it’s all the other issues to take into effect,” he said. “The implementation of the new EPA minimum efficiency standard and the cost of refrigerant has quadrupled, mostly due to the phase down and the coming transition to A2L refrigerants. The peripherals that go with the system have increased greatly as well. Copper line sets, PVC piping, glue, tape, mastic, ductwork, screws, condenser pads — almost everything involved with the installation has increased. Add to that huge increases in insurance of all types, labor that has to keep up with inflation to maintain a solid workforce, benefits, training, and more have all resulted in big increases that result in higher consumer prices.”

While HARDI does not ask its members about pricing or price increases with regard to the end market impact, the association does track the annual change of the producer price index (PPI) for the HVACR industry, see Figure 1. “Passing through the impressive rate of price increases helped produce impressive sales growth rates,” said Brian Loftus, CFA, macroeconomic and residential market analyst at HARDI. “The normal annual price increase has been in the 2.5% area, and it looks like we are back to normal for the price increases.”

Hoover has not yet heard from his vendors about the pricing for the new A2L units, but he is assuming that prices will increase and that, most likely, the remaining supply of R-410A units will become more expensive as supplies dwindle. And he would be correct. During their first-quarter earnings calls, several manufacturers confirmed that A2L equipment will not only be more expensive than R-410A units, but that they are also likely to increase the price of any unsold R-410A systems in 2025.

That said, when the management of publicly traded companies are asked about pricing strategy during these conference calls, they often answer in a diplomatic range that will not compromise their competitive position, said Loftus.

“The general theme has been the new equipment has additional components to satisfy the new regulatory requirements so will be priced higher to cover the cost of those components,” said Loftus. “It sounds like the net effect of those component costs will produce an increase higher than the long-term annual increase of the PPI. So we expect the PPI to have a modest upward bias from the historic range during the transition period. Those price increases will be passed through, as seen in Figure 1, but the net effect will be a curve that is significantly more subtle than what we experienced in 2021 to 2022.”

OEM Expectations
During its first quarter earnings call, Lennox CEO, Alok Maskara, stated that the company is fully prepared and on schedule for the upcoming refrigerant transition, adding that the new R-454B equipment will be more expensive.

“We are currently transitioning our raw material inventory to facilitate the product launches, and we plan to start shipping the new low-GWP refrigerant product later this year, in time to meet expected demand,” he said. “We anticipate a price increase of 10%-plus for the new product line…Looking ahead, we foresee 2024 as predominantly an R-410A refrigerant year. As we move into 2025, we expect the demand for the new low-GWP product to reach approximately half to two-thirds of the end market.”

The price increase for the A2L equipment is in line with what the company stated last year, said Maskara, noting that in 2023, Lennox indicated that the price increase for its R-454B equipment would be about 15% over two years, 2024 and 2025. The company implemented increases in the first quarter of 2024, he noted, so nothing has changed in terms of their pricing strategy.

Lennox CFO, Michael Quenzer, added, that as always, Lennox will come out with a new price increase next year on the R-410A systems. “Depending on where the cost of that gas goes, which we expect to go up significantly, it could also have a pretty large increase similar to the R-454B product, but we’re monitoring that. And there will be another price increase on that next year for the 35% of the [R-410A] demand.” He added that rising costs for copper, aluminum, and steel could also affect the cost of all equipment next year.

At Carrier’s first quarter earnings call, David Gitlin, chairman and CEO of Carrier, noted that the company expects a price increase of 15% to 20% over two years. That includes low double-digit base price increases, R-454B versus R-410A, as well as a few percent of base price this year and next, he said.

“We’re already selling the R-454B units — we shipped our first in the first quarter [of 2024],” said Gitlin. “Obviously, it won’t be that much over the short term, but we already have a price point in the marketplace for them, and we feel confident in the 15% to 20% over two years. I had previously said that we thought that about 20% of our mix this year would be R-454B, but I think it’s going to be less than that. To the extent we ship less R-454B, I think that for the year, will be offset by probably a little more pre-buy than we thought on the R-410A.” He expects market share for A2L products in 2025 to be higher than 60%.

Gitlin added that Carrier’s strategy with the A2L transition is to get way out in front, as the company does not want any technical, producibility, or capacity issues as the end of the year draws near. “Our number one priority is to support our customers to make this a seamless transition, so we are getting way out in front, not only on shipping the product, but on training our dealers,” he said.

Trane chairman and CEO, David Regnery, commented in their first quarter earnings call that the company does not yet have a lot of R-454B product in the Americas. “We’ll be launching those products as we go through the year, but we’re not anticipating a lot of volume in 2024, and we’ll see how the year progresses for 2025. But I just want to make sure everyone’s clear. We’ve been using R-454B in Europe for over two years now, so this is not a new refrigerant for Trane Technologies. We’re very comfortable with the refrigerant and we’ve had in our portfolio for some time.”

As for the cost of the new units, Regnery said that Trane will announce pricing when products are released, saying that, “What you’ve heard from others is probably in the ballpark as to what to expect from a pricing standpoint. We’re going to see how the year plays out. We don’t see a big pre-buy happening at the end of the year for R-410A. Nobody wants to get stuck with inventory. We have to watch and see how the balance plays out, and we’ll give you an update as we move through the year.”

Obviously, the rising cost of new equipment has also been a concern for contractors, who are worried that higher prices will cause some customers to repair rather than replace their systems. Both Lennox and Carrier stated in their earnings calls that they have not yet seen that happen, and Hoover agrees.

“In 2023, we did see a trend towards more repair than replacement, but in 2024, we are actually seeing a trend toward replacement more than repair,” said Hoover. “This may be driven by the impending change in refrigerant and anticipation of more increases in the near future. I do anticipate an increase in equipment pricing but don’t have hard data on that just yet.”

Source achrnews.com

Malco Partners with Elite Trades HVAC National Championship
Malco to provide tools to be used in championship skills-testing event, highlighting top tradespeople from across the US

Malco Tools, one of the nation’s leading solution developers and manufacturers of a variety of high-quality tools for the HVAC trade, announced today that it is partnering with the ServiceTitan Elite Trades Championship Series (ETCS) to sponsor the 2024 ServiceTitan HVAC National Championship.

During ETCS, top tradespeople from across the U.S. go head-to-head in a series of challenging and skill-testing events throughout the year, culminating in one final round of competition for the top 10 HVAC professionals and top 10 HVAC apprentices in West Palm Beach, Florida, in September 2024. Malco will provide tools for the finalists to use during the championship, where they will prove their skills in a custom-built arena by installing equipment in a short timeframe while being judged on their workmanship, proper tool usage and safety.

“We are excited to help power the exciting ServiceTitan Elite Trades Championship Series to shine a spotlight on the high-quality skills HVAC tradespeople use on the job every day,” said Rebecca Talbot, vice president of marketing for Malco Tools. “HVAC pros are incredibly skilled, and Malco is proud to support a platform that allows them to showcase their expertise in their craft.”

The ETCS program was built to celebrate the importance and incredible range of skills the people in the trades implement every day that keeps the country running. ETCS is dedicated to showcasing the incredible career opportunities in the industry, growing local and national support for all of the trades and developing new platforms that expand the awareness of the amazing stories of the men and women in the trades.

Malco is a strong supporter and advocate of careers in the trades, donating significant quantities of in-kind products and apparel annually to a variety of skilled trade education programs, competitions and events across the country. Malco also coordinates the “Head of the Class” Student Recognition Program that partners with education programs in the U.S. to recognize high-achieving students and entire graduating classes in the HVAC/sheet metal and building construction fields. To date, Malco has reached more than 85,000 trade students through Head of the Class.

For more information about Malco Tools, visit www.malcotools.com. For more information about the ServiceTitan HVAC National Championship, visit www.hvacnationals.com.

About Malco Tools, Inc.
Malco Tools, Inc., based in Annandale, Minnesota, is one of the nation’s leading solution developers and manufacturers of a variety of high-quality specialty hand tools for the HVAC and building construction trades. Backed by over 70 years of history, these specialized tools are built to last, rigorously tested and backed by a limited lifetime warranty. Malco is proud to be 100% employee-owned. Malco earned a Manufacturing Excellence Award from Twin Cities Business Magazine in 2022 and was named the Medium Manufacturer of the Year in 2018 and 2024 by the Minneapolis/St. Paul Business Journal. For more information about Malco, visit www.malcotools.com.

Source hvacinsider.com

Nonresidential Spending Down, But Still High
Spending in April slipped slightly, but remained well above its level a year ago, according to new government data.

WASHINGTON, June 3—Nonresidential construction spending decreased 0.3% in April, according to new data from the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.2 trillion, still well above where it was a year ago.

Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was down 0.2% in April.

“Overall spending slipped despite upturns in manufacturing and power construction and a slight pickup in single-family homebuilding,” said Ken Simonson, chief economist for the Associated General Contractors of America. “Most public segments continued a seesaw pattern, with decreases in April following gains in other recent months.”

Still, the total for April is “just 0.3% below the all-time high established in February,” noted Anirban Basu, chief economist for the Associated Builders and Contractors trade group. “An unprecedented increase in manufacturing construction spending has pushed overall nonresidential activity 31.9% higher over the past two years.”

Ongoing investment in industrial facilities as well as significant infrastructure-related outlays will keep nonresidential spending elevated despite current expectations that interest rates will stay higher for longer, he added. “This outlook is reflected in ABC’s Construction Confidence Index, which shows that a majority of contractors expect their sales to increase over the next two quarters,” said Basu.

Construction spending, not adjusted for inflation, totaled $2.099 trillion at a seasonally adjusted annual rate in April. That figure is 0.1% below the upwardly revised March rate, but 10% above the April 2023 level.

Spending on private nonresidential projects declined 0.3% on balance in April but rose 8.3% year-over-year. The largest private segment, manufacturing construction, climbed 0.9% for the month and 17.1% over 12 months. Commercial construction fell 1.1% in April and was virtually unchanged from a year earlier. Investment in power, oil, and gas projects edged up 0.1% in April and rose 7.4% year-over-year.

Spending on private residential construction ticked up 0.1% for the month and 8.0% year-over-year. Single-family construction rose for the 12th month in a row, by 0.1%, and 20.4% year-over-year. Multifamily spending fell 0.3% in April but climbed 2.3% from April 2023.

Public construction spending fell 0.3% for the month but rose 16.7% from a year earlier. The largest public segment, highway and street construction, fell 0.5% in April but rose 16.4% over 12 months. Public educational spending fell 0.2% in April but rose 16.8% over the year.

Source hpac.com

Controls Engineering & IoT

How Restaurants Can Harness the Power of LoRaWAN Technology for Enhanced Efficiency and Sustainability
When it comes to restaurant technology, Long Range Wide Area Network (LoRaWAN) and sensor-enabled devices are transforming operations and paving the way for significant efficiency and sustainability improvements. From monitoring temperature fluctuations, improving sustainability initiatives, and automating tasks, the benefits of using LoRaWAN technology in restaurants are both diverse and impactful.

Let’s explore three specific use cases where the adoption of LoRaWAN yields tangible advantages for restaurant managers and facility owners, illustrating how the technology reduces expenses and enhances profitability in an increasingly competitive industry.

LoRaWAN technology optimizes cold storage and temperature-controlled logistics.
At its core, LoRaWAN solutions seamlessly connect sensor-enabled devices to various restaurant platforms and applications, offering insights into critical aspects of operations. One fast growing use of the technology is for temperature monitoring in cold storage areas. This automated process enables restaurant personnel to monitor temperature variations with precision, ensuring compliance with food safety regulations and minimizing food waste.

For example, Quick Service Restaurants (QSRs) adopting LoRaWAN-enabled temperature sensors have streamlined daily checks by 30-60 minutes, liberating staff time and reducing potential errors. By deploying these sensors in refrigerators, freezers, and even delivery vehicles, restaurant operators can actively monitor temperature fluctuations, mitigating the risk of food spoilage and upholding the quality and safety standards of perishable goods.

LoRaWAN technology offers a wide range of sustainability initiatives for restaurants.
Environmental and infrastructure monitoring devices are capable of maintaining communication over extended distances and in challenging conditions, making them ideal for monitoring building energy consumption and optimizing the performance of heating and cooling systems based on real-time data insights. As a result, restaurants can effectively reduce their carbon footprint and realize substantial cost savings over time.

Additionally, restaurants can deploy water leak sensors throughout their facility to quickly identify leaks, which results in less damage and ultimately less water loss. This allows restaurants to curb waste and maximize water efficiency. Ultimately, this not only leads to reduced water bills and repair cost savings, but also plays a role in broader resource conservation initiatives.

LoRaWAN technology supports task automation and real-time inventory monitoring.
Restaurants that have integrated carrier-grade LoRaWAN connectivity into their systems have reported substantial time savings for managers – over 16 hours per month. This automation is particularly beneficial for large-scale restaurant operations.

Coupled with automating tasks, restaurants can track inventory levels for both food and supplies in real-time, right from their kitchens and storage areas. By optimizing inventory levels and minimizing excess stock, restaurants can effectively reduce food waste, cut carrying costs, and enhance overall inventory management efficiency.

As restaurants expand their IoT deployments alongside their growing operations, the scalability and adaptability of LoRaWAN solutions become increasingly invaluable. With its forward-looking capabilities, restaurants that adopt LoRaWAN will further enhance operational efficiency and create even more sustainable business practices. Looking ahead, LoRaWAN represents not just a solution for today but a strategic investment for the future of the restaurant industry.

Source Tom Wainman restauranttechnologynews.com

Chipotle Rolls Out RFID Technology to Improve Supply Chain Visibility and Restaurant Inventory Management
When supply chain operations are outsourced, maintaining visibility becomes crucial. This is a lesson well understood by Chipotle Mexican Grill, which boasts over 3,300 restaurants in the United States, Canada, the United Kingdom, France, and Germany, with its extensive third-party reliant supply chain.

To enhance visibility, Chipotle, which is widely viewed as a leading technology innovator in the food industry, has implemented radio frequency identification (RFID) tags across its supply chain. These smart barcodes automatically identify and track inventory, a technology commonly used in retail but novel in the restaurant industry. Chipotle is reportedly the first restaurant chain to adopt RFID technology on this scale.

Chipotle’s RFID rollout is part of a broader strategy to improve inventory visibility and operational efficiency. The company is working to implement RFID technology nationally, following a successful pilot program in the Chicago area. Following the pilot, the company began equipping suppliers with the necessary technology, software, printers, and infrastructure to support the rollout.

The implementation process starts with a single restaurant to address any issues before expanding to a group of locations and eventually a full region. Recently, Chipotle successfully introduced RFID technology in Southern California and plans to extend it to all 3,500 restaurants by the end of the year.

RFID technology has proven particularly useful for managing limited-time offers, such as Chipotle’s Chicken al Pastor. These promotions require extensive preparation, often a year in advance, and involve coordinating with additional suppliers. RFID helps monitor inventory levels and ensures traceability throughout the supply chain, from distribution centers to transportation companies.

Before RFID, Chipotle restaurant managers had to manually scan each barcode, a time-consuming process. Now, RFID allows managers to quickly and efficiently scan inventory, improving both speed and accuracy.

Beyond RFID, Chipotle is also enhancing its supply chain technology with Oracle’s platform. The company is developing a project called “supplier visibility,” which integrates various technologies to provide comprehensive insights into inventory, shipments, and supplier information. This project aims to offer a complete view of the supply chain, from raw materials to finished products.

Chipotle is also upgrading its enterprise resource planning (ERP) system with Oracle to improve data management and operational efficiency. There is no discounting the importance of having a centralized ERP system for companies with significant scale. The new system will enable Chipotle to gain better visibility and control over its supply chain operations.

In addition to supply chain innovations, Chipotle has made strategic investments in sustainable farming technologies. In February, the company announced minority investments in Greenfield Robotics and Nitricity through its $50 million Cultivate Next venture fund. These investments align with Chipotle’s mission to support sustainable farming and reduce greenhouse gas emissions.

Greenfield Robotics uses AI, robotics, and sensing technologies to make regenerative farming more efficient. Their autonomous robots reduce the need for herbicides by cutting weeds between crop rows. Chipotle’s investment will help Greenfield Robotics expand its fleet and develop new capabilities, such as micro-spraying, cover crop planting, and soil testing.

Nitricity produces sustainable fertilizer using air, water, and renewable energy from artificial lightning. This process significantly reduces greenhouse gas emissions compared to traditional nitrogen fertilizer production. Chipotle’s investment will support Nitricity in scaling up production, building infrastructure, and launching its first commercial product within the next two years.

Chipotle’s adoption of advanced technology extends to its restaurant operations. The company is testing an automated digital makeline in collaboration with Hyphen, a foodservice platform that automates kitchen operations. This system is designed to prepare bowls and salads, freeing up team members to focus on other tasks and improving order accuracy.

Additionally, Chipotle has developed Autocado, an avocado processing cobotic prototype in partnership with Vebu. Autocado automates the tasks of cutting, coring, and peeling avocados, significantly reducing guacamole preparation time. This innovation allows employees to focus more on customer service.

Chipotle’s technology-driven initiatives also include Chippy, an autonomous kitchen assistant for making tortilla chips, and a kitchen management system that uses machine learning to optimize ingredient freshness and minimize food waste. These systems analyze real-time data and operational simulations to create algorithms that enhance performance and efficiency.

Chipotle’s focus on supply chain technology and innovation is transforming its operations, improving efficiency, and enhancing the guest experience. By leveraging advanced technologies and strategic investments, the company is well-positioned to lead the industry in supply chain management optimization and overall business improvement.

Source restauranttechnologynews.com

Meat, dairy startups on the cutting edge
CHICAGO — The categories of non-animal-based meat and dairy are experiencing disruption as startups explore emerging ingredients and processes. Many of these products are getting closer to reality. In fact, so much so, that some are receiving high accolades when competing against animal-based products, which unfortunately, does not always have a positive outcome.

That’s what happed with the vegan blue cheese from Climax Foods, Berkeley, Calif. The “cheese” was selected as a finalist by the Good Food Foundation (GFF) for a Good Food Award in January. It was the first time a plant-based cheese made it to the finals since being allowed to compete against dairy cheese five years ago.

A confidential letter sent to the company by the GFF stated the blue cheese would be crowned the winner, as reported by The Washington Post. But one week before the winners were to be announced, the GFF disqualified Climax after a complaint about one of its ingredients.

It was not the formulation of pumpkin seeds, lima beans, hemp seeds, coconut fat and cocoa butter that make up most of the product, but rather it was the kokum butter, which is a fat derived from the seeds of a fruit-bearing tropical tree called the kokum tree. While kokum butter long has been used in cosmetics, there’s little historical use of it in food. Thus, it may not meet the “Generally Recognized As Safe” (GRAS) designation by the US Food and Drug Administration, a new requirement by the GFF for the awards.

Enter artificial intelligence
How did Oliver Zahn, chief executive officer of Climax Foods and developer of the blue cheese, identify kokum butter as an invaluable component? It was through artificial intelligence (AI).

He said he believes that plants are far more genetically diverse than animals and serve as great building blocks for food optimization. The infinite combinations of plant-based ingredients may be optimized to produce indistinguishable alternatives to animal-based products.

“We started from a profound appreciation for the complex flavors and textures of dairy products,” Zahn said. “Cows have made our milk for thousands of years. However, less than 10% of the plants they eat get turned into food for humans, which has led to significant environmental and health problems in today’s much more crowded world.

“It is human nature to rethink ancient practices, so we came up with a smarter way. By using data science to accelerate plant-based ingredient and process discoveries, we are saving thousands of years of tinkering to create products that are just as tasty as the cow-based predecessors without the downsides, today.”

Boulder, Colo.-based Meati Foods used AI from PIPA LLC, Davis, Calif., to accelerate its understanding of the nutritional and functional opportunities offered by mycelium, also known as mushroom root. The use of AI has enabled Meati Foods to develop its animal-free whole-food protein cuts.

“When founding Meati and unpacking what it would take to achieve global-scale impact on our food system, the requirements were monumental,” said Justin Whiteley, Meati Foods’ co-founder and chief science officer. “It had to be a delicious, whole-food solution plucked from nature, rapidly scalable and, critically, hyper-nutritious. We know Meati is a whole food containing a wide array of nutrients that can be valuable additions to anyone’s diet. AI is the perfect tool to help accelerate our understanding of exactly why including Meati products can improve the health of everyone at the family dinner table.”

Meati products — classic and crispy cutlets and classic and carne asada steaks —are complete proteins. The complex array of other nutrients naturally present in Meati products suggests the potential for positive impact on heart health, digestion, the immune system and blood glucose levels, according to the company.

More than a plant
Nature’s Fynd, Chicago, also uses fungi protein to formulate its meatless breakfast patties and dairy-free cream cheese. Earlier this year, the company launched a fungi-based yogurt. It has a thick and creamy consistency without the grittiness often found in high-protein and plant-based yogurts and is nutritionally dense with 8 grams of protein and 4 grams of fiber. The peach and strawberry yogurts feature only 8 grams of added sugar while the vanilla yogurt has 9 grams. They all are loaded with live and active cultures and are free from artificial flavors or preservatives.

“In a crowded market of dairy-free yogurts that often sacrifice nutrition for taste or vice-versa, we have created the world’s first fungi-based yogurt,” said Thomas Jonas, CEO and co-founder. “It is delicious, nutrition-forward and earth-friendly.”

Sweden-based Veg of Lund AB explored scientific food research to identify that the potato protein offers an excellent amino acid profile, with a biological value of 90 to 100. It is on par with an egg, said Helene Nielsen, CEO.

“The biological value of potato protein, which indicates how well the protein is absorbed, is also significantly higher than that of soy, oat or almond proteins,” she said. “This is highly unique for a vegetable.

“Eva Tornberg, professor in food technology at Lund University, saw potential in using potatoes as a base for a multitude of vegan and plant-based alternatives. She proceeded to develop a unique, patented method for producing a heat-stable, vegan emulsion made from potatoes and rapeseed oil, which forms the basis of all Veg of Lund innovations.”

Veg of Lund’s business model is to conduct its own or licensed production and sale of plant-based foods under the DUG brand. Fluid products are currently the company’s focus, in particular, coffee whiteners for use by baristas and throughout the coffee channel.

“Consumers want good plant-based food that is climate-smart, healthy and preferably free of allergens,” Nielsen said. “Countries have strategies to reduce their climate impact, and investors are looking for sustainable companies to be able to increase their return on invested capital. In recent months, we have established DUG in several countries, most recently in the Czech Republic, Slovakia, Poland and Germany. I expect that we will soon be able to complete the list with distributors in several countries.

“As a company in a market that is partly in a build-up phase, we must increase our presence and strengthen our position in the markets that offer the best conditions for rapid sales development,” she said. “In addition to this, we can launch new products such as ingredients as well as cooking and whipping cream, ice cream and a meat analogue. We see great opportunities for these new categories.”

Good Planet Foods, Bellevue, Wash., is an alternative cheese manufacturer that uses olive oil and now is using the same technology to make sharp cheddar and smoked gouda slices. Most vegan cheeses are formulated with coconut oil,and therefore contain high amounts of saturated fat. With olive oil, a slice has zero grams of saturated fat, zero mg cholesterol and less than half the calories compared to dairy cheese, according to the company. The olive oil also delivers flavor, texture and meltability.

Another go-to ingredient in the alternative space is soy, but it is also a common allergen. This is why plant-based snack kit maker Mighty Yum, Boca Raton, Fla., has reformulated soy out of the plant-based turkey with cheese and plant-based ham with cheese Munchables lunch kits. The plant-based meats and cheeses now are made with vegetables, such as parsnips, chickpeas, sweet potatoes and tomato puree.

Seoul, South Korea-based Armored Fresh is a food technology company that makes plant-based cheese. The company has offices in McLean, Va., and is entering the US condiment category with an oat milk cheddar dip for foodservice. Operators may season the product to meet the desired taste profile, everything from a nacho topper to a pretzel dipper.

A growing number of food technology companies also are relying on precision fermentation. It’s a technology that has been around for a little more than three decades and is being used to produce food and food ingredients in more earth-friendly manners.

It involves using bioengineering techniques to program microorganisms by giving them a specific genetic code to produce a compound of interest when fermented under precise conditions. The genetic code is the exact copy of the DNA sequence found in a digitized database on animal or plant DNA sequence; however, it requires no animal or plant involvement. The result is the molecularly identical ingredient made by microorganisms.

Onego Bio uses the technology to produce animal-free egg proteins. Onego Bio’s ingredient is bio-identical to ovalbumin, the primary protein in egg white. It provides the same functionality and nutrition without the environmental, ethical and safety-related concerns of eggs from chickens.

Imagindairy, an Israeli-based food tech startup with offices in San Francisco, now owns and operates industrial-scale precision fermentation production lines focused on the production of all types of animal-free dairy ingredients. The achievement follows the company receiving a “no questions” response letter from the FDA at the end of 2023 for the GRAS notice submitted by the company.

It’s important to note that because animal-free egg and dairy ingredients are genetic duplications of the animal-based formats, the same allergies and sensitivities exist for consumers and the FDA requires this disclosure.

Source foodbusinessnews.net

Jan/San & Disposables

Kimberly Clark Shares Sustainability Goals
Kimberly-Clark published its annual sustainability report, including an update on the company’s progress toward its 2030 sustainability goals and a new ambition to be 100 percent Natural Forest Free across its portfolio beyond 2030.

Over the past decade, the company has made significant investments in developing more sustainable products as part of the company’s innovation strategy and focus on delivering products with enhanced consumer benefits while striving to lower its environmental footprint.

“Sustainability is woven into the fabric of our 152-year-old company’s innovation strategy and purpose, serving as a guiding principle across every facet of our operations,” says Mike Hsu, chairman and CEO at Kimberly-Clark. “I am proud of our team’s commitment to our purpose of Better Care for a Better World, focusing on where we believe we can make the biggest impact.”

Key highlights of the company’s 2023 progress include:

• Better Planet: Building on Kimberly-Clark’s long-standing support of sustainable forest management, the company’s 100 percent Natural Forest Free commitment will greatly reduce its nature footprint since forests play a critical role in protecting biodiversity and helping mitigate climate change. Kimberly-Clark expects to be more than halfway to this goal by 2030. In 2023, the company surpassed its 2030 water footprint target and bolstered the utilization of alternative energy sources such as wind and solar power, including the launch of a new virtual purchase power agreement (VPPA) in the form of an onshore wind farm in Scotland and the initiation of several renewable power purchase agreements (PPAs). The company has achieved an absolute reduction in operational (Scope 1 and 2) GHG emissions of 40.9 percent towards its goal of a 50 percent reduction by 2030, and a 10.4 percent energy efficiency improvement over its 2015 baseline.

• Better Products: In the past year, Kimberly-Clark continued to seek more sustainable solutions to strengthen its product offerings, for instance introducing the company’s first-ever Kotex paper pouch; and launching reusable menstrual and incontinence solutions in markets around the globe. Kimberly-Clark also continued to prioritize the procurement of fibers from sources with sustainable forest management certification while pursuing ongoing investments in alternative fibers solutions. The company has reduced its plastics footprint by 16.4 percent towards its goal of a 50 percent reduction by 2030 over its 2019 baseline.

• Better Workplace: As part of Kimberly-Clark’s efforts to cultivate a culture where employees feel supported, valued and included, the company invested in engaging its workforce at global and regional levels.

Kimberly-Clark’s executive leadership team (ELT) hosted sessions with the company’s top 200 business unit and functional leaders globally to help them understand how to demonstrate performance-driven leadership through the qualities of presence, courage, candor and transparency; and how to address barriers to performance-driven leadership. The ELT then partnered with these leaders to cascade the information to employees and their team leaders.

Further, in 2023, Kimberly-Clark strengthened its human rights due diligence and supplier engagement processes, including more robust risk segmentation, monitoring tools and supply chain mapping and by connecting suppliers with resources and experts to improve their human rights performance.The company also appointed Lisa Morden, formerly vice president of Safety, Sustainability, and Occupational Health to the role of chief sustainability officer.

“We are proud of our progress and, in 2023, we continued to address challenges associated with single-use plastics, carbon emissions, and water use in our operations and value chain, while working to decrease forest reliance and increasing our use of renewable energy,” says Morden. “We recognize that there are still challenges and opportunities ahead and we remain dedicated to supporting a more sustainable future for all.”

Source cleanlink.com

Applying Gambling Tactics to Distributor Sales Success
You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away, and know when to run.” These timeless lyrics from Kenny Rogers’ “The Gambler” aren’t just wisdom for card players, but they also have incredible relevance to sales professionals.
Just as a seasoned gambler understands the stakes of the game, a skilled sales professional must recognize when a prospect is no longer worth the gamble.

Recognize Misalignment
The first step in deciding whether to hold or fold is assessing whether your product or service solves important business issues. The core of any successful sale is improving the prospect’s business. If, after diligent effort, it becomes clear you can’t answer the “why change” question, it might be time to fold ’em.

This misalignment can stem from various factors; differences in budget, strategic priorities, or a mismatch in the timeline for implementation. Persisting in these situations usually leads to frustration for both parties and frequently a price-centered sale.

Decision-Making Progress
In sales, momentum is key. If you find that the prospect consistently postpones meetings, leaves emails unanswered, or shows a general lack of urgency, it is a sign you failed to create a compelling business case. A prospect genuinely interested in what you are offering will actively engage. The sales process will have a rhythm.

Delays, canceled meetings, and lack of responses are all signs that your prospect does not see the compelling value in your proposal. If you can’t get the prospect to engage through a customer-centric solution, your efforts might be better spent on more receptive prospects.

Cost vs. Benefit
Return on investment is critical in sales. Time is your most limited and valuable resource. Determining which prospects to spend time on is one of the most important decisions that you’ll make.

Your litmus test is that the prospect’s level of effort must match yours. There is a problem when you invest more effort in the relationship than the prospect. Continuing to invest in a prospect with diminishing returns drains valuable resources and energy that could be directed toward more lucrative opportunities.

“The Gambler’s” advice rings true here: weigh your bets carefully and fold when the odds are no longer in your favor.

Trust Your Gut
Above all, trust your instincts. The combination of a strong sales process and experience provides a keen sense for gauging the deal’s viability. If your gut is telling you that something isn’t right — whether it’s the attitude of the prospect or the overall fit with your business — then it might be time to heed “The Gambler’s” advice and run. Like Kenny Rogers sings, sometimes, the smartest move is to trust your intuition and make a strategic retreat.

Just like “The Gambler” needs to know when to hold or fold, a sales professional must recognize when to engage with a prospect and when it’s prudent to step back. By observing these indicators and implementing these strategies, you can fine-tune your sales approach, save resources, and concentrate on the prospects that hold the most promise for success.

“You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away, and know when to run.” These aren’t just lyrics from a song — they’re vital tactics for thriving sales.

Jim Peduto is the Managing Partner and co-founder of Knowledgeworx, LLC. Owners and CEOs rely on Jim’s strategic thinking and transformational growth expertise to win market share and achieve performance gains.

Source cleanlink.com

Georgia-Pacific relaunches ARIA® bath tissue with enhanced eco-friendly features
The revamped three-ply product is made from 100% recycled fiber, wrapped in recyclable paper packaging, and supports reforestation efforts

Georgia-Pacific has relaunched its ARIA® brand of bath tissue, now offering a three-ply premium product made entirely from recycled fiber and packaged in recyclable paper.

“The original ARIA offering delivered on consumers’ desire for a high-quality toilet paper but didn’t completely meet their desired level of eco-friendliness since the product included virgin fiber and plastic packaging”, explained Caitlin Allen, brand director for Georgia-Pacific. “The new ARIA combines the premium softness of a three-ply design with the eco-conscious benefits of recycled fiber and recyclable paper packaging which separates it from other eco-positioned options”.

The new packaging can be recycled through standard curbside processes, contributing to the product’s overall environmental benefits. In addition to its eco-friendly packaging, the ARIA bath tissue is also septic-safe and flushable.

As part of the relaunch, Georgia-Pacific has partnered with the Arbor Day Foundation® to plant native trees in forest ecosystems in need, particularly in areas affected by wildfires.

“With ARIA bath tissue, we’re providing a sustainable solution that can help consumers reduce their environmental impact”, said Allen. “We want consumers to feel good that the choice they are making today will have a positive impact on the future”.

Manufactured and packaged at Georgia-Pacific’s mill in Halsey, Oregon, the ARIA bath tissue utilizes recycled fiber primarily sourced from high-grade Sorted Office Paper recovered from offices and schools.

“ARIA is now uniquely positioned in the marketplace to deliver on a consumer need that was previously unmet”, explained Allen. “With ARIA, consumers no longer have to make the tradeoff between softness and a more thoughtful choice when it comes to their bath tissue”.

Source tissueonlinenorthamerica.com

Industry Spotlight

Citing weak industry traffic, Technomic cuts its 2024 restaurant sales forecast
The data firm, a sister company of Restaurant Business, has revised down its sales expectations by 1.5 percentage points. Can a value war bring some of that traffic back?

How bad has the year started off for restaurants? Bad enough to cost the industry about 1.5% of its sales, at least according to one projection.

Technomic, the data and analytics firm and sister company of Restaurant Business, has revised downward its restaurant sales forecast for the year.

After initially expecting a 5.3% increase in sales for 2024, the firm now expects a 3.8% increase, a downward revision of 1.5 percentage points.

Blame high prices and weak traffic.

“I think restaurants have been taking up pricing and consumers have pushed back,” Technomic Managing Principal Joe Pawlak said. “We just can’t do it anymore. We’re cutting back frequency. We’re also looking at our total spend, and maybe we’re not buying that carbonated soft drink along with our meal.”

Technomic projects that prices will increase 3.7% this year, meaning it now barely expects restaurant sales to keep pace with price hikes.

Even that may not say everything, because the industry has continued to build more new restaurants than it is closing. So even a below-average rate of 1% unit growth would mean a typical restaurant loses nearly 1% of its customers.

Technomic re-examines its forecast quarterly and revisions are not uncommon. But Pawlak said this level of revision is unusual and suggests a change in consumer behavior that was not expected at the beginning of the year.

That shows where the business suddenly finds itself. “We’ve taken it down because our traffic assumptions have gone down,” Pawlak said. Several restaurant chains have reported weak traffic.

Some chains, like Wingstop, Chipotle and Sweetgreen, are attracting more customers. But most are losing them, a decline that began midway through 2023 and appears to have worsened so far in 2024.

Part of that is weather, as chains like Cava and Portillo’s have noted. But much of the fast-food sector has lost customers to grocery stores, a “trading out” phenomenon first identified by McDonald’s in February.

Walmart in particular has stated that it is getting restaurant customers looking for value. Many are actively lowering prices.

Nearly 80% of Americans now believe fast food to be a “luxury,” according to a Lending Tree survey.

Convenience stores such as EG America are also running value meals with the hope of attracting budget-conscious consumers.

Restaurant chains are already jumping on that bandwagon. Wendy’s has introduced a $3 breakfast bundled meal and Jack in the Box is running value offers at $4. McDonald’s plans a $5 value meal later this month while Burger King expects to respond in kind with another version of its $5 Your Way Meal.

Arby’s this week has brought back its 5 for $5 roast beef sandwiches offer, one of the most popular discounts in the chain’s history.

Technomic does expect that value war to bring back some traffic toward the end of 2024. “We think there’s going to be a big push that always brings in traffic,” Pawlak said.

It’s worth noting that, despite the challenges, the industry is still expecting growth this year. It’s rare for restaurants to actually lose sales. And 3.8% growth this year would be similar to industry growth rates between 2016 and 2019, just before the pandemic.

And, despite all the handwringing about fast-food prices, it will be full-service chains that bear the brunt of the current turndown. Technomic expects fast-casual sales to grow 6.4% this year. Quick-service restaurants are expected to grow 4.6%, both of which are firmly above inflationary levels.

Casual-dining chains, on the other hand, are expected to grow sales by 2% while family-dining or “midscale” restaurants are expected to grow 1.6%. Fine dining sales are expected to grow by 3.2%.

In other words, the challenging year will once again shift more sales away from full-service restaurants to limited-service brands.

Source restaurantbusinessonline.com

Starbucks shifting food strategy
PARIS — Even as the company is looking to expanding the variety of its baked foods to attract customers, Starbucks Corp. also is striving to leverage its size to exact more attractive pricing from bakers in purchasing grain-based foods.

Baked foods were discussed by Rachel Ruggeri, executive vice president and chief financial officer, June 5 at the Deutsche Bank dbAccess Global Consumer Conference in Paris. While emphasizing coffee’s primacy at Starbucks, saying, “Coffee is core to who we are,” Ruggeri described new baked foods intended to “add new variety to food.” She began, though, describing a product already on the menu.

“We have a new blueberry muffin,” she said. “It’s more blueberries, a more elevated muffin. But we’ve leveraged our scale to ensure we maintain pricing and overall cost of factors, which is part of our efficiency efforts.” She noted the company also has added an egg and pesto mozzarella sandwich.

The Deutsche Bank discussion followed by several weeks Starbucks’ announcement that profits and sales were weaker in the company’s first quarter ended March 31. Revenues during the period fell 1%, adjusted for currency swings, and earnings fell 14%. Comparable store sales fell 4%, and operating margins tightened to 51.7% from 54.5%. At the end of the quarter, Starbucks operated 38,951 stores, 16,600 of which are in the United States.

The company’s shares fell sharply in response to the earnings announcement, slumping as low as $71.80 in the days afterward, down 19% from the day before the financial results were released and down 25% from $96.01 at the end of 2023. The company’s shares partially have recovered over the past couple of weeks, climbing recently to the low $80s.

Discussing the company’s challenges, Ruggeri said early action plans Starbucks put in place to shore up its business failed to “materialize in the way we had expected,” adding that the company now appears to be making progress, particularly in the United States.

A principal focus of the effort is the efficiency of stores during the busy morning hours, a time slot Ruggeri said was becoming even busier.

“Almost 50% of our volume comes by 10 a.m., and that’s up a couple points from even a few years ago,” she said. She said optimizing throughput during this period and minimizing wait times for mobile order pay customers are priorities.

Ruggeri elaborated on the effort later in the discussion, describing what the company is calling the Siren Craft System, aimed at streamlining the drink-making process. The effort should result in “step change improvement,” perhaps 10 to 20 seconds, based on the company’s experience in test stores, she said.

“It’s really about how we address just through process, no capital required, but just through process improvements, bottlenecks within the busiest daypart,” she said.

Starbucks employees, called “partners” by Ruggeri, have responded positively to the change, she said.

“It’s a greater experience for the partners, and it’s going to create a better experience for the customer,” she said.

The change will be in place systemwide by the end of the year, Ruggeri said.

In connection with the lower revenues and the challenges associated with consumers becoming more thrifty, Ruggeri said different customer groups appear to view Starbucks differently when it comes to perceived value.

“Our most loyal customers indicate that they get value for what they get,” she said.

More broadly, she said the company is focused on “demonstrating value to our customers,” using marketing and targeted offers to attract and retain customers.

Customization also has a role, Ruggeri said.

Starbucks increasingly is focused on understanding “who you are as a customer, what your tastes and preferences are,” she said.

With that information the company is looking to attract purchases with specific location offers and daypart offers.

“(These offers are done) in a way that we manage our overall margin so that we are creating offers with maybe food and beverage, but in a way that’s accretive to the business,” she said.

The discussion wrapped up with a focus on profit margins and efforts by Starbucks to generate $4 billion in cost savings over the next four years. Ruggeri zeroed in on baked foods as an example of how the company will generate savings by optimizing “sourcing and manufacturing and distribution.”

“The example of sourcing is we’ve looked at some of our bakery offerings,” she said. “And while we’re focused on quality, we leverage our scale to be able to get better pricing. And that’s allowing us to create not only tangible financial benefits, but it’s allowing us to still continue with the quality offering we have.”

Source foodbusinessnews.net

Multiple Compass Coffee, Bluestone Lane, and OCF Coffee stores are unionizing
Six Bluestone Lane and OCF Coffee stores in Philadelphia unionized, while seven Compass Coffee locations in Washington, D.C. filed for a union vote

The unionization movement in the coffee industry continues with recent announcements of three Bluestone Lane Coffee stores and three OCF coffee stores in Philadelphia have unionized, and seven Compass Coffee stores in the Washington, D.C. area filing for a union vote the same week. These are the first union votes at all three brands, though organizers hope it will spread to other locations (particularly Bluestone Lane, which has 66 locations nationally and is growing fast).

Employees at all three Philadelphia locations of Bluestone Lane voted unanimously to join Philadelphia Joint Board of Workers United, Local 80 – the city’s only local union for cafes and bakeries. The union is an affiliate of Workers United—the union behind the massive Starbucks unionization movement.

“Our unanimous election win at Bluestone Lane represents a significant victory for laborers rights and fair treatment,” Trista Mayo, a barista at Bluestone Lane said in a statement. “This is a powerful step towards ensuring workers’ voices are heard and respected in ours and every workplace.”

On June 3, a majority of employees at all three of Philadelphia’s OCF Coffee locations signed a letter requesting union recognition from their employer, though there is no word yet on if that recognition was recognized. If not, employees will have to formally file for a union vote with the National Labor Relations Board.

“We, at OCF Coffee hope our movement sends a message to workers everywhere: a company is sustained not by a name, but by the hard work of its employees,” Alex Simpson, a barista at OCF Coffee, said in a statement. “We are vital to our workplaces and the communities we serve, and we deserve to be treated as such.”

Finally, at the Washington, D.C.-based coffee chain, Compass Coffee, employees at seven out of the 17 coffee locations filed petitions for union representation through Workers United with the National Labor Relations Board. Compass Coffee denied union organizers voluntary recognition on June 1, and the next step would be a unionization vote. Workers United expects that more stores are likely to join publicly soon.

Although Starbucks is one of the most high-profile unionization movements in the foodservice industry right now, union movements at cafes and coffee shops are catching on beyond just the green siren. Compass Coffee workers cited the organization efforts at La Colombe stores in the Washington D.C. area over the past couple of years as a major inspiration behind their efforts.

Workers are citing inconsistent and erratic scheduling practices, unsafe working conditions and broken machinery, low wages, and “lack of consistent tip implementation” as issues they would want to address in a future union contract.

“One of the biggest issues we have is not getting tips — there is no electronic option for tips,” Penina Meier-Silverman, a worker at the Georgetown location of Compass Coffee told NRN. “Employees are too scared to accept cash tips — we’re extremely discouraged form accepting tips in any form.”

In addition to the above stated issues, Meier-Silverman said that employees have complained of “arbitrary disciplinary actions,” including one barista who was allegedly written up for not smiling enough and another barista that they said was written up after a customer allegedly posted a lie about her on Google Reviews.

Meier-Silverman stated that upper management has not reached out directly to employees, though café managers have said that upper management has allegedly been attempting to get union activists written up for proselytizing on the store floor. She added that she thinks the company has been engaging in union-busting.

On the corporate side, Compass Coffee has stated that the company takes these issues “very seriously”:

“At Compass Coffee we recognize and deeply value the hard work and dedication of our employees,” a representative with Compass Coffee told NRN. “Our team is critical to our success, and we are committed to ensuring that they are respected, supported, and fairly compensated. We take their concerns seriously and are committed to actively engaging in constructive dialogue to address them. Our priority is to foster a positive and collaborative work environment where every worker feels valued and heard. Together — our shared aim — is to build a future for Compass Coffee that benefits our employees, our customers and our organization.”

Contact Joanna at joanna.fantozzi@informa.com

Source nrn.com

BurgerFi ‘considers strategic alternatives’ as company lags far behind competitors
The fast-casual restaurant chain has entered into a forbearance agreement with its lenders and is undergoing a ‘strategic review process’ to ensure a stable financial future

BurgerFi announced Thursday that the fast-casual burger concept and owner of Anthony’s Coal Fired Pizza would be “considering strategic alternatives” as the company looks to address continued fiscal challenges. BurgerFi has entered into a forbearance agreement with its existing creditors, with a relief period extending to at least July 31. Additionally, its lenders, L Catterton and TREW, have agreed to lend the company $4 million in total during this “strategic review process.”

According to recent Technomic data, BurgerFi’s sales were down 7.5% from 2022 to 2023, and its unit counts were also down 5.3% year-over-year, with a closure of six underperforming stores. Comparatively, the rest of the fast-casual burger sector has been on an upward growth trajectory, with average sales growth of 8%. The sector is led by Shake Shack, Hopdoddy, and Freddy’s Frozen Custard & Steakburgers, all of which had double-digit sales growth last year, and have been developing rapidly in new markets. In fact, BurgerFi is one of only three fast-casual burger chains to have reported a sales loss in 2023, alongside Smashburger and Fuddruckers.

After acquiring Anthony’s Coal Fired Pizza in Oct. 2021, the company’s sales stagnated rather than grew, and have been on a downward trajectory since its peak in 2021, according to Technomic data. Despite this, then-CEO Ian Baines said BurgerFi was looking for more brands to acquire, as of Jan. 2023.

Earlier this year, the company underwent a CEO change, with former Smashburger president Carl Bachmann now helming the brand. In a January interview with NRN, Bachmann said that he was learning from the mistakes of the brand’s past and implied that the company had “lost its way.” His goal was to improve taste standards of both brands’ products and increase menu innovation. This has culminated in the release of BurgerFi’s first chicken sandwiches earlier this month, available both in grilled and fried formats, as the company enters the very crowded chicken sandwich sector.

As BurgerFi continues to try to rectify past missteps and turn around its concerning financial situation, it’s not guaranteed that these efforts will help in the long-run:

“There can be no assurance, however, that the strategic review process will result in an outcome favorable to the company or its stakeholders,” BurgerFi’s Thursday press release said. “The company does not currently intend to comment further on this strategic review process and will make further announcements in accordance with its ongoing disclosure obligations and pursuant to applicable laws and regulations.”

Contact Joanna at joanna.fantozzi@informa.com

Source nrn.com

Nation’s Restaurant News announces expanded Investment Summit for emerging chain leaders
Walk-On’s, Smalls Sliders executives will keynote Nashville event that kicks off annual CREATE conference.

Nation’s Restaurant News (NRN), the premier publication serving the entire foodservice industry, announced that it is expanding its successful Investment Summit.

The second-annual Investment Summit will be held across two days, Oct. 8-9, at The Bell Tower event venue in Nashville, Tenn. It kicks off NRN’s CREATE: The Event for Emerging Restaurateurs, which will be hosted Oct. 9-11 at the Omni Nashville Hotel. Both events are tailored to owners, operators, and executives at small and mid-market restaurant chains looking to expand their businesses.

“So many brands who have come to CREATE over the years are looking for capital to grow. We launched the Investment Summit last year as an opportunity for those leaders to connect directly with investors and other members of the capital journey for both education and networking,” said Sam Oches, NRN’s editor-in-chief. “The response was overwhelmingly positive, and we’re excited to expand the Investment Summit to include more educational sessions and more opportunities for networking.”

The first day of this year’s Investment Summit will feature educational sessions diving deep into different aspects of restaurant financing, including private equity, family office investment, working with investment banks, and how to pitch investors.

It will also feature a keynote conversation with Brandon Landry, founder of Walk-On’s Sports Bistreaux and Smalls Sliders; Maria Rivera, CEO of Smalls Sliders; and Morven Groves, managing partner at 10 Point Capital. The conversation will explore how 10 Point Capital’s investment in Walk-On’s and Smalls Sliders has supported those brands in their expansion efforts.

On the second day of the Investment Summit, attendees will be invited to participate in roundtable networking conversations with top investors, investment bankers, restaurant platform leaders, and other critical partners who provide resources for growing businesses.

“More investors will be coming off the sidelines to invest in the coming years, and emerging restaurant leaders need to be prepared for that opportunity to secure capital for growth,” Oches said. “The Investment Summit — and CREATE after it — is the perfect opportunity for those restaurateurs to connect with the finance community and learn more about how they can properly scale.”

Attendance at the Investment Summit is free for restaurant leaders but limited. To participate, restaurant leaders need to register for CREATE and opt into the Investment Summit.

Any investor or representative of an investment bank, restaurant platform, financial services company, or other firm interested in participating in the Investment Summit should contact Sam Oches at sam.oches@informa.com.

Source nrn.com

Trump woos restaurant workers with a promise to stop taxing tips
Government Watch: Waffle House employees win a raise in the wake of union activity, and New York restaurants welcome a limit on reservation scalping.

Trump courts restaurant workers with a promise not to tax tips
With the election less than five months away, Donald Trump is courting restaurant employees by promising he’ll end the taxation of tips as income if he’s returned to the White House.

It was no coincidence that he aired the promise during a campaign rally Sunday in Las Vegas, where nearly half the 672,000 residents—302,000 individuals—work in the hospitality business, according to government statistics.

“We’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years,” the former president and presumptive Republican Party candidate in November said from the podium. “Those people that have jobs in restaurants, whatever the job may be, a tipping job, we’re not going after it for taxes anymore. This will be ended.”

Trump estimated the crowd size at 20,000, but local media put the headcount at under 7,000.

The promise drew no public response from employers or the trade groups that represent him, since it’d largely be a non-issue to them. If anything, they could benefit from servers, bartenders and hosts keeping more of their tipped income, which the Internal Revenue Service regards as taxable income. For decades, the agency has strived to collect more of what tipped restaurant employees collect in cash gratuities.

Higher take-home for front-of-house staff would presumably cut turnover and ease upward pressure on wages. But Trump said nothing about how he’d end taxation on tips. Wages are usually the purview of Congress, with the IRS drafting the rules that put taxation laws into practice.

Employers might have been more concerned by what Trump dismissed a day later in full Trumpian style as a made-up report in the “Fake News Washington Post.” The story suggested that some members of Trump’s informal circle of advisors have aired the prospect of requiring all young people to serve in the military, as Israel and other nations mandate. That move would almost certainly drain young potential hires from the restaurant industry’s labor pool.

But Trump dismissed the notion via his Truth Social network as a “ridiculous idea” meant to “damage me with the Voters.”

“Just another Fake Story, one of many, made up by the DEAD Washington Compost!” he posted.

Waffle House servers are getting a raise that may or may not be a union’s doing
A union that claims to represent employees of the iconic Waffle House chain says tipped workers there are getting a raise this month of about $3 an hour, depending on their longevity and location. The labor group, Union of Southern Service Employees, or USSE, says the bump will bring the employer’s portion of their wage up to $5.25 an hour, provided tips make up the rest of their area’s minimum wage. Otherwise, Waffle House makes up the difference, as is usual with a tip credit.

USSE says the pay hike is the result of the pressure it’s put on the 24-hour chain for the last year. The group, which says it represents restaurant workers across all brands, cites such efforts as calling walk-outs and drafting a petition to stop Waffle House’s collection of a $3.15 meal payment from employees regardless of whether they eat during a shift.

The company, which did not negotiate the pay hike in usual collective-bargaining fashion, has not agreed that it was forced to raise its pay floor. In a video aired to employees, CEO Joe Rogers said the recast of Waffle House’s pay structure had been in the planning stages for five years, with the pandemic proving a major delay.

In any case, the USSE pledged to keep pressuring Waffle House for employee concessions. “The raises show that the company is feeling the heat,” member and Waffle House server Katie Giede said in a statement. “But they’re not nearly enough. We’re demanding $25/hour because that’s what we need to live. We need 24/7 security [in] stores. And we need the company to stop taking money out of our checks for meals, even when we don’t eat them. We’re going to keep organizing and keep fighting until we win.”

New York restaurants score two big wins, but may be enriching lawyers
The Empire State has become the first in the nation to prohibit the resale of restaurant reservations without the host establishment’s permission, a qualification the industry had sought with enthusiasm.

The trade notched a second legislative victory when the state legislature agreed to change a restriction that had lengthened new restaurants’ wait times for a green light to sell alcohol. By changing a key requirement for a temporary liquor license, an establishment will now have to stick with soft drinks for just three to four months, instead of about a year, according to the New York City Hospitality Alliance.

But not all the regulatory news out of the Big Apple has been positive for the business—or for media like Restaurant Business, according to Hospitality Alliance CEO Andrew Rigie. In an op-ed, he has accused third-party delivery services of trying to intimidate whistle-blowing reports on allegedly unfair pricing and treatment of restaurants by the likes of DoorDash, Uber and Grubhub. The mechanism, he said, is the subpoena. Using federal law, the services are subpoenaing the Alliance for all correspondence and interaction with news media that reported on practices that were subsequently curbed by the City Council, according to the association exec.

Complying with the request is a burden for an organization of the Alliance’s size, Rigie writes. He argues that third parties are trying to cow organizations into backing off from criticizing the services and lobbying against their interests.

The op-ed suggests that subpoenas might also be sought against media that reported on the issue. Restaurant Business has not been served or otherwise contacted in regard to the matter.

The services have filed a lawsuit to overturn a cap on the fees they charge restaurants. The Alliance nor Restaurant Business are part of that suit.

Source restaurantbusinessonline.com

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