Experts: Restaurant deals to continue brisk pace into 2015
Rising sale prices are leaving some industry players hesitant, however
Nov 12, 2014 Jonathan Maze Node region
Readily available, low-cost loans are fueling a healthy market for the buying and selling of restaurant companies, and that trend is expected to continue into 2015, according to experts this week at the Restaurant Finance & Development Conference. However, rising sale prices for restaurant franchisees have some wondering whether the deals are worth it.
The industry is not having the greatest year, but valuations are having the greatest year. In recent auctions, the valuations have gotten ahead of business performance.
The number of restaurant industry deals has increased 8 percent to date in 2014. That includes large franchisees and restaurant brands. Dollars flowing into the business have helped drive valuations higher, he said.
It’s a great time to be a seller. It’s a great time to be a buyer, too, but the market probably benefits the seller more.
The biggest reason for the active acquisition market is the availability of loans. Interest rates remain low, and several lenders have started restaurant and franchise financing programs in recent years.
The influx of so many lenders has increased competition and in some cases has driven down the terms offered to potential buyers. There are 10 lenders for every borrower. It’s a hot market.
More buyers are also looking for deals. Private equity groups in particular have been active in the restaurant space in recent years. They’re buying small, high-growth brands and larger brands, too, but they’ve also snapped up more large-scale franchisees in recent years.
The flow of private equity into the sector is driving a lot of activity. Still, there is some concern that the market has become too hot in some cases. Some experienced franchisees have backed off auctions recently after prices climbed.
A lot of private equity firms are struggling to make the valuations make sense even if the lending is available.
Still, with high valuations being placed on restaurant companies and franchisees, some sellers are opting to jump into the market.
Source: nrn.com, 11-13-2014
FDA SETS MENU RULES FOR FOOD CHAINS, OTHER EATERIES Consumers will no longer have to guess how many calories are in most of the foods they buy when they eat out. U.S. Food and Drug Administration will announce that it is making final two rules that require calorie information be listed on menus and menu […]
Restaurants could be leaving sandwich revenue on the table Nov 24, 2014 Bret Thorn Node region Advertisement No meal is more central to the American diet than the sandwich. Portable, convenient and eminently customizable, it fits the needs of the modern consumer, and recent research shows that there’s still a long runway for growth of […]
Heat rises: the growth of spicy flavors on menus
Once reserved for only the most daring of diners, ‘spicy’ has officially gone mainstream. A majority of Americans (54 percent) now prefer hot or spicy foods, sauces, dips and condiments—up from 48 percent in 2011 and 46 percent in 2009. The appeal of hot and spicy foods is highest among 18–34-year-olds (60%). Additionally, a market research firm reports that, during a recent six-month period, the incidence of hot/spicy items on quick-service and fast-casual restaurants expanded from half to 75% of all locations.
Clearly, there has never been a better time to dial up the heat in your sandwiches, burgers and wraps. Just as the fast food industry has discovered, adding flavors such as chipotle, habanero and sriracha can bring new excitement to your menu—and new patrons to your establishment in search of a spicy kick. Speaking of sriracha, it’s the current heavyweight champ of the spicy food trend, up 80% on restaurant menus in the last year alone. The simple addition of this one ingredient to an offering could be just what you need to light up orders.
But the temperature-pushing possibilities go well beyond the traditional favorites. Some of the new flavors that cutting-edge chefs are using to spice up their menus, revealing such exotic options as gochujang, harissa, togarashi and shishito peppers. Need an idea to get started? Creating menu offerings with on-trend ingredients is a sure-fire way to establish yourself as an innovator in the spicy category. Quick hint: don’t forget to use descriptors such as “spicy” and “hot” when naming any new offerings that feature these food-forward ingredients, especially since most are unfamiliar to the average consumer.
It’s important to remember too that spicy isn’t just about adding heat. It’s as much about satisfying patrons’ desires for new flavor experiences.
Turkey Cooking Times
The roasting times provided in this chart are for defrosted poultry that is refrigerator cold.
|Type of Poultry (Unstuffed)||Weight||Cooking Time (Minutes Per Pound)||Oven Temp.||Doneness|
|Turkey, Whole||8 to 12 lbs.||15 to 20||325°||170° to 175°|
|12 to 14 lbs.||15 to 17||325°||170° to 175°|
|14 to 18 lbs.||14 to 16||325°||170° to 175°|
|18 to 20 lbs.||13 to 14||325°||170° to 175°|
|20 to 24 lbs.||12 to 13-1/2||325°||170° to 175°|
|Turkey Breast, Whole||4 to 6 lbs.||22 to 30||325°||165°|
|Turkey Breast, Half||1-3/4 to 3-1/2 lbs.||35 to 40||325°||165°|
|Turkey Breast, Roast||1-1/4 to 1-3/4 lbs.||45 to 60||325°||165°|
* For stuffed birds, add 15 to 45 minutes to the roasting time. Temperature of stuffing should read at least 165°.
Saval Foodservice was proud to participated once again this year in the 2014 Capital Food Fight, founded by Chef/Owner, ThinkFoodGroup – Chair Emeritus, DC Central Kitchen Board of Directors. The event took place at the Ronal Reagan Building & International Trade Center, 1300 Pennsylvania Avenue, NW, Washington, DC @ 6:00pm. Again this year, Saval Foodservice’s Marketing […]
SHRIMP IN U.S. OFTEN MISLABELED, STUDY FINDS.
When buying shrimp, you may not be getting all you’re paying for. A study out reveals that nearly a third of shrimp products are being misrepresented, everything from labeling farmed species as “wild” to using aquarium pets as fillers in bags of salad-sized shrimp. The government is taking steps to make the seafood we eat safer, but current measures may not be going far enough to address the problem.
An international environmental advocacy group tested a total of 143 shrimp products from 111 grocery stores and restaurants in New York, Washington, D.C., the Gulf of Mexico and Portland, Oregon. DNA tests showed that 30 percent of the products tested were misrepresented in their labeling, according to researchers. The most common error was labeling farmed whiteleg shrimp as “wild” shrimp or “Gulf” shrimp. In one case, a bag of salad-sized shrimp purchased in the Gulf had a branded coral shrimp, an aquarium fish not meant for consumption.
While shrimp is the most commonly consumed seafood in the U.S., and the most highly traded seafood in the world, its high demand has led to conservation concerns as well as bait and switch on consumers.
The biggest misrepresentations occurred in New York, where 43 percent of the shrimp tested were inaccurately labeled. Products tested from Washington, DC and the Gulf of Mexico were improperly labeled around 30 percent of the time, while in Portland the rate was much lower at 5 percent.
Without tracking where, when and how our seafood is caught or farmed, and ensuring that this basic information follows the product through each step in the supply chain, shrimp will continue to be misrepresented.
About 90 percent of the seafood consumed in the United States is imported, but not all of it is – so to speak – above the table. A huge black market has developed for illegal, unreported, and unregulated (IUU) fishing. The government has acknowledged that global losses from IUU fishing could be as high as $23 billion each year, in addition to harming legitimate fishermen and threatening the long term stability of fish stock around the world.
There are measures in place to test imported seafood, but the efforts aren’t staffed or funded to do enough. In 2012, more than 11 million potential samples of food were imported into the United States. The Food and Drug Administration was able to physically examine just under 2 percent of them. Since each sample analyzed costs the FDA more than $3,000, testing all the food that comes into the US would cost about $34 billion or about 8.5 times the agency’s entire 2014 budget. So it’s not a surprise that according to a 2011 study conducted by the Government Accountability Office, the FDA fell short of its seafood-inspection goals by nearly 30 percent every year between 2006 and 2009.
This past June, President Barrack Obama created a task force to develop a Comprehensive Framework to Combat Illegal, Unreported, and Unregulated Fishing and Seafood Fraud. All agencies and offices charged with overseeing the seafood supply chain and verifying the authenticity of its products shall implement and enforce relevant policies, regulations, and laws to ensure that seafood sold in the United States is legally caught and accurately labeled.
The task force has until December to come up with recommendations on how to implement the plan.
This task force provides an excellent opportunity to implement full chain traceability and better seafood labeling to combat fraud using tools the government already.
Today’s study only focused on shrimp, which according to the National Oceanic and Atmospheric Administration (NOAA) is the most popular seafood in the United States, but it’s not Oceana’s first investigation into mislabeled and misrepresented fish. In a national study released last year, Oceana found that out of more than 1200 fish samples tested, 33 percent were not accurately labeled according to FDA guidelines.
Source: cbsnews.com, 10-30-2014