Adding Healthier Foods, Fruits and Veggies to Menus

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Adding Healthier Foods, Fruits and Veggies to
Menus

• What is the bottom line?

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Methodology

• Interview guide developed with input from
  Technomic, Inc., Produce for Better Health
  Foundation (PBH), and an external Advisory
  Committee
• Chain restaurants selected by Technomic, Inc.
  from Top 500 list of chains, based on
• industry leadership
• strong growth history or trend
• diverse menu categories
• history of cooperation with interviews by
  Technomic
• 40 interviews were conducted with executives at
  28 chains
• Chains included
• Full service, casual dining (n12)
• Quick service restaurants (fast food) (n18)
• This study was funded through a grant from the
  Robert Wood Johnson Foundation.

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• Key concerns of major chain restaurants
• Impact of concerns on menu
• Considerations for making menu changes
• Benefits of Menu Changes

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Key Concerns of Restaurants

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Sales and Profitability

• If you want to stay in business, you have to
  grow your sales and increase your profits.
• Will an Item Sell?
• Will it make a profit?
• Rising fuel costs

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Meeting Customer Demand

• People want more than the same-old, same-old.
  They are looking for creative menu items.
• More sophisticated consumers
• Increased choices of where to dine
• Higher expectations

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Labor

• Its hard to keep good labor. There is lots of
  turnover, both at the server and manager level.
• Kitchen staff and front of the house.
• Inexperienced
• Not educated
• Non-English speaking
• Accommodate skill set of employees

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Food Safety

• This is important. One outbreak will shut you
  down in a heartbeat.
• Hazard Analysis and Critical Control Point
  (HACCP)
• Other potential concerns
• Allergens
• Bird flu
• Mad cow disease

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Health and Nutrition

• There is a gap between what the customer says
  they want and what they actually purchase.
• Perceived as important but not critical
• Compliance with government labeling important
• Eating out indulgence

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Social Responsibility

• We want our operation to be socially
  responsible, but we also have to run a business.
• Not a big concern to most chains
• Feel it doesnt pertain to the food
• Responsibility to employees and community.

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• HOW ARE THESE ISSUES ADDRESSED ?
• IMPACT ON THE MENU AND MENU DEVELOPMENT

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Impact of Concerns on Menu

• Sales/Profits

• Avoid price increases
• More lower cost and few higher cost ingredients.
• Purchase from multiple suppliers

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Impact of Concerns on Menu

• Customer demand

• Develop new items
• Go beyond one ethnic offering
• Improve look and feel of menus

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Impact of Concerns on Menu

• Labor

• Less labor intensive components
• Intensify recruiting/retention

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Impact of Concerns on Menu

• Food Safety
• Health/Nutrition
• Social Responsibility

• HAACP programs
• Reformulate menu items
• Offer healthier items
• Healthy may scare customers away
• Overall, not an issue
• Local ingredients

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MAKING SUCCESSFUL MENU CHANGESKEY CONSIDERATIONS

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Making Successful Menu Changes

• If the customer doesnt want it, its not worth
  doing.
• Customer Demands
• Sales and Profitability

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Making Successful Menu Changes

• We must have the right number and mix of items
  in each category.
• Ease of Preparation
• Other considerations
• Filling a menu gap
• Competition

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Why add Fruits and Vegetables to menus?

• Nothing is fresher looking than good produce.
• Customer demand
• Counteracting the veto vote
• Positive public relations

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Why add Fruits and Vegetables to menus?

• Vegetables provide more side item options and
  more variety in kids meal development.
• Can help to create new and exciting products
• Can help reduce food costs
• Help to round out the menu
• Gives parents choices for their children
• Standing out from competition

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Obstacles/SolutionsI have to be able to turn at
least a case per day to minimize losses from
wasted product.

• Spoilage/Additional food storage

• Use frozen/canned fruits/veggies
• Purchase fresh in smaller quantities

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Obstacles/Solutions

• Inconsistent Supply

• Use seasonal fruits and vegetables.
• For large chains the supply issues are no
  different then any other ingredient.

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Obstacles/SolutionsIf you put it on the menu
and it doesnt sell, you wind up with a lot of
waste.

• Low sales/High food cost

• Address through marketing and education

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How Healthful Menu Changes are Being Made

• Reformulating existing menu items
• Removing trans fats/ artificial ingredients
• Using whole grains in place of refined
• Adding
• Fruits and Vegetables to menu
• Salads or salad bars
• Grilled chicken items or veggie burgers

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Success Stories

• McDonalds
• Fruit salads, apple dunkers, low fat milk
• Applebees
• Teamed with Weight Watchers
• Subway
• Jared campaign. Eating at Subways will aid weight
  loss.

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Opportunities for Trade Groups, Academics and
Industry Associations

• Focus on increasing customer demand
• Partner with restaurant industry to merchandise
  healthier eating
• Education
• Consumer
• Industry
• Provide chains with data that prove healthier
  choices increase profits
• Improve distribution of fresh produce

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Conclusion

• Education of consumers and industry is key
• Promote fruits and veggies as being fresh and
  flavorful, and by the way, they are healthy too.
• Provide innovative ideas on usage to industry.