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DMA Annual Employee Awards Feature New Company Values
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DMA announced a new mission and values earlier this year –
and has now elevated the annual employee recognition to reflect those values in
five new awards. There are some new names receiving recognition as well as some
familiar faces you may recognize from years past.
Innovation – Noah Beck
Noah can take a random comment or idea and turn it into
reality. His efforts have resulted in
numerous new reporting and business intelligence tools, most of which lever
existing technology. This has been a year of extraordinary change across the
company and not once has he failed to deliver a solution or plan of attack.
Impact – Ryan High
Ryan has been the behind-the-scenes tech guru making Noah’s
innovation ideas a reality. He continuously looks for ways to elevate DMA
platforms, automate process improvements, quickly implement customer
initiatives and identify cost savings opportunities.
Collaboration – Carrie Wycislak
Carrie continuously demonstrates a passion for improving
processes, and always works across the team to make work more efficient. From customer onboarding to reporting
systems training, she is always stepping up to make things better!
Excellence – Jamie Thielman
Jamie consistently demonstrates exceptional passion,
integrity, and a relentless pursuit of outstanding results. When customers,
distributors, and colleagues were asked about their experience working with
her, the feedback is nothing short of glowing. “No task is too big or small,”
“the level of detail is unparalleled, and the content is always thorough,” and
“it’s always a pleasure to work with her because you feel truly included in the
process.”
Raving Fans – Jon Burchett
Jon consistently excels in account management, delivering
valuable insights and solutions that drive both efficiency and profitability.
He is exceptional at crafting clear, compelling value propositions for DMA
customers, shareholders, and members alike. Comments from his "fans"
include “we couldn’t do it without you” and “your professionalism and
lighthearted candor win over everyone!”
Associate of the Year – Jen Halles
Jen graciously volunteered to take on new and additional
responsibilities this year and has not missed a beat. She’s proactively stepped
in to solve problems, and is always a reliable, positive and energetic force
within the DMA team.
Please join us in congratulating the winners (and feel free
to tell them yourself in the comments section on LinkedIn here)!
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Innovation,
Collaboration and Culture Coalesce at DMA’s Annual Conference
NEW ORLEANS
– Embracing innovation, cultivating culture, and focusing on collaboration
along the supply chain were key themes on display at the DMA Annual Conference.
Hosted by Distribution
Market Advantage (DMA), this year’s iteration of the event was dubbed the
Bayou Bash and hosted at The Roosevelt Hotel in New Orleans. The
conference featured a wide variety of industry experts opining on the state of
the consumer, the economy, and the foodservice distribution industry.
State
of the Restaurant Consumer in the U.S.
Circana’s David Portalatin shared
insights into restaurant consumer behavior in 2024, finding that they were
still in cut-back mode but also driven to purchase small treats and rewards. He
highlighted how consumers were moving more of their spending to beverages for
not just a quick treat, but also hydration, protein, and energy.
Portalatin
shared data showing that consumers were largely gravitating towards brands with
stronger social media presences and engagement. He also noted that foodservice
operators were competing on new metrics as many consumers have adopted new
habits amid inflationary pressures.
“You cannot
compete with a consumer’s pantry on price. You must differentiate based on some
other component of the value equation,” he explained.
Portalatin
said that, despite a 2% decline in total traffic during 2024, Circana was
optimistic that foodservice traffic would increase approximately 1% in 2025.
Getting
Prepared for FSMA 204
Katy
Jones, CEO of Trustwell,
served as moderator for a panel focusing on the imminent arrival of FSMA 204.
She was joined by Andy Hamilton, CEO of Markon, and Jeremy Lyle, senior
vice president of supply chain at Cooper’s Hawk Winery & Restaurants,
as they discussed their strategies in contending with the upcoming FSMA 204
regulation.
Interoperability
was a major theme of the talk, with all the stakeholders explaining how
important it would be to share clean and correct data as they met the new
standards that will be required under the new rules.
“We have to
take technology from other businesses that they’re using, bring them over to
these areas, cross-share data, and leverage our resources to their capacity,”
said Jared Keefer, senior director of operational excellence at Shamrock
Foods, who also spoke as part of the panel.
Habits
of High Growth Chains
Culture was
a common theme in a panel discussion regarding habits of high growth chains,
moderated by DMA President and CEO Angela Korompilas.
Rachel
LaHorgue, vice
president of supply chain with Dutch Bros, noted how many of those in
leadership positions within the company had started as baristas or at the store
level.
Nicole
Mouskondis, co-CEO
and board member of Nicholas and Company, noted that establishing a
company culture also required upkeep; it wasn’t a one-time project.
“I’m the
first person to say that we are always a work in progress,” she said,
explaining how her company continues to strive to improve the culture.
Picking
Future Winners in Foodservice
Jonathan
Maze, Restaurant
Business Editor in Chief, hosted a panel discussion on best practices for
picking future winners in foodservice, and noted that it was often difficult to
project future success based on current conditions.
David
Henkes, Senior
Principal of Technomic, expounded on the idea by sharing sales,
location, and average unit volume data for Chipotle Mexican Grill and Baja
Fresh. In 2002, the companies were comparable on all three metrics; by
2024, Chipotle had established a sizeable lead in all three categories.
Joshua
Long, managing
director at Ontology Capital Partners, noted that culture was often the
differentiator when trying to find future winners.
“There is a
strong strategy and culture focus that’s totally going to help,” he said.
Technology
Transformation
Technology
was also becoming more and more important. In a session moderated by Placer.ai’s
RJ Hottovy, Tazikis’ CEO Dan Simpson shared that about 35%
of orders were dine-in during the post-pandemic era; beforehand, those orders
accounted for about 80% of the total.
“I think
it’s been a time to play offense,” Simpson said. “Remember your interaction by
knowing your customers and responding.”
Regarding
third-party delivery, Linked Eats head of enterprise growth Ian
O’Neil noted the similarities between the food industry today and the air
travel market years ago. Even though Expedia and other aggregators became a new
option, many still book directly with airlines.
In the same
way, operators should enter as many channels as possible, including first- and
third-party delivery, to mee their consumers where they were at, he argued.
Hillary
Holmes, senior
manager of partnerships for Olo, noted more and more brands were
choosing and pushing for direct ordering with a goal of acquiring consumer data
and also lowering the cost acquisition.
If You
Don’t Change Your View on the Market, You Will Be Left Behind
“Do you want
to disrupt yourselves, or do you want to be disrupted?”
Keynote
speaker Kerry Siggins, author of The Ownership Mindset and CEO of
StoneAge, asked this question of the crowd before sharing her insights
into revolutionizing her industry. Siggins also expounded upon the need for
nimble and agile leadership in the current day to contend with innovation and
disruption.
Siggins
argued that owning how you show up could have a profound impact on employees,
peers, and customers. She also noted the importance of determining how to best
innovate; she then shared a quote from the founder of her company.
A New
Vision for DMA in 2025 and Beyond
Angela
Korompilas took the stage alongside SVP John Willard and CFO Angie
Drake to unveil DMA”s new strategic vision for the remainder of 2024 and
2025.
After
surveying customers and employees, the trio noted DMA would focus on continuous
training, data integration, and platform development. Specific metrics
highlighted during the presentation included the establishment of continuous
training protocols, re-evaluation of roles, and enhanced data integration
efforts. Food Institute Focus
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Cava’s
Secret Sauce: The QSR Is So Hot Right Now
From
appealing to health-conscious consumers to empowering them with convenient and
speedy customization options, Cava is checking many key boxes diners consider
when they eat out.
The
financial data is backing up the strategy – the QSR’s latest earnings report
shows it sustained revenue growth of 39% YoY with same-restaurant sales spiking
18.1% over the period. Evidence from Placer.ai suggests the Cava’s growth is
outperforming the entire fast-casual dining segment.
“Our third
quarter results demonstrate the strength of our Mediterranean category-defining
brand and the broad appeal of our unique value proposition …” Cava CEO Brett
Schulman said in a statement.
The QSR’s
actions reflect the bullish sentiment echoed by Schulman. Its strategic
expansion plan increased its footprint from 300 stores from the end of 2023 to
352 locations by Q3 2024, according to the report. Earlier this year, the CEO
spoke with Yahoo! Finance, divulging an aggressive plan to hit 1,000 stores by
2032.
One reason
the company feels comfortable with this strategy is likely due to accelerated
confidence in its increasingly diverse consumer base. The Placer.ai report
found that the median household income of the chain’s diners steadily dropped
from Q3 2021 to Q3 2024 from $107.5K to $92.3K. Although still above the
national average median of $76.1K, the brand has become more accessible, no
longer appealing only to the ultrawealthy.
Cava chief
experience officer Andy Rebhun spoke with The Food Institute about the brand’s
success, noting accessibility as one of the company’s tenets.
“We want
[consumers] to feel like they can have our food in any way,” he said. “We do a
good job to try and make ourselves feel accessible to our communities.”
Cava
Gets its Brand
The brand
embodies Mediterranean food and culture, presenting a lifestyle that is
physically and psychologically healthy.
Playing into
major trends around health and well-being, fast convenience, and customization,
many brand touchpoints showcase its inviting tone. For example, consumers can
order online both through the app and via the platforms they’re already using
like DoorDash and Uber Eats.
Additionally,
in a mathematical exercise in combination, the brand boasts its assortment can
create as many as 17 billion unique bowls, Rebhun noted. This customization
enables consumers with dietary restrictions or picky palates to continue to
engage with the brand.
The brand’s
core mission comes from the top.
“… If we
focus on our mission to bring heart, health, and humanity to food, and if we
continue to be constantly curious and generous, and have a passion for
positivity, and we focus on our strategic plan, that stock performance will
follow,” said Schulman in a conversation with Fortune about how the company’s
stock increased 300% since its IPO.
He added
that Cava’s success includes investments in its customers and employees. Rebhun
told FI that one of the chain’s key winning areas is hospitality, evidenced by
the well-trained friendly staff who earn at the top end of the industry’s wage
range and an open dine-in experience.
Cava is also
eager to find ways to bring macro trends into its branding without sacrificing
its identity. Offerings like Hot Honey Harissa Chicken, for example, capitalize
on the hot honey craze while developing it through a staple Mediterranean
offering. The brand also recently debuted its take on ‘ranch dressing’ with its
Garlic Ranch Pita Chips, which offer a snacking option that hits the trend
while fitting into its portfolio.
Capturing
Gen Z Cravings
Cava has
worked hard to engage with younger audiences, particularly on social media.
Campaigns featuring prominent influencers like Emma Chamberlain and Meredith
Hayden (alias Wishbone Kitchen) both created custom, LTO bowls that enjoyed
tremendous success online and in-store.
Organic
social interactions where other creators are inspired to take to TikTok and
Instagram to discuss their personal preferences are also a part of the brand’s
bread-and-butter social strategy.
“Our social
media [presence] aligns with our culture and our cuisine,” added Rebhun.
The
customization capabilities at the chain also resonate with the segment because
they seek out control over mashups that delight, spicy foods, and bold flavor
profiles.
Rubix Foods
marketing VP Shannon O’Shields explained in a recent report that Gen Z
consumers crave new global flavors, evolved heat that brings complexity to a
dish, and unexpected pairings, all of which are readily found on a Cava menu,
with offerings like Hot Honey Harissa Chicken and Vinaigrette. Food Institute Focus
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Banking
on Nostalgia, Chi-Chi’s Mexican Restaurant Eyes Revival
Viva las Chi-Chi’s.
In an era when nostalgia has never been more popular, the long-dormant Mexican
restaurant chain is set for a comeback – nearly 20 years after it closed its
final U.S. location.
News of that
announcement sparked intrigue among former fans of Chi-Chi’s, which had 210
locations during its heyday in the mid-1990s.
“We are
excited to see the immense outpour of support from fans new and old surrounding
the news of Chi-Chi’s return,” said Michael McDermott, the son of the
chain’s founder, in a statement sent to The Food Institute.
“While we
are currently in the early stages of planning by securing funding, we can say
the first two stores will be opened in Minnesota in 2025,” McDermott noted.
His goal is
to “explore the original development path Chi-Chi’s took, through both company
and franchised opportunities within the Midwest and East Coast.”
Coincidentally,
another left-for-dead restaurant chain – Steak and Ale, which filed for
Chapter 7 bankruptcy in 2008 – reopened a location recently in Burnsville,
Minnesota, banking on the fact that many modern consumers seek value when
dining out.
McDermott
has struck a deal with Minnesota-based Hormel – which owns the Chi-Chi’s
trademarks – to use the name on physical restaurant locations, reported The
Minnesota Star Tribune. Though the last restaurant location closed in 2004,
the brand lives on in the supermarket aisle with packaged seasonings, salsas,
chips, and tortillas.
Chi-Chi’s
restaurants thrived for much of the 1980s and ‘90s, thanks in no small part to
their endless baskets of chips and fresh salsa, supersized margaritas, and
sizable chimichangas.
McDermott
hopes to revive the restaurant chain with an updated, full-service dining
experience while sticking close to its original menu.
Restaurateur
Marno McDermott (whose wife was nicknamed Chi Chi) and former Green Bay
Packers football star Max McGee opened the first Chi-Chi’s in Richfield,
Minnesota in 1975, according to the Star Tribune. After a series of
ownership changes in the 1980s and ‘90s, the chain began to struggle,
eventually filing for Chapter 11 bankruptcy in 2003. Shortly after, an outbreak
of hepatitis A in the Pittsburgh area was linked to green onions served at a
local Chi-Chi’s and resulted in four deaths.
In 2004, the
Mexican chain closed its remaining 65 U.S. locations, which were acquired by
Outback Steakhouse for $42.5 million, noted Restaurant Business. The brand
lived on internationally as well as in grocery stores under Hormel, after it
acquired the rights to produce Chi-Chi’s-branded products in 1987.
Recently,
Michael McDermott founded Chi-Chi’s Restaurants LLC as he looks to revive the
chain. His professional career includes time spent working with brands like
Kona Grill and Rojo Mexican Grill.
He’s
determined to honor his family’s legacy, by combining the classic Chi-Chi’s
restaurant experience with modern influences.
“I still
have fond memories,” Michael McDermott noted of dining at Chi-Chi’s during his
youth. “We have seen the impact our restaurant has had on individuals and
families across the country and believe there is a strong opportunity to bring
the brand back in a way that resonates with today’s consumer – an updated
dining experience with the same great taste and Mexican flavor.” Food Institute Focus
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Store
News:
McDonald’s will launch a new McValue platform
on Jan. 7 with a variety of local, national, and digital offers. The platform
will include current offers like the $5 Meal Deal and in-app discounts, as well
as a new “Buy One, Add One for $1” offer on breakfast, lunch, and dinner items.
Full Story
Jack in
the Box announced it
will open five stores in the Detroit area through a franchising deal, allowing
the QSR chain to grow its units amid lagging sales. Full Story
Freddy’s
Frozen Custard and Steakburgers is reportedly exploring a sale that could value it at $1
billion. With 500 locations and more to come, the fast-casual chain has been
turning the heads of private-equity firms, reported Reuters (Nov. 20). Full Story
Subway dropped its $6.99 meal deal after
its poor sales performance. The sandwich chain said it will pivot to a 20%
digital discount through the end of the year, emphasizing the need for
data-driven adjustments to balance customer value with franchisee profitability,
reported Restaurant Business (Nov. 22). Full Story
Anthony's
Coal Fired Pizza was
acquired by a Burger King and Round Table Pizza franchisee. The
51-unit chain was sold to Kuljeet Singh as part of a bankruptcy sale
separating Anthony’s from its sister brand BurgerFi that will also be sold
soon, reported Restaurant Business (Dec. 2). Full Story
Meanwhile, BurgerFi
was acquired by Happy Asker, CEO of the group behind Savvy Sliders, Fat Boy’s
Pizza, and Happy’s Pizza. The move follows the burger chain’s recent bankruptcy
filing, reported Restaurant Business (Dec. 13). Full Story
Chipotle
Mexican Grill has
increased its menu prices by about 2% to counter higher input costs. The
company noted that key ingredients like dairy, beef, and avocados have been
more expensive this year, which has weighed on its margins amid choppy
restaurant demand, reported Reuters (Dec. 4). Full Story
Wendy’s launched a new Frosty Key Tag
campaign supporting the Dave Thomas Foundation for Adoption. The Frosty Key Tag
costs $3 and gives customers a free Jr. Frosty with every purchase next year,
reported TODAY (Dec. 4). Full Story
The
Cheesecake Factory
is bringing back its Peppermint Stick Chocolate Swirl Cheesecake featuring a
slice of white & dark chocolate peppermint cheesecake atop a mint chocolate
brownie. Full Story
In-N-Out
Burger is opening an
8,000-square-ft. restaurant in 2026 on the Las Vegas Strip – the second-largest
location for the burger chain, reported MSN (Dec. 6). Full Story
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Executives
on the Move: Subway CEO John Chidsey announced
today he will retire from the role at the end of the year. Carrie Walsh,
the current president of the chain’s Europe, Middle East, and Africa
operations, will serve as its interim CEO, reported The Wall Street Journal (Nov.
26). Full Story
Chipotle CFO Adam Rymer is attempting
to balance the chain’s value promotions with its profitability. The company is
considering raising the prices of some menu items to offset its own higher
costs but will aim to remain a convenient option for deal-hungry customers,
reported The Wall Street Journal. Full Story
Former TGI
Friday’s CEO Ray Blanchette bid $30.5 million on 9 of the chain’s
locations, including high-traffic franchises at DFW Airport. A judge has
approved Blanchette’s Sugarloaf Concessions company as the
stalking-horse bidder, setting the minimum price for competing offers ahead of
the Dec. 20 deadline, reported Restaurant Business (Dec. 6). Full Story
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Brooke
Rollins, Trump’s Ag Secretary Choice, Targets Foreign Farm Ownership
Brooke L.
Rollins, President-elect
Donald Trump’s choice for agriculture secretary, is expected to
address deficiencies in the USDA’s data collection systems to
keep closer track of foreign ownership of U.S. farmland.
Rollins,
chief executive of the America First Policy Institute, a key player in
the transition and vocal opponent of Chinese ownership of U.S. farmland, has a
strong agriculture background as a graduate of Texas A&M University.
American Farm Bureau Federation President Zippy Duvall greeted
her selection with enthusiasm.
“We’re
encouraged by her statement that she’d ‘fight for America’s farmers and our
nation’s agricultural communities.’ Effective leadership at USDA is more
important than ever as farmers and ranchers face a struggling agricultural
economy,” Duvall said in a press release.
If confirmed
by the Senate, Rollins would take control amid threats by Trump to impose
stiffer tariffs on China.
During his
first administration, Trump’s tariffs cost farmers billions and led the federal
government to grant $32 billion in subsidies in 2020 alone.
At the end
of 2022, 30 million acres of farm and forest land was foreign-owned, with 13.4
million additional acres under long-term lease. The USDA reported Canada
accounted for 32% of the land followed by Netherlands at 12%. China had just
1%, 349,442 acres.
Roll Call noted Rollins is particularly
concerned about foreign investment in U.S. agriculture land. The American First
Policy Institute has called for restrictions on Chinese investment.
Rollins is
expected to tighten regulations and may use the next five-year farm bill – the
last was signed in 2018 – as a vehicle for bolstering USDA oversight.
On other
issues, the next secretary of agriculture will need to decide whether to move
forward on Biden Administration initiatives to equalize compensation to
black farmers, invest in regenerative farming practices and curb consolidation
in the meatpacking sector.
Also on the
table is whether to implement clean fuel tax credits for biofuels. Rollins
worked to promote the use of fossil fuels as president of the conservative Texas
Public Policy Foundation.
Rollins said
on X: “It will be the honor of my life to fight for America’s farmers and our
Nation’s agricultural communities.”
The
sprawling USDA, with a budget of more than $437 billion and 100,000 employees,
oversees not only agriculture, but administers food assistance programs that
serve 42 million people, supports the electrification of rural areas, manages
the nation’s forests and wildlife, and negotiates trade deals.
“Brooke’s
commitment to support the American farmer, defense of American food
self-sufficiency and the restoration of agriculture-dependent American small
towns is second to none,” Trump wrote on Truth Social.
Politico reported conservative-leaning farm
groups likely are buoyed by Rollins’ pick. Rollins, who grew up on a farm,
attained a law degree from the University of Texas. During the first Trump
administration, Rollins was director of the Office of American Innovation and
acting director of the Domestic Policy Council. Food Institute Focus
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Are
Restaurants Turning a Corner?
The
restaurant industry started turning a corner in August and September, and that
trend continued into October as comparable sales increased 0.5% during the
month, according to Black Box Intelligence.
Comparable
traffic, down 2.5%, eased from the -3.6% and -4.6% reported in September and
August, respectively. Black Box noted these data points could indicate the
industry weas entering a recovery.
“Average
check growth held steady at 3.1% YOY in October. Meanwhile, the average for all
months in 2024 is a slightly lower 2.9%. This is a result of restaurant
companies being much more conservative with their menu price increases this
year,” the report read. Full Report
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