Meat Picks | 1.13.15

Global Trade

Trib interviews BuedelOn the heels of receiving the Governor’s Award for Export last fall, Tribune Reporter, Kathy Bergen came to Buedel to talk about global trade, dry aged beef and the process of international export for the business section cover story: Cool Climate for Overseas Growth.

View the video version here: http://tinyurl.com/buedel-trib-interview-on-trade

Jean Banchet Awards

1-11 embaya event2.jpgLast Sunday, industry voting for the 2015 Jean Banchet Awards took place at Embeya – aka one of Chicago’s “Sexiest Restaurants” according to Zagat – at the Chef’s Social reception.

The actual awards for culinary excellence will be presented at the annual Cystic Fibrosis Foundation’s Grand Chef’s Gala January 30th.

Good luck to all of this year’s nominees:

Chef of the Year Abraham Conlon (Fat Rice), Thomas Lents (Sixteen at Trump), Chris Pandel (The Bristol/Balena), Lee Wolen (Boka)

Pastry Chef of the Year Dana Cree (Blackbird), Claire Crenshaw (moto), Meg Galus (NoMI), Greg Mosko (North Pond)

Best Chef-de-Cuisine Chris Marchino (Spiaggia), Ali Ratcliffe-Bauer (Brindille), John Vermiglio (A10),  Erling Wu-Bower (Nico Osteria),

Rising Chef of the Year Ashlee Aubin (Salero), Jake Bickelhaupt (42 Grams), Noah Sandoval (Senza), Nathan Sears (The Radler)

Rising Pastry Chef of the Year Sarah Koechling (The Bristol/Balena), Genie Kwon (Boka/GT Fish and Oyster), Megan Miller (Baker Miller Bakery & Millhouse), Jonathan Ory (Bad Wolf Coffee)

Best Sommelier Charles Ford (The Bristol), Arthur Hon (Sepia), Elizabeth Mendez (Vera), Dan Pilkey (Sixteen at Trump)

Best Mixologist Alex Bachman (Billy Sunday), Bradley Bolt (Bar Deville), Mike Ryan (Sable Kitchen & Bar), Krissy Schutte (CH Distillery)

Best Restaurant Design Boka, Celeste, Momotaro, The Radler

Best Restaurant Service Boka, Embeya, Senza, Sixteen at Trump

Best New Restaurant 42 Grams, Parachute, TÊTE Charcuterie, Salero

Best Neighborhood Restaurant A10, Dusek’s, Owen and Engine, La Sirena Clandestina

Restaurant of the Year L20, Boka, El Ideas, moto

Meat PressedFree Report Cover small

When prices rise, what do most people do? They go on the offense and figure out how to stretch their hard earned dollars in a challenging economy.

The same holds true for restaurants and hospitality.

How can you manage rising meat costs? Find better ways to buy! Check out our free report on How To Buy Beef Better in 2015 for market outlook, tips and ideas.

1.8JanIMCoverQuote-a-licious

As Julia Child once said, “The only time to eat diet food is while you’re waiting for the steak to cook.” In the dead of winter here, when a sizzling, juicy bone-in ribeye warms you up in a way kale or beets never could, I totally agree. –Amanda Heckert, Editor-in-Chief Indianapolis Monthly.

From the desk of John Cecala || Website   LinkedIn  @BuedelFineMeats  Facebook

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Meet Chuck, Your New Bestie

What’s one of the best things you can do to handle rising meat prices? Get to know Chuck!

With meat prices at an all time high, chefs and consumers alike are scrambling for ways to buy meat affordably. One of the best things you can do to meet the challenge is to get to know Chuck –intimately.

Chuck 101

ChuckMapThe upper shoulder area of a steer, the forequarter, is commonly known as the “Chuck”, comprised of a network of interconnected muscles that move the animal when it walks.

The amount of Chuck’s connective tissue makes it generally less tender and tougher than middle meats such as rib eye and strip loin. But what makes Chuck so attractive is its inexpensive price and versatility.

Chuck costs 30% – 40% less than other cuts. Worth repeating, Chuck costs 30% – 40% less than other cuts! Add this to the fact that Chuck can be ground, as well as cut into a variety of roasts and steaks, and it’s easy to see why hooking up with Chuck is an economically smart and versatile move.

Chuck Cuts

Below are just some of the varieties of ways Chuck can best serve your menu and budget when cut into roasts or steaks: (Pictures from BeefItsWhatsforDinner.com)

Roasts from the Chuck

Roasts cut from Chuck contain a lot of connective tissue, including collagen, which partially melts during cooking. This makes the meat excellent for stewing, slow cooking, braising, and pot roasting.

Chuck Roast (Pot Roast) Shoulder Pot Roast  Pot Roasts offer robust beef flavor; are lean, moist and tender when braised (pot roasting).
Nutritionals: 3-ounce cooked serving: 182 calories; 6 g fat

7-Bone Chuck Roast  The 7-Bone Chuck Roast includes a cross cut of the shoulder blade. The bone is shaped like a “7”, which gives the cut its name. The 7-Bone roast or “steak” is generally considered a rather tough cut of meat and needs to be slow cooked or braised.
Nutritionals: 3-ounce cooked serving: 215 calories; 11 g fat

Petite Tender Roast  The Petite Tender, also known as the Teres Major, is the second most tender muscle in the animal after the Tenderloin. It’s found deep inside the Chuck and is lean, has a great beef flavor, a nice bite texture and is about half the price of Tenderloin. It can be roasted, or cut into 4oz medallions that look just like tenderloin filets which can be skillet cooked or grilled.
Nutritionals: 3-ounce cooked serving: 150 calories; 6 g fat

Steaks from the Chuck

The different muscles found in the Chuck can be further cut into steaks. Recommended cooking methods are Marinate, Grill or Broil and Skillet.

Steak StripFlat Iron Steak  Also known as Shoulder Top Blade Steak and Top Blade Steak
The Flat Iron Steak is a trending favorite on many of today’s menus. It is the sixth most popular steak at restaurants in the U.S. now according to recent statistics provided by the National Cattlemen’s Beef Association.
Nutritionals: 3-ounce cooked serving: 189 calories; 11 g fat

Chuck Eye Steak  Also known as English Steak, London Broil and Shoulder Steak
Nutritionals: 3-ounce cooked serving: 178 calories; 9 g fat

Ranch Steak  Also known as Shoulder Center Steak. Ranch steak is cut from the shoulder roast; it has a beefy flavor but is tough. It is best when braised, or grilled, to no more than medium.
Nutritionals: 3-ounce cooked serving: 155 calories; 6 g fat

Short Ribs  Also known as Chuck Short Ribs. Short ribs can be bone-in or boneless, are hearty in flavor and offer a versatile number of menu options –absolutely delicious when slow roasted or braised.
Nutritionals: 3-ounce cooked serving: 201 calories; 11 g fat

Wrap Up

ChuckGroundLast, but not least, Chuck also makes a highly flavorful Ground. It is often used for Hamburgers, Meatloaf, Meatballs, and as an ingredient in many ethnic dishes.
Nutritionals: 3-ounce cooked serving: 215 calories; 13 g fat

You can’t beat the affordability and versatility of Chuck. Use these cuts with creativity and help manage your food costs, increase your food margins and satiate your appetite.

For more tips and ideas read, Value Steaks from Lesser Known Cuts and Cheat Sheet for Meat. Find recipe ideas at: http://www.beefitswhatsfordinner.com/recipes.aspx.

From the desk of John Cecala || Website  LinkedIn  @BuedelFineMeats   Facebook

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How Food Margins Get You to the Bank

The majority of chefs and restaurateurs we talk with use food cost percentages as a primary measure of effective purchasing and implied profitability. Monitoring food cost percentages is certainly an important metric; however it is margin dollars that take you to the bank –not food cost percentages.

What if I told you that you could make more money, i.e. real margin dollars, with a higher food cost percentage? Crazy, right? Read on…

Percent V. Margin

The Food Cost Percentage measures the cost of the ingredients as a percentage of the menu selling price of a dish:10.21MarginCalc3

Most would agree this is a good metric that measures the purchasing side of the equation. However, it fails to tell you how much money you made and by itself paints an incomplete picture.

To calculate the food cost percentage for an entire menu in aggregate for a time period, inventories are necessary:

10.21MarginCalc2If you were expecting a theoretical food cost percentage to be 39% and your actual food cost percentage was 45%, that difference is a measure of inefficiency.

The reasons for such discrepancies may be caused by over portioning, theft, poor product rotation, spoilage or excessive waste. Subtract your Actual Food Cost from the Expected Food Cost and multiply that result by sales for the period, to understand how much money was wasted for that time period.

Actual Food Cost Percentages vs. Expected Food Cost Percentages can help you identify problem areas in the kitchen. However, looking at food cost percentages alone fails to tell you how much money you actually made or lost.  It’s margin dollars that pay the bills not food cost percentages.

Margins Bank Bucks

Your Food Margin measures the actual margin dollars a menu item contributed to your bottom line profits. You take margin dollars to the bank, not food cost percentages.

Focusing on a menu item’s contributing margin dollars versus food cost percentage can potentially make you more money despite a higher food cost percentage. Thus, focusing on Food Margins could then be a more impactful method to building a profitable menu.

Calculate the Food Margin of an item by subtracting the Total Item Cost from the Menu Selling Price. This will illustrate the profit made every time you sell this item:

10.21MarginCalc1The following example compares the two methods on a typical menu decision:

10.21MarginChartAt first glance, the steak sandwich cost appears significantly more expensive to produce than the chicken –until you take a look at the cash drawer.

In this example, the gross profit on the steak sandwich is 16% higher than the gross profit on the chicken sandwich, yet has a 12% higher food cost percentage. You will take more actual dollars to the bank with the steak sandwich in this case by focusing on Food Margins instead of Food Cost percentages.

Plus One

Add one more part to the equation – the psychology of your customer.

Consumers prefer to pay a little more when they perceive the item to be of higher value. It’s called the “Price-Quality Effect” as researched in Holden and Nagle’s book, The Strategy and Tactics of Pricing, A Guide to Growing More Profitably.

According to Holden and Nagle, price-quality research provides, “…customers worry less about the price if higher prices denote higher quality. Creating a perception of exclusivity, rareness or quality will persuade the buyer to be okay with spending more. The product itself doesn’t need to be of the highest quality. If the branding denotes a high-quality ethos, customers will spend.”

Bank on it!

The next time you review your end of period financial statements and think, my food cost percentages are too high, the ingredients I’m buying are too expensive, and/or I can’t afford to upgrade my food, figure the bankable math first!

Calculate your food margins and note all higher qualities on your menu. Train your wait staff to properly explain higher quality and leverage the psychology of the price-quality effect.

Bank on Food Margins versus Food Cost %.

From the desk of John Cecala || Website  LinkedIn  @BuedelFineMeats  Facebook

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Quality Doesn’t Cost, It Pays

9.8Foodstuff IndexWe’re all paying more for food now than we did last year. According to a recent report by Bloomberg’s Chase van der Rhoer, food prices are up 19% from December of last year. In the meat industry, we’ve seen as much as 44% food cost inflation since 2012 on many popular cuts.

At the same time, average base pay increases for 2014 will remain at 3 percent for the second year in a row in the U.S.—roughly one percentage point below pre-recession levels, according to the seventh annual Compensation Planning Survey by Buck Consultants.

The dichotomy of faster food price escalation over wages presents major challenges for restaurateurs. How do you maintain profits with food costs escalating faster than your customer’s disposable income?

Quality Costs Customers

Restaurant patrons are faced with paying higher prices—myself included. I’m much more discerning about where I spend my money now. I want quality, and a dining experience that satisfies me—that makes me feel my hard earned money was well spent. People want to walk out of a restaurant saying, “We’d come back here!” no matter if it’s fast casual or fine dining.

Some of my favorite local restaurants have cut the quality on their food to deal with higher food costs this year. As a customer, it’s disappointing to me. I find myself saying, ‘No, let’s not go there. It’s not as good as it used to be.’ I’d rather spend a little more money and go to a place where I walk away feeling satisfied and delighted.

What gives customers that, ‘come back’ feeling? It’s a combination of great service and great quality food. When I have a bad experience with the service, but the food is delicious, I’m much more forgiving than when I have bad food experience. When the food quality is poor or less than what I expected, I’m hesitant to go back. Sure nobody’s perfect and there are times when something goes wrong, but if I give the place another try and I have the same poor quality food experience, I’m done—cross that place off my list.

How do you feel when you dine out and are met with disappointment?

How Quality Pays

9.8Quality EffectWhen buyers opt for lowest prices despite quality, customer experience problems often begin. Quality ultimately reduces costs and builds customer loyalty. While that’s hard to measure on comparative bid sheets, there are many studies that prove quality pays in the long run.

In the 1979 book, Quality is Free, author Philip B. Crosby explains the idea of understanding the true “cost of poor quality,” by illustrating out how much it really costs to do things badly. Crosby demonstrates the cost of bad quality is inevitably more than the higher costs of good quality from the onset.

Every dollar you don’t spend on making up for poor quality becomes a dollar right to your bottom line. In the food service industry, every dollar you don’t spend to comp a meal, replace spoilage or decrease yields on finished goods from cheaper products, are dollars going straight to your bottom line.

Good quality increases income by attracting more customers and repurchase probabilities. At the same time, good quality lowers costs by elimination of lost business, rework and waste. Some studies show that implementing quality-focused programs can increase profits by 5%-10% of sales. Quality is not only free; it pays.

Quality is Relative to Consistency

What most restaurant patrons look for is consistency. When it comes to food, consistency starts with the quality of the products purchased. They can be consistently good in quality, consistently bad in quality, or inconsistent in quality. When food is purchased consistently good or consistently bad, the result is predictable. The worst scenario is when there is inconsistent quality.

Inconsistent quality usually stems from shopping for the lowest price and being fooled by the promise of quality. We see this every day in the supply side of the food service industry. Potential customers send out bid sheets with generic descriptions of the products they want prices on like, “GROUND BEEF” or “CHOICE FILET—ben franklin28 OZ”, and then often buy the lowest bid. This is why shopping the ‘exact same item’ is so important; not all ‘GROUND BEEF’ or ‘CHOICE FILET—8 OZ’ are the same.

Any purveyor can quote a low price week to week using lower quality products to win the bid. But in the end, what do low quality, lower bid winning products really do for your restaurant? They deliver inconsistency and ultimately damage future returns.

Increase Quality & Consistency

Quality Doesn’t Cost, It Pays! was a tag line a friend of mine had painted on his produce trucks. I love this expression because it speaks directly to successful food cost management. Here are four cost savvy tips you can use to help increase quality and consistency:

  • Survey your staff. What does your wait staff hear from your guests about the food quality and consistency? What do your chefs and line cooks say about the quality of the food they prep?
  • Check your garbage. How much and what kind of foodstuffs are in your back of the house garbage? Low priced/Low quality food often spoils faster, has more waste and less yield. How much uneaten food are your bussers clearing off the table? Were your guests less hungry than they thought, or less happy with the quality of their meal?
  • Be specific and finite with your purchase specifications. Cite brand names or sources, specific quality grades and origins.
  • Work with suppliers that care about quality as much as you do. Define what quality means to you and how you measure it. If your suppliers don’t understand your true objectives, their guestimates can introduce inconsistent quality.

Paying a lower vendor price versus a higher one seems like a beneficial move—but the critical comparative here is that the purchase is for the exact same item. Look beyond price and focus on quality to improve your bottom line. You will reap positive results in the long run and be glad you did.

From the desk of John Cecala || Website  LinkedIn  @BuedelFineMeats  Facebook

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