GLG News by Mr. Steve Bigari, Chief Executive Officer
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
-
Starbucks Lean Alone Will Not Beat McDonald's
August 5, 2009
Starbucks Works on Leaner Strategies | online.wsj.com
Starbucks recent attempts will not be enough to stem the market share inroads made recently by McDonald's. The Combined Beverage plan of McDonald's is a comprehensive program built on a solid foundation that is both strategically and tactically solid. Concurrently, Starbucks jumps from sandwiches to instant coffee to liquor to lean. They look like McDonald’s did a decade ago, lost. I will explain the principle reasons while McDonald's will continue to take market share from Starbucks.
-
Why wait - I'll predict restaurant trends for 08 - Part 7
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 The overall environment for the casual dining sector will become more and more hostile. What was reported on Dec 17 After discussing the much reported Applebees acquisition, the article said, “Other companies were trying to streamline amid the turmoil. Brinker International Inc. said in September it was shopping it’s Romano’s Macaroni Grill chain to potential buyers. Darden Restaurants reached an agreement to sell its Smokey Bones concept….” The article discussed nearly a dozen examples of this trend.
-
Why wait - I'll predict restaurant trends for 08 - Part 5
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 Increased government pressure on a variety of fronts from health care to taxes! In addition to the increase in minimum wage, there are other government driven pressures that will continue to mount on restaurant owners and operators in the next few years. What was reported on Dec 17 “ meanwhile, The U.S. Congress stalled in producing legislation aimed at immigration reform and restaurant operators continue to deal with undocumented workers in many ways… Meanwhile, menu labeling mandates were on the radar in municipalities such as New York City and Washington’s King county, where Seattle is located”
-
Why wait - I'll predict restaurant trends for 08 - Part 6
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 Increased non-governmental cost pressures – fuel, feed and other areas. In addition to other cost pressures there will be a mounting of additional cost pressures in the coming months including fuel prices, feed prices, and other areas, such as food production shortages. What was reported on Dec 17 "Many said 2007 has been one of the toughest years in recent history because of a slowing economy and customers who were buffeted by a perfect storm of high gasoline and fuel prices, declining home values, tighter credit because of the sub-prime mortgage fallout, and the U.S. dollar that has steadily fallen in value, making imported products more expensive.”
-
Why wait - I'll predict restaurant trends for 08 - Part 4
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 Minimum wage This one is pretty simple, costs are going up! Minimum wage is just the first in a long line of increasing cost pressures. The possibilities of additional government intervention in areas such as health care, immigration and others areas are troubling for the restaurant industry as a whole. What was reported on Dec 17: The article extensively covers these cost escalations. It is best summarized by, “Across the foodservice landscape operators from all segments, including quick service, fast casual, fine dining and especially casual dining, faced myriad new challenges that put intense pressure on both operations and bottom lines.” The article details a number of these specific cost pressures.
-
Why wait - I'll predict restaurant trends for 08 - Part 3
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 Technology will begin to play a much larger role in the industry. Restaurants throughout history have been the industry that technology forgot. This is changing quickly with the proliferation of new technologies. What was reported on Dec 17 “Significant Technology developments include, “ Heightened point of sale upgrade activity…. Acceleration of the movement to centralized or Web-based back office applications…..Growth in support of online ordering…..” The list goes on and on.
-
Why Wait - I'll predict restaurant trends in '08 Part 2
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 - Expansion of the blurring of the lines between brands / segments. McDonald’s and Burger King have entered gourmet coffee, Starbucks is adding breakfast sandwiches and who knows, Dunkin Donuts with hot dogs. Will this ever end? The answer is NO! What was reported on Dec 17 “Fast Food chains such as McDonald’s were upgrading the quality of their coffees. And Denny's opened a drive thru restaurant…..”
-
Why wait - I'll predict restaurant trends for 08
January 3, 2008
2007 Year in review | www.nrn.com
What I predicted – in 07 Eatertainment is on our radar screen because we see an emerging trend in the US. That trend is family food and family fun being combined for an eatertainment experience. What was reported on Dec 17 “also the growing number of restaurant hybrids such as Movie Tavern, Cinnebarres and Studio Movie Grill, were making dinner and a movie a one stop shop.”
-
Quick Service Restaurant Quality Moving Toward Fast Casual
October 10, 2007
NPD: Gourmet coffee and tea, burgers top growth segments | www.nrn.com
At the start of the year, we predicted 10 major trends for 2007: five, good, five bad. In this article, and the remainder of this series, we will give you a mid-year update on those trends.
-
September 12, 2007
Social Security rule puts industry under fire | www.nrn.com
Early in 2007 I published a series of 10 articles on what lies ahead for restaurants in 2007. Beginning today I will update all 10 between now and the end of the year based upon what I predicted earlier. I will post all 10 in strategic relevance.
-
Walmart in Banking - Good for America, survivable for banks
June 25, 2007
At Wal-Mart, a Back Door Into Banking | www.nytimes.com
The implications of Wal-Mart entering financial services are widespread and could be profound. Profoundly positive that is! Just a few months ago, under pressure from Banks and regulators Wal-Mart withdrew its banking application. Now they will focus their attention on the services that will have most of its affect on the poor in America. These people have been largely forgotten by the mainstream financial institutions, but wholeheartedly embraced by predatory lenders. The pawn shops and payday lenders are the firms that will be most affected. Because some banks have significant investments in this industry they will be indirectly hurt by the collateral damage caused by their own judgment. Wal-Mart is simply targeting a need that Banks and Credit Unions are just now beginning to serve effectively. So many people have this industry in the crosshairs; Wal-Mart will only hasten their inevitable end.
-
Panera slipping, a sign of difficult times for the restaurant industry
June 7, 2007
Panera Bread / Whole Foods Slide | online.wsj.com
I hate to say it, but I told you so. The pressures reflected in this piece on Panera are not all unique to this industry stalwart. Let's face it, competition is fierce, consumers are pinched and prices are rising. The article points out Panera's woes, but misses the overall affect these and other issues will have on the broad restaurant industry.
-
Restaurant spending: running out of gas
May 28, 2007
Study: Gas prices impact retail spending | www.bizjournals.com
The recent surge in gas prices has spurred much debate about what will happen to restaurant sales. Unfortunately, history will continue to repeat itself and sales across the industry will be impacted. Individual sectors will be impacted differently as they historically have been.
-
April 29, 2007
Wendy's May Be A Tough Sale | www.forbes.com
Trend - What Is It
Wendy’s recent announcement that it would consider a variety of options including a potential sale of the company seemed to catch the industry flat-footed. Anyone paying close attention was not particularly surprised! The current management team had their hands full with the issues as diverse as stock price, operator dissatisfaction, an aging asset base and an antiquated operating system. What happens over the next 12 to 24 months will determine whether they return to excellence or become a second-rate regional brand.
-
Trends for 2007 - Consolidation in the Restaurant Industry
April 9, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
Trend – What is it?
I believe we will soon begin a period of consolidation in the broad restaurant industry in general.It will affect the Quick Serve, Fast Casual and Casual Dining segments with the biggest shake up in the Casual Dining sector.
-
Trends for 2007 - Hostility in Casual Dining
April 3, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
1The overall environment for the casual dining sector will become more and more hostile.
Trend – What is it? - In the restaurant “food chain” of life, most everyone you speak to will say that the bottom rung is fast food, next is fast casual, then casual, and at the top is fine dining. What most people forget is that 10 years ago fast casual did not exist. Most casual dining houses today see the fast casual folks nipping at their heels.
Casual chains have reacted rather predictably up to this point. They have tried to become a “better” version of fast casual, by offering their food to go, doing discounted meal periods, and some are even trying their hand at “fine dining” by adding premium cuts of meat to their menu and offering “3 course prix-fix meals” at a reasonable price. Some chains like Applebee’s have even hired celebrity chefs to put their “culinary stamp” on their menus, in the hopes of convincing folks it’s worth the time and money to sit and eat in their places.
-
Restaurant Trends for 2007 Part 8 of 10
March 26, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
Costs Part 8 - Increased non-governmental cost pressures – fuel, feed and other areas.
Trend – What is it? – In addition to other cost pressures there will be a mounting of additional cost pressures in the coming months including fuel prices, feed prices, and other areas, such as food production shortages.
-
Restaurant Trends for 2007 Part 7 of 10
March 5, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
Costs Part 2 - Increased government pressure on a variety of fronts from health care to taxes
Trend – What is it? – In addition to the increase in minimum wage, as discussed in the last article, there are other government driven pressures that will continue to mount on restaurant owners and operators in the next few years.
-
Week 6 Costs are going up (Minimum Wage)
February 23, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
Trend – The Bad – Costs are going up (Minimum Wage)– This one is pretty simple, costs are going up! Minimum wage is just the first in a long line of increasing cost pressures. Others will be discussed next week. The possibilities of additional government intervention in areas such as health care and others are troubling for the restaurant industry as a whole.
-
Week 5 - Technology will begin to play a much larger role in the industry.
February 16, 2007
McDonald's Plans To Sell Boston Market | today.reuters.com
Trend – Restaurants throughout history have been the industry that technology forgot. This is changing quickly with the proliferation of new technologies.
- Subscribe to Updates
-
Leading institutions connect with Steve Bigari through GLG
Most Popular Consumer Goods & Services News
-
Toyota's California Plant Exit Makes Sense
September 17, 2009
-
It's Possible Berkshire Hathaway Could Help Kraft Acquire Cadbury
September 10, 2009
-
California's Impact on the Las Vegas Strip, City Center & the port of LA
September 8, 2009
-
Toyota Will Feel The Heat Of California Lawmakers In NUMMI Plant Closing
September 1, 2009
-
US Hotel Industry Recession Enters New Rate Erosion Phase
September 1, 2009