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GLG News by Restaurant Consultants

Steve Bigari, Chief Executive Officer

Steve BigariChief Executive Officer I3 Marketing What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

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.

John Macaluso, Partner & Principal

John MacalusoPartner & PrincipalSalad Creations What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

"Shuffle up and DEAL!"

December 15, 2008

More restaurants serve up promotions for these lean times | www.orlandosentinel.com

1.  Consumers are spending less -- the restaurant competitive landscape is as fierce as it's ever been.2.  Commodity costs (with the exception of fuel) are rising and will continue to rise for the foreseeable future.3.  Restaurants are caught between protecting margins and maintaining customer counts/market share.

John Macaluso, Partner & Principal

John MacalusoPartner & PrincipalSalad Creations What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

"Whopper Virgins" will be a box-office hit!

December 8, 2008

Fresh Palates for Burger King | online.wsj.com

1.  The Burger Wars are heating up again.2.  The players are searching for innovative and attention-grabbing hooks.3.  Recent Burger King ad campaigns have not been working -- franchisees in many regions across the country are up in arms.4. The outcry and resultant publicity will have BK execs, franchisees, and the ad agency smiling as sales build.

John Macaluso, Partner & Principal

John MacalusoPartner & PrincipalSalad Creations What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

Restaurant prices will plateau, not fall.

November 18, 2008

Price for Oil, Grains Fall -- But Food Prices Unlikely to Soften Before 2009 | www.soyatech.com

1. The article is accurate -- it will be some time --many months -- before retailers and restaurants see prices falling.2.  Restaurants will maintain higher prices, even after their food costs start to fall.3.  The food industry has been hard hit by higher commodity costs, and they will attempt to recoup losses.

John Macaluso, Partner & Principal

John MacalusoPartner & PrincipalSalad Creations What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

Casual/family dining DineEquity is running out of equity!

September 12, 2008

DineEquity Meltdown Predictable | biz.yahoo.com

1.  DineEquity, now one of the largest casual/family dining chains is a bellweather for the segment.2. All the equity has been squeezed out of the balance sheet:     *Divested the real estate and corp. investment underlying franchise                units a couple of years ago.     *Sale-leaseback on many Applebee's locations to help fund the                     acquisition.     *Refranchising of hundreds of Applebee's company locations, which is           going much slower than anticipated.3. The sudden departure of the CFO is troubling.          

John Macaluso, Partner & Principal

John MacalusoPartner & PrincipalSalad Creations What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

Late hours Cause Heartburn for BK FRanchisees!

August 1, 2008

Burger KIng Franchisees Sue Over late Hours | www.miamiherald.com

Burger King Franchisees face internal cost pressures and profit erosion at a critical time.On top of commodity increases and declining sales patterns, BKC mandate could drive several franchises into BK.BKC show indifference to profit and survival of their franchisees.

Steve Bigari, Chief Executive Officer

Steve BigariChief Executive Officer I3 Marketing What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

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.

Steve Bigari, Chief Executive Officer

Steve BigariChief Executive Officer I3 Marketing What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

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”

Steve Bigari, Chief Executive Officer

Steve BigariChief Executive Officer I3 Marketing What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

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.”

Steve Bigari, Chief Executive Officer

Steve BigariChief Executive Officer I3 Marketing What is a GLG Leader?|GLG Leaders are a separate tier of Council Members with a Council Rank in the top 5%. These GLG Member Program participants are eligible for ongoing, in-depth consultative relationships with GLG clients.

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.

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