DELCO FOODS
JANUARY 2020
VOL. 25, NO. 01
THE BENEFITS OF BEING PRESENT By Daniel Thor, Bellissimo Foods
THE LOOMING CRISIS IN LABOR By Peter Thor, President, Bellissimo Foods The unemployment rate is at a 40-year low, but that’s not the worst of it for restaurants and the pizza industry. The prime source of lower skilled workers, persons < 25 years old, is dwindling. In part this is due to teenagers not needing or wanting low paying jobs as a source of spending money, compared to growing benefits provided to those who do not work. Higher skill positions are also in short supply, mainly due to rigors of restaurant work and competition from other industries. From the perspective of the operator, finding, training, and keeping restaurant managers and staff is close to job #1, and should be considered part of marketing. After all, who becomes the face of the restaurant to the customer? Over and over we hear drumbeats stressing the importance of consistency of food quality, but not as much about service. The restaurant workforce is changing, and so too must restaurants planning for future success. Demographics are working against the restaurant industry. Restaurants are facing a lot of cost pressures, which requires rising prices despite concerns over customer counts and mounting competition from grocers and convenience stores. Labor costs as a percent of sales have continued to rise and are a significant factor in driving these statistics. Food away from home, prices have risen 3.9% this year compared to grocery store prices steady to lower. Since 2015, restaurant prices have risen 11% compared to grocery prices falling 0.5%. Is it rising costs and prices, or changing consumer lifestyles and preferences that are primary? A recent article by Gallup extoled the importance of managers, stating that they play a crucial role in every restaurant; hiring, training, and determining the labor.
In the pizza industry there are certain Pizzaiolos that set the bar high, providing great examples of what makes a good operator. Each has either one or many successful operations, they make great product and often lead new trends in the industry. Notable names like John Arena or Tony Gemignani are celebrity like figures who have changed the way the pizza is perceived and certainly taken it to a higher standard. And while there are many more notable individuals we could add to the list, they all have one thing in common – they are present at their pizzeria operations. continued on page 3
MARKET UPDATE Dairy Cheese Blocks
PRICE
$1.948
LAST MONTH
DIFFERENCE
$2.1595 ($0.2115)
The cheese markets remain inflated, especially for this time of the year. Domestic cheese demand was solid for the holidays. The recent rise on nonfat dry milk prices is usually a supportive sign for cheese prices.
Beef
50% Trimmings
PRICE
LAST MONTH
DIFFERENCE
$0.796
$0.7610
$0.035
Beef prices reamain stable, but seasonal upside pressure is expected to emerge for the end meats into late December. Additionally, the grinds are likely to see escalating interest, but elevated pricing is projected to temper demand into early 2020.
Poultry Wing (Jumbo)
PRICE
LAST MONTH
DIFFERENCE
$1.778
$1.7310
$0.047
Given the recent news regarding China accepting U.S. chicken, price risk remains to the upside. Chicken production remains active and strong.
continued on page 2
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LOOMING LABOR CRISES
(continued from page 1)
They can create “a consistent consumer experience… and they are key to driving a strong EBITDA. The same article also noted some differences in today’s workforce, noting that workers today want more than a paycheck; they want a job with purpose where they understand their role and believe it is important. Team members want coaches, not authoritarian bosses, and they look for development opportunities and growth.
NEW LOOK SAME AUTHENTIC TASTE At Bellissimo,® we know what it takes to make a menu – and a business – work. We’ve got all the ingredients that make Italian, Italian. And all the ingredients you need to make every slice, pasta bowl and red sauce really, really good. It’s why we’re called Bellissimo. It means beautiful. And it is. Because when you get just
Given the importance of the manager and team members to the success of a restaurant, many operators are embracing technology to reduce the need for labor. Technology has particularly benefited the fast casual and pizza industry in online ordering, delivery, and certain inrestaurant functions. The popularity of home delivery has benefitted mainly chains with scale, which has clearly been at the expense of independent pizzerias. Two important downsides of online ordering have been substituting speed for quality and removing personal interaction which favored the independent. Another downside of popular 3rd party delivery apps is the expense hit to the restaurant. But perhaps the most important but less talked about negative to 3rd party delivery is the loss of control over food quality. Once the food leaves the pizzeria or trattoria, how much time is taken for delivery, and conditions of transport? If the pizza is delivered in poor condition, will the consumer blame the delivery or the restaurant?
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Suppliers to the pizza industry are going to have to “up” their game. Restaurants will have to cope with both labor shortages and a less-skilled labor force. Further, the higher costs of labor are going to put a premium on ingredients which take less time to prepare while delivering a superior finished product. Trends creating demand for partially prepared, pre-shredded, par-baked or precooked, and frozen finished will accelerate. Distributors too have a role in introducing operators to the options and opportunities that abound. Food safety and regulatory responses will also drive some of these changes. Equipment common to restaurants like dough mixers and slicers may become obsolete as safety hazards increase and the quality of pre-prepared alternatives are introduced.
what you need, how you need it... it’s a beautiful thing.
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The next few years can be especially exciting for the pizza industry, but also heightened uncertainty. Our independent pizza industry is at a cross-roads to respond to changing consumer demand for food away from home. Over the next decade as technology is further adapted, how will independent pizzerias be able to embrace change while advancing competitive advantages of superior food quality and service? Your Bellissimo distributor is committed to your success as we together enter the 2020 decade! A PROUD DISTRIBUTOR OF BELLISSIMO
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BEING PRESENT
(continued from page 1)
So what do we mean by being present? Being present at a restaurant isn’t just about being in the back of house making pizza all day. Being present is engaging. Engaging at every level of your company. You should absolutely be making sure the quality of every pie that goes out is up to the standards that you want to set, you should be making sure every customer is serviced and treated with the standards that you set, and you should make sure that every customer leaves satisfied with the experience that you are trying to create. One of the first benefits of being present is building relationships. Building relationships with customers and staff alike. Be amongst the customers – go table to table asking people about their experiences, listen, engage. The customers will be able to provide not only positive but negative feedback which can be used to make the operation more successful. You will find out what is working, what isn’t working, from products to staff to promotions etc. And when you find out what isn’t working, or what issues arise during the course of a lunch or dinner hour, if you are present you can manage the situation the way you see fit. Some of the best opportunities to gain a customer is when something negative happens at the
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restaurant – a customer had to wait a long time for food, comp them a dessert, send a free drink etc. If the food stands up and service is good simple gestures from ownership or management can go a long way. And again, if you have a relationship established people are significantly more understanding. One of the most powerful marketing tools you can use is positive word of mouth – having an army of individuals out talking about their experience at your restaurant in a positive light is one of the best things that can happen to your restaurant, and often times the recommendation will come because of a personal relationship. While it might sound like we are telling you to put even more on your back ,that isn’t true. With the right staff and training, whether family or hired individuals, they will start to exude the values that you are trying to set. We in the independent world need to have the highest standards if we are going to compete – we need to have the best products, the best service, stay open later, be trying new ingredients with fresh ideas. We here at Bellissimo know your struggle, and our network of distributors are here to help. Please reach out to connect with your local BFC distributor for more help or ideas.
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The Spirit of Giving
This past holiday season, Delco Foods made tribute donations to two organizations in honor of our customers... Back On My Feet and The Caroline Symmes Cancer Endowment at Riley Hospital for Children. Back On My Feet is a nonprofit organization that promotes self-sufficiency of homeless populations by engaging them in running as a means to build self-confidence, strength and self-esteem. Their organization consists of much more than just running: their members participate in a comprehensive program that offers connections to job training, employment and housing. Caroline Symmes was three years old when she was diagnosed with Wilms Tumor Disease. Although this kidney cancer has a 90% survival rate, Caroline had a very aggressive tumor and there was little in the way of research for pediatric cancers. Caroline lost her future, not because of lack of care or resources, but because of lack of funding for pediatric cancer research. This foundation is the gift she leaves behind so other children can have a bright future. To learn more visit: www.backonmyfeet.org. or www.carolinesymmes.org
Employee Spotlight James Bailey has had an interesting path to Delco Foods. His career roles include Team Chef for the New England Patriots, Operating Partner for PF Changs, Franchisee for Dunkin Donuts and Food & Beverage Director for King’s Island. All of these endeavors would probably explain how he managed to take on so much in his first year as Sales Representative in the Ohio/ Kentucky market. “James had a full bucket dumped on him and he has done a great job keeping up with the work load and being so new,” explains Regional Sales Manager, Andrew Meister. Customer Service Representative, Elaine Reasner, agrees with Andrew’s sentiment. “James is always doing whatever he can to go the extra step for his customers,” she says. James attributes his early success to Delco’s product line. “It’s so much easier selling products of superior quality,” he says. Of course, the job isn’t without a downside. James says the hardest part is spending the day in his car. In his spare time, James stays active keeping up with his two teenage sons. Last May he remarried and is busy building a new house. He is especially looking forward to their new kitchen. “Having a culinary background, I still have a great passion for food,” James explains. If that isn’t all, James finds time to volunteer for a number of charities annually. He says making a difference completes his life. No matter what path led James to Delco Foods, we are happy he has joined our family.
Keep Your Customers Safe Ice Melt is a must-have during harsh winter months. Prevent areas from getting slick due to ice and snow. Melts ice and snow even at -15 degrees F. All that’s left is a safe, clean surface. Keep your customers safe. #309070
Favorite Quote: “Love yourself first and everything else falls into line. You really have to love yourself first to get anything done in this world.” – Lucille Ball
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Comments & Questions
Please contact us toll free at 800.536.1234, locally at 317.876.1951, or visit us online at www.delcofoods.com. We truly value your opinion. 4850 West 78th Street . Indianapolis, IN 46268 . toll free 800.536.1234 . tel 317.876.1951 . fax 317.870.7803
Vantaggio cheeses are made from the freshest milk using time honored traditions of the old world to give it superior flavor, melt, stretch, and consistency, making it the fastest growing brand in its class.
STAND OUT ON THE PLATE Available in the following formats: Bellissimo Meatballs Offer Authenticity & Consistency
Block - Whole milk and part skim mozarella 8/5lb. Provolone log(not smoked) 3/12 lb.
Bellissimo Meatballs are made in the finest Italian you will appreciate the convenience and the cost tradition. The classic recipe has a blend of premium inWM/PS bothfeather prepshred, time and labor. Shred - WM and PS feathersavings shred, 50/50 quality beef and pork, the finest Italian cheeses, 50/50 WM/Prov feather shred. 6/5 lb. fragrant Italian spices and real bread crumbs. For your customers, Bellissimo Meatballs have There’s also a flavor-filled all-beef option. a homemade look and feel and can be served as appetizers, in sandwiches or with a favorite pasta Fully cooked and available in a variety of sizes and dish. Bellissimo Meatballs will inspire creativity styles, the meatballs are tender and delicious – in your kitchen and motivate customers to keep bursting with juicy flavor! In the back of the house, coming back for more.
Whole Milk
MOZZARELLA
Bellissimo distributors are the exclusive source for Bellissimo Meatballs. Contact a representative for availability and pricing. INGREDIENTS: PASTEURIZED MILK, CHEESE CULTURES, SALT AND ENZYMES CONTAINS: MILK DISTRIBUTED BY BELLISSIMO FOODS, HOUSTON TX 77025
Contact your local BFC distributor today for samples and pricing.
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Delco Foods is a proud distributor of Bellissimo authentic Italian ingredients.
c/o BELLISSIMO FOODS 1600 Riviera Ave. Ste #315 Walnut Creek, CA 94596
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INSIDE THIS ISSUE The Looming Crises In Labor The Benefits Of Being Present Market Update
NEW LOOK SAME GREAT FLAVOR EXPERTLY
Crafted. EXACTLY WHAT You NEED.
™
Talk to your distributor about CUSTOM BLENDING your ingredients, to achieve CONSISTENTLY superior, flavorful results each and every time.
We understand you have personalized needs and are here to help you find or create just the right topping. We’ve spent decades perfecting
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the craft of our meat toppings. For us, it’s not just a job, it’s a passion. Let’s start with a sample at BurkeCorp.com ©2017 Burke Corporation. All rights reserved.
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