DELCO FOODS
VOL. 25, NO. 10
RE-TOOLING
KEY FACTORS
YOUR MENU
TO DETERMINE
THE FUTURE By Peter Thor, President, Bellissimo Foods Uncertainty of the future is a normal part of all our lives, but this year has tested the boundaries of normal. To better prepare for both survival and success in our uncertain future, we examine likely supply and consumer demand scenarios going into 2021. The elephant in the room is, of course, the Corona Virus. While some discount its implications, it has and will continue to effect food supply and prices, as well as demand. Until a vaccine or cure for Corona Virus is widely distributed, there will be disruption and supply issues, particularly in protein due to the human labor requirements. On the supply side, more than 2000 farms feed our 328 million consumers, but the processing plant middle is highly concentrated. The largest 4 companies process about 75% of beef, pork, and poultry; and the largest 4 cheese makers control the majority of cheese sold in both retail and foodservice. Plant workers are necessarily exposed and as a result many plants continue to run 50-85% capacity. Until a vaccine is widely available, shortages and higher prices that are likely to continue. Weather related damages in the Southeast and West are affecting poultry and vegetable production. International factors also help determine supply and pricing in the US. While Covid receives the most attention, ASF (African Swine Fever) has spread to Europe and recently been discovered in Germany. The resultant export ban and pig culls are likely to increase international demand for US meat exports and higher prices. Bottom line, we expect supply to (continued on page 2)
A PROUD DISTRIBUTOR OF BELLISSIMO
OCTOBER 2020
In these uncertain times, re-tooling your menu is critical to attract new customers, add new items, replace stagnant items, and highlight new services. Perhaps you’ve added services like take-out, delivery, touchless ordering? Periodic menu review also forces menu item cost analysis which is critical to increasing both revenue and profits. A re-tooled menu can attract new customers and encourage your “regulars” to come back more frequently. Add-on items like appetizers, sides, and desserts can boost sales. New items with special short-term pricing can be (continued on page 3)
MARKET UPDATE Dairy Cheese Blocks
PRICE
LAST MONTH
DIFFERENCE
$2.576
$1.727
$0.849
The cheese block price premium over barrels remains histoically large. Per the USDA, August cheese inventories were up 1% (y/y) but the monthly drawdown was below the 5 year average. Expect the cheese markets to remain volatile.
Beef 50% Trimmings
PRICE
LAST MONTH
DIFFERENCE
$0.484
$0.584
($0.10)
Beef production picked up recently and is up 2% YTD over last year. Packers look to be trying to cement the seasonal low on the wholesale beef markets with the USDA choice cutout rising modestly recently.
Poultry
PRICE
Wings(Jumbo) $2.153
LAST MONTH
DIFFERENCE
$1.988
$0.165
Chicken wing prices remain firm currently over $2.100/lb and are the costliest since 2017. Tighter production schedules should continue to support the chicken wing markets in the near term.
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FACTORS DETERMINE FUTURE (continued from page 1) rebound but at higher prices for pork and probably beef and poultry until mid-2021. The demand side is expected to improve as restaurants and schools reopen, but at what pace? There is a great deal of uncertainty because many states continue to limit restaurant indoor capacity, and school openings have only been modestly successful. The entertainment and travel industries are still dormant, but sports are slowly coming back absent fans in large venues. It seems unlikely that demand in these sectors will return until mid-2021 or later. Longer term changes in demand are also likely resulting from the pandemic and induced economic recession? There are still about 28 million people unemployed, and those returning to jobs will have drained savings. Surveys showing that 40% of adults have 1 month or less of savings suggests “eating out discretionary $ will be tight” for those. Will the business diners at upscale restaurants resume to pre-Covid levels, or will city centers lose appeal? Will employees who worked from home for 6-12 months all go back to offices downtown? What about the lunch business for office employees? There is a lot of uncertainty for restaurants in downtown locations or office parks. It may take years to return to concentrated commuter centers pre-pandemic. This means, of course, significant rationalization of restaurants in downtown office centers, while also signals opportunity based on a more geographically dispersed workforce. A larger question, will people be tired of take-out or will it become the new norm because of ongoing health safety concerns?
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PROUD TO FUEL THE
PASSION FOR GREAT PIZZA At Hormel Foodservice, your pursuit of the perfect pie drives our desire
to bring you toppings with the very best quality, performance and flavor. With over 200 pizza-ready proteins, from trusted brands like FONTANINI® Authentic Italian Meats and ROSA GRANDE® Pepperoni, we know you’ll find something you love.
Consider the following survey results: • 70% believe Covid-19 is a “threat” to their family • 89% believe food-at-home is safer than restaurants/away-from-home To combat these perceptions operators should visibly be seen to be addressing them and thereby relieve the nervous public. If 80% of consumers are nervous about eating out, this represents an enormous industry challenge. Dine-in and restaurant service is a discretionary pleasure experience, so if we as an industry can promote cleanliness and safety, we should be able to successfully navigate this difficult time. Our best wishes for good health to everyone! A PROUD DISTRIBUTOR OF BELLISSIMO
Find your perfect toppings by visiting hormelfoodservice.com/products/pizza-toppings BRAND
©2020 Hormel Foods, LLC ©2020 Cultivated Foods, LLC
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RE-TOOLING YOUR MENU
(continued from page 1)
instrumental in gaining new customers. A successful trial by a new customer may turn them into “regulars.” Success depends on what you add, how you market the items, and the training you provide employees on how to sell them.
adding items from different categories like entrées, appetizers, sides, salads, and desserts. Items can be made from scratch or purchased needing minimal preparation. Items such as “cup and char” and “handpinched” can significantly improve both appearance For the biggest impact think about market trends in your and flavor. Use pizza and sandwich ingredients to area. When planning new items think about current create a great salad or appetizer. Add a new style of trends: low carb, gluten-free, high-fiber, ethnic flavors, and pizza; Neapolitan, Chicago, Detroit. low fat, with taste, appearance and presentation equally important. Think carefully about how orders are placed and Sides, appetizers, salads, desserts, and beverages delivery inside or outside. The current pandemic will make all help to build sales while appealing to potential obsolete items that are handled more than once. Think customers that may not be focused on pizza. Add an paper menus and single use condiments and dressings. additional item and watch profits grow! If you’re not Combine these issues and ongoing labor shortages may featuring something from each of these categories, force some menu simplification. you’re missing the boat. An entrée salad can be an attractive option to customers looking for a healthy Given changes in where and how people work, will your option. All you need is greens with an attractive customer base change? How will you attract new customers assortment of vegetables, grilled chicken, and dressing. and what menu and services will appeal to them? Ask your Desserts are a great addition. You can make your own customers for suggestions. or try the assortment of premium quality available from Trying new products from your Bellissimo distributor offers your Bellissimo distributor. Contact Bellissimo or your another opportunity for trial and building your business local distributor if you’d like more information (Sales@ with new, interesting, and diverse options. Think about Bellissimofoods.com). As always, we wish you great success!
ALTISSIMA PREMIUM SLICED BLACK OLIVES ITEM SPOTLIGHT We are pleased to introduce Altissima premium sliced olives. California grown and packed. Olives of this quality level should be an easy choice, larger, better tasting, grade A quality. Altissima olives are available through your authorized BFC distributor.
Item # 55206-94
Altissima Premium Sliced Black Olives - 6/10# Talk to your distributor about CUSTOM BLENDING your ingredients, to achieve CONSISTENTLY superior, flavorful results each and every time.
1-800-ALLSPICE allseasonings.com A PROUD DISTRIBUTOR OF BELLISSIMO
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Spread the Word – Pizza Boxes are Recyclable
The American Forest & Paper Association released new industry guidance that clears up consumer confusion regarding the recyclability of pizza boxes. There was a common misconception that cheese and grease stuck to the boxes would negatively impact recyclability. A study by WestRock, an AF&PA member, found that the typical amount of these containments are acceptable, and paper mills that recycle boxes concurred.
“Corrugated pizza boxes are successfully recycled every day at paper mills throughout the country, yet consumers remain confused by mixed messages suggesting that some boxes should not be put in the recycle bin,” said AF&PA President and CEO Heidi Brock. “So, let’s be clear: pizza boxes are recyclable. Consumers should not be concerned about grease or cheese – simply remove any leftover pizza and place the box in the recycle bin. We encourage communities to update their residential recycling programs guidelines to explicitly accept pizza boxes that are free of food.”
A statement found on Ray’s Trash website confirms: “Food soiled materials are always a challenge because the food material represents chemistry that may affect the recycle process. A little grease in the pizza box is ok. CLEAN PIZZA BOXES ARE RECYCLABLE as long as they do not contain leftovers, food waste or other nonpaper items such as dipping sauce containers, peppers or leftover pizza crust. Most pizza boxes have an inner sheet that can be tossed out with the food scraps and the mostly clean box can be easily recycled.” You have an opportunity to promote goodwill and positivity by reminding customers to recycle their pizza boxes. Letting customers know that they can make a positive contribution by recycling those boxes is a great way to promote your commitment to sustainability. Just eat pizza. Remove any leftovers (as if there would be any). Recycle the box.
How To Taste Olive Oil The California Olive Oil Council believe there is a science to tasting Olive Oil. Professional tasters use specially-made blue glasses that are tapered to concentrate the oil’s aroma; a wine glass is a good substitute when tasting at home. The blue color ensures that tasters aren’t influenced by the color of the oil. Cover the glass and allow it to gently warm in your hand; optimal tasting temperature 82°. It is important to evaluate the oil in an odor-free environment. Swirl —this releases the oil’s aroma molecules. Keep the oil covered until ready to sniff. Sniff —uncover the oil and quickly inhale from the rim of the glass. Take note of the intensity and the description of the aroma. Slurp —take a small sip of the oil while also “sipping” some air. This slurping action emulsifies the oil and helps to spread it throughout your mouth. Take note of the retro-nasal aroma as well as the intensity of bitterness. Swallow—an oil’s pungency is judged by a sensation in your throat so you must swallow at least a small amount to thoroughly evaluate it. If the oil makes your throat scratchy or makes you want to cough, it is a pungent oil. If tasting a series of oils, be prepared to clean your palate between tastes with a bite of green apple (preferably Granny Smith) followed by either still or sparkling water.
What Do You Love? In February we feature Delco items that our employees love and can’t live without. Now it’s your turn… Send an email to Theresa Wells at twells@delcofoods.com and tell us what Delco products are top on your list. If we feature your comments in our February 2021 issue, we will credit your account $10. If you share a recipe we use, we will credit your account $25. So come on, tell us what you love! Deadline: December 15, 2020
Comments, Questions & Suggestions
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. As always, our number one goal is to keep you happy. Our newsletter is just one way we share new information about the products and services we offer, as well as industry news we think may be interesting and useful. For personal service and support, please contact your Delco Foods Sales Representative. 4850 West 78th Street . Indianapolis, IN 46268 . toll free 800.536.1234 . tel 317.876.1951 . fax 317.870.7803
Remember you can visit us online at www.delcofoods.com, “Like Us” on Facebook and follow us on Twitter & Instagram
WING MANIA How did chicken wings become a staple in pizzerias? Hot spicy sauce basted on a chicken wing sure is fun to eat ... but it isn’t Italian. So why are they so popular? There are several reasons; wings fit with the popular “grazing” theme, customers love the spicy intense flavor, kids love them and, because they are easy to prepare, they have grown as an offering on many pizzeria menus. Simply stated, chicken wings have become associated with pizzerias in the consumers mind.
WHY SELL WINGS? For pizzeria owners, the wing trend is all good news. Here’s why: • It increases your average check size. • It broadens your menu so that customers will visit more often. • With the availability of pre-cooked wings, it does not add to your equipment needs, keeping your overhead low. • Great to-go item with the right wing and to-go container.
WINGONOMICS So how much money can you make selling chicken wings?
Because of the popularity of wings, prices have risen over the past few years. Typically you can expect to pay roughly $.35-.45 cents per piece depending on if they were precooked or not. Nationally the selling price ranges from around $.50 - .70 each: about a 35% food cost. Although this is very high for a food cost percentage, all of the gross profit dollars are extra. There are few choices for appetizer sales in a pizzeria and because most are sold pre-cooked, there is no additional cost for having a fryer, hood and cooking oil. On balance, selling wings will add to your profitability. Special packaging will be needed for carry out and delivery. Wrapping them in foil and tossing them into a bag is not a good solution. Some of the major pizza box manufacturers have developed a corrugated box for breadsticks. These work well for chicken wings too. If you are looking for a fully cooked chicken wing option try out the Bellissimo Fully Cooked Mild or Spicy Wings. Call your local distributor for more information and pricing.
Pizza Circles/Squares | Pizza Inserts | Catering Boxes | Wings/Breadstick Boxes Flat Bread / Roman / Artisan / Rectangle Boxes and Much More!
PIZZA BOXES CUSTOM PRINTING NO PRINTING PLATE FEES NATIONAL OR LOCAL STOCKING PROGRAMS
We can help you with any size, any shape box. Call us today!
Distribution Center Locations
California | Michigan | Texas
Supports Bellissimo
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(888) 400-3455 wpackaging.net 6
BELLISSIMO CHICKEN WINGS Increase Sales With This Satisfying Starter Bellissimo makes a lasting first impression with its easy-to-cook and quick-to-serve Chicken Wings. This profitable starter can be fried or oven baked resulting in a deliciously crunchy coating. Bellissimo Chicken Wings set the table to make sure your customers keeping coming back. Bellissimo offers a full line of par-fried and fully-cooked chicken items. Bellissimo distributors are the exclusive source for Bellissimo Chicken Wings. Visit Bellissimo.com to contact a representative and request samples and pricing.
www.Bellissimo.com A PROUD DISTRIBUTOR OF BELLISSIMO
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• OCTOBER Market Update 2020 VOL. 25, NO. 10
INSIDE THIS ISSUE • Key Factors to Determine Future • Re-Tooling Your Menu • Wing Mania
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PermitStandard #810 Presorted EC US Postage K PAID PIZ INS Oakland, CA I ZA DE Permit 810 IND FO US R TH TR Y NE LA c/o BELLISSIMO FOODS EW TES T 1600 Riviera Ave. Ste. #315 S
Walnut Creek, CA 94596 RETURN SERVICE
PH:317-876-1951 FAX:317-870-7803 www.delcofoods.com
Delco Foods is a proud distributor of Bellissimo authentic Italian ingredients.
Visit bellissimo.com for more information on Bellissimo authentic Italian items, specials & more!
Intro ducing Plant-Based
ALTERNATIVES
A DISTRIBUTION PARTNER YOU CAN RELY ON During the pandemic have you been lacking service or support from your broadline distributor? While many broadliners have cut back service and staff, Bellissimo Foods Company distributors are 100% committed to servicing the hardworking owner/operators that define our pizza industry. Bellissimo distributors are: n On the front lines of distribution n Never cut delivery days and ensure you have the products you need to stay in business
DELICIOUS OPPORTUNITY FOR YOUR OPERATION. Our Plant-Based Alternatives are protein substitutes that are deliciously versatile for anyone who chooses greener fare.
Request your Plant-Based Alternatives sample today at BurkeCorp.com.
n Expanding sales to customers affected by COVID-19 n The best source for thousands of quality Italian and Mediterranean imported/domestic products Visit BellissimoFoods.com to find a local Bellissimo distributor and discover the Bellissimo Foods difference in service and product knowledge.
Delivering Authentic Italian
www.BellissimoFoods.com
A PROUD DISTRIBUTOR OF BELLISSIMO
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