It's All About the Menu
With consumers spending nearly half their food budget on meals made outside of the home, their expectations continue to rise. Their demand for fresher, better-tasting food, not only means changes in menus, but also in equipment purchasing and kitchen design.
By Amelia Levin, Associate Editor -- Foodservice Equipment & Supplies, 4/1/2007 12:00:00 AM
 The Northgate Market in San Diego presents a clear example of what customers want these days - staff prepare fresh, made-to-order tacos at the taqueria that customers can sit down with at the various dining tables and chairs in the center of the market. Or, they can take a bag of freshly steamed tortillas to go. Photo courtesy of RMA Photography |
Starbucks introduces hot breakfast sandwiches. Potbelly Sandwich Works and Chipotle start offering salads. An upscale restaurant's menu changes with the seasons. A hospital moves to room service-style operation to give patients more personalized service.
As foodservice industry professionals and restaurant patrons, we've seen it before and see it often - operators changing or adapting their menu to stay current with consumer trends like the growing demand for healthier choices, artisan-quality food, and higher expectations. While motives may differ depending on segment and constituency, the universal fact of the day is that operators of all shapes and sizes continue to tinker with their food products. Many chains and independent restaurants change their menus to enhance their performance in other day parts, which they hope will allow them to gobble up more market share and enjoy greater profitability. In contrast, the non-commercial operators, now dealing with expectations traditionally reserved for their commercial peers, continue to adjust their offerings to increase satisfaction among a specific constituency and to help support the overall image and value proposition of the organizations they serve.
Regardless of why operators plan to change their menus, the overarching question is, how do such plans impact the back of the house?
The answer: For some operators, it barely changes anything. For others, it can mean anything from a new piece of equipment to a complete kitchen redesign.
More than one-third of operators reported that the addition of new menu items will affect their equipment purchase decisions, according to Foodservice Equipment & Supplies' "2007 Operator Industry Forecast," released in January.
Forty-five percent of operators said they will likely purchase microwave ovens this year as a result of such menu changes, according to the report. Other primary food preparation equipment purchases as a result of new menu items include food processors (44 percent of operators), and beverage blenders (32 percent). As far as cooking equipment, 34 percent of operators indicated plans to purchase panini presses, while 33 percent of operators each will likely purchase toasters, fryers and ovens. In the serving equipment category, 45 percent of operators reported plans to purchase warmers, followed by chafers (43 percent) and refrigerated display cases (34 percent).
Current Menu Trends
In the last year, consumers' interest in salads continued to grow, according to the "Menu Clips Annual Review," a compilation of survey results from the top-performing limited- and full-service restaurants released by Technomic, a Chicago-based research firm. "Salads remained one of the most innovative meal parts on operators' menus, addressing both consumer interest in new ethnic flavors as well as the demand for interesting, healthier options," the report says. "Menu Clips" also shows that 97 percent of consumers snack during the day, and that 50 percent of consumers consider the portability of items when deciding what to eat. This may explain why quick-service chains such as McDonald's and KFC introduced lines of portable minisandwiches, the report says.
| "There's more theater to kitchens now that requires a higher level of design or attention to detail." -Jim Webb, Principal, Webb Design |
Other popular food trends gaining more traction of late include the perception of "freshness" and "à la minute" cooking, according to Jim Webb, consultant and principal of Webb Design in Tustin, Calif. People want to see their food being prepared in front of their eyes, and they believe that if it's been cooked to order, it's fresher, he adds.
"Exhibition kitchens have been around for 10 years, but I think the frequency of these are amping up quite a bit," Webb says. "There's more theater to kitchens now that requires a higher level of design or attention to detail. We have to be careful how we lay out counters - they need to be easily cleanable, and look exciting, not like a stainless-steel battleship. You want more of a customized, European-style island suite with porcelain fronts, decorative fixtures and imported hardware than just a steel box." In addition, many operators prefer customized lighting and grills that can create drama with fire and flames.
 A large, wood-burning oven and a smoker for pizza, meats and fish fill the air with delicious scents at the Northgate Market in San Diego. Customers these days associate the smell of smoked, roasted foods, and the site of decorative equipment with freshness and artisan quality. Photo courtesy of RMA Photography |
Display and exhibition-style kitchens play an important role in marketing the idea of freshness, Webb says. "At Romano's Macaroni Grill, the minute you walk in, you see a big deli case full of fresh produce. Automatically, the customer perceives everything to be home-grown right there. Whether it's through presentation, wait staff, and display cases, you have to merchandise that idea.
"Breads also affect display," Webb says. Many restaurants opt to showcase freshly baked artisan breads through tall display shelving at the back of the wall and in cases in front of the customer. "You want to be able to get that in front of the customers' eyes." In addition, woks, wood-fired ovens and smokers that fill the air with the scents of hot cooked meals or smoked meats and fish, strengthen a restaurant's image of having high-quality food. "It says home-cooked, fresh, made for me, unique, artisan," Webb says. "Using those types of equipment gives authenticity to your menu and service style."
Commercial Operators
Among major chains, "One big trend seems to be the toasting or heating of a sandwich," according to Mark Godward, consultant and president of Strategic Restaurant Engineering, a Miami-based consulting firm. "Today's technology is made much easier to pull that off than in the past."
Microwave convection ovens and conveyor impingement ovens that both can toast or crisp foods remain popular among Godward's clients for this reason. "A microwave alone just doesn't cut it because you need to add the flavor dimensions of crisping the outside," Godward says.
While these changes help restaurants enhance their product offerings, the resulting equipment and operation changes induce significant financial risk. For one thing, installation costs for new equipment can be quite high. "Sometimes, the cost of new equipment is not such a big deal, but the installation costs are two, three or four times the cost of the equipment," Godward says.
Take, for example, a restaurant that wants to add a blended beverage program to its operation. "Adding some blenders sounds easy, but what if you then have to improve your breaker panel and change the circuits in the kitchen?" Godward says. "The expense of that would be huge. Although adding a blender seems trivial, adapting the circuitry for the blender is not so trivial. You don't want to modify your menu too much if this is the case."
| "It's all about freshlooking, fresh ingredients. People don't want to see 10-inch pans of spaghetti and meat sauce anymore." -Georgie Shockey, Principal, Ruck-Shockey Associates |
Another major challenge with adding new equipment to accommodate menu changes centers around space and training, Godward says. "It takes a lot of effort to train staff to use new equipment," he says. Also, many kitchens don't have the space to fit new equipment. "Sometimes, you have to replace existing items with more multi-use equipment," Godward says. For example, if you need more fryers but don't have the space, "maybe consider installing a higher-capacity fryer in the same space. Or in the case of a grill, if you can't make it longer, maybe you can put in a dual-sided grill.
"When you change your menu, you run the risk of decreasing the quality of your core products," he says.
Instead, many chains aim to introduce only menu items that keep current operational flows intact. For example, Chipotle easily added salads to its simple assembly line-style of production by having staff simply skip the tortilla station and throw the burrito ingredients into a bowl with lettuce instead, Godward says. The same goes for Potbelly, which also uses an assembly line flow. In that case, staff toss the lettuce, meat, cheese and other salad ingredients into a bowl, skipping the toaster station.
If chains do find they need to change workflows to accommodate menu additions, Godward says, they can reduce costs by introducing a full line of menu additions, not just one or two new items. "If you're going to add a different flow of production and a different piece of cooking equipment, you want a pretty significant addition to the menu to justify that additional complexity," Godward says. He cites the example of Starbucks' hot breakfast program, introduced last year, which entailed the purchase of convection warmers. Instead of offering just one or two breakfast sandwich options, the chain offers four varieties including a low-fat option. The added equipment also provides Starbucks with the flexibility to offer additional hot items in the future.
 Clean lines and lots of prep space pictured here in the kitchen at Methodist Hospital in Houston come in handy when menus change because they allow operations to remain smooth and easily adaptable to new cooking preparations. Photo courtesy of Robert Rippe & Associates |
The trick to knowing if a new menu will lead to a profit-increase rather than a profit-loss after taking into account all the expenses of new equipment and staff training is to "test, test, test," Godward says. "Going rapidly into testing is a key factor as opposed to theorizing for months over what would be the best course of action." Many chains test new products by introducing them as "limited time offer" specials in smaller markets before rolling them out in stores nationwide. "Chains constantly test new products, and some work and some don't. What you're testing today predicts whether you'll be successful in a year's time."
Godward has seen many concepts succeed, but some have failed or faced problems during his career. Years ago, while working for Taco Bell, the chain "struggled with rolling out quesadillas using dual-sided grills," he says. By adding a new cooking process to a virtually assembly-only operation, the chain changed the flow of operations, which "delayed orders quite dramatically." Ultimately, as time went on, quesadillas became more popular among its consumers, which helped increase sales. The chain also began using the grills to warm up burritos, thereby justifying the costs of the added equipment, Godward says.
What's the other way to deal with the risks associated with menu and equipment change? Build the best kitchen to handle them, if you can, according to Webb. In ideal situations where he can build restaurants or other foodservice operations from the ground up, Webb designs the kitchen with as much flexibility as possible. Ideally, kitchens should have "ample amounts of cooking area where staff can cook a variety of menu styles as well as ample refrigeration to hold all the various ingredients. You also want enough countertop area that will allow you to install more equipment as the menu changes." The reality remains, however, that most kitchens must make do with what they already have.
Convenience and Grocery Stores
"As convenience and grocery stores offer more food, they're adding full lines of equipment," Godward says.
But, says Mike Lawshe, consultant and president of Paragon Solutions in Ft. Worth, Texas, convenience stores must take careful consideration of their menu and coinciding operational design to be successful. "The biggest challenge I face is customers that don't know what their menu is, and they want me to design their kitchen," Lawshe says. "In order to design the kitchen correctly, you really need to know the specifics, not just the main courses, but all the side and presentation dishes, too. You really need to design the menu to determine the layout."
Some questions Lawshe will ask the client include, "Do you want an interaction between the food preparer and the customer, or a ready-made, self-service setup? Are you going to have a single menu, or is it going to rotate by day parts or day?" Each layout differs greatly from one another.
 Combi ovens such as these in the kitchen at the Ohio State University Medial Center in Columbus, Ohio, allow for greater flexibility when menus and foodservice programs change because they can perform multiple functions including baking, roasting and steaming. Some models can hook up to managing software for easy programming and re-programming when menus change. Photo courtesy of Robert Rippe & Associates |
Lawshe cites a truck-stop project he worked on that needed to undergo significant layout changes to accommodate a new menu. Before Lawshe came in the picture, Ed Staub and Sons in Burns, Ore., featured a traditional comfort food menu of pot roast, meat loaf and pork chops that drew in dozens of truckers and other commuters seeking the restaurant's delicious food. Over time, though, truckers and other regulars began to prefer more grab 'n go items, such as sandwiches and pizza, which they could easily take with them on the road. Lawshe's challenge was to add more of these items as well as enhance the portability of the standard dishes, similar to fast-casual operators. The goal was to trim the current menu while adding new items. By cutting down on the number of side dishes and specials on the menu, Lawshe reduced labor in that area and freed up staff to prepare more grab 'n go items. Since finishing the project in August 2006, he says sales at Ed Staub have taken an upturn, and labor was reduced significantly.
Other than a functional design and new equipment, the other key to a successful new menu roll-out lies in proper marketing of new concepts. "It's so easy to say, 'I'm just going to add this new menu item,' but how are you marketing and merchandising it? What are you doing aesthetically to attract the customers' eyes?" Many convenience stores, similar to big chain restaurants, post colorful signs throughout the store and at kiosks, cash registers and gas pumps to advertise a new food item, or discount the item as a way of generating sales. "You need to put the sizzle with the steak," Lawshe says.
These days, more and more convenience stores feature foodservice programs that create the image of "fresh food" by opening up production lines so customers can watch and interact with staff preparing their food, according to Lawshe. While consumers rave about made-to-order sandwiches, he notes an additional insurgence of freshly prepared burritos and other Mexican specialties as well as make-your-own pizzas, where customers can pick up plain dough from a line at one end and move along the line to add toppings such as fresh garlic, tomato, spinach and meats. "Pop it in the conveyor oven at the end and sit down until your number is called," Lawshe says. It's all about interaction and convenience. "By watching or making your food, you know it's fresh," he says.
Grocery stores with foodservice operations have also capitalized on this "fresh food" concept that has generated so much interest among today's consumers, according to Webb. Many no longer take shape just as retail institutions, but also as mini-restaurants, with exhibition-style stations and tables and chairs for in-store dining.
One of Webb's projects, the Northgate Gonzalez Market in San Diego, a specialty Mexican marketplace, features 60,000- square-feet of both retail and foodservice space. A number of display kitchens throughout the market show staff at work preparing everything from baked goods at the panaderia to fresh tacos at the taqueria. At another station, staff steam tortillas using a "half-million dollar" tortilla machine and place them in bags for customers to take home immediately. "Everything is made fresh," Webb says.
 Extra baking equipment, such as large mixers and skillets pictured here in the kitchen at Sanford Health in Sioux Falls, Iowa, not only handles high volumes of food, but it can also prepare a variety of items, which is useful when menus change or expand. In addition, casters allow the equipment to move around easily to accommodate different cooking processes. Photo courtesy of Robert Rippe & Associates |
Non-Commercial Operators
The notion of changing menus to meet customer demands, and subsequently needing to add new equipment to support these developments, is not the exclusive domain of chain or independent restaurant operators. This represents a very real challenge that non-commercial operators such as colleges and universities and healthcare institutions, wrestle with quite often.
"Schools and colleges are looking for the cutting edge in food choices," says Georgie Shockey, consultant and principal of Ruck- Shockey Associates, a foodservice consulting firm based in Almeda, Calif. "They're looking to have the New York dining experience at the college level for $2.95. How you present food is huge these days. It's a little challenging."
Today's university and college students, as well as hospital staff, patients and visitors, prefer foods with more intense flavoring and more freshness. "It's all about fresh-looking, fresh ingredients," Shockey says. "People don't want to see 10-inch pans of spaghetti and meat sauce anymore. More kitchens are doing smaller batch cooking closer to the minute that the food is going to be served, which means I don't want cooks running to the back of the kitchen for their ingredients." As a result, operators need to have ample reach-in refrigeration near the cooking and production stations, she adds.
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Primary E&S as a Result of New Menu Items
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| Food Storage Containers 76%Cooking Utensils 75%Latex/Plastic Gloves 66%Cookware (Pots, Pans) 64%Thermometers/Sensors 62%Steam Table Pans 55%Microwave Ovens 45%Warmers 45%Food Processors 44%Chafers 43%Refrigerated Display Cases 34%Panini Presses 34%Heat Lamps 34%Toasters 33%Fryers 33%Ovens 33%Scales 33%Blenders 32%Worktables 32% |
In addition, multi-use equipment helps tackle the challenge of fluctuating menus. Shockey cites combi ovens as well as tilting skillets and other blast-chilling equipment as examples. "Typically, when we build these noncommercial kitchens, they're costing millions of dollars to outfit, and operators are not able to change all of that every few years as menus change," she says. "They want a long return on investment." That means, buying top-of-the-line equipment that's not only flexible, but highly durable as well.
Providing healthier meal options represents another important issue among college and university students, hospital staff and foodservice managers. With the obesity issue becoming so prevalent in today's society, the large portion sizes that most restaurants and foodservice operations offer have come under scrutiny. It's common for people to expect large portions when they dine out, Shockey says. But consumers are really starting to look for smaller meals that have fewer calories. To accommodate those needs, some restaurants have begun to seek out equipment that can cook smaller amounts of food more gently. Combi ovens accomplish this through their steaming capabilities by not "cooking a flavorful piece of something to death," Shockey says. As far as holding food, many operators prefer using smaller containers and small-batch crocks with gentle heating lamps that won't scorch the food, she says.
A number of college and university operators as well as healthcare operators also utilize software programs that manage menus and nutrition information to offer healthier alternatives to the often highcalorie, high-fat fare found at restaurants, according to Shockey. A number of these programs also have the ability to link up to equipment controls, and at the press of a button, the equipment will cook the specified meal. As menus change over time, managers can easily re-program the equipment. This also helps cut back on the time and effort required to train staff for new cooking procedures.
| "Sometimes, the cost of new equipment is not such a big deal, but the installation costs are two, three or four times the cost of the equipment." -Mark Godward, President, Strategic Restaurant Engineering |
A major challenge with menu and equipment changes, particularly in the non-commercial segment, centers on space issues. "A limiting factor is the hood," Shockey says. "If you have a hood in place, typically you can't move it in big operations because it's so costly." Shockey cites one case where the operator wanted to install a large combi oven in the kitchen, but it didn't fit under the hood already in place. "That's a health department concern," she says. "If you start doing that too many times, you're going to be out of compliance."
What the customer wants, the customer gets. Food trends continue to influence menus and impact equipment purchasing and design decisions in all segments of the foodservice industry. It's how each operator decides to capitalize on these trends that showcases their individual differences.
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