FESmag

Over the last days the foodservice industry has made for some interesting headlines, including:

• Chipotle running into throughput constraints, looking hard at operations
• Subway finding it hard to recycle, but doing some, as the rest of the QSR segment continues to do so with limited success
• Hardee's and Carl Jr.'s delaying implementation of trans fat-free oil till end of 2008

These are more than headlines. They are statements being made about what appear to be unavoidable "new" trends testing their limits and we need to be fully aware of new developments.

Chipotle is known as being incredibly successful by its willingness to "break all the rules," so to speak. In reality, though, the chain breaks some, but not all of the so-called rules for operating a successful QSR. When it comes down to it, Chipotle adheres to MOST of the rules of good execution in foodservice such as simplification of operations, good ingredients serving as a basis for good food and low initial equipment investment. Maybe the most important rule they broke is that of being chaotic while being entrepreneurial. Chipotle was actually very disciplined in its approach to growing the concept. But now the company continues to run into some throughput issues, which forces customers to wait in lines that reportedly snake outside its doors. This will remain the case until Chipotle’s team figures out the next operational breakthrough or until the chain has enough locations to sustain its growth by opening stores to offset excessive demand in some of its locations. A great problem to have, although it happens even to the best!

The Wall Street Journal reports that Subway is testing recycling bins; switching napkins, plastic cutlery and paper cups; and reducing the amount of gas consumed to transport foodservice supplies to its stores in an effort to be more environmentally friendly. These efforts certainly fall in line with the times where recycling and other environmentally friendly initiatives seem to have the attention of everyone, consumers and businesses alike.

While the efforts of Subway and other foodservice operators are noble and to be applauded, the fact remains that as customers get their pockets picked by higher oil prices they will eat out less often and penny-pinch more. To weather this pending economic storm, foodservice operators will have to focus more on value, not causes. And those operators that can offer value will win. Oh, by the way, as foodservice providers have to measure their pricing they may be a little less wasteful with those unnecessary condiment packets or silverware packets to save some money. And if people drive less, or choose to do so in their smaller car, the environment will take care of itself more than any corporate initiative could ever aspire.

Last week, Hardee’s parent company CKE Restaurants announced it will not be able to transition its stores to trans fat-free cooking oil until the end of 2008. Originally, CKE had hoped to make the transition during the first part of 2008. While well intentioned and certainly in line with the trends of the day, this really represents more of the same. While consumers pay attention to the health issues associated with zero trans fat cooking oil, it’s the perceived value of the meal and dining experience that will get them to part with their hard-earned dollars. Indeed, the trans-fat issue may fall to the background if Hardee’s promotes a huge burger for a tiny price.

There’s no denying that supporting current trends such as recycling or using trans fat-free cooking oils makes good marketing sense because of the way these initiatives resonate with customers. But the key to operational success lies in an organization’s ability to focus on savings in labor, utilities and food costs to deliver incredible value to the customer. Good operators are constantly aware of the ever-changing definition of value to their guests, as they know they can only count on it evolving.