food business

The Latest Food Startups: At the Intersection of Food and Technology

Foodia. Foodzie. Foodily. Foodbuzz. Foodspotting. Foodista. Foodtree. Foodler. Foodoro. Fooducopia. Foodcaching. Food-Ex.
Did I forget anyone?

It feels like every day there’s a new food and technology venture competing for our attention, and still, the food-related startups just keep coming. There is no end to the interesting and innovative ways we can now search for recipes and nutrition tips, track down rare ingredients and bargains, or find out where all our Facebook friends like to go out for dinner. It’s all good, but still, you have to wonder if we really need three different services that can page us when a table is available in a popular restaurant (No Wait, Textaurant, and ReadyPing).

Does it feel crowded in here to you?
Aren’t all the programmers, designers, and entrepreneurs supposed to be building up that ‘cloud’ computing thing? Instead, they’re poking around the food space and even bringing the capital with them. Money managers took notice in August when a chain of grilled cheese restaurants launched with an estimated $10+ million in funding from the same group that backed Google, Yahoo, and Pure Digital. Now every seed fund and venture incubator program worth its salt has at least a couple of food startups in its stable.

It shows no signs of slowing down. Here are some of the newest entrants focused on technology, innovation, and market trends in the food world:

MooBella has developed an ice cream-on-demand vending machine that takes 40 seconds to churn out a fresh scoop that can be customized with 96 different variations of flavors, mix-ins, and butterfat.

Tasted Menu has users rate, recommend, and review individual restaurant dishes to create a database of the best of the best (and worst of the worst) for each city it covers. It joins Foodspotting and Forkly in a crowded field of crowdsourcers.

You’ll never eat alone: Grub With Us plans family-style dinners for strangers to meet at restaurants (currently in 7 cities), and SpoonDate lets you arrange a spontaneous blind date based on location and food cravings.

Culture Kitchen hosts authentic, ethnic cooking classes taught by new immigrants.

Foodcaching consolidates offers from daily deals sites like Groupon and Living Social and turns them into a location-based treasure hunt for food and drink bargains.

Foodoro and Fooducopia have joined the old-timer, three-year old Foodzie, in the marketplace for buyers and sellers of hand-crafted foods that let you set up your own etsy-style shop.

Jeffrey Peden, founder & CEO of CraveLabs looks at why the food industry is so ripe for the tech invasion.

Looking for a piece of the action? Kickstarter is a funding platform that lets you in on the ground floor of start-ups for as little as $5. It’s currently seeking micro-funding for a caffeinated breakfast cereal, a maker of fancy cake kits for home bakers, a crowd-sourced cookbook, and a few dozen other food-based projects.

Food and Tech Connect is an information company that produces networking events connecting innovators—the entrepreneurs, technologists, researchers, policy makers, farmers, and producers—at the intersection of food and information technology. It’s the premier place to stay on top of what’s happening on the cutting-edge of the food world.

 

 

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The Genius of Trader Joe’s

It doesn’t work for everyone.
Trader Joe’s store locations are second-rate and their parking lots are impossibly small. The aisles are cramped, there are so many missing product categories you’ll never knock off a whole shopping list, and the lines at the register rival July 4th at Disneyland. It should all add up to the retail equivalent of waterboarding, but instead, the population of admirers continues to swell.

Trader Joe’s has figured out how to take its many shortcomings and weave them into its mystique.
There’s just one brand of olives and one box size of polenta, but customers will bet that if Trader Joe’s picked them, those olives must be fabulous and it’s the best damn polenta out there. Employees are scruffy, laid-back, and Hawaiian-shirted, but also customer-friendly, always out on the floor to answer questions, and quick to open a package to give you a sample. Beloved products spontaneously disappear from store shelves, but they’re replaced with new and offbeat culinary discoveries that are often a half-step ahead of our palates (anyone for adzuki bean chips and dried green mango?). Instead of a chore, shopping at Trader Joe’s is a cultural experience.

Trader Joe’s carries around 4,000 products, compared to the typical grocery store’s 50,000. It’s a mix of foodie-friendly staples, like cage-free eggs and extra virgin olive oil, plus affordable luxury and exotic items, like frozen truffled ricotta pizza and Moroccan tagine sauce. This is not inexpensive food, but the offerings are unique and the prices are often the lowest in town. If this is not how you shop, cook, and eat, you just won’t get it.

To make sure its customers get it, the company looks at demographics like education levels and cooking magazine subscriptions to divine its next store locations. And they sure do get it: Trader Joe’s has average store sales of  $1,750 per square foot—that’s double the sales per square foot of Whole Foods and triple the amount of a typical Publix or Shaw’s supermarket. For Trader Joe’s, it adds up to $8 billion in annual sales.

The genius of Trader Joe’s is its marriage of cult appeal and scale. It doesn’t just masquerade as a neighborhood store with its bad clip art and folksy hand-lettered signs; it is a neighborhood store, with a tight customer focus and an ability to curate each store’s offerings to suit local tastes.

With 361 stores and counting, individual store oversight is less manageable, and a buying error can cost the company millions. Let’s hope as Trader Joe’s grows, it can hang on to the quirks and surprises that make it a special place to shop. Although no one will complain if they expand their parking lots.

If you do nothing else today, be sure to watch this video. If I Made a Commercial for Trader Joe’s is one man’s unauthorized tribute. It’s a complete, warts-and-all portrait; a love song celebrating the customers, employees, and eclectic merchandise of his favorite store. And it’s charming and very funny.

 

 

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Back to School with McDonald’s Hamburger University

McDonald’s Hamburger University
click on image to enlarge

It’s not the special sauce on the Big Mac or even the legendary french fries. McDonald’s is McDonald’s because of Hamburger University.

The school turned 50 this year and has 275,000 alumni, most working as store managers, franchise owners, and executives in McDonald’s headquarters. There’s no tuition, no SAT scores, and with 36,000 people vying each year for franchises, Hamburger University claims to be more selective than Harvard, with an acceptance rate of less than 1% compared to the Ivy League school’s 7%.

Most students at Hamburger U train at the picturesque Illinois campus near McDonald’s headquarters. They are a combination of current employees selected for their store management potential, mid-managers looking to move up, and potential franchise owners who have a minimum of $500,000 of non-borrowed personal resources and have demonstrated a kinship with the McDonald’s ethos, usually through a low-man stint as a floor mopper and french fry maker.

There’s some prep work before students arrive on campus, 5 days in residence spent in auditoriums and interactive classrooms, kitchen labs, and service training labs. Graduates also participate in follow-up course-work with one of the 22 training teams around the country. The average restaurant manager completes the equivalent of a semester of college–21 credit hours–that some colleges and universities will accept as transfer credits.

Like 60 per cent of the senior management of McDonald’s Corporation, CEO Jim Skinner began his career as a restaurant crew member. A Hamburger University grad, in 1971 Skinner was a McDonald’s manager trainee with a high school diploma. As CEO of the company (with annual personal compensation of around $18 million), he’s overseen the global expansion of Hamburger University, which has opened 6 additional campuses: in São Paolo Brazil; London, England; Munich, Germany; Tokyo, Japan; Sydney, Australia; and the newest Hamburger University in  Shanghai, China.

McDonald’s is the world’s leading global food service retailer with more than 32,000 locations serving approximately 64 million customers in 117 countries each day. Bloomberg Businessweek looks at the company’s plans to leverage the leadership skills of Shanghai’s Hamburger University graduates to fuel its big expansion plans in China.

 

 

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First Date Groupon: Frugal genius or extreme cheapskate?

 

image via Jay I Kemp

It’s awfully tempting to use an online coupon on a first date.
With the right Groupon offer, you can offer a splurge that’s otherwise out of reach—the crème brûlée tastes just as rich at half price, right? Even if it’s just a neighborhood joint, you’re demonstrating thrift and fiscal savvy, and who wouldn’t want to see such admirable qualities in a potential mate?

Wrong!
Sorry, but most seasoned daters and relationship experts see it as a mistake. It’s considered cheap, tacky, and so unsexy. In the world of dating don’ts, it’s right up there with asking for a doggie bag.

I know what you’re thinking: who wants to date someone so obviously shallow and materialistic, with such disregard for your circumstances and best interests? Those are valid points, and the experts recommend you hang on to those thoughts for a future date, maybe the third or fourth. The best first dates are about mood, magic, and romance; a big dose of practicality wrecks the atmosphere and brings a couple down to Earth.

Groupon is working furiously to overcome the first date stigma.
The company conjures up its own first dates through its Date Assistant, a free matchmaking service for singles looking to couple up and redeem two-for-one offers. Groupon also brought together unattached-and-looking coupon clippers with an offer of $85 worth of speed dating discounted to $40, which set a Guinness World Record for the largest speed dating event in history.

And then there’s Grouspawn.
If a couple uses a Groupon coupon on a first date and subsequently produces a child, they may be rewarded with a $60,000 college fund. Two such couples will be chosen each year, which should help push them past that awkward first date moment—photographed hand in hand with the coupon and the day’s newspaper—when the relative strangers/prospective parents gather the requisite documentation. Just in case.

As a general rule, a relationship needs a firmer foundation before couponing can begin. Groupon on a first date and your crush may not respect you in the morning.

 

 

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Shut Happens: Which Restaurant Will Be Next to Fail?

 

 

 

 

 

 

 

 

 

Restaurant closings. Those are the real signs of the times.
In recent months, Sbarro, Perkins, Marie Callender’s, Fuddruckers, Steak and Ale, Bakers Square, Bennigan’s, Old Country Buffet, Pizzeria Uno, and Charlie Brown’s Steakhouse have all filed for Chapter 11 bankruptcy protection. Employees, investors, suppliers, and customers are all wondering, who’s next?

Even in the best of times, restaurants are a risky business. In a recession, empty tables and stalled prices cut into thin profit margins; combine that with the rising food costs we’re seeing, and the margins are squeezed on two sides.

The restaurants that went belly-up all had some things in common: all were national chains; all were in the quick or casual dining sector, a cut or a few above fast food; and with the exception of the pizzeria chains, all were marked by mediocrity and a sameness of menus. Each was conceived differently— Bennigan’s was modeled as an Irish pub, Perkins as a bakery/luncheonette, Charlie Brown’s fancied itself a classic, clubby steakhouse—but you could walk into any one of them and order shrimp tempura, a buffalo chicken wrap, and a chipotle-flavored something.

Who’s cooking, who’s flaming out?
The Street, an online media company that covers investing and finance, compiled a Bankruptcy Watch list of the 14 restaurant chains with the greatest likelihood of failure in the coming months. From least to most risky they are:

14. Red Robin Gourmet Burgers
13. Sonic
12. Ruby Tuesday
11. Carrols Restaurant Group (operates Pollo Tropical and Taco Cabana, and Burger King franchises)
10. Einstein Noah Restaurant Group (Einstein Bros., Noah’s, and Manhattan Bagels)
9. O’Charley’s (O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks)
8. Ruth’s Hospitality Group (Ruth’s Chris Steak House and  Mitchell’s Fish Market)
7. McCormick & Schmick’s
6. Bravo Brio Restaurant Group (BRAVO! Cucina Italiana and BRIO Tuscan Grille)
5. Domino’s Pizza
4. DineEquity (IHOP and Applebee’s)
3. Morton’s The Steakhouse
2. Wendy’s/Arby’s
1. Denny’s

Not to worry—even if the worst-case scenario plays out 14 times, striking everyone on the list, we’re still left with plenty of mediocre chain restaurants where we can go to satisfy a yen for nondescript, chipotle-flavored something.

Visit The Street for the details outlining each company’s potential for bankruptcy.

 

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Why the Chef Gave Back his Michelin Star

The chef said:
The food world was stunned this week when Le Lisita, a restaurant in the south of France, handed back its Michelin star.

Why on earth would a restaurant give back its coveted Michelin star?
The best known and most highly respected of all the restaurant ratings, Michelin stars are awarded very sparingly. A star (or two or three) in Le Guide Rouge can make or break a restaurant.
But so can a bad economy.

A Michelin star signifies a standard of décor and service. The guidebook’s inspectors demand it, diners know to expect it, and bankers are more than happy to extend credit lines for capital improvements to starred establishments. According to the Society for Quantitative Gastronomy, a restaurant’s prices will rise by 20% after the award to offset the higher operating costs.

Thanks, but no thanks.
Following the accolade, Le Lisita found itself barely breaking even, serving haute cuisine in a rareified atmosphere in the midst of an economic crisis, while humble, affordable brasseries and bistros were doing a roaring trade. Since giving back the cherished award, Chef Olivier Douett has revived his former, brasserie format.

Le Lisita now offers a menu with starter and plat du jour for €23.60 ($33.54). Each waiter looks after twenty to thirty customers, rather than the five or six of the one star restaurant. Chef Douett now feels like he is cooking for his customers, not just for stars.

 

 

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You’ll be Eating This Next Year

That’s no Oscar.
The toques! The domed plate covers! It can only be the sofis.

You might not know the award, but you know the winners.
The Specialty Outstanding Food Innovation, or sofi, is the top honor in the specialty food industry. Past winners include the Republic Of Tea, Rick’s Picks, Stonewall Kitchen, Cypress Grove Chevre, O Olive Oil, and the list goes on. If you pay attention to these things you know the names; if not, I can guarantee they are on the shelves of your neighborhood market and making their way onto local menus. This year’s finalists were just announced, and the odds are you’ll be seeing them soon too.

The sofi nominees are selected at the Fancy Food Show, the industry’s twice-yearly marketplace and schmoozefest that’s attended by everybody that’s anybody in specialty foods. The events draw executive chefs, supermarket buyers, specialty retailers, the food press, and even a few lucky civilians who can be easily spotted for their blissed-out looks and tote bags overflowing with a free haul of artisan meats, exotic condiments, 6 colors of finishing salts, and 92% cacao chocolate truffles. This is where the tastemakers decide what’s in, what’s out, and what’s on the horizon. These are the trends and ingredients that will first break with the fervid foodies of the Open Table crowd, and eventually trickle down to the menus of Olive Garden and Applebees.

The trendspotting:
Foods of the Andes captured two of the ten silver medals for this year’s best new product, a pretty good indication that we will be delving deeper into regional Latin American cuisines.
Prepared foods, spice blends, and ingredients from the Indian kitchen point to another trendy cuisine.
The pig still rules. Cured ham from the new, American-raised mangalitsa pigs, and an herb-rubbed, domestic pancetta were also awarded silver medals.
There was chocolate purported to make you smarter, and fermented, probiotic -rich beverages to make you healthier. Expect a big takeoff for the functional foods category;
and gluten-free everything.

Sofi silver finalists and gold winners are selected from more than 250,000 products that appear at the Fancy Food Show. Competition takes place in 30+ categories, literally from soups to nuts. You can see the full list of this year’s silver medalists at Foodspring, the consumer-oriented blog of the National Association for the Specialty Food Trade. Gold medal winners will be announced at this summer’s edition of the Fancy Foods Show, temporarily relocating from New York to Washington, DC.

 

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Groupon: Like a one night stand for restaurants

[image via the Marketoonist]

Daily deal or deal with the devil?
It’s been hailed as a savior and slammed as a scourge of the restaurant industry.
It’s become a major force in dining, every month adding tens of millions of new subscribers.
As Groupon prepares to go public —in a hotly anticipated offering that could be the biggest initial tech company valuation ever—we have to ask: is this a good thing?

Here’s the deal:
Each day Groupon sends out an offer to its subscribers. It’s usually a discount of 50% or more off of products or services, heavily skewed toward dining and lifestyle categories. It’s activated only if Groupon delivers a specified number of customers to the vendor, encouraging subscribers to spread the word. Groupon and the seller split the proceeds, so at 50% off, a restaurant ends up with 25% of the offer’s value.

What’s in it for the restaurant?
Restaurant profits typically hover in the range of 5-7%, so it would appear that the owner loses his shirt on each Groupon sale. He’s counting on a few things to save him: the offer will bring in new customers who are converted to regulars; the Groupon customers will pay full price for menu items beyond the scope of the deal; and that a certain number of discount vouchers will be purchased but never redeemed before the expiration date (usually 6 months ahead). Rarely does it go as planned.

Usually the restaurant gets slammed immediately after the Groupon offer is floated, although often it’s just the regular customers coming in at discounted prices—a Wall Street Journal investigation found new customers to comprise as little as 10% of Groupon sales. When it has brought in substantial new business, the seller might struggle to maintain service and quality, alienating an original base of customers in the process. By virtue of their association with Groupon, you can assume that the new business is skewed toward bargain-hunters who are there for the cheap eats and will never return to pay full price for the same meal. The unredeemed coupons are often the only way a restaurateur makes a buck.

This is the restaurant equivalent of a one night stand. There’s a quick thrill from the initial rush of customers, but ultimately the brand is cheapened by the offer. This is not the way for businesses to build sustainable, customer relationships.

 

 

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Food Carts 101

The carts roll out.
It happens every morning in nearly every city in America.
The parade of vendors, pushcarts, and food trucks sets out to arrange themselves on sidewalks, street corners, and parking lots where they tempt us with the promise an inexpensive meal or treat.

In the last few years, street food became a full-fledged culinary phenomenon. Vendors swapped withered hot dogs for pastured-beef burgers on brioche buns, and the jangly tune of Mr. Softee was replaced by twitter tweets announcing the arrival of the cupcake truck.

We’ve seen street food transform the face of public space in urban centers, and watched food trucks become the darlings of the food world, but it’s all a bit of a mystery:
How do they get their spots? Does the vendor take a bathroom break—and wash his hands afterward? Where do the carts go at night?

Who owns this corner?
A city will broadly designate vending locations and times, but generally the details are left to the vendors themselves. Vendors recognize a moral claim to a particular spot, usually based on seniority or even inheritance. If a newcomer doesn’t know the etiquette or doesn’t respect the claim, the others will muscle him out by getting there earlier or underselling him. Occasionally more extreme turf wars break out, though more often pitting the bricks-and-mortar retailers against the trucks and carts.

Mixing food, money-handling, and street grime.
Health code standards vary by city, although refrigeration and a water supply are always required when cooking is involved. New York City has the most stringent rules, requiring street vendors to adhere to the same sanitation standards as restaurants, including regular inspections and fines for unsanitary conditions that are equal to those levied on restaurants. While safety is tightly controlled, quality can vary widely, just as it can for restaurants.

Home is where the hose is.
Some vendors will roll home, some go stash their carts in self-storage facilities, others to rented garage spaces, complete with ‘cart showers.’ Sometimes these spaces are inspected, sometimes not. Fines for violations can be as high as $1,000, which presumably keeps them in line.

The elements of the bathroom run.
A successful pit stop requires both a sense of camaraderie with a nearby vendor, and a public restroom or sympathetic shopkeeper.
The alternative is to close the umbrella, grab the cash box, and hope to return before a theft or a ticket. Unattended carts and trucks are treated as a serious safety violation because of the risk of tampering and contamination, and can even result in a license suspension. Health departments haven’t said where and when, exactly, that they expect vendors to go.

If street vending is not for the faint of heart or weak of bladder, the same can be said of street food patronage.
Sidewalk dining is cheap and casual, hurried and messy. There are squirt bottle condiments, flimsy plastic cutlery, and the ambiance of bus fumes, car alarms, and weather. There are also no dress codes or reservations required, and the chance to try authentic and exotic dishes. And when you and your fellow citizens cop a squat on a bench or curb, it can be a communal, democratic experience with its own intrinsic charm.

Roaming Hunger has interactive maps to guide you to the cuisines and routes of food trucks in your city.

 

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Food Fraud

Walk down a midtown Manhattan street and you’ll see a folding table piled high with knockoff Prada handbags, Rolex watches, and Louis Vuitton wallets for a fraction of their retail prices.

Shoppers are well-acquainted with the fake designer goods racket. They know they are buying counterfeits, choosing to be complicit in a crime in pursuit of a bargain.

But what about the shadow economy for counterfeit food products?

The eggs of a Mississippi river fish passed off as sturgeon caviar, French Perigord truffles that actually come from China, cow’s milk masquerading as water buffalo’s in mozzarella di bufala; these are just a few of the scams perpetrated in the specialty food marketplace.

Fraudulent foods are estimated at five to seven per cent of the U.S. food supply. The Food and Drug Administration has been focused on forms of mislabeling and adulteration that threaten food purity and public health, giving little attention to forms of debasement that don’t raise safety alarms. Unscrupulous producers and importers have had a heyday in fake origins and low quality substitutes for premium-priced specialty foods.

Technology makes it easier to detect fraud that would have previously passed unnoticed. DNA can be extracted from the cells of foods like fish, meat, rice, and coffee to be compared with authenticated samples. Isotope ratio analysis can tell you what waters a fish came from and whether it was farmed or wild. When it comes to imports, only 2% of fish are subject to testing, although spot checks have shown mislabeling to be as high as 75% or more for some varieties. And Coldiretti, the Italian farmers’ union, claims that 7 out of 10 Italian products in the U.S. are misrepresented.

Whether they are imports or home-grown fakes, some of your favorite foods are likely to be frauds.

Fish is the most frequently faked food, usually in the form of what the industry calls “species adulteration.” A Consumer Reports nationwide investigation found that a majority of the wild salmon samples it collected were actually less expensive, farmed varieties whose color had been enhanced by dyes added to feed pellets to mimic the vibrant flesh of wild fish. Grouper and red snapper ordered in a restaurant is more likely to be tilapia or catfish than the real deal. But the urban legend of skate wings cut into circles and sold as scallops is just that— a legend. The FDA has never found an actual case of it.

Honey and maple syrup are high-value items that, being mostly sugar, are easily faked. The costly sweeteners are often diluted with cane sugar, corn syrup, or even water. The sneakiest hucksters will substitute beet sugar which passes muster with most product testers.

Vanillan, the chemical copy of the richly organic flavor of true vanilla appears all-too-frequently in prepared foods under the guise of the real thing. Safflower and turmeric are used to extend saffron but contribute little more than yellow color to dishes. And much of the cinnamon we purchase is really cassia, a harsher, cheaper cousin of the real spice.

Fraudulent olive oil is rampant. This must-have for even the casual home cook is subject to numerous forms of fakery. High-grade extra virgin oil might not actually come from the first, virgin pressing of olives, and the actual country of origin is anyone’s guess. Bottlers have long been known to top off with  inexpensive soybean oil in quantities that range from ten to ninety percent of the oil’s volume. Chlorophyll is added to maintain the deep yellow-green of true extra virgin olive oil.  Connecticut became the first state to set olive oil standards, followed by California where 60-70% of the state’s extra-virgin oil has been estimated as adulterated.

You can report suspected food fraud to the FDA either through its website or food hotline at 888-723-3366.

Operation Rotten Tomato, the Great Rice Scam: read about the biggest food frauds of the past decade.

 

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Getting Burned by Culinary School.

Are culinary schools selling a fantasy?
That’s the question being asked by students who are graduating with loans to repay and job prospects that offer little more than minimum wage for often menial kitchen work. It’s also the question being asked by lawsuits filed on their behalf.

Last week a $40 million settlement was reached in one of the lawsuits.
Allison Amador et al. v. California Culinary Academy is a class-action lawsuit representing 8,500 former CCA students. The suit claims that the school misrepresented itself and the value of its degree. The settlement offers tuition rebates and student loan forgiveness for the grads, without an admission of wrong-doing on the part of the school.

The students were recruited by admissions officers who used the high-pressure tactics of a used car lot to fill their classrooms. CCA did in fact treat its staffers like salesmen, with quotas, commissions, and finders’ fees—no-no’s in education, and possibly even violations of federal law. Touting the school’s supposed selectivity and standing in the culinary community, the staffers pointed to celebrity and television chefs on its roster of graduates to hook starry-eyed recruits. Claiming a 97% placement rate—twice the documented rate—they encouraged applicants to pile on student loans to pay for the nearly $50,000, 15-month program.

CCA did have a distinguished reputation for turning out many of the passionate and creative culinary professionals that made the Bay Area a top dining destination. But all that changed in 1999 when the school was bought by the for-profit Career Education Corporation. In its first two years of ownership, the company quadrupled the number of students enrolled, increasing class sizes and cutting kitchen hours. Admissions standards and education quality dropped while tuition continued to rise. And CCA is not the only one. Le Cordon Bleu in Pasadena, Western Culinary Institute in Portland, the Texas Culinary Academy, and at least a half a dozen other cooking schools are facing similar lawsuits.

The business model doesn’t work.
A year’s tuition at a culinary school like CCA is nearly $50,0000. Most graduates land low-paying jobs as baristas, dishwashers, and prep cooks. Do the math: those student loans won’t be repaid for a long, long time.

Get a dose of reality: peruse the StarChef survey of culinary professional salaries.

 

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How Local is Local?

Is it 50 miles? 100? Can an entire state be considered local? You can drive the length of Rhode Island in under an hour, but Texas is larger than entire European nations.

There is an audible buzz about eating local foods. According to the food service marketers at Mintel, the appearance of a local label on restaurant menu items has gone up 13% in the past year, with 58% of restaurant-goers interested in seeing more locally grown products on menus. Everyone from growers to retailers to restaurateurs is looking to capitalize on the trend, and yet with so much at stake, we have no real definition of what local really is. What we have instead is an awful lot of wiggle room.

The local food movement is part of a broader movement toward sustainability. The global corporate food model separates producers and consumers through a chain of processors, brokers, distributors, shippers, and retailers. By contrast, the goal of localizing is to build food systems that are built into the economic, environmental, and social health of a particular place. Sustainability is paramount when everyone is a stakeholder in the future.

In the U.K., the National Farmers’ Retail and Markets Association (farma.org.uk) defines local strictly in terms of a producer’s distance to the market– usually within a 30 mile radius. In France, there is the concept of terroir, which is tied to the special characteristics that the geography, geology, and climate bestow on its products. Here in the U.S., the standard hasn’t been codified, but the USDA is moving toward a radius of 400 miles- essentially a day’s drive, which is known as a DGD or day-goods-distance. The distance is a mere jaunt for a Texan, but for the Rhode Islander, 400 miles is a trip through nearly a dozen states and even more distinct ecologies and growing regions.

The definition does matter. There is a lot at at stake, and the potential to abuse the public’s trust. Clearly, the geography matters. But it seems impossibly arbitrary to apply the absoluteness of miles traveled to the creation of sustainable economic communities.


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The Craft Spirits Movement: What took you so long?


We have craft beer brewers and boutique wineries, farmstead cheeses and small-batch coffee roasters. And now we have distillers cooking up artisanal spirits. Finally.

We’re in the midst of a national renaissance in craft distilling. We had, at one point, more than 14,000 mostly small-batch distillers in this country. Then Prohibition hit, and their numbers were reduced to fewer than a dozen licensed distilleries. It remained a highly concentrated industry throughout the 20th century with fewer than 80 distillers operating by 2000, and more than 90% of the market is still in the hands of a mere 20 companies. Small craft distilleries have been doubling in number every two or so years for the past decade, currently totaling 264 operating in 38 states, but still only capture less than 1% of the market.

Distilling has unique challenges and entry barriers that you don’t find in craft beer and wine-making. For starters, distilling of any kind requires a slew of federal and state licenses. That’s right, any kind; even home distilling for personal use is illegal. No mere by-product of America’s puritanical streak, home distilling is in fact illegal in every single country in the world, with the sole exception of New Zealand. As a result, while many in the craft beer industry have roots as home brew hobbyists, would-be distillers have had few opportunities for the free-wheeling experimentation and technical exchange of a community of amateurs. As a distiller, you’re either a scofflaw or a professional.

If you’re a home distilling who wants to go the legal route, you’ll need a distillery permit from the Federal Tax and Trade Bureau and another from your home state; you’ll need separate licenses and bonds for production, bottling, labeling, and storing spirits; and of course your kitchen, basement, or garage has to pass muster with health and safety inspectors. $100,000 or so later, you just might be approved to cook up your first mash.

And then you wait.
The time frame for spirits is another hurdle. Beer spends a few weeks in the bottle and it’s good to go; whiskey might need three years in a barrel before the first sip. Vodka is a popular choice within the craft spirits movement because it’s essentially ready to drink as it runs out of the still. There’s also been an effort to attach cachet to artisanal renditions of unaged whiskey that are marketed as ‘white dog’ or ‘new make,’ whiskey —a.k.a. moonshine.

Many within the new generation of craft distillers share an experimental ethos and commitment to sustainable and local ingredients, like so many of the food and beverage artisans that preceded them. They’re a little late to the party, but we’re glad they got here.

Proof 66 rates and reviews more than 4,000 spirits, including many homegrown and microdistillery releases.

Homedistillers shares news, tips, and techniques among a community of 5,000 members. No doubt each and every one a New Zealander.

 

Posted in beer + wine + spirits, food business | 1 Comment

Open Table: Putting the squeeze on restaurants

Remember when…
It started with a well-timed phone call—if you made it too early, no one was there; too late and the dinner rush was under way. Maybe there were a few busy signals before you got through to the reservationist who promptly put you on hold, leaving you hanging with a little smooth jazz to keep you company. Then she came back to you for a spin through the reservation book. Friday at 8? Sorry, nothing till 9:30…

That was then.
Since the advent of Open Table, you can immediately see what’s available and when, and book a table with a firm confirmation any time, day or night. Friday at 8 is still a tough get, but now you just move down the list of available tables without doing another dance with another reservationist.

Win-Win, right?
It’s true that there are two real winners in the transaction: the diner gets the ease and convenience of going online, and Open Table makes a little pocket change on each reservation. The problem is that there are three parties to the transaction, and the advantage to the third—the restaurant—is not so clear.

When a restaurant signs on with Open Table, it pays a set-up fee that hovers somewhere around $1,000. For that it gets a rented terminal connected to the Open Table network and system training for employees. It costs the restaurant $199 each month to stay connected, plus it pays a fee for each seat at a table booked through the service—$1 per diner if the reservation was made through the Open Table website and 25¢ per seat if it was made through the ‘online reservations’ link on the restaurant’s own website.

There’s always been grumbling about the one-size-fits-all fee structure.
The 30-seat neighborhood spot pays the same $199 monthly fee as the 300-seat corporate-owned chain, which can be punishing to the bottom-line of small, low-volume restaurants where the charge is spread out among few diners. And the same dollar-per-diner charge that is inconsequential to a high-end restaurant with $30+ entrees is eating up a big share of the revenue at a modestly-priced bistro.

Open Table does have its advantages.
The arrangement benefits the restaurant in three ways: the restaurant can cut staffing costs by reducing or eliminating the reservationist function; it manages reservations in a way that optimizes the seating chart; and it creates a customer database full of food, wine, and seating preferences, ordering history, and significant dates like birthdays and anniversaries.

What it doesn’t seem to do is bring in more diners.
Few restaurateurs credit Open Table with adding to their customer base. The difference, they say, is that thanks to the subscriber fees, they are now earning less on the same business. Busy nights are still busy and off nights are still quiet.

About 14,000 U.S. restaurants—one-third of all those that accept reservations—use the service, which seats more than 4 million diners every month.
Open Table has become the gatekeeper to the nation’s restaurant seats, and for the restaurants, it’s become the pathway to both old and new customers.

The service has become indispensable for the way it has inserted itself in the middle of a restaurants’ relationship with its customers.
Diners used to ask “Where would you like to eat?” Now they turn first to Open Table and ask the question “Where can we eat?”

 

Posted in cyberculture, food business | Tagged , | 1 Comment

How Smart is Your Package?

How about a cantaloupe that signals when it’s ripe and milk that tells you when it’s spoiled?
That’s right, in the future no one will ask “Does this smell funny to you?”

Intelligent packaging is coming soon to a grocer near you.

Meat and fish can look fine even when they’re spoiled or tainted with bacteria and toxins. A new smart plastic wrap can sense the molecular changes that indicate decay, and a label will change colors to signal its status. There’s a wrap for produce that can sniff out ethylene gas, which indicates the ripening of fruit and vegetables, and hexanol, which signals spoilage.

Other packaging will be printed with temperature-sensitive inks that can change colors to signal when food has been improperly shipped or stored. They’ll turn the bar code red so that it can’t be scanned at the checkout. And there are refrigerators in the works that will be able to read the smart packages and can text or email food status updates.

It’s not just about spoilage. There are plenty of convenience and marketing applications in the works like self-heating soup cans, self-cooling beer cans, and attention-grabbing, light-up cereal boxes; but the real action is in food safety. That’s because all of the best if used by and sell by labeling we rely on is little more than a security blanket for consumers.

Freshness dating is not required by federal law for any food products except infant formula and certain baby foods. Some states require dating for dairy products, but there is no agreement or uniformity for freshness standards. For all other foods, labeling is voluntary. Producers can choose to slap on expiration dates, but there are no accurate or consistent freshness standards, and except for dairy products and formula, the retailers are free to keep the expired products on their store shelves.

Until the new, intelligent food packaging hits the store shelves, your best bet is the old tried-and-true: “Does this smell funny to you?”

For more information:

The Food Safety and Inspection Service of the US Department of Agriculture has Fact Sheets covering many facets of safe food handling and food spoilage.

Still Tasty is a complete guide to the shelf life of commodity and brand name foods. It offers storage and handling tips, creates shopping lists, and can alert you to looming expiration dates. Still Tasty is also available as an iPhone application.

 

Posted in food business, food safety | Tagged , , | Leave a comment

The Ups and Downs of Food Shopping

.A girl’s gotta eat.
The economy might be slowing, but not our appetites.
We’re not eating any less, but we have made budget-driven adjustments to what we eat, how we shop, and where we are having our meals. We have rediscovered inexpensive root vegetables and made hanger steak the new ribeye.

Even though we’re eating out less, we still hunger for variety in our food choices. We’ve been using some of those restaurant savings to buy unusual grocery items and specialty prepared foods that give a bigger bang for the buck. But now, with rising fuel prices, we have to take a closer look at those specialty items. For all the steps forward taken by America’s food culture, we still count on a lot of imported goods; especially on the high end of our shopping lists. It might be time to re-evaluate our affinity for prosciutto di parma and Basque cheeses, and reconsider some home-grown country hams and domestic farmstead cheddars.

Taking the “Fancy” out of Fancy Foods.
Specialty foods used to be synonymous with gourmet. It meant exotic and pricey, preferably imported from France: think escargots, truffles, and Roquefort.
Today’s luxury food purchase is likely to be more quotidian: organic butter, heirloom tomatoes, or hand-rolled pasta. We’re choosing to pay a premium for the quality associated with the care and attention of small batch production of even the most humble of ingredients. Cheeses are artisanal rather than imported. Pastured chuck roast commands a higher price than conventionally-farmed tenderloin..

Drinking Up; Drinking Down
We’re making similar choices when we drink. Wine consumption continues to rise, as it has for fifteen straight years, but sales have been dropping precipitously as we trade down to more domestic wines and lower-priced imports.  Modest indulgences like specialty sodas and teas, where the price at the upper end represents a fairly small jump from their conventional counterparts, are faring well in the current economic environment. And while beer sales are slumping overall, the craft beer category from micro-producers is soaring.

Rolling Past the Perimeter
While we are allowing ourselves some small indulgences, the recession has given new life to grocers’ most basic offerings; those unsexy canned, jarred, and packaged staples found in the middle aisles of the supermarket that form the basis of inexpensive family meals. We’ve rediscovered the bulk foods aisle, coupons, and most of all, private label store brands.

What the Kids are Up To
The Gen Y 20-somethings are entering the workforce and becoming consumers in their own right and doing it their own way. They have grown up with global influences that have broadened their palates and blurred distinctions between mainstream and specialty foods. And unlike their elders, this first “Starbucks generation,” doesn’t flinch at paying four dollars for a specialty coffee drink. Small luxuries like lattés are to them an everyday experience. They seem unfazed by current economic woes as they continue to be the top consumers of premium chocolates, fancy chips and crackers, and quick-cook items that require limited cooking skills.

The Chocolate Cure
There can be unhealthy side effects to this economic downturn. People drop their health club memberships to economize and eat cheap, filling, but less healthy foods. Chips, donuts ,and peanut butter have all seen sales spikes in recent months. Fast food chains have seen their sales buoyed by the recession. A new phrase, recession obesity, was recently coined to describe this phenomenon.

The best antidote to all the turmoil is to buy chocolate— the finest most outrageously expensive chocolate you can find. It costs too much to do too much harm, but you’ll still feel completely indulged.


Posted in cook + dine, food business, shopping | Tagged , | Leave a comment

We Don’t Serve Your Kind Here!

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You’re not barefoot or half-naked, so it should be cool, right?

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A restaurant near the Seattle-Tacoma airport made headlines recently for banning TSA agents from dining in its establishment. The restaurant says it will continue the policy until TSA agents treat passengers with respect and dignity during airport searches.

Another restaurant, this one in Winston-Salem, refused to serve a bad tipper. The customer was a frequent diner who stiffed the servers on several occasions. She wouldn’t leave a tip even when an automatic gratuity was added to her bill, so she’s out. [...]

Posted in cook + dine, food business | Tagged , | 1 Comment

China: They Love Cars and Fast Food

image via Financial Post

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Combine China’s burgeoning car culture with its love for American-style fast food, and what do you end up with?
That’s right—the drive through.
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In 2010, China became the world’s largest market for cars.
It’s not tops for fast food–yet–the U.S. still lays claim to that distinction, but China is well on its way, with American chains on an expansion tear, changing China’s 5,000-year-old culinary tradition in a country where privately owned restaurants were virtually nonexistent 30 years ago. [...]
Posted in fast food, food business | Tagged , | 2 Comments

Potato Chips: Tasting With Our Ears



image via the Loud Food Club

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We Love the Crunch.
Its just potato, hot fat, and salt, but together they make magic. The first chip out of the bag—pristinely crisp and salty, with a crunch that is unsullied by time or ambient humidity— it’s one of our most underrated gustatory pleasures. And it’s an auditory pleasure as well.

It turns out that in the sensory vocabulary of food scientists, crispy and crunchy are not the same thing. When we eat potato chips, we hear the crunch, but we’re really sensing it in our mouths. When it comes to crispness, even though it’s bound up with the crunch, we’re assessing the crispness with our ears. [...]

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Gastropub: Can I have a word with you?

gas·tro·pub [ gástrō pùb ]

Like it or loathe it, the term is gaining traction.
It’s only been with us since the 1990′s when some of the more ambitious neighborhood pubs of London started expanding their menus beyond the standard pub grub of fish and chips and cheese sandwiches. The concept was a new one in a country where no one had ever mistaken a pub for a restaurant. [...]

Posted in food business | Tagged , | 1 Comment
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