Starbucks Corporation has announced the next step in its multi-faceted plan to transform the company, with a decision to close approximately 600 underperforming company-operated stores in the U.S. market. The decision followed extensive evaluation of their US company-operated store portfolio and includes the 100 stores targeted for closure in the company’s previously announced plans. In addition, Starbucks now expects to open fewer than 200 new U.S. company-operated stores in fiscal 2009, below... ...Read more »
Australia’s skills crisis is becoming more evident by the day with fast-food giants McDonald’s and KFC forced to use the ‘457′ skilled visa program to recruit staff in Queensland.The ‘457′ visa, which is currently under review by the Rudd Government, is the most commonly used program for employers to sponsor skilled overseas recruits to work in Australia and allows for a stay of between three months and four years. McDonald’s Queensland regional manager Andrew... ...Read more »
In a week, New York City restaurants will finish the job of eliminating artificial trans fat from the food they serve. The final phase of the City’s trans fat regulation takes effect on July 1, requiring restaurants to clear artificial trans fat from all their menu items. When first implemented last year, the new standard applied only to fry oils and spreads. It will now cover previously excluded items such as baked goods, frozen foods, cannoli, and doughnuts as well. Only foods served in the... ...Read more »
Recent research conducted at the State University of Rio de Janeiro, Brazil into the adverse effects of trans fats on our health, has shown that these can be passed from mother to child through the breast milk, renewing demands for trans fats to be banned. Trans fats are attractive for the food industry due to their extended shelf life and flavour stability, and have displaced natural solid fats and liquid oils in many areas of food processing. While further studies are required to verify... ...Read more »
The economic downturn in America has led to a number of initiatives from McDonald’s seeking to lure customers, but the strategies now seem to be frustrating some franchisees. US comparable sales for the company rose 4.3% in May as their promotions, which included providing a small menu of items at $1 and the use of giveaways, provided steady growth. Giveaways have so far included a two-day burrito giveaway and free coffee on Mondays in some areas. Franchisees dealing with rising costs,... ...Read more »
Discount UK retailer Asda has attempted to quell consumer concerns about food prices by providing sausages for the low price of two pence. Asda has provided prices low enough that they claim a family of four can serve up a meal of bangers, mash and carrot for under £1.60.Asda’s sausage buyer Jenny Liggat indicates the move is simply a ploy to help families struggling with the economic downturn. “Families are feeling the impact of the credit crunch in their pockets,” she said. “Our... ...Read more »
McDonald’s is attempting to appeal to the growing number of Australian consumers looking for environmentally friendly products. Via their McCafe outlets, McDonald’s are planning to ensure that all the coffee they sell comes from environmentally friendly coffee growing areas. To do this they will need to source almost 500 tonnes of coffee this year from farms in South America which undergo an annual inspection by the Rainforest Alliance, an international not-for-profit conservation... ...Read more »
McDonald’s Corporation has switched to trans-fat free oil in all of their US and Canada restaurant outlets, CEO Jim Skinner said this week at the annual shareholders meeting. The change has only been to some of their products so far, with all products expected to be trans-fat free before the end of the year. McDonald’s has also committed to reducing trans fat levels in most of their outlets worldwide with plans to decrease trans-fat per serving to 0.5 grams in the Asia-Pacific and other... ...Read more »
Kraft Foods has outlined plans to cut portion sizes to help deal with rising food costs. They announced, in the wake of a fall in quarterly profit, that they are to begin producing new products in smaller portions as they seek to maintain sales in difficult economic conditions. A 13% fall in profit by the company was reported last week and was blamed primarily on the high cost of food commodities like wheat. Their news followed profit guidelines from McDonald’s, which suggested that... ...Read more »
As economic issues continue to worry consumers the need for retailers to think ahead becomes even more pivotal. Food prices are rising, fuel is reaching record highs and interest rates are starting to bite and, consequently, many consumers are looking for cheaper options. The figures for credit card purchases in Australia for the month of February indicated yet another record high but the growth in the figure was the lowest for 17 years. The trend is no longer a steep incline and a fall could... ...Read more »