DENVER, CO - Chipotle is reportedly investing about $20,000 in every restaurant for a refresh and upgrade, totalling a $50 million investment. This would be in addition to its typical $24 million per year investment ($10,000 per location) set aside by Chipotle for regular upkeep, according to MarketWatch.
The news came from Chief Financial Officer John Hartung, who held an earnings call earlier this week.
Chipotle has already allotted about $300 million in capital expenses for 2018, up from 2017’s $217 million. While a number of analysts seemed skeptical in MarketWatch’s report of this being the spark the fast casual chain would need to turn itself around, the name is still widespread and upping its involvement in its staff, image, and beyond.
In addition to the investment twice-over its usual for each restaurant, it also announced bonuses, new training programs, and expanded parental leave for its employees.
"We have always been proud of our ability to attract and retain top talent who share our passion for cooking delicious food by hand and creating an extraordinary guest experience," said Steve Ells, Founder, Chairman, and CEO, in a statement. "We're giving back to these committed, motivated, and hardworking team members who have made Chipotle what it is today."
According to the press release, Chipotle will reinvest more than one-third of its anticipated savings from tax law changes into its employees, including:
- Accelerated Training Programs. More training programs for employees, including a formalized classroom program with a dedicated faculty that will focus on a range of topics related to operational excellence and leadership.
- Cash & Stock Bonuses. Qualified hourly and salaried restaurant employees will receive a special one-time cash bonus of up to $1,000. Qualified staff employees will receive a one-time stock grant.
- Maternity/Paternity Coverage. Additional paid parental leave coverage for everyone from hourly managers to salaried employees.
- Life Insurance and Short-Term Disability. The company has added life insurance and short-term disability insurance coverage for hourly restaurant managers.
The remainder of the reinvestment will be the amount dedicated to improvement of restaurant facilities and operations.
"We have always been committed to making Chipotle a great place to work with excellent compensation and benefits," said Ells. "With these expanded offerings we're thanking our employees for their hard work and dedication to our company."
Chipotle forecasts full-year same-store sales growth in the low-single digits. AndNowUKnow will report as we look to see if this is the catalyst to Chipotle’s bouncing back.
LEAMINGTON, ON - One of the world’s largest organic mushroom growers begins the year with a refreshed look that aims to capture the essence of hand-picked, organic goodness. Intriguing customers with a new rebranding strategy, Highline Mushrooms is bringing a fresh look to its line using tactful visuals on its new labels. And while labels are the first to get the rebranding treatment, soon-to-come are a website, new packaging, social media, and more.
Wrapped in a new look are Highline Mushrooms' products, with labels showcasing their assets. Specifically detailing whether they are conventional, with premium photography and crisp black trays—or organic, with an artistic woodsy illustration alongside nature-inspired brown trays; the labels recently hit the U.S. and will be entering Canadian supermarkets in the near future.
Here to talk with me about the rebrand is Hsian Kim, Corporate Communications Manager, with some valuable insight into the gorgeous label ensemble the company’s products are newly donning.
“We streamlined both our conventional and organic products to give them more of a premium look," Hsian shares with me. "We wanted to move away from how mushrooms are typically seen on shelf and have categorized our products to better appeal to consumers.”
Since 1961, the company has built a strong reputation with its partners, with its traditional logo along for the entirety of Highline's successful history. Consumers who are hooked on the goods can now feel a new sense of inspiration as they take home the rebranded items, and new mushroom lovers who reach for the items in the store, will find a refreshing look that both tempts and delivers.
“Highline is always growing and continuously evolving, and with this we wanted the new look to evolve as well,” Hsian tells me, before expanding on the methodology behind the rebrand. “When you think of mushrooms, you think of natural and organic, and while our previous logo has served us well, we are excited to unveil the new look.”
With so much change on the horizon, I stop to ask Hsian for more details on what the company is doing to ensure sales maintain or increase.
“The goal is to lift sales and build momentum on the retail side. Our sales team has had conversations with our customers about the rebranded and any retailer that was at Fresh Summit received a sneak peek at our newly redesigned labels and packaging," Hsian shares, as she expands on the strategy currently underway. "We received a lot of positive feedback at the show and now they know what to expect. It’s now a matter of going all out this year.”
As we continue to take strides this year, keep your eyes peeled for the new, thoughtfully implemented logo Highline Mushrooms' products will be wearing, using new and innovative branding for the goods its customers know and love.
WENATCHEE, WA – Growth in the organic apple category and shifts in volume and dollar contributions for organic and bagged apples are creating new opportunities for nimble retailers. And with its latest Fruit Tracker Fast Facts video, Stemilt is offering insights into the category and how to best capitalize on the trending apple option.
“Millennials are the primary organic purchasers today, and this demographic is also the key shopper group with children in the home,” said Communication Manager Brianna Shales, who, in a recent press release, offered several tips for retailers to focus on during the spring months to capture more dollars via organic apples. “Two-pound bags have seen an increase in volume share this year over last, and that is being driven by organic packs. However, retailers may be missing out on selling more volume of organic apples and should look to a three-pound bag and occasionally larger organic bags to appeal to the Millennial parent who has more mouths to feed at home.”
Stemilt’s most recent Fruit Tracker Fast Facts video analyzes December 2017 U.S. retail scan data from Nielsen and compares it to December 2016. According to Stemilt’s research, retailers were selling 2 percent more apples organically on average in the U.S. in December 2017 than in 2016. Organic apples represented 8.6 percent of the category volume and 11.2 percent of the apple category’s dollars.
Four out of every 10 apple purchases were bagged in December 2017, according to Stemilt—an expected shift given smaller sizing of the Washington State apple crop this year. Average retail pricing for bulk apples was up slightly over last year, while bags saw a dip, with the average retail price for all apples in December 2017 was $1.61 per pound, down a penny from December 2016.
“We continued to see apple volume and sales metrics down year-over-year in December, but saw nearly 2 percentage points of improvement over November 2017 data,” noted Shales. “This one month improvement tells us that retailers were able to tap into more apple promotions during the holiday rush, which helped move apples through the register.”
Despite a downward trend, Stemilt has met increasing demand for particular categories with new bagged organic offerings ideal for apple promotions. The company’s brand of kid-size fruits, Lil Snappers®, is now available under the company’s Artisan Organics™ label in a three-pound size—with a package intended to court parent shoppers and a format that includes enough apples to pack in two kid lunches every day during the school week. Stemilt also recently unveiled the Artisan Organics™ Apple Lover pack—a 5lb. special value bag featuring Fuji, Gala, Granny Smith, and Red Delicious varieties.
Apples contributed 6.1 percent of total produce department dollars in December 2017, and the Central region was the only area to beat that average at 6.7 percent of total produce sales. Top five varieties remained unchanged—with Gala leading the way, followed immediately by Honeycrisp, Fuji, Granny Smith, and Red Delicious. Honeycrisp was the only apple in the top five to see increases in volume and dollar sales—with double-digit year-over-year growth for both metrics.
“While it’s great to see retailers selling more volume of the popular Honeycrisp apple, it’s ideal for the health of the apple category if multiple apple varieties are on promotion at the same time,” Shales added. “Including other key varieties like Gala and Fuji, and select club apples, in feature apple ads at least monthly, is a great way to position the apple category for success as we head into the spring.”
For more information on how to best capitalize on opportunities in the produce aisle, stay tuned to AndNowUKnow.
OTTOWA, ONTARIO - Industry leader Execulytics Consulting has won the Monthly Fresh Health Award from Canadian Produce Marketing Association (CPMA)—an honor celebrating Execulytics’ dedication to encouraging the Half Your Plate message with customers through social media, as well as featuring the brand on its website.
“Half Your Plate has become an important philosophy for me as it not only promotes healthy lifestyles for Canadians, it promotes the health of the produce industry. As a service provider in the produce supply space and as a father of two growing children, the Half Your Plate message resonates closely with many aspects of my personal and professional life,” said Mike Mauti, Senior Vice President of Client Services for Execulytics Consulting, in a recent press release.
This is just the beginning for the company, as now Execulytics is in the running for the Annual Fresh Health Award, in addition to other nominations received. By submitting photographs, program descriptions, packaging materials, and any material that highlights the marketing prowess a company has to offer, CPMA members can self-nominate or nominate a company for the awards. Re-submissions for nominations are unnecessary, but submissions are due by the 15th of every month.
Want to find out who else has taken home these awards? Find out here.
For more fresh produce industry news, keep checking back with us at AndNowUKnow!
BOISE, ID – Albertsons will launch a new culinary experience, which will invite customers to “Eat Life Up” at Market Street Idaho.
“Market Street Idaho was created by a team of passionate, innovative food lovers with the goal of igniting Idaho’s passion for great food and elevated experiences,” said Susan Morris, EVP and Chief Operations Officer. “Boise’s deep roots in great local food stem from our farming and ranching industry to our refugee and Basque communities. We think the time is right to bring new culinary experiences many hunger for but haven’t gotten yet locally through our Market Street Idaho stores.”
The two new Market Street Idaho stores will feature in-store culinary events and classes, catering services, restaurant-style food, and gourmet creations, according to a recent press release.
“In our Market Street Idaho store, our dedicated chocolatier might partner with one of our scratch bakers to create an art deco cake for an exclusive event, or our Head of Catering might work with our sommelier and masters in our fresh team to craft an exclusive wine pairing experience with fresh fruits and cheeses. We’re elevating the idea of what a grocery store can be here,” said John Colgrove, President of the company’s Intermountain division. “In addition, we have so many creative culinary positions available. We encourage everyone to follow us Facebook and Instagram as we build this team and create something truly special in the Treasure Valley.”
The Broadway location of this new, innovative breed of store will open early this summer, with the Meridian location on Eagle and Fairview set to follow later in the year. Brian Conley, Store Director, will be tasked with operational management of the Broadway location, which the retailer expects to employ upwards of 200 people. Though the West Boise location has yet to announce leadership, the retailer anticipates that location will employ more than 300 people. Unfortunately, to accommodate the new store without oversaturating the market or unduly straining the location, Albertsons will close the current Broadway store and offer employment opportunities to compromised individuals.
To learn more about Market Street Idaho, peruse its website at marketstreetidaho.com, and for all the news on the latest retail developments, keep checking in with AndNowUKnow.com.
AUSTIN, TX and SEATTLE, WA — After rocking the retail world with their grocery partnership last year, Amazon is finally officially inducting Whole Foods Market into its delivery service. Today, the two retailers announced natural and organic products, including fresh produce, from Whole Foods Market are available for free two-hour delivery through Prime Now.
“We’re happy to bring our customers the convenience of free two-hour delivery through Prime Now and access to thousands of natural and organic groceries and locally sourced favorites,” said John Mackey, Whole Foods Market Co-Founder and CEO, in a company press release. “Together, we have already lowered prices on many items, and this offering makes Prime customers’ lives even easier.”
Fresh and organic produce, locally sourced goods in bakery, dairy, meat, and seafood, everyday staples, and more from Whole Foods can now be at customers’ doorsteps within two-hour or ultra-fast one-hour delivery windows. While this news might have some online grocery shoppers celebrating, only neighborhoods in Austin, Cincinnati, Dallas, and Virginia Beach have access to the thousands of new Whole Foods items available for Prime delivery.
Prime customers can start shopping Whole Foods Market's selection at www.primenow.com or use the Prime Now app on Android and iOS devices for the full grocery selection.
Will Amazon’s expanded offerings give it a leg up over other online grocery competitors? AndNowUKnow will continue to report.
MICHOACAN, MEXICO – Triple H Produce is introducing new product offerings, new partnerships, and new packaging—as the company officially launches its avocado program growing out of Michoacán, Mexico.
“The Triple H brand is becoming more recognized for its quality and safety. We are approaching the launch of this new product with renewed energy and excitement,” said Hugo Vlaminck, Production VP, in a company press release. “We are ready to build on our commercial relationships through contracts and programs with the right partners both wholesalers and retailers as well as the foodservice industry.”
Vlaminck noted his excitement about this new program—the possibility for the growth and development, particularly, for Triple H’s fruit department.
And to correspond with its new avocado program, Triple H is launching new tropical-inspired boxes that stand out with an innovative and bold high-graphic design.
In its press release, Triple H noted that the company’s dedicated procurement team has sought out the best Hass avocados in the southern-Mexican region in a strategic effort to maintain ample quality and supply throughout the year. As with all of Triple H’s associated growers, the company’s new grower partners have been selected for their ability to supply exceptional quality of their fruit, their USDA-Certified fields and packing facilities, and their commitment to food safety standards.
“Triple H will be supporting these new sales by guaranteeing ripened to perfection and ready to eat avocados for all those ‘guac’ lovers,” the company added.
For more breaking produce news, stay tuned to AndNowUKnow.
MINNEAPOLIS, MN - Activist investors are looking to gain control of one of the nations's largest grocery retailers' board, urging a breakup of wholesale and retail divisions, and potentially eyeing a sales, according to a recent report by The Wall Street Journal. In response to criticism from these investors, SuperValu has outlined a series of strategic goals and initiatives highlighting the success of the company's wholesale operations.
According to The Journal, Blackwells Capital LLC, an investment group that owns approximately 4.35 percent of SuperValu’s stock, privately approached the retailer’s board of trustees, asked that Blackwells be given three seats on the board, and detailed plans to form a committee to review potentially separating SuperValu’s retail and wholesale divisions in preparation for the sale of the company’s wholesale business. The board rejected the request, instead issuing an outline of its strategic goals moving forward.
“Discussions encompassed a variety of topics pertaining to the business and the company’s ongoing initiatives as well as our Board refreshment efforts—initiatives that have been underway substantially since before Blackwells became a stockholder,” SuperValu noted in its statement. “Despite our efforts to reach a constructive path forward and to discuss overlapping objectives, Blackwells has decided to threaten an unnecessary and counterproductive proxy contest.”
Also in its statement, SuperValu highlighted initiatives and strides the company has taken to strengthen its business, including the following:
- Adding more than $5 billion in run rate sales to bring the company’s core wholesale business to reach nearly $13 billion, including the addition of significant new wholesale customers such as The Fresh Market and the acquisition of two strategic wholesale companies of Unified Grocers and Associated Grocers of Florida this fiscal year
- Bringing in new leadership in Wholesale to drive operational improvements and ensure smooth integrations of acquired businesses
- Bringing in new leadership in Retail to make fundamental changes to this business and to better align retail initiatives with wholesale operations
- Completing the sale of the company’s Save-A-Lot banner for $1.3 billion, significantly reducing SuperValu’s debt, improving the company’s balance sheet, and creating the flexibility to pursue its growth strategy
- Continuing initiatives for sales and closures of select retail assets, monetization of real estate through sale leaseback transactions, and cost reductions.
The retailer also highlighted the various ways in which the company has been growing its wholesale operations, noting, “SuperValu has been rapidly and strategically transforming its business to become a wholesale company focused on the distribution of consumable products across the United States. Sales from SuperValu’s wholesale operations are now approximately 75 percent of its total annual sales, up from approximately 44 percent only two years ago.”
Will SuperValu's successes in wholesale keep the company out of these activist investors' hands? AndNowUKnow will continue to report as the story unfolds.
ELGIN, MN - Get ready for a wow right now!
Honeybear Brands’ latest premium variety—Pazazz™—is primed to pique shoppers’ interest and drive retail sales. With its unique, unparalleled flavor and explosive crunch, the Pazazz apple is bringing excitement to produce aisles everywhere.
Here’s What’s in Store.
An ideal balance of sweet and tart, brix and starch, Pazazz stands out in an increasingly-crowded apple category.
With national Honeycrisp sales expecting to slow and plateau in the coming years, Pazazz has hit it off with retailers looking for a new, guaranteed sales winner and consumers seeking an intensely flavorful eating experience.
The word is out—and spreading from media bloggers, to produce managers and apple lovers everywhere; customers can’t get enough of Pazazz. Our apple’s dedicated and growing fan base is driving repeat purchases and in more markets and more geographies than ever before.
Pazazz is grown sustainably by multi-generation family farms throughout Minnesota, Wisconsin, Washington, New York, and Nova Scotia—and by growers who understand what it takes to grow a truly amazing apple.
Thank you for watching What’s in Store.
FRESNO, CA – California Table Grape Commission President and CEO Kathleen Nave has been honored with California Fresh Fruit Association’s (CFFA) 2018 Mentor’s Award. CFFA’s Mentors’ Committee, which is comprised on the Association’s five most recent Board of Directors chairmen who accept nominations from all past chairmen, awards this prestigious honor.
“We could not be more pleased that the Mentors’ Committee selected Kathleen for this recognition and award. Kathleen’s long term commitment and support has been paramount to the successes of the fresh fruit industry and our Association,” said CFFA President George Radanovich in a recent press release.
Industry leaders known for their counseling, guiding, loyal advising, tutoring, coaching, and teaching are eligible for this incredible recognition, including positive influencers known for their efforts, discovery, innovation, dedication, and perseverance. Nave will be recognized with the Mentor’s Award at the California Fresh Fruit Association’s 82nd Annual Meeting on March 25-27 in Pebble Beach, California.
Nave is joining the ranks of Cliff Sadoian of Sadoian & Associates; Dennis Parnagian of Fowler Packing; Marko B. Zaninovich of Sun View Vineyards; George Soares of Kahn, Soares, and Conway LLC.; and Ken Enns of Enns Packing, who all have received the honor.
Congratulations to Kathleen Nave, California Table Grape Commission, and California Fresh Fruit Association on this exciting award. Thank you for all of your hard work in our industry, and we wish you every success moving forward!