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Menu Development: Value Added; Value Gained

Chain restaurant operators cross-utilize ingredients and experiment with portion sizes to keep food costs in line while delivering value to customers.

By Monica Rogers, Contributing Editor -- Chain Leader, 1/1/2009

Chevys Cilantro-Lime Chicken Salad
Key ingredients in Chevys’ Cilantro-Lime Chicken Salad—guacamole and achiote-marinated chargrilled chicken—are featured in other dishes on the menu.
At a time when it takes big value to get cash-strapped guests in the restaurant door, food-cost control couldn't be more important. Strategies for how to control the cost of value meals vary: QSRs quibble over how much cheese and meat to include on dollar-menu burgers. Fast-casual and casual-theme operators create new dishes from ingredients already in the inventory. And full-service operators shape tapas-like menus and modest-portion and -price menus that fit well with guest desires to eat more quickly and healthfully at a lower price.

“In this climate, the value proposition drives business,” says Alan Skversky, director of research and development for Cypress, Calif.-based Chevys Fresh Mex, a Real Mex Restaurants concept with 94 units. “If somebody gets in the car and drives over to eat at Chevys, it is important that we deliver on the value promise. At the same time, we have to be sure what we roll out keeps food cost in line and has a profit margin.”

With a creative juxtaposition of existing ingredients, Chevys is doing just that. Featured in a current limited-time offer, Cilantro-Lime Chicken Salad, $10.99, is a blend of roasted corn salsa, achiote-marinated, chargrilled chicken and guacamole. Chicken salad was the inspiration for the dish. But rather than use mayonnaise as the binder, Skversky substituted guacamole. Roasted corn salsa was added for spice and texture. And the chicken in the dish is the same product used for fajitas and quesadillas. “But this is the first time we've done a dish where the chicken is served chilled,” Skversky says.

Cilantro-Lime Chicken Salad ran for 12 weeks last summer and generated close to 3.5 percent of the menu mix, making it one of the company's top three LTOs of the year. After its reprise as an LTO this month, the dish will move to core menus.

New Combinations

Similarly, Chevys' Shrimp and Sweet Corn Tamalito appetizer, $9.99, borrows its chipotle-sherry cream sauce from an enchilada recipe. The tamalito (corn pudding) that forms the base of the appetizer is used as a garnish for other entrees. And rather than source new items for a new sauce, Skversky blended tomatillo sauce and guacamole to make Avocado Salsa. The salsa tops Chevys' new Carnitas Tacos included on the El Paso Combo plate, $13.99, featured as part of the El Flavinator limited-time offer this month.

Moe's Philly Cheesesteak Burrito
The Philly Cheesesteak Burrito at Moe’s uses ingredients like grilled sirloin flap meat that the chain already had on hand.
Moe's Southwest Grill is also keeping food costs in line through cross-utilization tactics. “My goal is to create new items without adding new products,” says Dan Barash, director of research and development for the Atlanta-based, 400-unit, fast-casual chain.

Barash developed The Philly Cheesesteak Burrito with ingredients Moe's already had on hand. Set for a second-quarter launch, the burrito includes green peppers, mushrooms, rice, onions, queso, grilled sirloin flap meat and shredded cheese. “It's a completely new taste for Moe's, but it's put together by cross-utilizing ingredients already in the system, which keeps costs down,” says Barash.

Moe's January/February LTO features a junior-sized Joey Bag of Donuts burrito (choice of chicken, steak, pork, ground beef, fish or tofu, with black or pinto beans, rice, pico de gallo, shredded cheese and lettuce), made with a 10-inch, rather than 12-inch tortilla, plus chips, salsa and a drink for $5.99.

“We've been working for a while on offering our kid-sized burrito bundled with chips and drink as a special value for adults that want a smaller meal value price,” says Barash. The new Jr. Joey is a little bigger than the kid-meal option, which is made with an 8-inch burrito. Barash explains that the Joey Jr. bundle works well for tweens and adults who want a little more than a kids-sized burrito, but not as much as the regular burrito.

Balancing Act

In the polished-casual category, Calabasas, Calif.-based The Cheesecake Factory is battling to rebuild guest traffic at its 144 stores with eight special-value meals priced from $12 to $14 rather than the typical $16 to $18. All are made with items already in the company's inventory.

“We have put a huge amount of time, effort and thought into developing dishes that would allow the guest to come in during these difficult times and dine affordably without in any way compromising on the quality of our dishes,” says Bob Okura, corporate executive chef and vice president of culinary development.

Texas Roadhouse Baby Blossom
Texas Roadhouse developed a smaller version of its Cactus Blossom appetizer. The Baby Blossom uses a smaller onion that yields slightly lower food costs and is faster to prepare.
Launched Nov. 20 on a menu insert card, each dish has risen to the top 10 percent of sales in its respective menu category. Food costs for each of the dishes are in the 22 to 24 percent range, a significant reduction for the chain. “Normally, our food costs have been in the mid to high 20s, so we really worked hard to make this happen,” Okura says.

Early tries with the dishes yielded food costs in the low 30s, Okura explains. “It took a while to determine exactly the right ratio of ingredients that would allow us to fully develop the flavor and visuals needed for each dish.” He cites Chicken Bellagio, $12.95, the most popular dish on the special values menu. With two brioche-crumb-coated and sauteed chicken breasts, a baby arugula salad and thinly sliced prosciutto, the chicken is served with light garlic-pesto sauce. “Every ingredient had to be carefully balanced,” Okura explains. “What we found is that, where we may have used 3 ounces of a sauce before, 2 ounces actually was enough.”

New Versions of Classic Comforts

A smaller-portion, lower-price strategy is also working for Louisville, Ky.-based Texas Roadhouse. The addition of a modestly sized fried onion appetizer has caused onion appetizer sales to jump 25 to 30 percent. The new Baby Blossom, $3.49, is about 75 percent the size of the “super colossal” onion used for the regular $5.99 Cactus Blossom appetizer. “The smaller onion has a slightly lower food cost and is faster to prepare with more consistent results,” says Chris Jacobsen, vice president of marketing.

Cracker Barrel Bread Pudding
Adding potential profit and cutting food cost, Cracker Barrel saves the bread from hollowed out bread bowls to make Cracker Barrel Bread Pudding, $2.99, featured through February.
At Lebanon, Tenn.-based Cracker Barrel Old Country Store, the extra-value proposition for January builds on the 576-unit chain's equity with homey comforts. Launching Jan. 15, Cracker Barrel's Hearty Bread Bowl Meals, $7.49, offer guests sourdough bread bowls filled with 9-ounce servings of Old Fashioned Beef Stew, Heartland Cheese and Chicken Soup or Homestyle Potato Soup, plus a side dish and salad.

Cutting some of the food cost involved, Cracker Barrel will save the bread it hand scoops when hollowing out the bread bowls to make bread pudding. Menu cards promoting the Hearty Bread Bowls LTO from Jan. 19 to Feb. 15 will also feature a photo of the new Cracker Barrel Bread Pudding, $2.99. To make the pudding, Bob Doyle, vice president of product development and quality assurance, revamped an old Cracker Barrel recipe, including vanilla bean, coconut and raisins in the mix. “We think the coconut brings the right sweetness and balances well with the flavor of the sourdough bread,” he says. Pudding is served topped with vanilla bean ice cream and caramel sauce.

“In January, value is always top of mind,” says Chris Ciavarra, vice president of brand and menu strategy. “As are items [like this soup, salad and vegetable combo] that speak to health and wellness. The Hearty Bread Bowl meals speak to both, without inflating food costs.” 

MORE: Several restaurant chains are responding to guest interest in building a meal tapas-style, rather than just ordering one entree.

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