Food and Beverage Industry News

It took almost a year after ConsumerAffairs raised the caution flag about dynamic pricing at restaurants, but last week Wendy’s decided to try it out. However, the company quickly found out that consumers were having none of that idea and pulled its horns back in.

While the restaurant biz is the latest to go to a revenue-based-on-demand approach, there are lots of others that consumers don’t even think about that are goosing up the meter when there’s a lot of activity – airlines and rideshare companies for example.

There's little consumers can do to push back an airline or Uber's based-on-demand pricing, but there are ways you can get around the dynamic pricing bricks in the road that the three major retailers can throw at you.

Amazon

We don’t think of Amazon being part of the dynamic pricing crowd, but it is a pioneer in that business model, adjusting prices based on factors like demand, competition, and customer behavior. 

To get around it, you can try price tracking tools – such as browser extensions or websites like CamelCamelCamel or Keepa to track price history and set alerts for price drops on specific items.

You can also use Amazon Watchlist and add the products you want most to your Amazon Watchlist and monitor price fluctuations from there.

If you watch the occasional NBA game, you've probably seen Seth Curry wearing a “Rakuten” patch on his Warriors jersey. Well, Rakuten fits nicely in keeping tabs of Amazon prices. All you have to do is log on to the Rakuten website, see what the deals are, and if there’s any cash back available for what you’ve got your eye on at Amazon.

The last Amazon trick is Amazon Marketplace – a virtual marketplace operated by Amazon that allows third-party sellers to list and sell their new or used products alongside Amazon's own offerings.

The benefit to you is that it’s sort of a one-stop shop that provides you with a wide range of products from various sellers.

The potential for counterfeit or low-quality products can be higher than “normal” Amazon, and because these third-party sellers aren’t as marketing savvy as Amazon’s own employees, the product listings might not be as straightforward as you would get on Amazon’s own platform. 

Walmart

The company probably feels that if Amazon can get away with dynamic pricing, it can, too – especially online. 

To play Walmart’s game, compare prices between Walmart's physical stores and their online platform. Prices might differ, especially because of in-store promotions.

Apps like Brickseek or PriceBlink let you track price history and compare prices across different retailers, including Walmart's online and in-store prices.

Speaking of apps, you can also utilize Walmart’s own App because its "Scan & Go '' feature allows you to scan product barcodes and check prices before heading to checkout, potentially revealing price discrepancies.

If you shop at Walmart for groceries, you might want to give the company a chance to prove its value with its grocery pickup and delivery program. Why? Because prices might occasionally differ from in-store pricing.

Comparatively, Walmart is far more “old school” than Target or Amazon and it still has weekly ads. 

In ConsumerAffairs' research, we found one of the simpler ways to keep tabs on those ads is by letting someone else do all the work, like the “Lady Savings” website.

Target

Target may be a little tougher to stay on top of when it comes to dynamic pricing, but there are some strategies that can help you find the best deals.

Here, again, you can employ browser extensions or websites like CamelCamelCamel or Keepa to track price history on specific products you might be interested in. The advantage of those two is that they’ll help you identify price trends and potential future sales.

But you may also consider signing up for Target Circle. It’s the store’s free loyalty program and one that allows you access to exclusive discounts, personalized offers, and the ability to earn rewards points redeemable for future purchases.

Insider tip: The secret weapon for Target Circle is the app. There, you'll find ongoing promotions, targeted discounts, and Circle Offers that can provide additional savings on specific items.

And don’t forget about price-matching

If you don’t use price-matching in your search for the best price, you should consider doing so. 

Many major U.S. companies offer price-matching policies, allowing you to get the difference refunded if you find a lower advertised price elsewhere. Here are some popular examples:

• Best Buy

• Fry's Electronics

• Lowe's

• Toys R Us

• Target

• Walmart

• Staples

• Office Depot           

These are just a few examples, but it's important to note that specific policies can vary. It's always best to check the individual store's website or ask an employee for details on their price-matching policy before making a purchase.

Here are some additional things to keep in mind:

• Matched competitor: Most stores will only match prices from authorized retailers, not individual sellers on marketplaces.

• Timeframe: The timeframe for requesting a price match can vary, typically ranging from 14 to 30 days after purchase.

• Conditions: Some stores may have restrictions on the type of product, minimum price difference, or online-only offers they will match.

By understanding price-matching policies, you can potentially save money on your next purchase!

While many retailers have been getting consumers ready for fall for a few weeks now with their pumpkin flavored drinks and treats, Wendy’s is just now jumping on the pumpkin bandwagon. 

The fast food restaurant is debuting a new Pumpkin Spice Frosty and Pumpkin Spice Frosty Cream Cold Brew as of September 12. 

“Wendy’s is helping turn our fans’ cravings into reality this fall by introducing our new Pumpkin Spice Frosty,” said Lindsay Radkoski, chief marketing officer for The Wendy’s Company. “From our summertime Strawberry Frosty to last year’s holiday Peppermint Frosty, and now our fall Pumpkin Spice Frosty, we are all about meeting our Frosty fans where they are by bringing familiar and iconic seasonal flavors to the menu."

Coffee and dessert for fall

For consumers looking for fall-inspired desserts or coffees, the two new offerings at Wendy’s can check both items off your list. 

The Frosty texture will remain the same, while the flavoring will feature some of the key fall spices, like cinnamon and nutmeg, along with the typical pumpkin spice. During the fall season, the Vanilla Frosty will be temporarily off the menu, while the Chocolate Frosty will still be available for the next few months. 

The Pumpkin Spice Frosty Cream Cold Brew is made in the same way as the other flavors in this line of coffee drinks, just with the added pumpkin – cold brew coffee mixed with pumpkin flavoring and the Frosty creamer, all over ice. 

“We’re always looking for ways to provide fans the familiar flavors they love with a Wendy’s twist, and that’s exactly how the Pumpkin Spice Frosty Cream Cold Brew came to be,” said John Li, global vice president of culinary innovation at The Wendy’s Company. “We took the iconic pumpkin spice flavor that fans look forward to every year and blended it with our tried-and-true Frosty creamer, for a fall experience fans can’t find anywhere else.” 

Try the fall flavors for less

Wendy’s also has two ways for consumers to try the new Pumpkin Spice Frosty for less this fall. 

Consumers can get a Frosty Boo! Book for $1 at their local Wendy’s, which comes with coupons for five free Junior Frosty treats. Between now and October 31, these coupon books will be available at Wendy’s locations across the country – in-store, at the drive-thru, online, or through the mobile app. 

Uber One members are eligible for a buy one get one free coupon for the new Pumpkin Spice Frosty. This deal is active from September 13-19, and if consumers spend at least $15 on their order, they’re also eligible to add on a medium French fry for free. 

Dunkin’ is entering the ready-to-drink alcoholic beverage market, announcing the release of Dunkin Spiked coffee and tea beverages. The drinks will be available at supermarkets and package stores in 12 states by the end of August.

Dunkin’ Spiked Iced Coffee has an alcohol by volume (ABV) of 6% and draws inspiration from the brand’s iconic coffee flavors. Dunkin’ Spiked Iced Tea, the brand’s first venture into the hard tea category, has an ABV of 5% and offers four signature flavors.

“We knew we had the opportunity to create something special when we saw the positive response to our previous seasonal collaborations for Dunkin’-inspired beers,” said Brian Gilbert, vice president of Retail Business Development at Dunkin’. “The growing appetite for adult beverages inspired us to put a twist on our customers’ favorite Dunkin’ Iced Coffee, Iced Tea and Refresher flavors.”  

Four varieties

The four Dunkin’ Spiked Iced Coffees varieties include:  

• Dunkin’ Spiked Original Iced Coffee

• Dunkin’ Spiked Caramel Iced Coffee

• Dunkin’ Spiked Mocha Iced Coffee 

• Dunkin’ Spiked Vanilla Iced Coffee 

They will be available as a 12-can mix pack, with three 12 oz. cans of each flavor; a four-pack of 12 oz. Original Spiked Iced Coffee cans; and single 19.2 oz. Original Spiked Iced Coffee cans.

The four Dunkin’ Spiked Iced Teas varieties include:

• Dunkin’ Spiked Slightly Sweet Iced Tea 

• Dunkin’ Spiked Half & Half Iced Tea

• Dunkin’ Spiked Strawberry Dragonfruit Iced Tea Refresher

• Dunkin’ Spiked Mango Pineapple Iced Tea Refresher

The products can be purchased as a 12-can mix pack; a six-pack of 12 oz. Slightly Sweet Spiked Iced Tea cans; and a single 19.2 oz. Slightly Sweet Spiked Iced Tea cans.

Sales will be limited to retailers across Connecticut, Delaware, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Texas and Vermont.

Earlier this year we noted that an increasing number of businesses were asking for a tip. It became so frequent that many consumers complained of “tipping fatigue.”

Since our story appeared, there has been no decline in tipping requests. In a new report, the Wall Street Journal concludes it is not employees who are asking for an extra payment – it’s the businesses they work for.

Tip requests have expanded far beyond restaurants and hair salons. Just making a purchase at a farmer’s market or a gift shop can carry the expectation of leaving a tip. It’s a practice many businesses encourage because they can avoid paying their employees more.

“The U.S. economy is more tip-reliant than it’s ever been,” Scheherezade Rehman, an economist and a professor of international finance at George Washington University told the Journal. “But there’s a growing sense that these requests are getting out of control and that corporate America is dumping the responsibility for employee pay onto the customer.” 

From the business’s point of view, encouraging tips for their employees may help them with retention. If employees' pay remains the same but they get a little something extra each week, the business can keep its prices low and maintain a competitive edge.

But some consumers say they feel uncomfortable when there’s a tip jar on the counter, or when they are promoted to pay a tip when entering their payment information.

A record number of employees get tips

The Journal cites a report from Paychex, a company providing payroll services to businesses, showing more employees are working in jobs where they get tips than at any time since the company began tracking that data in 2010. The report shows there was little increase in that number from 2016 to 2020.

Of course, in 2020 the COVID-19 pandemic hit and many consumers became increasingly generous, rewarding workers who had to be in a business location and often having to wear a mask all day. The pandemic may be over but the requests for tips continue.

While many consumers may be growing weary of the practice, Debby Mayne, etiquette guide for the resource website About.com, urges consumers to try to have a little empathy when they’re asked for a gratuity.

"The pizza delivery guy is out there braving the elements,” she told AARP. “There's a reason why you didn't go get that pizza yourself."

By 2027, Americans will spend more time eating at a “fast casual” restaurant than ever before. Analysts forecast fast casual’s trajectory to have grown 67% from 2019-2027, completely dominating the dining scene. 

It’s a wide-ranging slugfest, too. There’s Panera Bread, Chick-fil-A, Olive Garden, Chipotle Mexican Grill, Blaze Pizza, Shake Shack, Jersey Mike’s, and all sorts of burger, pizza, chicken, Asian-inspired, and barbecue places. They are all trying to prove that not only can they provide good food, but a better overall experience than the guy down the street.

And overall experience is indeed the difference maker. Using data from customer ratings, reviews, and comments across sites collected by Merchant Centric, the Nation’s Restaurant News’ (NRN) Happy Customer Index found that out of the three key themes it focused on — food, price/value and loyalty/referral — Chicken Salad Chick emerged as the winner when it comes to guest satisfaction ratings among the top established brands.

It’s taken 15 years to rule the roost, but the chicken salad concept’s 225 locations scored 7.7 for food, 1.8 for price/value and 4.4 for loyalty/referral. NRN said Chicken Salad Chick’s food scores received nearly eight times as much praise as complaints and likely drove a high score for loyalty and referral.

The other restaurants in the Top 5 fast-casual list are: 

• Cheba Hut, a Fort Collins, Colorado-based toasted sub concept that scored a category-leading 8.2 on food

• Clean Eatz, a healthy food franchise founded in North Carolina. The analysts said that the chain is notable in that it was one of four established fast-casual brands that increased its customer satisfaction scores by double digits in the last year.

• Velvet Taco, a Dallas-based concept 

• D’Angelo Grilled Sandwiches, a Massachusetts-based sandwich concept 

Rounding out the Top 10 were Skyline Chili, Maple Street Biscuit Company, Biscuitville, Muscle Maker Grill, and Greek’s Pizzeria, an Indiana-based pizza concept dating back to 1969 that now counts more than 140 restaurants on its roster. 

The up-and-comers

The analysts said that it should come as no surprise that the Top 25 emerging brands — ones with fewer than 20 locations — scored higher in guest satisfaction than their established peers, mostly because they have fewer locations to manage, allowing for more focus on such fundamentals.

“We’ve seen some very impressive food scores from these brands, which are driving off-the-charts loyalty scores in many cases,” Adam Leff, cofounder of Merchant Centric, said.

Who should diners keep an eye out for among emerging brands? NRN’s Index counted these chains as the the Top 10, in no particular order:  

• Yats Cajun Creole – billed as a “local New Orleans-style joint” but actually out of Indianapolis. This concept scored a staggering 13.9 on food, 6.3 on price/value and 7.7 on loyalty/referral.
• Gandolfo’s Deli – a New York-style deli first opened in Salt Lake City.
• Bellagreen – a Texas-based American bistro founded that prides itself on its Certified Green ingredients.
• Flatbread Company – a wood-fired pizza concept.
• The Melt – coming out of California, The Melt focuses on grilled cheese, mac and cheese and burgers.
• Mark’s Feed Store – a barbecue concept was founded in 1988 in Louisville, Kentucky, and now includes six locations.
• Joella’s Hot Chicken – another Louisville-based concept that has grown to nearly 15 locations in the last eight years. 
• Wildflower Bread – an Arizona-based restaurant and artisan bakery
• The Great Greek Mediterranean Grill – a 12-year-old brand founded in Nevada 
• Taco Bus – a Mexican concept that began as a food truck around the Tampa FL market but expanded into five brick-and-mortar locations.

Warehouse membership clubs like Costco, BJ’s, and Sam’s Club typically offer consumers bulk items at a lower price than traditional grocery stores. 

Now, Sam’s Club is announcing its latest discount offer: gift cards. Sam’s Club members can get gift cards from some of the biggest brands at the store for lower prices. 

Save on flights, movies, and restaurants

The discounts on gift cards cover several major industries, including: restaurants, movie tickets, airlines, and video games. These deals are part of the store’s spring promotional sales, and the company says they will be offered for a limited time.

Some of the biggest discounts include:  

Restaurants: 

• $50 in Krispy Kreme gift cards for $37.50

• $50 in IHOP gift cards for $37.50

• $30 in Cold Stone gift cards for $21

• $50 in Bob Evans gift cards for $40

• $50 in White Castle gift cards for $40

• $50 DoorDash e-gift cards for $42.50

• $100 Panera e-gift cards for $85

• $50 in Chuck E. Cheese gift cards for $37.50

• $50 in Golden Corral gift cards for $40

Movie Tickets: 

• Two Regal movie tickets in Philadelphia, New York City, and Washington D.C. for $21

• Two AMC Black movie tickets in New Jersey, California, and New York for $22

• $50 gift card to Movietickets.com for $37.50

• Two Regal Cinema movie tickets for $19

Airlines: 

• $500 Southwest Airlines gift for $450

• This promotion has a limit of three gift cards per Sam’s Club membership. However, one member can save up to $150 on air travel. 

Video Games: 

• $100 in XBox gift cards for $90

• Savings on a $100 Steam gift card

• $100 in Nintendo eShop gift cards for $90

• $30 in Roblox gift cards (plus free virtual item) for $26 

Membership cost is cut in half 

For those considering becoming a Sam’s Club member, the company is also offering a discount on yearly memberships. Annual memberships currently cost $25 – half of what they usually cost. Members also get discounts on other store items, including groceries, appliances, and electronics, as well as regular savings on gas. 

A year of a Sam’s Club Plus membership is currently $70, and this tier usually costs $110. This membership level also comes with early access to sales, 20% off eyeglasses, free shipping on online orders, 2% cash back on purchases (up to $500 back each year), certain generic prescriptions for free, and free curbside pickup. 

Over the last few months, restaurant experts have been paying close attention to two shifts that have started to emerge on the dining scene: dynamic pricing and subscriptions. 

While many restaurants have figured out that doing a better job at customer service pays off, some are still licking their COVID-era wounds caused by their losses. Some are trying to find a way to cover the extra money they’re paying staff and servers, and lots are looking for ways to offset the rising cost of essential cooking ingredients like eggs and flour. 

Even big chains like Darden Restaurants – the company behind Olive Garden, Longhorn Steakhouse, and Cheddar’s Scratch Kitchens – had to give every nuance of its operations careful consideration and still provide great value for the customer.

President and CEO Rick Cardenas said in a recent earnings call that in Olive Garden’s situation, it was only asking about $3 more per item to hit that value mark, but doing it in a way that still drives profit and enhances its margins. 

Netflix for your stomach

There is no perfect formula for pulling off the balancing act between maintaining good service while trying to eke out some black ink on the profit line, but subscriptions and dynamic pricing for restaurateurs seem to be the most reasonable answer for now.

Subscriptions have been a gravy train for streaming video, pet food, weight loss, and fitness companies. It’s a brilliant business model, too, because consumers think they’re getting a good deal but don’t always use the service to its full potential, so the company is still getting a stream of income every month no matter how much a person uses its services.

According to NRN, subscription mania has made its way into restaurants, and big-name brands like Taco Bell, Subway, and P.F. Chang’s have started toying with offering subscription programs for their most loyal customers. Panera is now fully vested in the idea. NRN thinks this “Netflix for the stomach” idea has so much potential that it named it as one of its restaurant predictions for 2023. 

Sam Cooper, a marketing strategist at DM Wilbury, told ConsumerAffairs that there may be a trick up a company’s sleeve on subscriptions and subscribers might not be getting everything they think they might. 

“When the restaurant chooses which items to include on the subscription, conventional wisdom will suggest they will include the items on which they have the largest profit margins,” he said. “Instead, the savvy restaurateurs will choose the items that can be served quickly and efficiently, to serve the increased number of customers without impacting the service time.” 

As an example, he told us about UK coffee chain Pret a Manger which removed smoothies and milkshakes from their subscription because they took the barista too long to make, causing a backlog and slowing down sales.

That latte is $1 today, but maybe $2 tomorrow

After experiments with things like smaller portions and charging more for lettuce didn't sit well with consumers, some restaurant owners are moving to dynamic pricing – an angle that airlines, utility companies, and ticket sellers have been using for years. 

So far, three chains have employed the idea -- Noodles & Company, Dog Haus, and Rachel’s Kitchen.

Dynamic pricing could turn out to be a win-win. It gives an owner the ability to lower prices during off-peak times so they can maximize seating capacity and labor costs and, at the same time, customers who favor cheaper prices might order outside of a busy period. Then, during peak hours, restaurants can raise prices a bit and maximize profits.

Even though restaurant leaders seem to love the idea, customers apparently don’t. Capterra’s new research indicates consumer sentiment on dynamic pricing is overwhelmingly negative, and that most customers are unlikely to utilize it in a way that benefits restaurants.

Just 34% of consumers think dynamic pricing is good for customers and 42% would order less frequently, if at all, from a preferred restaurant if they used it.  

Molly Burke, senior restaurant analyst at Capterra, told ConsumerAffairs that the thinking behind dynamic prices may be misguided, especially when it creates more of a financial burden for consumers facing record inflation.

”For example, Chipotle continues to receive backlash from customers and legislators [like Sen. Elizabeth Warren] for increasing prices. Raising Cane’s receives endless criticism online for shrinkflation and calls to relabel their ‘tenders’ as ‘nuggets.’ The list goes on and on,” she said.

Dollar stores are about to take their double-dog dare up a notch in the food aisle. As forecast by ConsumerAffairs last year, Dollar Tree has announced plans to add $3 and $5 price point items in another 1,800 or more stores this year. 

In a recent earnings call, company chief Rick Dreiling added that the company has quietly been expanding $3, $4 and $5 frozen and refrigerated products across the Dollar Tree store base going from zero to 3,500 stores in 2022.

The chain’s refrigerated/frozen section is focused on the things that it can sell at a discount and that most shoppers want in their cart – things like proteins, pizza, and ice cream, drawing positive consumer response. What Drieling sees has made him very happy, too.

“What we are seeing with Dollar Tree plus and multiple price frozen is that when the customer purchased at least one of these items, the basket size is more than double the basket with no multi-priced items,” he said.

More private brands

Private label brands have, in a word, exploded. Recent research from Attest found that 73% of consumers have taken a shine to private label brands and say that even if the economy gets back to its old self, they’ll stick with those off-brand options.

Dreiling said that the trend has improved its own profitability and going forward, grocery shoppers can expect Dollar Tree’s private label brands to have a new persona with new labels and redefined labels, many of which the company is developing in its test kitchen in Chesapeake, Virginia. 

Dollar General is moving food forward, too

Despite Dollar Tree’s latest chess moves, Dollar General should get credit for starting the discount food war, beginning with $1 food items – a dare that it kept up with even after Dollar Tree raised all of its prices by one quarter, to $1.25.

One move that Dollar General has made that Dollar Tree has yet to match is the addition of perishables – fruits and vegetables. Another just-announced move is partnering with a well-known food magazine to develop meal options for shoppers who are looking for more than just opening up a box of mac and cheese.

Dollar General recently partnered with Delish magazine and Mary Alice Cain, a registered dietician and nutritionist, to create new Better For You recipes with healthier options for breakfast, lunch, and dinner.

Each recipe includes recommendations on how to make the dish “Better For You” – such as slow cooker vegetarian chili and cranberry-walnut chicken salad sandwiches – and the majority of ingredients for all recipes can be found at more than 19,000 Dollar General stores. 

In an effort to simplify things for business owners and help them save time and money, Instacart has launched Instacart Business. 

The grocery delivery service will partner with retailers like BJ’s Wholesale Club, Staples, and Restaurant Depot, among thousands of others to help small business owners get the things they need delivered directly to their doors. 

The goal of Instacart Business is for business owners to avoid having to send out employees to several different stores, or contract with several different vendors, to get the things they need. Instead, Instacart Business brings all of the retailers together in one place. 

“At Instacart, we believe that the cost of doing business shouldn't be so costly – especially for small businesses that are essential to the communities we serve,” said Asha Sharma, COO of Instacart. “That’s why today we’re proud to announce the launch of Instacart Business. 

“From stocking up on snacks in the office break room to getting last-minute supplies delivered to a family-owned restaurant, our affordable, convenient, and flexible marketplace connects thousands of retailers to businesses nationwide, but with some new features tailor-made for this important community.” 

Prioritizing business owners’ needs

With Instacart Business, business owners have the flexibility to utilize the services in the ways that most suit their business needs. 

Some of the features of Instacart Business include: 

• Delivery options: When using Instacart Business, shoppers can get a number of different delivery options, including: long-distance delivery, same-day delivery (within 30 minutes), or no-rush delivery for a discounted price. 

• Curated shopping lists: Business owners can create shopping lists and share them with their employees before ordering. 

• Tax exemptions: Non-profits, political organizations, and health care groups in certain states can submit their tax exemption forms and receive discounts when they use Instacart Business. 

• Re-ordering and Auto-ordering: For items that are used on a regular basis, Instacart Business allows shoppers to use these two new features. Previous orders can be easily accessed and quickly reordered, while customers can also set certain items to be automatically delivered on a set time schedule. 

• Business Credits: Certain businesses can share credits to other locations on a monthly basis, while also tracking spending and creating category restrictions. 

Instacart Business has partnered with over 1,100 retailers across the country, and business owners will be able to receive deliveries from more than 80,000 stores across the U.S. and Canada. 

Starbucks is constantly experimenting with new coffee beverages but its latest concoction is raising a few eyebrows.

The company has introduced Oleato – a line of coffee beverages that combines Starbucks arabica coffee with a spoonful of Partanna cold pressed, extra virgin olive oil. Starbucks describes the result as a “velvety smooth, delicately sweet, and lush coffee that uplifts each cup with an extraordinary new flavor and texture.”

The launch, which occurred Wednesday, includes five beverages, three of which are Oleato Caffè Latte, Oleato Iced Shaken Espresso, and Oleato Golden Foam Cold Brew. 

The company said it would begin to introduce the beverages in select markets around the world. In the U.S., customers in Southern California will get the first sip. Later this year, Japan, the Middle East, and the United Kingdom will launch the beverages.

Starbucks interim CEO Howard Schultz said he was inspired to create the new beverages after visiting Italy.

‘Next revolution in coffee’

“Oleato represents the next revolution in coffee that brings together an alchemy of nature’s finest ingredients – Starbucks arabica coffee beans and Partanna cold pressed extra virgin olive oil,” Schultz said.  “Today I feel just as inspired as I did 40 years ago. Oleato has opened our eyes to fresh new possibilities and a transformational way to enjoy our daily coffee.” 

The editors at Eat This, Not That report that the initial response from consumers is rather lukewarm. People posting on Facebook, Reddit and other platforms seemed to have a hard time wrapping their heads around the concept.

"When I think of a refreshing and delicious beverage, olive oil is the first thing that comes to mind – said no one," a user commented on Reddit.

While it may take a while to catch on in America, Starbucks is banking on a warmer reception in Europe – in particular, Italy. In interviews, Shultz said he visited Sicily last year and began partaking in the local custom of consuming a spoonful of olive oil with his morning coffee.

Schultz said he decided to combine the two and said he was “absolutely stunned” by how much he liked it. 

Health food?

Most health experts agree that olive oil is a mostly healthy form of fat. In its endorsement of the Mediterranian Diet, the Mayo Clinic notes olive oil is a primary ingredient of the diet and “provides monounsaturated fat, which lowers total cholesterol and low-density lipoprotein (or "bad") cholesterol levels.”

“When creating the beverages, we were inspired by the rich history and origin stories of coffee and olive oil – two of nature’s most transcendent ingredients,” said Amy Dilger, principal beverage developer for Starbucks. “Infusing Starbucks coffee with olive oil yielded a velvety smooth, rich texture, with the buttery, round flavors imparted by the olive oil perfectly pairing with the soft, chocolatey notes of the coffee.”

The beverages went on sale this week in Italy. U.S. Starbucks locations will begin offering them this spring.

Despite inflation starting to slow down, we shouldn’t expect the entire spectrum to cave and get back to days of a dozen eggs or loaf of bread for 99 cents. In fact, the world’s biggest food company – Nestlé – says the price that consumers will pay for staples will jump even higher this year.

In an earnings call, company CEO Mark Schneider said that consumers aren’t the only ones feeling the pinch, either.

“We are still in a situation where we’re repairing our gross margin and, like all the consumers around the world, we’ve been hit by inflation and now we’re trying to repair the damage that has been done,” he said.

Schneider didn't let Nestlé off the hook, either. He was candid in saying that the company boosted prices by 8.2% in 2022, but it could’ve been worse because that eight-point jump was far from offsetting Nestlé’s own costs.

Schneider didn’t go through a punch list of how his company’s 2,000 products would be priced going forward, but did say that it’s not making broad-based price increases, but very targeted by category and situation. 

Grocers trying to stem the tide

Grocers are walking on eggshells, too. Whole Foods, Hy-Vee, and Walmart are reportedly encouraging their major suppliers to bring prices back down to an acceptable level. The much smaller regional grocer Hy-Vee said it and some of its peers are doing the same.

Some of the grocer-side assistance will likely include private label brands – such as the “Kirkland” brands that Costco offers and almost everything inside an Aldi or Trader Joe’s. Bank of America Research said private labels accounted for 21.9% of total food sales at the end of 2022, up a tad from 2021.

Lent will be here before you know it (February 22-April 5) and fast food chains across the country are gearing up for foodies looking for seafood on-the-go. 

Popeye’s isn’t forsaking chicken for fish, but it is bringing back its Flounder Fish sandwich and the Shrimp Tackle Box has returned to its menu board at its U.S. locations. They're available in both Classic or Spicy varieties. 

Diners also have the option of mixing things up by requesting a Surf and Turf box, which comes with four crispy butterfly shrimp, two chicken tenders, a biscuit, and a regular side.

Freddy’s Frozen Custard and Steakburgers and 7-Eleven are also bringing back fish sandwiches. Freddy’s version will be available throughout Lent, but 7-Eleven’s fried pollock sandwich is available for $2 on Fridays.

Going beyond Lent with tater tots and cauliflower

Chains are also thinking outside the fish box. Hardee’s and its sister chain Carl’s Jr. are bringing Philly cheesesteak-themed items for a return engagement.

In a major detour from being pizza-dependent, Domino’s has introduced a line of loaded potato tots in Philly Cheese Steak, Cheddar Bacon, and Melty 3-Cheese configurations.

After a successful trial in Alabama, Taco Bell is also jumping on the melty bandwagon by introducing a Crispy Melt Taco. Not to be left out of having its footprint in cheesy things, Cracker Barrel says it’s permanently added a bacon, egg, and cheese “pancake taco.” 

Chick-fil-A is going off-ramp, too, testing – of all things – a fried cauliflower sandwich. The company said that it’s part of the plant-forward movement that places vegetables at the center of the entrée but is trying to stay on course so its chicken sandwich lovers might find it enticing enough to try.

In a company announcement, Chick-fil-A said the preparation of the cauliflower sandwich is similar to the original Chick-fil-A Chicken Sandwich – marinated, breaded with a signature seasoning, pressure-cooked, and served on a toasted buttery bun with two dill pickle chips.

The 2023 Super Bowl is barely more than a week away and unlike the last couple of years, consumers will have an easier time getting some of the prime food favorites for Super Bowl Sunday – and be able to save money, too.

FoodMarket is reporting that advertisements from grocery stores are already showcasing deals on party essentials. Following up on that, ConsumerAffairs did indeed find Albertsons, Aldis, and Target featuring promotional deals on items like deli trays, cheese and crackers, and wine and beer. 

But what about chicken wings?

However, while there’s plenty of chicken wings to go around – and plenty of mouths ready for their return to the fold – the deals on wings aren’t quite as robust. 

Matt Busardo, poultry market reporter at Urner Barry said that even though demand for wings has picked up and processors and distributors seem to be ready for the onslaught, nationwide promotions aren’t happening on a large scale.

"Our jumbo whole wing quotes have moved over 20% higher since the start of the year,” added Busardo. Urner Barry's East jumbo whole wing quotation is currently situated at $.93 per pound. This is a staggering 65% decline from last year's record-high levels. 

As for non-chicken protein, there’s plenty to be had as well, not to mention a few discounted price points.

For example, meat grinds (burgers, sausages, hot dogs, etc.) is up a tad (1.4%) so far this year, but down 12% from a year ago. This might not make Chiefs fans drool, but lower the price of a cheesesteak in front of an Eagles fan and that’s a touchdown waiting to happen.

Philly cheesesteak

"A typical Philly cheesesteak sandwich is made from thinly sliced ribeyes. Ribeyes posted a stronger than expected rally into the new year, combined with a better than expected grade picture, select and no-roll ribeyes are finding contra seasonal support," said Todd Unger, a boxed beef market researcher at Urner Barry. 

Urner Barry's 112A 3 Lip-On, Boneless Up Select quote is $7.73 per hundredweight, down from $8.03 for Super Bowl LVI. 

Nonetheless, Kansas City fans aren’t completely left out because finger foods like ribs could be an affordable selection.

"While pulled pork is the main item seeing Super Bowl demand, ribs are seeing moderate demand," noted Ryan Hojnowski, a pork market reporter and analyst at Urner Barry. 

Urner Barry's trimmed sparerib medium quotation sits at $1.27 per pound, down nearly 21% from last year's level. 

"Pork butts are definitely the biggest beneficiary from the Super Bowl so far," added Ryan Hojnowski. At present, Urner Barry's pork butt 1/4 trimmed quote resides at $1.01 per pound, 13.5% higher than the prior five-year average.

If inflation is easing a bit, why are food prices still going up? It’s a question Whole Foods is asking its suppliers.

The Wall Street Journal reports it has viewed the recording of a virtual summit between the grocery chain and its suppliers, at which the Amazon-owned company asked suppliers to go easy on the price increases, saying consumers are stretched thin as it is.

For their part, food suppliers say they have absorbed a lot of increased costs over the last few months. They point to higher transportation costs, along with rising labor costs and increased producer prices. Many of these costs have already been passed along to shoppers.

Whole Foods told suppliers that consumers have begun to balk and asked that suppliers find ways to reduce their prices.

“We know our customers are weighing the impacts of inflationary pressure on their buying choices,” Alyssa Vescio, Whole Foods’ senior vice president of merchandising of center store, told suppliers.

Walmart has taken similar action

In November, Walmart also asked its suppliers to stop increasing prices because consumers were struggling to pay. At the time, the Journal reported Walmart CEO Doug McMillon, in a speech to companies that supply Sam’s Club, made it clear that the company would push back against price increases.

McMillon told the attendees that if they want consumers to spend more, then they need to come up with more innovative products.

A Whole Foods spokeswoman said the chain has already absorbed many of the higher costs it faces and has worked with suppliers to try to limit the pain of inflation. She said prices have risen more slowly at Whole Foods than at competitors.

In a matter of days, the U.S. Labor Department will issue its Consumer Price Index for January, revealing the status of food prices. In the December report, the government reported the price of food prepared at home rose another 0.2% during the month and was up 11.8% over the last 12 months. 

Breaking down food categories, three of the six major grocery store food group indexes increased over the month. The cost of meats, poultry, fish, and eggs increased by 1%. Eggs alone were up 11.1%. 

As American foodies become more dependent on drive-thru service, fast-food operators are starting to grasp that efficiency is number one on a customer’s pecking order.

A major part of that efficiency is how quickly the restaurant gets the customer in and out of its drive-thru lanes – a metric that research shows Starbucks, for one, could perform better in its customers’ minds. But with the footprint of its locations packed to every available square inch, the coffee chain has decided to go all out to make things easier for customers.

The first foray Starbucks made came last year when it cut a deal with Target to deliver coffee curbside to Target shoppers. With that initiative in the books, the Big Barista has a new pact with DoorDash which will make delivery service available in all 50 states by the end of March. The service got its first rollout this week in Northern California, Texas, Georgia, Florida and other select markets. 

The goal, the company says, is “enable increased, convenient access” for its customers. DoorDash, with its recent commitment to ramping up its delivery speed, seems like a good fit.

“As customer behaviors evolve, we continue to innovate the Starbucks experience to connect with them through meaningful and valuable digital experiences. Our partnership with DoorDash allows us to provide our customers with another convenient way to enjoy Starbucks wherever they are," said Brooke O’Berry, Starbucks senior vice president of digital experiences. 

Get ready to fire up the Starbucks app

In today’s digital world, there’s barely a food-related business short of some mom-and-pop places that take orders over the phone. The same holds true with the Starbucks/DoorDash setup. But, there are advantages to doing that. For example, customers can track their orders through DoorDash from preparation to drop-off. 

And that half-decaf-nonfat-one scoop of matcha-195 degrees-no foam that’s your go-to? You should be OK. Starbucks said it will offer approximately 95% of its core menu items on DoorDash, and just as they would at Starbucks, customers can customize their orders within the DoorDash app, including the ability to choose the amount of syrup, type of milk, and espresso roasts.    

Starbucks also realizes that for coffee drinkers the temperature of their cup of Joe is of the utmost importance and has developed packaging solutions to help ensure the quality of hot and cold menu items including stickers for beverages to avoid spilling, tamper-evident packaging, and delivery-specific cup holders. 

The service isn’t free but it does have a “free” component. In the announcement, the company said that consumers who are members of DashPass, DoorDash’s membership program, will pay zero in “delivery fees,” but indicated that there will be “service fees” which it couched as “the lowest service fees available on each order of $12 or more. Standard delivery and service fees apply to all other orders.”

If the pandemic was extra kind to a consumer segment, it had to be the food takeout category. A recent Gloria Food’s study found that 86% of Americans do takeout at least once a month – a metric that has forced restaurant operators to prove that their food will be just as fresh and taste just as good when it reaches someone’s doorsteps than it would if those customers were eating in.

Market research firm Datassential polled consumers as to what chains were meeting that mark. Nation’s Restaurant News (NRN) reported that half of this year’s winners made their first appearance in the rankings. 

“More than two and a half years into the pandemic, off-premises options remain vital to restaurant chains’ success,” NRN said, emphasizing that the chefs at those chains have had to get creative to create menu items that a customer can easily pick up and take home without losing quality.

Here’s the top 10, along with the percentage of respondents that rated the chain “best in class” or “above average” on quality of takeout food:

10 (a tie): Jimmy John’s, McAlister’s, MOD Pizza, Jason’s Deli, and Krispy Kreme: 70%

9: Blaze Fast-Fire’d Pizzas: 71%

8: Culver’s: 72%

7: Maggiano’s Little Italy: 73%

6: Jet’s Pizza: 73%

5: In-N-Out Burger: 74%

4: Firehouse Subs: 74%

3: Jersey Mike’s: 75%

1. (a tie): Papa Murphy’s and Chick-fil-A: 77%

There’s potentially good news for chicken lovers. Prices for chicken breasts across the country have plunged nearly 70% since early June, according to market research firm Urner Barry.

Consumers can only hope the restaurants that have raised prices on chicken items will reverse course on price-jacking and give some of that 70% price drop back to the consumer.

The parts of chickens that American consumers love most – wings and tenders -- have gotten cheaper, too, and poultry producers have moved production into high gear, Urner Barry said, quoting chicken industry analysts and executives.

Popeye’s, Wingstop, Wendy’s, and Burger King are all over the opportunity, rolling out new chicken sandwiches and wing deals trying to get consumers looking for food that’s a match for their ever-shrinking wallet.

Wendy’s is adding a new Italian Mozzarella Chicken Sandwich to its winter menu, Popeye’s is offering a new blackened chicken sandwich, and Burger King is putting an Italian version on its menu board.

So why have chicken prices suddenly reversed? According to Tyson Food, more active roosters in the henhouse have literally made the difference.

Eggs, however, aren’t rolling in the same direction

You would think that if the meat parts of a chicken go down in price, the rest of the chicken would follow. Wrong.

And if you heard somewhere that a dozen eggs would break the $12 price barrier, that’s wrong, too. That $12/doz. myth may have been debunked, but the forecast for egg prices still isn’t as rosy as you might expect.

Breaking down the egg conundrum for the grocery shopper, Trading Economics predicts that U.S. eggs are expected to trade at $4.28 a dozen by the end of the fourth quarter of 2022 and at $5.39 in 12 months' time.

Subway is convinced that there’s a whole bunch of hungry consumers not even close to one of its restaurants who would still like one of its signature subs wherever and whenever they want.

The sub chain is so convinced that it’s adding to its 400 Grab & Go locations by unveiling a new smart fridge format it thinks will help tap customers in places like airports, college campuses, hospitals, and truck stops.

There’s lots of money to be made at those places, too. Locations that were hit hardest by COVID-19 restrictions, such as airports, college campuses and hospitals, experienced an average 22% sales increase for the first three quarters of 2022, indicating a strong recovery in 2022 across channels impacted by the pandemic.

“Hey, Subway, is there mayo on that roast beef sub?”

The refrigerators won’t have just subs, but also drinks and chips. The machines will also have more technology than your typical vending machine, too.

For example, in Alexa- and Hey Google-like fashion, consumers can ask the machine questions about the selections inside and the unit’s weight-sensing shelves can also alert the fridge how much to charge. 

And, for the credit card users and clean freaks of the world, not to worry – the whole thing is a completely contactless and cashless transaction, and UV-C light sanitation after every purchase helps guests stay assured about the quality of their food.

"Subway Grab & Go has quickly gained traction as consumers are drawn to sandwiches made fresh daily from a brand they know and love, versus competitor items that rely on a 14-day plus shelf life," said Karla Martinez, director of innovation for non-traditional development.

"As Subway continues to expand off-premises concepts, guests can expect to find Subway Grab & Go and smart fridges in more convenient everyday places like airports, college campuses, and hospitals."

The restaurant world – both dine-in and drive-thru categories – is in full give-the-consumer-what-they-want mode. 

And it’s a pretty wild scene, too. McDonald’s is among those trying out new menu twists by test-selling Krispy Kreme donuts, and restaurants giving customers the option to customize their menu choices are starting to emerge.

Just recently, IHOP introduced a new Choice menu, designed to give consumers more choices throughout the day as opposed to breakfast, lunch, and dinner segments.

Choices are good, but deals rule

The overriding thing that consumers are looking for at restaurants, though, are deals that save them money. According to a new study by Yelp, diners across the U.S. are looking for budget options wherever they can find them.

"While U.S. inflation doesn't appear to be slowing down, Yelp's data shows consumers are increasingly looking for more affordable options to counter this uncertainty," said Pria Mudan, data science leader at Yelp. 

"It's clear consumers are mindful of their wallets with Yelp searches related to affordable groceries and fast food concepts noticeably up from last year."

What restaurants have the best deals?

In a new study by Datassential, the 10 restaurant chains that scored best with consumers who rated them “best in class” or “above average” on value for the dollar break out like this:

10. Togo's

9. Hwy 55 Burgers, Shakes & Fries

8. Golden Corral

7. Flame Broiler

6. Cook Out

5. In-N-Out Burger

4. Del Taco

3. Cicis Pizza

2. Papa Murphy's

And, drum roll, please…

1. Little Caesars, with an impressive 71% of consumers rating them “best in class” or “above average” when it comes to the best bang for a buck. 

What fast food restaurants meet consumer expectations the best when it comes to drive-thrus? The findings of Intouch Insight Ltd.’s 22nd Annual Drive-Thru Study might surprise you.

After setting up data collection at over 1,500 drive-thru mystery shops across the country, measurements were taken on everything from the average time it takes to get in and out to the friendliness of the restaurant workers consumers interact with.

The good news is that fast food restaurants seem to have gotten their post-pandemic act together again when it comes to speed. The average total time in the drive-thru line is nearly 10 seconds faster compared to last year. 

Meanwhile, most chains continue to struggle to staff the inside dining area, resulting in slower service. The restaurant industry as a whole is still down 750,000 jobs from pre-pandemic levels as of May, according to the National Restaurant Association.

The bad news is that friendliness continues to go south. Perceived friendliness is down 7% from 2019, currently sitting at 72% –  a factor the analysts say is costing restaurants over $180,000 in losses annually per store.

“We’ve all heard that a smile goes a long way, and in quick service that certainly rings true. While it stands to logic that happier associates lead to better customer experiences, the true financial and operational impact of unfriendly service is staggering,” said Laura Livers, Head of Strategic Growth at Intouch Insight. 

“With friendliness having declined in the industry, brands that can crack the code on employee satisfaction and training will be able to drive better customer service with diner experience, order accuracy, and speed.”

Who’s first and who’s worst?

Breaking down the results by category, the winners and losers include:

Average Total Time: Dividing the total time by the average number of cars in line, KFC won at a smidge over five minutes. Chick-fil-A came in last at over 8 minutes. If McDonald’s takes the study results to heart, it’s possible things could pick up there by the time the next study comes around, but in the meantime, it’s taking an average of nearly 7 minutes for a customer to get in and out of the drive-thru.

Order Accuracy: Arby’s and McDonald’s (tied for first) with 89%. Trailing everyone else is Wendy’s at 79%. 

Satisfaction of Service: Chick-fil-A and Carl’s Jr. get the prize here, tying for first. Tying for third place were Arby’s, Dunkin’, and Hardee’s.

Friendliness: As far as please-and-thank-you are concerned, the customers surveyed liked four of the five Satisfaction leaders the best: Chick-fil-A, Hardee’s, Arby’s, and Carl’s Jr. 

Food Quality: Time and friendliness don’t matter much if the food’s not any good and Chick-fil-A and Taco Bell worked the hardest on this aspect and tied for first place. Tied for third were Arby’s, Dunkin,’ and Wendy’s.

Apps are changing things for fast-food chains

The number one thing consumers are finding they can do to save time at fast food restaurants is ordering using the chain's app. Not only can apps cut waiting time significantly, but there are tons of deals that are in-app only.

"Apps of fast food brands are growing much more than their industry peers through a combination of running more 'food for download' promotions and current economic conditions, where consumers expect lower prices compared with other meal options," Adam Blacker, the VP of Insights at Apptopia said in an email to ConsumerAffairs.

That factor hasn't been lost on McDonald's or Chick-fil-A for sure. McDonald's sits in first place and Chick-fil-A is up three notches to 5th among food apps on Apptopia's iPhone charts.

Combined, both of those chains are putting the squeeze on DoorDash and UberEats. And the slowdown of food delivery apps could continue. Apptopia said that installs have fallen for that segment for two consecutive quarters and are down 11.6% year-over-year.

"Food delivery is typically more expensive than ordering ahead from a brand's app because of the delivery fees, tipping, and many times the individual menu items are priced higher," Blacker wrote.

If you’re headed to the grocery store anytime soon, you better stock up – high prices are predicted to stay. The latest USDA consumer price index for food shows that while a few foodstuffs slowed down on price from July to August, there is zero promise for food prices to retreat for the rest of 2022, but price roar is predicted to head toward more of a whimper in 2023.

And the Bureau of Labor Statistics (BLS) mirrors the USDA research, too. The BLS lists the cost of food-at-home as up substantially – 13.5% higher than a year ago – while food-away-from-home is up only 8%.

Aisle by aisle

Meats: In the meat section, consumers saved a few pennies on the price of beef, pork, and seafood from July to August. Overall, prices softened 0.2%, which basically equates to a pound of pork boneless half loin dropping about 10 cents. Still, Americans are still paying 8.9% more for meat than they did a year ago and that is expected to finish out the year at a 10.5% price hike. By 2023, the agency predicts the price of meat will grow somewhere between 2-3%.

Eggs: No one knows who made the chickens mad, but they’re holding back on egg production. Overall, the price of a dozen eggs has risen nearly 40% in the last year, although only 2.9% from July to August. The USDA says by the end of 2022, egg prices will likely climb to a 27% increase from the beginning of the year, but next year are predicted to flatten out.

Dairy products: Year over year, dairy products are up 16.2%, rising 0.7% from July to August. The USDA prediction for the year-end rise is 12-13% and up as much as 2.5% for 2023.

Fruits and vegetables: Since summer production is usually pretty robust for fruits and veggies, the prices for those products barely moved the needle. Prices were up 0.4% from July to August, and the rest of year should shake out at an overall 7-8% increase. Fruits and vegetables are the brightest hope of any aisle for 2023, too, with prices predicted to rise somewhere between 0.0% and 1%.

However, “processed” vegetables and fruits (such as salad kits, bags of cut baby carrots, pre-washed and chopped lettuce, containers of fresh sliced pineapple, canned corn, etc.) are likely to be a price concern for consumers. Overall, that category is up 14.2% year over year and predicted to finish up 2022 at an 11% bump, with another 2-3% hike in 2023.

Ukraine, Russia… and now, India

The war between Russia and Ukraine continues to impact American grocery shoppers. For example, fats and oils. From August 2021 to August 2022, the price of fats and oils has skyrocketed by 21%. 

There are also other countries that are higher in the pecking order for Russia and Ukraine than the U.S. is. Ukraine and Russia export agricultural and chemical products to many trading partners around the globe. Take corn exports – more than a third of Ukraine’s corn exports are destined for China. 

When it comes to wheat, the dominant force is Russia which sends 40% of its wheat to Egypt and Turkey. In the past when wheat production was an issue, the U.S. (and other countries) were able to count on India to fill in the gap. Unfortunately, a heat wave late in the growing season reduced India’s wheat production, leading its government to impose an export ban to ensure sufficient supplies were available to satisfy demand inside the country.

Meijer, the superstore chain that’s primarily found in the Midwest, announced that it will be opening a new type of store in 2023. Dubbed “Meijer Grocery,” the new facilities will focus on making fresh foods more accessible to consumers at reasonable prices, while also transforming the shopping experience to make it more efficient. 

The stores are being designed with parking spots centrally located in one corner entrance of the store. This will create more spots closer to the entrance, and help shoppers get in and out of the store faster. 

Rather than carrying everything from electronics, gardening supplies, and clothes, Meijer Grocery will scale back a bit to focus specifically on making grocery shopping easier and faster for shoppers. The new stores will feature fresh produce, a pharmacy, a bakery, party decorations, dry grocery goods, a floral department, a fresh meat counter, health and beauty items, a full-service deli, pet goods, and baby items. 

“We’re excited to provide our customers with yet another way to shop,” said Don Sanderson, group vice president of foods at Meijer. “This new concept store will not only provide our customers with everything they need on their weekly shopping trip but also a quick and easy solution for when they realize they left the key ingredient off their list while cooking dinner.” 

Currently, two Meijer Grocery stores are scheduled to open in Michigan in 2023 – one in Macomb Township and the other in Orion Township. Shoppers will have the same perks in Meijer Grocery as they do in the traditional Meijer stores, including delivery and pickup services, mPerks, and Shop and Scan. 

Meijer pharmacies to start administering updated COVID-19 boosters

Recently, the U.S. Food and Drug Administration (FDA) approved an updated COVID-19 vaccine to be used for boosters – Moderna and Pfizer’s bivalent vaccines. The bivalent vaccines are expected to provide greater protection against the virus, as they contain mRNA components from both the BA.4 and BA.5 strains of the omicron variant and the original strain of the virus. 

Meijer has since announced that its pharmacies are fully equipped to administer the new booster shots to patients. The company says that patients can also go to their pharmacies for vaccines for the flu, shingles, meningitis, pneumonia, tetanus, whooping cough, and others. 

“The pace of our household routines began to increase with the return to school and will extend through the holidays into the new year,” said Jackie Morse, vice president of pharmacy at Meijer. “Combining your flu and other vaccinations when receiving your updated COVID-19 booster not only saves time but can have real benefit as we look forward to spending time with friends or attending concerts, sporting events, and family gatherings.” 

Food costs are rising, but an industry group says they're rising faster at the supermarket than at restaurants.

This was one of the key takeaways from the Labor Department’s recent May Consumer Price Index (CPI). It showed that the cost of food away from home rose 7.4% for the 12 months that ended in April. By contrast, the cost of food prepared and consumed at home grew 11.9% in price for the 12 months that ended in May.

Even though restaurants come with higher costs — such as labor and rent — they also have some advantages over supermarkets, according to Nick Cole, head of Restaurant Finance at Mitsubishi UFJ Financial Group (MUFG).

"Restaurant chains have been able to achieve lower food-price increases and delay the effect of inflation thanks to a number of advantages they enjoy," Cole told Food Market News.

Among the advantages are access to ingredients at wholesale prices and economies of scale. Restaurants also have the ability to lock in lower prices through future contracts and other hedging strategies.

Modest price increases

Cole says a large number of restaurants have also been able to remain profitable by raising their menu prices at agreeable levels to offset the higher input costs of labor, utilities, construction, and food commodities. At the same time, their price increases have been much more moderate than those of supermarkets, some of which have raised prices by 30% for certain items.

How long restaurants can hold the line of prices remains to be seen.  Kraft Heinz and McDonald's, which are among the country’s largest food suppliers, have signaled price hikes because of sharply rising production costs.

Kraft Heinz recently notified retailer customers that prices will rise in August on several products, including Miracle Whip, Classico pasta sauce, Maxwell House coffee, and some deli meat.

While we can expect to see higher menu prices as the summer progresses, industry experts believe it’s very possible that prices won’t rise quite as quickly as at the supermarket.

If you’ve eaten out at a restaurant lately, you may have noticed that there have been some menu changes – particularly with the prices of your favorite foods.

What began with a chicken shortage that came into play when the COVID-19 pandemic hit the U.S. has continued to shift over the last two years. Diners have seen everything from changes to food delivery to growing inflation and supply shortages caused by the war between Russia and Ukraine.

Restaurant Business reports that menu price inflation is at its highest point in 40 years, and it's consumers who are paying the price. According to Mazars’ Food and Beverage Industry Outlook, 78% of companies have passed at least some of their inflation costs on to customers, and 2% were able to pass on 100% or more.

Changing prices and portion sizes

In addition to higher menu prices, consumers are also getting less to eat when they dine out due to smaller portion sizes. For example, the U.S.’ biggest Burger King franchisee has reportedly cut down its portion sizes due to higher costs related to inflation.

“In some cases, restaurants are decreasing the portion size and trying to keep the price the same hoping they can hold out long enough until inflation starts to come back down. Other restaurant groups I’m aware of are just opting to break even or even lose money in the short term hoping that inflation comes back down,” James Philip, founder of growth strategies consultancy firm Daggerfinn, told ConsumerAffairs.

“It’s very tough out there right now. If you’re in the hospitality sector, you’re trying to figure out what to do over the next 6 to 12 months to not go bankrupt while also keeping hold of the customer base that you might’ve spent five or 10 years building,” Philip said.

It’s not something the average grocery shopper would think about, but there’s a connection between what’s going on in Ukraine and the price increases Americans will likely pay in the near future. According to FoodDive, key food commodity prices hit their highest point in nearly a decade after Russia began its invasion into Ukraine on Thursday. 

Those two countries have a lot of the essential ingredients that power the things Americans eat. Combined, Russia and Ukraine produced 80% of the exports of sunflower seed oil – one of the most used oils at restaurants and at home – 29% of global wheat production, and 19% of corn.

Russia could also hold farmers hostage to a certain degree because it's one of the largest exporters of nitrogen products that are used to fertilize crops.

Where things are headed

In laying out several scenarios on how the conflict could play out, Rabobank – a Dutch multinational banking and financial services company that focuses on food and agribusiness – projected a 30% rise in wheat prices and a 20% in corn prices if an all-out war develops.

The company says things could be made even worse in a scenario that combines effective sanctions with war. 

“Russian wheat and barley have also been 2/3 exported this season, but Russia and Ukraine account for 30% of world wheat exports, which would drive global prices up 30% if removed,” Rabobank analysts said.

If that scenario is still in place by July, when harvesting of the next crop begins, it would cut deeply into global grain availability. At that point, the price of wheat would then double and corn costs would rise by 30%. Rabobank said vegetable oil prices would also most likely go up 20% in that scenario.

Cupcakes, cookies, and English muffins

The Consumer Price Index for cookies, cakes, cupcakes, and bread has already risen 6% year-over-year, and the prices on those products could go even higher if the conflict between Russia and Ukraine becomes more protracted.

“For food manufacturers that rely on wheat and flour as key ingredients, the Ukraine conflict is yet another element for them to weigh as they attempt to control price increases,” FoodDive noted.

When one analyst asked CEO Daniel Servitje of Grupo Bimbo – the owner of Sara Lee and Thomas’ English muffins, which has plants in both Russia and Ukraine – if he would have to raise the prices on those products, he said the impact would depend on how long a conflict lasts. 

"We're hedged for some months ahead, but not necessarily for the full year," Servitje said. 

Grupo Bimbo CFO Diego Gaxiola added that the company finished out 2021 with hedges covering about 70% of its commodity needs for the full year.

"Now this doesn't mean that we will not see any impact, because at the end we will continue to do the hedging strategy," he said. "And as wheat goes up, we will start to face inflation, probably more an additional inflation, towards the end of the year and 2023."

Burger King says it’s taking the two-for-$5 Whopper deal off its discount menu and raising prices in an effort to offset higher costs. As the chain’s chief consumer icon, the Whopper’s price history over the years has gone from 37 cents to around $4.25. 

Burger King's Whopper had apparently run its course as a discount menu item. The item had “been on this core discount platform for too long," Restaurant Brands Chief Executive Officer Jose Cil told Reuters in an interview. However, he hedged that statement by predicting that good deals on Whoppers would return from time to time.

The fast-food chain said it also would stop selling less popular menu items like chocolate milk, sundaes, and small beverages that are intended for kids.

More menu cuts ahead

The Whopper won’t be the last menu item headed for the guillotine. Tom Curtis, president of Burger King’s North America operations, said in an interview that the company has a second – and larger – “wave” of menu cuts planned. 

According to Restaurant Business Online, one of those items might be the chicken sandwich. When the chicken wars heated up, Burger King decided it should have a piece of that action, but its sandwich didn't find as much success as some of its competitors' offerings.

Curtis said it’s possible that a menu switch might be in the works – one that “celebrates our original chicken sandwich, and offers a fun new approach to our unique fan favorite Chicken Fries.”

Burger King isn’t the only one raising prices

Burger King isn’t the only one feeling the pinch brought about by rising labor costs, shipping price increases, and spikes in the cost of ingredients like chicken.

McDonald’s is also expected to raise menu prices this year. Taco Bell already raised prices 10%, and Dunkin’ hiked its own prices by 8%. Chick-fil-A took a slightly different approach; instead of raising menu prices, the company reportedly reduced the size of its food. The chain has also been accused of raising prices on delivery items to try padding its bottom line.

The last 23 months of the COVID-19 pandemic have been a game-changer for many brands. Some lost ground while some, such as delivery services and online retailers, strengthened their bonds with consumers.

With most full-service restaurants closed during the early days of the pandemic, consumers relied more on fast-food establishments. In the just-released MBLM Brand Intimacy COVID Study, which analyzes brands based on emotional connections during the pandemic, the fast-food industry maintained its sixth-place ranking, increasing its performance by 8% over 2020.

Consumers are backing that sentiment with their wallets, the study found. When asked if they are willing to pay 20% more for their favorite fast food, 43% more respondents than last year replied that they would.

Chick-fil-A leads for a second year

Within the category, the study found that consumers have bonded with some brands more than others. For the second year in a row, Chick-fil-A held the top spot as the fast-food company with the strongest levels of “brand intimacy,” which is defined as the emotional science behind the bonds consumers form with the brands they use and love. 

Jillian, a Chick-Fil-A fan from Cypress, Texas, tells us there are many aspects of the brand that make it unique.

“The incredibly fast drive-thru, the service, the respect their employees have for their customers, and the fact that they are closed on Sundays as a day to rest and worship,” Jillian wrote in a ConsumerAffairs review. “They are consistently respectful to their customers and always make everyone feel welcomed. Their food is always warm and ready to eat and they have a lot of options.” 

‘Drawn consumers closer’

Starbucks and Dunkin' – two brands competing for coffee supremacy – ranked second and third, respectively. The other fast-food brands in the top 10 are McDonald's, Taco Bell, KFC, Pizza Hut, Dominos, Wendy's, and Subway.

"Despite having to shut down at some points and weather significant supply chain challenges recently, the fast-food industry has drawn consumers closer and created stronger emotional bonds over the last year," said Mario Natarelli, managing partner at MBLM.

The study found that fast-food restaurants were quick to adapt to the pandemic by capitalizing on mobile ordering and digital drive-through lanes. 

“This has created a new reality within which fast-food brands provide even more comfort and convenience to stressed consumers – a position they can effectively continue to reference as we increasingly return to 'normal life' in the year ahead," Natarelli said.

Every great delivery driver deserves a tip, and Domino's says its customers can earn one when they carry out their order. The company announced that it will tip customers $3 to use on their next online carryout order if they come to a restaurant to pick up their order in person.

With the restaurant industry looking far and wide to find employees, and other business segments ramping up in the hiring of drivers, the idea seems to make sense. Plus, there’s Super Bowl Sunday looming large. During the 2020 Super Bowl, it was estimated that Domino’s sold about 2 million pizzas on a normal Super Bowl Sunday, a 30% increase over a typical Sunday.

"Domino's carryout tips come just in time for the biggest football game of the year, which is also one of the busiest days of the year for pizza," said Art D'Elia, Domino's executive president. "Domino's typically sells about 2 million pizzas on football's favorite Sunday, so if you're throwing a party and feeding hungry fans, make it a carryout order and get tipped! Then you can treat yourself to a delicious pizza with a great deal the week after."

While it might be a nice permanent perk for pizza lovers, Domino’s said the deal will last only through May 22, 2022. There are a couple of other things that consumers should note.

The most important one is that orders have to be placed online to claim the $3 coupon code, which is redeemable for another online carryout order placed the following week (with a minimum purchase of $5 before tax and gratuity). 

A new study conducted by researchers from New York University explored a unique trend that’s been occurring among online grocery retailers. Their findings showed that many online stores aren’t consistent with showing consumers food labels. 

“Our study shows that the online food shopping environment today is a bit of a ‘Wild West,’ with incomplete and inconsistent provision of required nutrition information to consumers,” said researcher Dariush Mozaffarian.

“Online shopping will only continue to grow, and this creates an excellent opportunity to positively influence consumers to make healthy and safe choices. We need to leverage this change to help make progress against the nutrition-related health crisis in this country.” 

Gaps in nutrition labeling

To better understand what nutritional information is available to consumers from online retailers, the researchers analyzed information available from nine major online grocers on 10 different food products. Most of the items involved in the study were packaged goods, which typically are required to have an ingredients list, a full nutrition breakdown, and a common allergy warning. 

Ultimately, the researchers learned that there were a lot of inconsistencies with these food labels. Overall, nutrition facts were only found on roughly 46% of all the items assessed, while ingredient lists were found on more than 54% of the items involved in the study. 

However, on average, this information was only consistent across the different stores and food items 36.5% of the time. The researchers found that allergy warnings only appeared on just over 11% of the items involved in the study. 

“Our findings highlight the current failure of both regulations and industry practice to provide a consistent environment in which online consumers can access information that is required in conventional stores,” said researcher Sean Cash. “With the expectation that online grocery sales could top $100 billion for 2021, the requirements to provide consumers with information need to keep up with the evolving marketplace.” 

Helping consumers make smart decisions

The researchers also looked at what regulations exist when it comes to food labeling and what can be done to help consumers make the best food choices for their health and wellness. They found that the FDA, FTC, and USDA can all work to make food labeling more consistent among online grocery retailers.

This is particularly important when thinking about consumers who rely on these labels for important nutrition information, like allergy warnings or sugar or carb levels. 

“Labeling requirements are intended to protect consumers who are largely unable to protect themselves,” said researcher Jennifer Pomeranz. “This is even more salient for online where consumers cannot directly inspect products. At a minimum, the entire required nutritional information panel should be made visible and legible for consumers shopping for their groceries online.” 

Nothing lasts forever. After offering its Prime members free delivery from Whole Foods for nearly three years, Amazon has decided that Whole Foods customers should pay for their delivery after all. Now, those customers will have to pony up $9.95 if they want Whole Foods to deliver their order.

The company said it was left with little choice. Despite the fact that Whole Foods’ delivery business tripled during the pandemic, the cost of getting orders from store to home needed to be addressed. A Whole Foods spokesperson told CNN that to cover the escalating cost of delivering groceries, it either had to add on a fee or raise prices. 

All is not lost for Prime members though. They’ll still get an extra 10% off storewide sales and in select ZIP codes, as well as free pickup from their nearest Whole Foods store.

Will Whole Foods loss be Walmart’s gain

Sensing that an opportunity was in the works, Walmart was ready for Whole Foods' announcement. Just last week, Walmart sent a rather sarcastic email to its customer base offering a rebate of $9.95 to anyone who signed up for Walmart+, the retailer's branded version of Amazon Prime.

"Because customers deserve a grocery delivery service that won't leave a Whole in their wallet for delivery fees — whoops, typo," read the email.

Not only do Walmart+ members get free grocery delivery, but they also enjoy free shipping with no minimum order -- a requirement the company lifted earlier this year. However, that “free delivery” might not last forever. On its site, the retailer says Walmart+ subscribers will have access to unlimited free deliveries “all [holiday] season long.” After that, who knows.

Pandemic-related supply-chain issues continue to plague businesses large and small. From restaurants to boat dealers, companies are complaining they can’t get needed products and parts.

Consumers are also noticing. A scan of recent reviews posted to ConsumerAffairs shows frustration with shortages and extended delivery times for a wide range of products.

William, of Aliquippa, Pa., bought a Husqvarna lawn tractor he didn’t really want because of limited options.

“I was unhappy with it from the start,” William wrote in his review. “First off it rattles like an old tin can. No doubt some loose part that I will be able to fix, but not a good impression when I just spent north of $3,000 on it.”

Many people building houses are also running into frustrating delays. Christopher, of Durham, N.C., posted on ConsumerAffairs that his town home was supposed to be completed in June.

“I cannot get a clear estimate on completion (current estimate is October; completion has been moved back 3 times now) partially due to the sewer system hook-up issues which I am told requires specific parts (of which there is a "shortage" of) to be compliant to town regulations,” Christopher wrote in his review.

Even Amazon has been affected by a narrowed supply chain, reporting an uncharacteristic slowdown in second-quarter sales.

Shortages may last for a while

Reuters reports shortages of metals, plastics, and even liquor bottles are now commonplace, and these shortages have far-flung consequences. In one case, a tent manufacturer has had no problem making tent panels, but it can’t finish its products because of a shortage of aluminum tent poles and zippers for the flaps.

Scott Price, president of UPS International, says business leaders were caught off guard by the bottlenecks in the supply chain. In an interview with Business Insider, Price said businesses may respond by “regionalizing” their supply chains, using factories closer to main production facilities.

Businesses and the consumers that support them could face months or even years of supply chain issues, according to experts. That’s because the COVID-19 pandemic may not end any time soon.

John Rutledge, an economic adviser to the Reagan administration, told CNBC that even a small number of infections can close a major port. He notes what happened last month at China’s Ningbo-Zhoushan port, the third busiest in the world, as an example.

Today’s big "huh" moment may well be this: Amazon is set to test “Just Walk Out” technology at some of its Whole Food locations. You heard that right. Whole Foods customers in Washington, D.C., and Sherman Oaks, California, will have the option to skip the checkout line completely, take their stuff to their car, and just leave.

The company said it watched how customers traverse Whole Foods stores, and it hit them that the thing customers like least is standing in checkout lines. 

It took five years to work out the kinks at Amazon Go stores, but the company is confident the time is right and the technology in place to take on the challenge.

“We launched the technology first in Amazon Go several years ago, and since then, we’ve gotten a lot of great feedback from customers who love being able to quickly and easily shop and skip the checkout line,” said Dilip Kumar, Amazon's vice president of physical retail and technology. 

The stores will get the new technology sometime next year.

How it works

Just Walk Out technology is kind of like how a self-driving vehicle works -- a fusion of sensor vision, computer vision, and deep learning.

When a customer arrives at a Whole Foods store, they will be met by a team member who’ll ask them if they want to use the traditional checkout method or go for “Just Walk Out.” If they pick the “Just Walk Out” option, the team member will show them the ropes of how to proceed. 

There are three options at that point: Customers can scan the QR code in the Whole Foods Market or Amazon app, hover their palm using Amazon One, or insert a credit or debit card linked to their Amazon account. 

Conversely, customers who prefer to use cash, prepaid cards, Whole Foods Market gift cards, EBT, or eWic will have to use the self-checkout lanes. 

“Once inside, customers will shop like normal and at the end of their trip, they simply scan or insert their entry method again to exit. After customers leave the store, those who use the Just Walk Out experience will receive a digital receipt, which will be available in the Whole Foods Market app,” Dilip Kumar, Amazon’s Vice President of Physical Retail and Technology, explained.

The service doesn’t require any sort of special membership like Amazon Prime, Kumar said, but anyone who wants to use “Just Walk Out” tech does need to have an Amazon account.

Impossible Foods, which started with a plant-based hamburger, has expanded its range of meatless products with plant-based chicken. The company has now introduced Impossible Chicken Nuggets.

The nuggets are currently being distributed to restaurant customers and may appear on menus later this week. The company has also announced plans to begin distribution to supermarkets in the coming weeks.

“We are tremendously excited about our Impossible Nuggets,” said Pat Brown, founder and CEO of Impossible Foods. “But this launch isn’t really about nuggets. It’s about the historic inflection point we’ve reached. For the first time, consumers unquestionably prefer meat made from plants instead of meat from an iconic animal.”

To back up that claim, the company released details of a blind taste test that it conducted among consumers in the Dallas area. It said 7 out of 10 consumers, described as meat-eaters who also occasionally consumed plant-based meat, preferred the Impossible Nuggets.

“In the battle for the future of food, this is the first time David has categorically bested Goliath, but it won’t be the last,” Brown said.

‘Battle for the future of food’

Impossible Foods won FDA approval for its plant-based hamburger in 2018. Shortly afterward, it inked a deal with Burger King for its “Impossible Whopper.” The new sandwich is credited for an uptick in Burget King sales, thanks to appreciative customers like R.A. of Rochester, N.Y.

“BK was one of the first chain restaurants to offer a vegetarian burger, and has stepped up their game by adding the Impossible Whopper to the menu,”R.A. wrote in a ConsumerAffairs post. “Grain-based veggie burgers are good (it's all about the condiments!) but I'm happy to be able to enjoy something that I loved back in the day, without the guilt!! Thanks BK, for being ahead of the trend!!”

But not everyone was a fan. K., of Katy, Texas, told ConsumerAffairs that they didn’t find it that appetizing.

“Was it 'good?' NO,” K. wrote. “Was it edible? BARELY.”

Chicken popularity creates shortages

But if Impossible Nuggets find more consumers like R.A. and fewer like K., it could help relieve recent chicken shortages that have cropped up during the pandemic. Thanks to popular fast-food chicken sandwiches, various surveys show that chicken has overtaken beef as consumers’ top meat choice.

Among the restaurants that will soon be offering Impossible Chicken Nuggets are David Chang’s fried chicken concept Fuku in New York City; Marcus Samuelsson’s comfort food eatery Red Rooster in Harlem and Miami; Sean Brock’s fast-food tribute Joyland in Nashville; Tal Ronnen’s Los Angeles hotspot Crossroads Kitchen; and El Alto Jr., a new family-friendly pop-up from Traci Des Jardins at the new State Street Market in Los Altos, California.

The company says Walmart, Kroger, Albertsons, Safeway, ShopRite, Giant Stores, and Gelsons will begin offering Impossible Chicken Nuggets for home chefs in the frozen aisle later this month. Its goal is to expand to more than 10,000 grocery stores later this year.

Unions have long viewed the fast-food restaurant industry as fertile ground, but they have yet to make much headway. So what’s happening in Buffalo, N.Y., has the industry’s attention.

About 50 Starbucks employees have announced plans to form a union at several Buffalo-area locations. The group announced that it has formed "Starbucks Workers United" and will seek to organize a union.

In a letter to Starbucks CEO Kevin Johnson, the employees made clear that their actions are not motivated by grievances. 

“We are forming a union to bring out the best in all of us,” the employees wrote. “Our organizing committee includes Starbucks partners from across the Buffalo region. Many of us have invested years of our lives at Starbucks while others have recently become partners. We all have one thing in common -- we want the company to succeed and we want our work lives to be the best they can be.”

The letter was signed by 15 members of the organizing committee, including Alexis Rizzo, one of the founding members. She said she began working at the store six years ago at the age of 17.

“We’ve been called Starbucks partners and we want to become real partners, to be able to have a voice to make our job better and to make our customers’ experience better,” Rizzo told the London Guardian.

Consumers appreciate good employees

The employees said they are the face of the company, and many ConsumerAffairs reviewers agree. When posting Starbucks reviews they often mention the baristas in a favorable light.

“I want to take a moment to acknowledge Natatia at the Cottage Grove Minn., location,” wrote M, of Cottage Grove. “Natatia always has a very positive attitude and I look forward to having her take my order when she is working. It is employees like Natatia that take the customer experience at Starbucks to the next level.”

Sara, of San Antonio, has nice things to say about the entire crew at her neighborhood Starbucks.

“As soon as he sees me walk in the door he has my croissant warming up,” Sara wrote in a ConsumerAffairs post. “This group is always nice, friendly, and knowledgeable, they work very well as a team, great job!!!! They all know my name, I feel at home.”

The Buffalo Starbucks employees say they are seeking to organize a union as a way to have a sustainable career. In their letter to Johnson, they said their effort is not a reaction to any company policy, but rather a way to help Starbucks fulfill its mission of “improving communities one coffee at a time.”

Taco Bell says it will break ground later this month in Brooklyn Park, Minn., on what it calls the restaurant of the future. The company says the design will make fast food even faster.

Inspired by the abrupt changes brought on by the COVID-19 pandemic, the two-story structure will feature four drive-thru lanes with three lanes devoted to mobile and delivery pickups and one for the regular drive-thru orders.

Employees will work on the second floor of the building, communicating with customers through a video hookup. The concept provides for contactless food delivery using a lift system developed by Vertical Works, a Minneapolis company that specializes in optimizing efficiency in a range of different businesses, including restaurants.

Taco Bell calls it the Defy concept and seeks to turn take-out ordering upside down. By dedicating three of its four drive-thru lanes to remote orders, the company is sending a strong message to its customers -- use the app and order before you arrive at the restaurant.

Pick-up lines should move faster

The lanes will be for the exclusive use of individual app users as well as delivery services, such as Doordash and Uber Eats. Those lines should also move faster since in most cases, the order will be ready and paid for when the customer pulls into one of the lanes.

"Partnering with our franchisees to test new concepts is a huge unlock of learning for us. What we learn from the test of this new Defy concept may help shape future Taco Bell restaurants," said Mike Grams, Taco Bell's president and COO.

The new restaurant is expected to open next summer. Michele of Glendale, Ariz., says she hopes the staff gets some training before then, telling ConsumerAffairs she has had trouble ordering using the Google app.

“They have no procedures to refund an order, not even a help FAQ to do so,” Michelle wrote in a ConsumerAffairs post. “The store manager here in Glendale was rude and clueless on how even said application worked. She claimed they are not even trained on how it functions.”

Employee shortage continues

It’s been well-documented that the fast-food restaurant industry is in the midst of an employee shortage. Taco Bell hasn’t indicated whether its Defy restaurant concept will operate with fewer people, but the mechanized nature of the system, and with its emphasis on take-out ordering, suggests it might.

Meanwhile, other restaurant chains are working on pandemic-influenced design changes of their own. Burger King has announced two new building designs that feature more drive-thru lanes, burger lockers, and takeout counters.

KFC has also introduced two new designs for future restaurants. One design eliminates the dining room altogether.

The meal delivery landscape across America took another turn on Friday. Wendy’s announced that it plans to roll out 700 “ghost kitchens” -- virtual, delivery-only “restaurants” -- expressly for food delivery apps. 

The five-year plan will include locations in the U.S., Canada, and the United Kingdom following what the company said was a successful test of eight delivery kitchens in Canada. Wendy’s will join an impressive lineup of ghost kitchen believers, including Five Guys, Walmart, Kroger, Quiznos, Saladworks, and Nathan's Famous.

Wendy’s isn’t doing this alone. It is partnering with REEF, which claims to be the largest operator of mobility, logistics hubs, and kitchens. The company has 4,500 locations and the ability to reach 70% of North America’s urban population.

"The demand for convenient delivery solutions means we must look for opportunities beyond our traditional restaurant formats, especially in dense urban areas," said Abigail Pringle, Wendy's President, International and Chief Development Officer. "This partnership with REEF is testimony to our ambitions, the potential we see to grow our beloved brand and our quest to reach more customers in more ways."

How the pandemic has changed the food delivery game

After COVID-19 knocked the air out of sit-down restaurants, carryout and delivery was the most viable go-to option. Many consumers loved the new approach, and demand for delivery during the lockdown was so proactive that 88% of U.S. consumers ordered takeout. 

The first to change were grocers, which started offering fresh meals to-go via ghost kitchens. These businesses were initially able to muscle their way into the prepared food segment in a way that restaurants couldn’t. Others were taking notice and falling in love with the concept. Not only was there a reduction in cost tied to less front-of-house staffing and dining space, but the change gave restaurateurs a chance to test new food concepts and sales opportunities without the expense of retooling space and adding foodstuffs to play out their ideas.

One food segment is already starting to reap the benefits of ghost kitchens: “clean and healthy fare,” as WOWorks CEO Kelly Roddy calls it. In March, WOWorks entered into a partnership with Ghost Kitchen Brands to bring 60 Saladworks locations into U.S. ghost kitchens spaces, many of which would be located inside Walmart stores. 

"If you're having food brought to you, you don't really know or care where it's being brought from," Roddy told RestaurantDive. "The ghost kitchens allow you to get into many more points of distribution for your food and for some people, they can have access to healthy food."

If you’re someone who likes going to Taco Bell, then the restaurant chain has some bad news for you: Some of your favorite menu items may not be available the next time you stop in. 

The fast-food chain says it’s running low on certain items because of current food shortages. The company has posted a note at the top of its website to let customers know about the issues it’s facing. 

“Sorry if we can't feed your current crave. Due to national ingredient shortages and delivery delays, we may be out of some items,” the note states.

The menu problem is already catching the ire of Taco Bell devotees on social media, and reviewers on ConsumerAffairs are losing patience too. Helen from Florida wrote that “all the items I used to order are gone… Taco salad, Mexican pizza, pinto and cheese just to name a few. Good luck with your new menu but I won’t be eating here.”

Georgette from Washington state also sensed something adrift when she went to pick up her order. “Three taco supreme, crunchy. They were hardly like the supreme I remember. Only lettuce. no tomatoes, a small dab of sour cream…,” she wrote in her review.

Shortages and price increases

Reports indicate that Taco Bell is running short on several food items that it uses to complete orders. For example, the chain is having a hard time getting enough chicken, but it’s not alone. Chicken processors are in a world of hurt right now because the industry’s shortage of workers has led to fewer chickens being processed. That’s causing higher prices that are being passed down to consumers.

Wheat is another precious commodity that Taco Bell is short on. When ConsumerAffairs looked at the chain’s ingredient list, there were 11 different products that included wheat, including chalupa shells and flour tortillas. The USDA has forecasted a 37% drop in the availability of wheat from last year, so things may not get better anytime soon.

Pinto beans also appear to be in short supply. According to USFoods, pinto bean prices have surged due to dry weather and stable export demand to Mexico. Complicating the matter, the USDA says that dry bean planted acreage is also down in 2021 from 2020.

Price increases for other items are also hurting Taco Bell and other restaurants. When ConsumerAffairs took a look at the Department of Agriculture (USDA) producer price forecast, we noticed that the cost of wholesale beef rose 14.3% and prices for farm-level vegetables rose by 6.4% from April to May. Price tracking from AGDaily’s “Dirt to Dinner” shows that the price of iceberg lettuce has almost doubled.

Where is this all going?

No one knows for sure where this is all going, but consumers may need to deal with food shortages and price increases for a while. 

It’s not just a Taco Bell thing either. Restaurants, in general, are dealing with shortages of various foodstuffs due to the return of indoor dining across the nation. Grocers are stockpiling to make up for shortages, but that probably won’t slow the tide of rising prices in the short term. However, experts say things should turn around eventually.

“Economists, government officials, and other experts say the pace of inflation is likely to ease over time. But no one seems anxious to say exactly when that will occur, or by how much the rate of inflation may drop,” said Dirt to Dinner’s Garland West.

“But we do know that food price increases come from many causes and directions, and smart consumers will need to keep a careful eye on the food choices we make every day. We continue to spend about 10 percent of our disposable income on food at home and away — less than any other nation. Smart shopping can help us maintain that status.”

The fast-food industry’s chicken sandwich wars, along with Americans’ general fondness for chicken dishes and the coronavirus (COVID-19) pandemic, have led to an increase in demand for poultry.

That, in turn, is creating higher prices and shortages at some restaurants. According to The Daily Mail, there have even been isolated reports of consumers ordering chicken sandwiches at fast-food restaurants and being turned away.

The growth of Chick-Fil-A in the last two decades has fueled demand for chicken. Then in 2019, Popeye’s created a surge in demand when it introduced a new version of its chicken sandwich that created lines at restaurants.

McDonald’s and KFC quickly followed suit, introducing and heavily promoting their own new chicken sandwiches. Suddenly, chicken appeared to be replacing the hamburger as America’s favorite food.

Fewer views, more wings

Just how popular has chicken become? Consider this: The television ratings for Super Bowl LV in January were among the lowest ever but the people who were watching were consuming a lot of chicken.

According to the National Chicken Council, Americans devoured 1.42 billion chicken wings while watching the game, 2% more than the year before’s more highly rated game. The Council cites data from NPD Group showing servings of chicken in restaurants rose 7% in 2020 over the year before, despite an 11% decline in trips to restaurants during the pandemic.

Then came the big freeze in Texas in February which knocked out power across the state for days. The event took Texas chicken producers offline for a time, which is only now beginning to affect the supply chain.

Inflationary impact

The inflationary impact of increased demand and limited supply is showing up first at restaurants, where the wholesale price of chicken wings has nearly doubled in a year, according to industry sources.

Price increases may be less extreme at the supermarket but they posted a significant jump nonetheless in 2020. According to Statista, the average retail price of chicken in the U.S. rose from $1.45 a pound in 2019 to $1.62 last year, the highest price since 1995.

There appears to be no let-up in demand as more restaurants find ways to add chicken to the menu because chicken brings people through the door. KFC told CNBC this week that its new chicken sandwich is selling at twice the volume of its previous version.

And the chicken dishes keep coming, stretching supplies even more. The latest entrant is convenience store chain 7-Eleven, which is moving into the quick-serve restaurant arena and this month opened a new Raise the Roost Chicken and Biscuits restaurant.

If you live in Houston and order a pizza from Dominos, there’s a chance it could be delivered by a robot.

The pizza restaurant, built around a delivery business model, has teamed with Nuro, a maker of self-driving delivery vehicles, to begin autonomous pizza delivery this week from a Houston-area store.

A Domino’s location in Woodland Heights is the first to test the concept. When customers order a pizza, they can choose to have it delivered by Nuro’s R2 robot. According to Dominos, Nuro's R2 is the first completely autonomous, on-road delivery vehicle with regulatory approval by the U.S. Department of Transportation (USDOT).

Select customers who use the website to place and pay for an order from the test location can agree to have their order delivered by R2. These customers will receive text alerts, which will update them on R2's location and provide them with a unique PIN to retrieve their order. 

Customers getting a delivery from R2 may also track the vehicle using GPS on their order confirmation page. Once R2 arrives, customers will meet it at curbside and be prompted to enter their PIN on the bot's touchscreen. That will open the vehicle’s doors and the customer can retrieve their order.

"We're excited to continue innovating the delivery experience for Domino's customers by testing autonomous delivery with Nuro in Houston," said Dennis Maloney, Domino's senior vice president and chief innovation officer. "There is still so much for our brand to learn about the autonomous delivery space.”

Improving understanding of the delivery process

Maloney said the launch of the program will help the company form a better understanding of how customers respond to the deliveries, how they interact with the robot, and how it affects store operations. 

Dave Ferguson, Nuro co-founder and president, is also interested in seeing how the experiment works out. 

"Nuro's mission is to better everyday life through robotics. Now, for the first time, we're launching real world, autonomous deliveries with R2 and Domino's," he said. 

The R2 is Nuro’s second-generation autonomous vehicle. It received USDOT approval in February 2020. The R2 was designed to carry products, not people, and to provide last-mile delivery service. Dominos is among the first companies to take it for a spin.

A new study conducted by researchers from the University of British Columbia explored the efficacy of food marketing both before and after consumers lost weight. 

According to their findings, obesity can make consumers more vulnerable to food marketing strategies. However, these campaigns aren’t as effective after people lose weight. 

“The results clearly suggest a bidirectional influence between people’s weight status, psychology, and responsiveness to the environment -- including marketing,” said researcher Dr. Yann Cornil. “So, it’s a complex relationship.” 

How weight loss influences food marketing

To understand the relationship between weight loss and food marketing, the researchers looked at participants from three distinct groups: those who were obese, those who were obese and had gastric bypass surgery to lose weight, and those who were not obese. The team conducted several different trials to determine how effective food marketing was at influencing the participants’ eating and purchasing choices. 

Participants’ weight played a significant role in how responsive they were to food marketing. Obese participants were more likely to buy into these campaigns; however, if those same participants lost weight, their susceptibility to food marketing decreased over time. 

The researchers say there are several reasons why this happens. They speculate that losing weight can change consumers’ lifestyles and tastes, so they naturally don’t gravitate towards unhealthier options. The team also suggested that significant weight loss might change hormone levels, which can impact what consumers want to buy or eat. 

“People with obesity going through bariatric surgery will become less responsive to marketing over time,” Dr. Cornil said. “And after 12 months, their responsiveness to marketing reaches the level of people with more medically-recommended weight.” 

Positive changes for the future

Based on these findings, the researchers hope that food marketing changes to encourage consumers to make healthier options. It’s important to know that consumers’ behaviors aren’t fixed and can change based on weight loss. 

“That would mean people are endowed with unchangeable psychological characteristics that would always make them more responsive to marketing -- which would make it very difficult to sustain a medically-recommended weight,” Dr. Cornil said. “But one of the positive things is that after significant weight loss, people become less responsive to marketing, such that it is more sustainable to remain at a lower body mass index.” 

Target has introduced a brand of food and beverages aimed at consumers who want to indulge themselves a little, now that the coronavirus (COVID-19) pandemic appears to be fading.

The new brand, called Favorite Day, will include more than 700 products. All will be premium and upscale in nature and include ice cream, beverages, beverage mixers, and bakery items and supplies. They’ll appear on shelves and online starting next month.

This isn’t the retailer’s first foray into a private label brand. It launched Good & Gather in 2019, offering an array of gourmet grocery products. Good & Gather items are made without artificial flavors and sweeteners, synthetic colors, and high fructose corn syrup. Target has broken the items down into several different categories: kids, organic, seasonal, and signature. 

In addition to staples like eggs, milk, meats, ready-made pastas, there are “trend-forward” products like avocado toast, salad kits, and beet hummus. The seasonal category includes items like pumpkin-flavored snacks. 

Building on Good & Gather

“We’re thrilled to build on Good & Gather’s success and the strength of Target’s food and beverage business by debuting our new owned brand, Favorite Day,” said Rick Gomez, executive vice president and chief food and beverage officer at Target. 

Gomez says the company developed the line by tapping into “guest insights” to develop sweet and savory offerings.

“Favorite Day makes life’s little moments of indulgence even sweeter and continues to differentiate Target’s owned brand portfolio,” he said.

It may also be a timely switch from supplying the basic necessities during the pandemic to helping consumers celebrate occasions as people get vaccinated and life begins to return to normal.

Two sections

Target says the new product line will be broken down into two sections -- Favorite Day Bakery, offering a variety of assorted baked goods including cupcakes and breads; and Favorite Day Gourmet, a collection of “decadent”, high-quality sweets.

Thomas Jackson, senior food scientist at Target, says research shows customers are attracted to treats that trigger a sense of nostalgia.

“So, we leaned into the nostalgia trend with a twist,” Jackson said.

He says the nostalgic food products include s’mores that recall evenings around a campfire and trail mix that reminds consumers of the orange cream bars they used to buy from the ice cream truck.

With the pandemic’s in-restaurant restrictions forcing American consumers to either cook at home, do carryout, or have their meals delivered, the ones who choose delivery have also had to eat the cost of that option. 

Sometimes those delivery charges are as much as the cost of the food and regulators are starting to get fed up with that disparity and taking up the consumer’s plight to try and even things out.

Squeezing out as much as they can

It won’t be easy though, mostly because delivery companies say their profit margins are thin enough as they are. In its third-quarter conference call, Uber -- the parent of Uber Delivery, the largest and fastest-growing food delivery business outside of China -- gave an illustration of an eater who orders a $30 meal. By the time delivery/service fees tacked on, and the restaurant gets its usual 30 percent marketplace fee, the adjusted net revenue is $8. 

While $8 seems like a fair profit, it apparently isn’t when corporate bean counters start weighing in. To try to earn a few extra cents off of a delivery, UberEats, DoorDash, and Postmates are trying to test price elasticity wherever they can by using location, availability, and delivery priority to squeeze more out of an order. 

When the New York Times broke down the associated costs on an order of two 6-inch Turkey Breast sandwiches from Subway last year, it found markups were 25 percent from GrubHub, 46 percent from DoorDash, 63 percent from Postmates, and a whopping 91 percent using UberEats. Oh -- and that doesn’t include a tip, either. 

Regulators take notice

When Californians recently passed Proposition 22 which keeps drivers classified as independent contractors, voters probably didn't think they would be picking up the tab for the added benefits drivers got as part of the deal. 

These added charges haven’t gone unnoticed. In September, congressional leaders from Illinois, Pennsylvania, and Washington state fired a shot across the bow of delivery operators, asking the Federal Trade Commission (FTC) to investigate the companies for possible unfair practices tied to fee structures. 

“COVID-19 has made restaurants increasingly reliant on food delivery platforms as measures to reduce the spread of the virus continue to limit in-person dining,” the Sept. 22 letter signed by U.S. Representatives Jan Schakowsky (D-Ill.), Mary Gay Scanlon (D-Pa.), and Pramila Jayapal (D-Wash.) stated.

The congresswomen had an added concern -- that the trio of Uber, DoorDash, and Grubhub controls roughly 98 percent of the overall U.S. market.

Where is this all going? On top of not making regulators fond of their business models, food delivery services also have to concern themselves with what happens when the pandemic comes to an end and consumers go back to dining inside of restaurants.

“It is no surprise that delivery platforms are trying to pass on costs imposed by regulators. The danger is that their customers start to step away from the table,” said the Wall Street Journal’s Laura Forman.

The National Restaurant Association (NRA) has issued an urgent appeal to Congress for aid to restaurants that have been forced to close or to sharply curtail operations. Citing a survey the group recently completed, it warns that the future is grim for these businesses.

"What these findings make clear is that more than 500,000 restaurants of every business type—franchise, chain, and independent—are in an economic free fall," said Sean Kennedy, executive vice president for public affairs in a letter to Congress. "And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good."

The NRA surveyed 6,000 restaurant operators and 250 businesses that support the industry. It found that 87 percent of full service restaurants have experienced a 36 percent drop in sales revenue on average. 

Worst yet to come

For an industry with an average profit margin of no more than 6 percent, the NRA warns that these conditions are simply unsustainable. Eighty-three percent of full service operators expect sales to be even worse over the next three months. 

Independent and franchise owners are feeling the most pain. While sales are down, their costs are not. Fifty-nine percent of operators told the NRA that their total labor costs, as a percentage of sales, are higher than they were pre-pandemic.

While hope is on the horizon in the form of vaccines that will help the world get back to normal, the NRA warns that restaurants -- including many local favorites across the country -- probably won’t be there when the pandemic is a distant memory.

Not only will that affect owners of these businesses, but the NRA says people who depend on them for employment will also feel the pain. Fifty-eight percent of chain and independent full service operators expect continued furloughs and layoffs for at least the next three months.

Grim statistics

In its appeal to Congress for help, the NRA presented these grim statistics:

• About 17 percent of restaurants -- more than 110,000 establishments -- are closed permanently or for the foreseeable future.

• The majority of permanently closed restaurants were well-established businesses that were fixtures in their communities. On average, these restaurants had been in business for 16 years, and 16 percent of them had been open for at least 30 years.

• Only 48 percent of these former restaurant owners say it is likely they will remain in the industry in any form in the months or years ahead. 

Congress has debated additional aid to businesses and individuals for months because lawmakers have been unable to get past two key sticking points.

Democrats have insisted on additional money for state and local governments, and Republicans have refused. Republicans have insisted on protecting businesses from lawsuits by people who get sick, and Democrats have refused.

Chipotle Mexican Grill is set to open its first digital-only restaurant on Saturday.

The company recently reported that its digital sales more than tripled in the third quarter, suggesting consumer demand for online ordering isn’t losing any steam as the pandemic continues.

To accommodate the rise in demand for minimal contact food service, Chipotle has come up with a new restaurant design for urban areas. The first digital-only restaurant will open Saturday in Highland Falls, New York. 

The new restaurant won’t have a dining room or even a front service line for customers to place their order. Instead, customers will order in advance on Chipotle’s app, website, or a third-party delivery platform. 

Orders can be picked up from a lobby that Chipotle says is “designed to include all of the sounds, smells and kitchen views of a traditional Chipotle restaurant.” The restaurant will also be able to accomodate large catering orders, which can be picked up at a designated lobby. 

"The Digital Kitchen incorporates innovative features that will complement our rapidly growing digital business, while delivering a convenient and frictionless experience for our guests," Curt Garner, Chief Technology Officer of Chipotle said in a news release. "With digital sales tripling year over year last quarter, consumers are demanding more digital access than ever before so we're constantly exploring new ways to enhance the experience for our guests."

Increasing low-contact options

The COVID-19 pandemic has led to an increase in digital ordering and drive-through options in the restaurant industry as a whole. 

In September, Burger King unveiled two new “Restaurant of Tomorrow” designs that would include coronavirus-friendly features, including multiple drive-thru lanes, curbside pickup, lockers for mobile and delivery orders, and walkup options for carryout orders.

Starbucks said recently that it plans to add more mobile pickup cafes in the year ahead than it planned to before the pandemic began. 

Over the summer, Chipotle announced the addition of more “Chipotlanes” at its restaurants. The fast-casual chain said it’s aware that customers “want convenience and appreciate the ability to personally retrieve their orders without leaving their car.” 

The COVID-19 pandemic has turned the food industry on its ear. Restaurants have had to either find a way to cope with significantly diminished traffic or go out of business, change their menus to deal with the shift in carryout, or completely retool. A new study from the National Restaurant Association (NRA) shows that consumers have increased their usage of takeout and delivery, and this trend will likely continue during the winter months.

The NRA says the upward movement in the frequency of takeout and delivery has spread across the three major dayparts -- breakfast, lunch, and dinner -- over the last few months. 

Breakfast showed the biggest growth. The percentage of consumers picking up a breakfast meal or beverage from a restaurant or coffee shop took a big hit during the first several weeks of the pandemic as workers stayed home, but that has flipped in recent months, reaching a pandemic high of 35 percent last week. 

Dinnertime was the overall big winner, with 66 percent of consumers saying they ordered takeout or delivery for dinner last week, up from 58 percent during the last week of February. The lunch trend mirrored dinner, with about 47 percent of consumers ordering noontime takeout or delivery for lunch last week, up 10 points from February. 

An age thing

Older consumers get the nod for the largest increase in off-premises frequency. Sixty percent of baby boomers said they ordered takeout or delivery for supper last week, nearly 20 points up from late-February. Gen-Xers have also added to the uptick, with 66 percent of that age group purchasing takeout or delivery for dinner last week – up 8 percentage points from the last week in February.

Millennials and Generation Z adults continue to prefer takeout or delivery for dinner at higher rates than their older counterparts, but both groups were already using those options at pretty close to the same rate as they were before the pandemic. 

Delivery’s time has come

Even though the consumer world has heard about DoorDash, GrubHub, and UberEats for the last few years, the delivery sector has actually been biting its nails and losing money for some time. “The business model of delivery platforms has sparked discussion and criticism. Many delivery aggregators are struggling to make profits, with most of them losing money every year," said Marjolein Hanssen of Rabobank.

Hanssen says the crossroads is squarely on how food delivery platforms are able to engineer a win-win with restaurants that might be struggling with the commissions charged by the platform.

“Platform economics benefit from scale, but making delivery economics work remains a complex puzzle. As users of food delivery platforms might be price sensitive, consolidation in combination with the development of extra revenue streams seems to be the only way forward for food delivery platforms,” Hanssen concluded.

Panera Bread has added flatbread pizza to its menus to give customers more options during the COVID-19 pandemic. 

The restaurant chain said it’s seen a steady increase in takeout, delivery, and drive-through orders this year. Many customers are choosing delivery and carryout options for safety reasons. Eduardo Luz, Panera’s chief brand and concept officer, said Panera doubled its delivery business in 2020. 

Luz said Panera had already started testing the new menu item before the pandemic. 

"Our guests have been asking for this for years. We think Panera's bread heritage and outstanding ingredients meet both the desire for high quality, crafted pizza as well as a growing customer off-premise behavior," Luz said in a statement.

As of Wednesday, the company has added Cheese, Margherita and Chipotle Chicken & Bacon flatbread pizzas to its menus nationwide. Prices for the new flatbread pizzas will start at $7.99. 

The fast casual bakery-cafe chain has been aiming to boost its dinner sales in recent years by expanding its menu offerings. The addition of pizza is part of that move. 

"As restaurant traffic across the industry increasingly shifts to later in the day, Flatbread Pizzas allow Panera to further compete across dayparts and appeal to off-premise consumer preferences," the company said in a press release.

Restaurants have been hammered by the coronavirus (COVID-19) pandemic but in many cases, their loss has been gained by convenience stores -- especially those that have emphasized grab-and-go food.

For starters, convenience stores haven’t had to change their business models much in order to adapt to the new environment. Many chains, such as Wawa, have always had sections of prepackaged sandwiches and wraps. All they’ve had to do is increase inventory.

Consumers seem to like the grab-and-go concept at a time when the alternatives are mostly fast-food drive-thrus. And some in the industry believe this trend may last beyond the pandemic.

"We are seeing more consumers opt for something prepackaged for safety reasons," Tim Powell, managing principal at consulting and insights firm Foodservice IP, told Convenience Store News. "The thinking is the food handling by the staff is eliminated."

Powell says research has shown that the pickup in business is coming from consumers who used to frequent restaurants but now avoid the few that are open. He sees only a portion of the current grab-and-go customers returning to restaurants once the danger has passed.

7-Eleven leans on delivery

7-Eleven has expanded beyond grab-and-go and is leaning more heavily on delivery now that the virus is into its second wave. The convenience store chain became Instacart’s first convenience store client in September. 

Last week, 7‑Eleven added two more U.S. ordering platforms – Uber Eats and Grubhub – to its delivery portfolio. In addition to sandwiches, users can order milk, bread and eggs, pizza with a Slurpee drink, and some 7-Select chips, coffee and a pastry, cold medicine, grocery items, and even energy shots.

“When 7‑Eleven began offering delivery in 2017, we certainly didn’t foresee a pandemic accelerating on-demand ordering platforms from convenient to essential,” said 7‑Eleven COO Chris Tanco. “This year we’ve doubled our delivery footprint and quadrupled our daily delivery orders because customers know they can count on us for their necessities in about 30 minutes. We look forward to continuing to respond as our customers’ shopping behaviors rapidly change.”

American consumers have gotten past shortages of some grocery essentials during the pandemic, but the wrath of COVID-19 is still playing a huge role in how consumers shop for fresh food. According to a report from professional services company Deloitte, the majority of the stress is coming from consumer anxiety around safety.

According to Deloitte’s “The Future of Fresh” report, a hefty 54 percent of consumers feel stressed when they’re doing their in-store grocery shopping, with many respondents saying they’re going to the grocery store less often than they were prior to the pandemic.

Adding to a grocery shopper’s misery is that hoarding and supply chain disruptions have resulted in stock depletions for everything from toilet paper to meat. Deloitte’s survey results found that two-thirds of grocery shoppers have had little to no luck in buying the fresh food they wanted simply because it was out of stock. 

When that happens, consumers are forced to decide what they want to buy instead. Most of the people in that situation -- 40 percent -- say they decided to buy an alternative fresh food item. More than a quarter of the respondents bought a processed or frozen alternative or bought nothing at all. 

Fresh food makes us happy

It might be purely psychological, but 90 percent of the respondents said that being able to buy fresh food in the midst of the pandemic “makes them happy.” 

“How customers buy food is changing,” Deloitte stated in a video overview of its study. “The promise of freshness has not.” 

Restaurants have suffered terrible losses during the coronavirus (COVID-19) pandemic, but a new report suggests that the worst may be yet to come when the weather in most of the country turns cold.

A study by The Freedonia Group, a market research firm, says outdoor seating has helped full-service restaurants mitigate COVID-19 losses, but these establishments face the prospect of losing at least some of that revenue source when the temperature plunges.

The study also suggests that the market for many restaurant supplies will be greatly reduced as restaurants curtail operations or close completely. 

It predicts a reduced need for disinfecting products, including surface disinfecting wipes and liquid disinfectants and sanitizers. Restaurants will also need fewer single-use foodservice products -- including containers and lids, beverage cups, sleeves, service ware, and bags and other flexible packaging.

Limited indoor dining

The arrival of fall and the coming of winter may coincide with an increase in coronavirus cases in much of the U.S., making it more difficult for restaurants to reopen their dining rooms. These establishments that have reopened are limited, in most cases, to no more than 50 percent capacity, making it harder to be profitable.

The National Restaurant Association recently reported that nearly 100,000 restaurants had closed during the pandemic, either because they shut down permanently or closed for the foreseeable future. Nearly 3 million restaurant employees are still out of work.

According to the survey, 40 percent of restaurant operators think it is unlikely that their restaurant will still be in business six months from now if there are no additional relief packages from the federal government.

New York City will continue outdoor dining

Despite frigid winter weather, diners in New York City will continue to be seated outdoors. Last week, New York Mayor Bill de Blasio announced that outdoor seating would become a permanent, year-round feature.

Before the announcement, outdoor dining in the city, which began in July during the second phase of reopening, was scheduled to end on October 31. Indoor dining, on a limited-capacity basis, is scheduled to resume in New York this week.

Many restaurants that hope to extend the outdoor seating period, or make it permanent, are planning to add industrial-strength heaters to their outdoor dining areas. Some are enclosing their heated dining areas in a tent, which almost makes it an indoor space -- a move that may be questioned by health officials should cases of the virus continue to spike.

Despite difficulties faced by full-service restaurants, fast-food chains have been better able to adapt to more drive-thru and delivery business. Pizza chains like Dominoes and Papa John’s have actually thrived during the pandemic because their delivery business model was already in place.

But Pizza Hut has not taken part in that prosperity. The company recently announced that it is closing 300 restaurants. A spokesperson for parent company NPC International said “a substantial majority” of the locations targeted for closing have dining rooms. 

Mars Food said it is changing the name and imagery used to market its Uncle Ben’s brand rice products “to create a more inclusive future.” The product will be renamed Ben’s Original.

The current brand came under review in the wake of the nationwide protests over the death of George Floyd, who died while being arrested by Minneapolis police. 

Uncle Ben’s, along with some other food brand names and logos such as Aunt Jemima pancakes, was criticized for allegedly reflecting racially insensitive images. The new branding will appear on products beginning in January.

"Over the last several weeks, we have listened to thousands of consumers, our own associates, and other stakeholders from around the world," said Fiona Dawson, a top executive with Mars Food. "We understand the inequities that were associated with the name and face of the previous brand, and as we announced in June, we have committed to change."

‘More equitable iconography’

The company said it has also committed to removing the image on the packaging to create “more equitable iconography.” The company said it is taking the action to “enhance inclusion and equity and setting out its new brand purpose to create opportunities that offer everyone a seat at the table.”

The Uncle Ben’s logo features a rendering of an elderly black male wearing a bow tie, an image some social critics compared to the image of a house servant during the time of slavery in the U.S. 

Additionally, during the Jim Crow era following slavery African American men were often called “uncle” instead of “mister,” and black women were often referred to as “auntie.” 

Wide-ranging input

In deciding to drop the name of its brand, Mars Food reached out to a number of civil rights organizations, including the National Urban League, for advice.

"Brands have an important role to play as we continue to navigate this moment of reconciliation regarding racial justice, diversity, and inclusion," said Marc Morial, the Urban League’s CEO.

According to The Wall Street Journal, Uncle Ben’s rice dates back to 1937, when a Texas rice broker came up with the name for a parboiled rice product. He reportedly named the company for an African American farmer in Houston who was known as Uncle Ben.

To combat the hit Kroger is taking from items passing through its self-checkout stations without being scanned, the country’s largest grocery chain is bringing in an artificial intelligence (AI) firm to help solve the problem.

While the domestic restaurant industry continues to rebound and is seeing sales accelerate at near a 4 percent clip, major grocers are seeing the curve trending the other way and at double the speed. One industry watcher calculates the losses to grocers in the billions of dollars.

Kroger felt it had personally seen enough of that red ink. To help stem that tide, the company is bringing in Irish AI company Everseen to try and halt the losses it sustains when shoppers and store employees alike either mistakenly or intentionally fail to scan items during checkout.

Shoppers take note

Going forward, shoppers in some 2,500 Kroger stores can expect an extra eye watching their checkout process. Everseen’s system employs cameras to spot when a shopper fails to scan an item, then quietly lets a store employee know. At that point, the employee is supposed to intervene -- in what looks to be a friendly manner -- before the customer picks up their bags and walks out without paying for the merchandise.

Kroger is not alone in trying to make sure it gets paid for what the customer has in their cart. Sam’s Club also uses computer-vision systems, and Walmart recently experimented with eliminating traditional checkout aisles as a way to reduce friction and clogged-up checkout processes. The COVID-19 pandemic has also had a hand in the situation thanks to stores rerouting customers to self-checkout stations to help maintain social distancing from store employees.

In interviews with Wired, Walmart workers familiar with Walmart’s loss prevention programs said their top concern with Everseen was false positives during the self-checkout process. These employees say Everseen’s computer-vision regularly misreads innocent behavior as possible shoplifting, which only frustrates customers and store workers while leading to longer lines. 

“It’s like a noisy tech, a fake AI that just pretends to safeguard,” said one worker.

After six months of a “new normal” amid a deadly coronavirus (COVID-19) pandemic, the restaurant industry is still reeling. “Devastated” might not be too strong a word, according to the National Restaurant Association (NRA).

A new NRA survey shows about 100,000 restaurants -- nearly one in six -- have either shut down permanently or closed for the foreseeable future. Nearly 3 million restaurant employees are still out of work.

For consumers worried about the fate of their favorite eateries, the survey results are grim indeed. Despite a rapid shift to take-out and delivery sales, most restaurants say they are still struggling to survive.

Sales were still a third lower in August

Consumer spending at restaurants was well below normal in August with restaurant sales down an average of 34 percent. Together, the nation’s restaurants are projected to lose $240 billion this year.

NRA research estimates that more than 100,000 restaurants will have closed their doors by the end of this year, though it could be worse. The scope of the damage won’t be known until government statistics are released in the months ahead.

Making matters worse, restaurant operators are having to spend more money to serve fewer customers. About 60 percent of operators say costs as a percentage of sales are higher than before the pandemic.

Even those restaurants that are still open and appear to be successfully navigating the pandemic are far from full strength, with staffing levels only 71 percent of what they were in February.

Survival hinges on creativity

"For an industry built on service and hospitality, the last six months have challenged the core understanding of our business," said Tom Bené, CEO of the National Restaurant Association. "Our survival for this comes down to the creativity and entrepreneurship of owners, operators, and employees.”

From independent owners to multi-unit franchise operators, Bene says restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees.

If that sounds grim, NRA says it could get worse in the months ahead. In the early days of the pandemic, Congress provided trillions of dollars in help for both consumers and businesses. That help has expired and, with an election looming, there seems to be little momentum in Washington to extend it.

According to the survey, 40 percent of restaurant operators think it is unlikely their restaurant will still be in business six months from now if there are no additional relief packages from the federal government.

As restaurants continue to reopen for dine-in service, some consumers seem to be comfortable with an on-premise, sit-down meal. But a new study suggests that more than two-thirds would rather be at home, doing their own cooking, serving themselves, and -- most importantly -- staying safe from COVID-19.

A new study by consulting firm AlixPartners suggests that diners are raising their expectations as consumer confidence in restaurant safety grows. Adam Werner, AlixPartners managing partner, said during a Restaurants Rise webinar that the study’s results are indicative of a new relationship between restaurants and customers that is emerging during the pandemic.

He points out that while restaurant spending is far from rebounding back to normal, it remains the number one choice when consumers are asked how they’d like to spend their dining dollars.

“Consumers are looking to dine out. It’s not all doom and gloom. They want to go,” Werner said. “They need to leave the house, but they want to feel safe.”

The safety of eating at home

On the question of feeling safe, the AlixPartners study mirrors what similar studies have shown -- that health and safety is still the top priority for consumers. 

However, foodies appear to be lowering their guard when it comes to contact with other people. In April, 49 percent of the AlixPartners respondents said they ate at home so they could limit contact with other people. In July, that preference softened to 44 percent. 

While the percentage of consumers who said they prefer cooking at home held steady at 61 percent from April to July, their reasons for staying home also changed a bit. As an example, 45 percent of consumers said takeout/delivery was too expensive for their tastes in July, a metric that rose from 39 percent in April.

Digging a little deeper, AlixPartners researchers found that nearly 57 percent of consumers are now ordering delivery or takeout at least once a week. 

However, that metric comes with a warning from Werner. Even though the delivery business is starting to bounce back, he said that consumers would still prefer to pick up the food themselves. It’s not only because they can save a few bucks on delivery, but also because they’re concerned about health and safety.

Restaurants need to be patient

Werner laid down the law to restaurant operators by saying that they need to remain fluid in how they respond to customers while trying not to second guess them. “The consumer experience is suffering, and those that get it right will win,” he said.

“While contemplating how consumers will behave in the post-pandemic world is an interesting exercise, dealing in hypotheticals can be distracting and, worse, paralyzing at a time when decisive action is crucial. In recovery, they may have to make some decisions they don’t like. But operators need to embrace the unique opportunity to reset consumers’ relationship with the business,” AlixPartners told restaurateurs in a separate advisory.

Understanding food labels can be tricky business for many consumers. Recent studies have found just how frequently labels are misunderstood, and researchers say the U.S. Food and Drug Administration (FDA) should make things clearer for shoppers. 

Now, a new study conducted by researchers from Tufts University is backing up those assertions. The researchers say whole grain food packaging is particularly hard to understand for many consumers, so they’re calling for changes in how food is labeled with the hope that clearer wording will prompt consumers to make healthier choices. 

“Our study results show that many consumers cannot correctly identify the amount of whole grains or select a healthier whole grain product,” said researcher Parke Wilde. “Manufacturers have many ways to persuade you that a product has whole grain even if it doesn’t. They can tell you it’s multigrain or they can color it brown, but those signals do not really indicate the whole grain content.” 

Confusion over whole grains

For the purposes of the study, the researchers showed whole grain food packages to over 1,000 U.S. adults. Some of the examples were actual labels while others were hypothetical renderings used to represent what many labels actually look like. In both instances, the exact amount of whole grain was hard to discern, and many products contained misleading or confusing words that led consumers to believe that products were healthier than they really are.  

The goal of the study was to assess consumers’ knowledge of healthy food products. Based on the results, the researchers wanted to see if there was a need for food labeling to change. 

Overall, when looking at both real and fake images of whole grain food packages, the researchers learned that most consumers overestimated how much whole grain is found in popular food items. In this study, they overestimated whole grain content over 50 percent of the time, regardless of whether it was a real or fake image. Though the participants were shown a wide range of whole grain foods, determining the correct whole grain content in bread was the trickiest out of all the foods. 

The importance of clear labeling

Eating diets high in whole grains can have countless health benefits for consumers, so it’s important that the labeling on these types of foods is straightforward and accurate. The researchers say that knowing exactly what’s in a food product can aid consumers in making the best choices for their desired diets and can lead to improved health overall. 

“With the results of this study, we have a strong legal argument that whole grain labels are misleading in fact,” said researcher Jennifer L. Pomeranz. “I would say that when it comes to deceptive labels, ‘whole grain’ claims are among the worst. Even people with advanced degrees cannot figure out how much whole grain is in these products.” 

As the pandemic unfolded deep into the consumer world, it forced some meat processing plants to shut down. That, in turn, took a toll on the overall food supply, which then put consumers at a loss in finding things like their favorite burgers. 

As a result of all of that, plant-based processors are finding themselves in the enviable position of being the next best go-to.

Interest in plant-based meat increases

Plant-based food companies like Beyond Meat, Impossible Foods, and Tofurky have turned the production setting to high and started selling their meat alternatives at a discount to try and win over a new batch of consumers, hopefully for the long-haul.

Many producers are already reaping the benefits. FoodMarket reports that sales for Before the Butcher, a maker of plant-based burgers and sausages, have climbed over the past two weeks thanks in part to the shortage of traditional meat products. 

Jaime Athos, chief executive of plant-based producer Tofurky, told FoodMarket that his company’s sales had risen 40 percent in the last three months. One of his biggest retail customers recently placed an order for 30 percent more than his usual purchase, he said, pointing out that imitation deli slices and Italian sausage have proved particularly popular.

“This is a peak moment for trial potential among regular meat eaters,” Pat Brown, Impossible Foods’ chief executive, told FoodMarket.

If the plant-based processors can convert a meat-eater to a plant-based one, the odds are good that those consumers might stick around. One recent study ConsumerAffairs found showed that almost 60 percent of consumers who try plant-based food lean towards making that a permanent shift in their diet.

Where’s the beef?

Meat lovers may need to chill for a while because it doesn’t look like real meat is coming back to their grocer’s shelves anytime soon. The domestic meat industry has been turned upside down, thanks to the pandemic. 

The Department of Agriculture said beef, pork, and other red meat production was down 28 percent versus where it was a year ago, and things aren’t looking good. 

“Expect to enter Memorial weekend with little to no boxed beef,” one national food-service distributor told its customers, according to FoodMarket. “Business as usual is nowhere in sight.”

Naturally, the beef industry says carnivores shouldn’t be alarmed. Colin Woodall, chief executive of the National Cattlemen’s Beef Association, told FoodMarket that any beef shortages are a temporary thing, and the data they’ve seen shows that beef remains the consumer’s top choice. “Beef demand, beef sales and overall beef satisfaction are up, proving that consumers continue to crave beef,” he said.

Empty shelves mean higher prices

If consumers can find their favorite red meat at a reasonable price, they should probably grab it because it’s not likely to last. Not only are the major grocery stores putting limits on meat purchases, but the price of beef keeps going up. 

Since the beginning of March, when COVID-19 kicked into high gear, wholesale ground beef prices have more than doubled to $4.68 a pound, according to the USDA. In the last 24 hours alone, the USDA reports that the price per 100 pounds went up $6.81.

In a full-page ad in several newspapers, Tyson Foods Chairman John Tyson said his company plans to temporarily shutter U.S. plants due to health concerns after thousands of meatpacking workers tested positive for COVID-19. 

“The food supply chain is breaking,” Tyson said in the ad that ran in The New York Times, Washington Post, and Arkansas Democrat-Gazette on Sunday. 

Tyson Foods, one of the largest meat suppliers in the U.S., said the coronavirus outbreak will likely lead to millions of pounds of meat disappearing from the food supply due to the halt in production. Tyson, along with Smithfield and JBS, is temporarily closing U.S. facilities in the wake of the revelation that some workers contracted COVID-19. 

"There will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed," Tyson said, adding that "millions of animals — chickens, pigs and cattle — will be depopulated because of the closure of our processing facilities.” 

"In addition to meat shortages, this is a serious food waste issue. Farmers across the nation simply will not have anywhere to sell their livestock to be processed, when they could have fed the nation.”

USDA predicts price increase

The United States Department of Agriculture (USDA) is forecasting that 2020 beef prices will rise 1-2 percent, poultry roughly 1.5 percent, and pork between 2 and 3 percent. The USDA plans to buy $3 billion in fresh produce, dairy, and meat from farmers to help drive down prices and reduce waste. 

The Centers for Disease Control and Prevention (CDC) on Sunday released guidelines for meat and poultry processing workers. The CDC said it recommended providing cloth face coverings for employees, checking workers’ temperatures before they enter the facility, adding more clock-in stations, and limiting carpooling. 

Researchers have noted that COVID-19 is not a foodborne virus. However, it’s always a good idea to practice safe food handling to protect against foodborne pathogens.

One of the urban legends surrounding actor Bill Murray is that he once passed someone sitting in a fast food restaurant and helped himself to some of their French fries.

Maybe that’s charming when a reclusive celebrity does it, but it’s not so charming when it’s your food delivery driver. Yet a new study from US Foods found more than half of delivery drivers it polled admitted to being tempted by the smell of a customer’s food, and about half of them took the additional step of taking a bite.

“We're sorry to report that sometimes, impulse gets the best of deliverers, and they violate their sacred duty by taking some of the food!” the authors wrote.

The study surveyed both consumers and drivers. It found that 21 percent of food delivery customers have suspected a driver of taking some of the food order, while 28 percent of drivers admitted to doing so. 

Eighty-five percent of consumers say they would like their food to be delivered in tamper-proof containers to stop in-transit pilfering. Local health departments would likely be pleased by that move.

Unauthorized snacking

The revelation of unauthorized snacking was buried in the study, which focused on what consumers want in food delivery services and how to improve the customer experience. The research found that the average consumer has two food delivery apps and uses them about three times each month.

The most popular food delivery app, according to the survey, is Uber Eats, followed by Grubhub, DoorDash, and Postmates.

Drivers who nibble on the delivery didn’t rank very high on the list of complaints. Rather, consumers said they want food served warm, fresh, and on time – especially when they're paying a premium for it. 

The 44th annual Winter Fancy Food Show, held in San Francisco last month, has identified key food trends for 2019. According to expert panels at the show, food is now less about taste and more about where it came from and how it was produced.

"Sustainability and social good, through upcycling, ethical sourcing, diverse crops, and cause-related products, are growing ever more in popularity,” said Denise Purcell, head of content for the Specialty Food Association, the show’s sponsor. “We saw this emerging at the Summer Fancy Food Show this past June, and it's really come to life here at the Winter Fancy Food Show."

Other trends that emerged at the winter show are single serve foods that can be consumed on the go and specialty jerky.

“We're seeing a whole new way of eating and snacking,” Purcell said. “Innovation is happening very quickly within the industry and it's exciting to see how these trends will evolve over the next few months."

Many vendors used the winter show to introduce products reflecting biodiversity. They included products utilizing Bambara, promoted as a "complete food." Bambara seeds are ground up and used in various foods for their high protein content.

Other trendy ingredients include Pongamia -- a tree that produces seeds similar to soybeans -- and fonio, a gluten-free “ancient African supergrain.”

Barnacle Foods was on hand to provide samples of its kelp salsa and kelp pickles; Blue Evolution promoted its kelp-based pasta and salad; and New Frontier Foods offered Ocean’s Halo, a kelp-based “superfoods” drink.

New food from old food

Upcycling -- producing foods from discarded food ingredients -- is also in vogue. Render Foods promoted a vegetable drink made from leftover pickle juice, and Renewal Mill is producing chocolate chip cookies made with okara, a “superfood” harvested from the pulp of organic soybeans that is created during soymilk production.

Food producers are also focusing on products that support a protein-rich diet and introduced a number of jerky products. They include Maruden Company’s cod and salmon jerky, Shima’s jerky chips, True Jerky’s jerky trail mix, and Bovino’s crispy beef jerky.

Other food innovations include fruit- and vegetable-based flour and nuts and oats as plant-based dairy alternatives.

You think nothing of ordering a pizza for home delivery, but pancakes?

IHOP, which has restored its brand name after briefly changing it to IHOb to promote its foray into burgers, is teaming up with DoorDash to begin home delivery from 300 of its restaurants.

The restaurant chain, known chiefly for its breakfast menu, already has a mobile app, called IHOP 'N GO. Customers will use the app when ordering through DoorDash. IHOP says the full range of items off the restaurant's regular and limited time menus, as well as customized orders, are available for delivery.

If you're wondering how pancakes will hold up under delivery conditions, IHOP says it's way ahead of you. It says to-go orders will travel in special packaging to keep the food hot and fresh while in transit.

IHOP President Darren Rebelez says the home delivery partnership with DoorDash is part of the company's 60th anniversary observance.

New chapter

"Undertaking a national delivery partnership is an exciting new chapter in our story and builds on the foundational work we've done on IHOP 'N GO this past year, including introducing a mobile app, online ordering through IHOP.com, and special packaging that preserves the quality of our food for takeout,” Rebelez said. “Most importantly, our partnership with DoorDash helps us bring more pancakes, to more people, whenever and wherever cravings strike – something IHOP guests told us they wanted."

IHOP has been on something of a promotional binge lately. Last month it temporarily changed its brand to IHOb to promote the introduction of a number of new burger selections to its menu. But it made clear that it was not giving up its claim to breakfast, which has far fewer competitors than the burger space.

The restaurant chain said it is beginning with just over 300 IHOP restaurants for online ordering through the DoorDash website and mobile app. It expects to add another 600 to 700 locations by the end of the year.

Though July 22, there's free delivery when ordering using IHOP 'N GO through DoorDash on purchases of $10 or more. After that, normal DoorDash delivery charges apply.

In a sweeping reform that is stunningly short on details, the White House is proposing major changes to the way that low-income Americans receive food benefits.  

Currently, people participating in the Supplemental Nutrition Assistance Program (SNAP) receive paper coupons or debit cards that they can use at a qualifying grocery store.

In the 2019 budget and in interviews with reporters, Trump officials say they want to cut those cash benefits in half and replace them with nonperishable food. The food would be ordered by the government and delivered directly to participating consumers.

The Trump administration describes the program in its 2019 budget as a “bold new approach to nutrition assistance” that combines existing SNAP benefits with “100-percent American grown foods provided directly to households,” but the budget does not explain how the food will be delivered or other key details.

Program details remain sparse

Trump officials told reporters on Monday that the reforms would affect approximately 16 million Americans who currently participate in SNAP, or 81 percent of households in the program.

"You actually receive the food instead of receiving the cash,” White House budget director Mick Mulvaney said in a press conference.

But Mulvaney did not explain how the program would work, other than that the USDA would advise states to deliver the food using “existing infrastructure.” The White House also did not explain how SNAP recipients with food allergies or other dietary issues would be affected.

“The projected savings do not include shipping door-to-door for all recipients,” USDA spokesman Tim Murtaugh clarified in a statement to Politico, which reported that anti-hunger advocates found the proposal so outrageous they initially thought it was a joke.

“Holy mackerel," Kevin Concannon, who oversaw SNAP under the Obama administration, said of the proposal in an interview with Politico. “I don’t know where this came from, but I suspect that folks when they were drawing it up were also watching silent movies.”

Serving “nutritious” food

Mulvaney told reporters that the program would serve “nutritious” food and save the United States an estimated $129 billion over ten years. He compared the proposed delivery service, which the USDA is calling “America’s Harvest Box,” to "a Blue Apron-type program where you actually receive the food instead of [receiving] the cash."

But a government program delivering non-perishable foods at a discount bears little semblance to Blue Apron, a meal delivery service which says it only delivers farm-fresh, seasonal produce, meat with no hormones, and sustainably-sourced seafood, among other expensive and fresh foods.

Boxed or canned food is typically packed with sodium and sugar, two additives that the USDA and nutritionists have repeatedly said that Americans need to cut back on. The USDA’s press office has not responded to an inquiry from ConsumerAffairs.

Amazon will kick-off its purchase of Whole Foods in grand fashion. The company announced today that it’s rolling out free two-hour delivery on thousands of the grocery store chain’s products through Prime Now starting immediately.

The Whole Foods delivery rolls out in four markets -- Austin, Cincinnati, Dallas, and Virginia Beach -- with plans to expand continuing throughout 2018. This initiative adds greatly to the evolution of Prime Now, which is already available in 32 U.S. metros.

Amazon Prime members can take advantage of this service in two ways: free two-hour delivery or one-hour store-to-door delivery for $7.99 on orders of $35 or more.

“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. “Together, we have already lowered prices on many items, and this offering makes Prime customers’ lives even easier.”

Amazon looks to change the grocery game

Online-to-home grocery delivery is nothing new. Peapod launched its online service in 1996 and FreshDirect followed suit in 1999.

Yet, when a company the size of Amazon steps in, everyone takes notice. Grocery giants like Kroger have entered the fray with the help of Uber, and InstaCart helps carry the load for Safeway, Giant, Costco, Harris Teeter, and others in a variety of markets.

In the six short months since its purchase of Whole Foods, Amazon has set out to change how grocers do business.

The company started its reframing by pulling out an old supply chain practice called “order-to-shelf” where stores keep little to nothing on hand and depend on suppliers and distributors to bring in the requested items in small batches.

Amazon’s purchase of Whole Foods has helped the company maintain its big-dog-on-the-porch persona. The online giant’s stock value has grown 48 percent ($952.45 to $1416.78/share) since it bought the grocer and its 473 outlets last Summer.

The company’s territorial fearlessness seems to have no boundary lines. It may have put a chink in Wal-Mart’s armor by offering low-income customers discounted memberships.

With success comes stress

Despite the perceived upsides of the new inventory management model, the grocery giant’s workers say they’re having a difficult time keeping up with the demands of Amazon’s frantic pace.

According to Business Insider, Whole Foods employees are showing signs of wear and tear while trying to wrap their heads around the new inventory management system. Of the 27 current and recently departed Whole Foods workers interviewed, many see the system as punitive and believe that employees are forced to focus on paperwork at the expense of satisfying consumers.

Stress isn’t anything new to Whole Foods. Prior to Amazon buying the chain, the big boys in the game -- Costco, Wal-Mart, and Kroger -- had been luring away customers from the pricey grocer by offering lower cost alternatives. And when the company thought it could breathe a sigh of Amazon relief, it found themselves deflecting ire from the U.S. government and their own employees.

The parent company of fast food chain Arby's has completed its acquisition of sports bar chain Buffalo Wild Wings. The $2.9 billion deal was initially announced in November.

Roark Capital, Arby's parent company, says the two restaurants will be combined under a single entity, Inspire Brands, but will remain separate operations. However, industry experts say patrons of both restaurants may notice some changes.

For example, Arby's customers may see new choices when it comes to seasonings. Buffalo Wild Wings, which specializes in spicy chicken wings, offers its customers a wide assortment of spicy condiments, which could eventually show up at Arby's.

Condiment collaboration

Starting today, both chains will offer a new sauce -- a combination of Buffalo Wild Wings' Asian Zing with Arby's Horsey sauce. However, the new concoction will only be available this week at one Buffalo Wild Wings and two Arby's locations in New York.

“We believe the time is right to create a different kind of restaurant company — one with a broad portfolio of distinct brands across a full spectrum of restaurant occasions,” said Inspire Brands CEO Paul Brown. “Our goal is to build an organization that leverages the benefits of scale, not only to save cost, but also to enable outsized investments in long-term growth initiatives.”

Brown is largely credited for Arby's dramatic turnaround, led by menu changes and facility upgrades. Buffalo Wild Wings, meanwhile, has struggled to maintain its position in the crowded casual dining space.

Somewhere, from a call center on the other side of the world, a man was calling the McDonald’s two miles away from my home to let them know that I no longer wanted an Egg McMuffin.  

After several minutes of elevator music, the man with a thick accent came back on the line. The restaurant agreed to remove the McMuffin.

Uber, the rideshare leader that turned the taxicab industry upside down, is now trying to bring its influence and workforce to the growing industry of ordering food via smartphone. In its quest for food delivery domination, Uber has found an unlikely partner in McDonald’s.

When Uber launched its UberEats application across American markets last year, it promised a meal delivery service “that makes getting food as easy as requesting a ride.”

Uber was following in the footsteps of other food delivery applications like DoorDash, Favor Delivery, and Grubhub. For a fee that’s usually around $5, (in UberEats’ case, $4.99), a stranger delivers food from a participating restaurant in their personal vehicle.

It would seem that McDonald’s, a chain that already makes the process of getting food extremely easy, wouldn't have much use for this service, but the companies are going for it anyway.

In May 2017, McDonald’s announced that food delivery through UberEats is available at over 1,000 of its restaurants in the United States. What happens when two brands marketing to our laziness join forces?

Timeline of an UberEats McDonald delivery

1:25 p.m:  I'm just trying to browse the McDonald’s menu and review my online shopping cart when I accidentally press the “Place Order” button. Unfortunately, my credit card information has automatically crossed over from my Uber account to UberEats.

I look for a cancellation button, and a search on the application leads to an explanation that orders cannot be cancelled if they are already being prepared. According to my order history, McDonald’s began preparing my order at 1:25, the very minute that I placed it.

1:27 p.m: I call the 1-800 customer service number provided by UberEats and am connected to a man in another country who can make no promises, but who says he will try calling the restaurant on my behalf.

After a hold, he tells me that the restaurant will allow me to cancel the entire order, but this is the one and only time I will ever able to do so. Fearing I will make this mistake again, I ask him to just remove the Egg McMuffin. He must call the restaurant back to confirm this is possible.

1:52 p.m: My Uber driver arrives and agrees to a short interview.

He does not make much from UberEats. On my $35 McDonald’s order, he took home $5, as he shows on his smartphone screen (customers have the option to tip, but they are not prompted to do so until several hours later).

He has been working since 9 a.m. that morning and has only earned about $30 so far. Why bother? To kill time. He explains that his delivery shift for his other, better-paying job doesn’t start until the end of the day.

Before leaving, he hands me a bag from an expensive restaurant containing a gourmet bowl of pasta and pork. He couldn’t find the person who ordered it and he no longer wants the food in his car.  

2:00 p.m: My neighbor gets the noodle bowl and I sit down to evaluate the McDonald’s order.

I have a stained McDonald’s coffee cup and find a hashbrown at the bottom of one bag. McDonald’s and Uber refunded me for the Egg McMuffin I canceled and got rid of the sandwich but forgot to remove the accompanying hashbrown and coffee. Consumer: 1. Corporation: 1,000,000,000.

They got our other requests right--the burger has no onions or mustard, and we have more dipping sauces than we need.

Because McDonald’s began “preparing” (read: heating up) this food over thirty minutes ago, it is lukewarm and will not be edible until we heat it up ourselves for dinner later. Afterwards, we are extremely thirsty and vow to never eat at McDonald’s again.

There are benefits to smartphone food delivery, especially for small businesses that don’t have a budget to deliver themselves. When the only restaurants by the office are fast-food joints, who wouldn’t want a bowl of pho delivered from their favorite family-owned Vietnamese restaurant on a rainy lunch break?

But getting an Uber delivery from McDonald’s has minimal benefit to anyone other than Uber or McDonald’s.

Health-conscious millennials are reshaping how Americans eat, causing a spike in the popularity of foods that are both eco-friendly and nutritious.

Products such cage-free eggs, “free-from” foods and organic products appearing in more grocery stores (not just specialty organic grocers) can be attributed to the influence of millennials.

Consumers ages 19 to 35 wield a large amount of power in the food industry, so it’s no surprise that they are often catered to by brands and businesses. 

Earning the favor of millennials can yield a big profit, since millennials are often willing to pay more for products that align with their personal values and to advocate for them on social media.

Cooking at home

Dining out takes a big bite out of millennials’ wallets -- an estimated 44 percent of millennials’ food dollars is spent eating out at restaurants, according to a 2016 analysis. But that may change.

According to a survey commissioned by the online grocer Peapod, a third of Americans said they wanted to cook dinner at home more in 2017. Millennials were twice as likely as baby boomers to say they were planning to cook at home more this year.

Food that looks good on social media

Social media savvy millennials are fueling the trend toward seeking out food that looks good on social media. A recent study by Maru/Matchbox found that a whopping 69 percent of millennials snap a picture of their food before eating it.

Consequently, restaurants are becoming more aware of how their food will look when photographed -- and with good reason. Brands and businesses that are favored by millennials get free advertising by way of their social media advocacy.

Growing trust in small brands

Millennials are also more likely to trust small brands to deliver features like nsustainably sourced ingredients and no artificial preservatives.

Over a third of millennials (35 percent) who participated in the Maru/Matchbox study said they trust small local brands more than they used to, compared to 25 percent of those age 35 to 54. 

Millennials' blooming trust in small brands stands to reason, as millennials are more likely than older generations to say they value authenticity and transparency in brands and products.

Probiotics

According to a recent survey by Packaged Facts, roughly a quarter of adults seek out foods and beverages with high amounts of probiotics or prebiotics, such as yogurt, kefir, and kombucha. These days, probiotics can even be found in soda, coffee, tea, soups, and beer. 

“Probiotics have emerged as a driving trend in the industry," said David Sprinkle, research director, Packaged Facts. 

"And given the core importance of gut health, this suggests continued potential for growth of probiotic- and prebiotic-containing foods, as consumers continue to learn more about them and next-generation products make their case in the market."

Millennials embrace probiotic and prebiotic products because they are associated with the hottest wellness trends, from superfoods and ancient grains to sports nutrition.