2023 Food and Beverage Industry Trends

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Wendy's launches Pumpkin Spice Frosty

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. 

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Dunkin’ introduces ‘spiked’ coffee and tea beverages

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.

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Here’s why so many businesses are asking you to tip

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."

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Panera Bread to host ‘MyPanera Week’ with discounts and savings on food and merchandise

If you don’t have lunch plans this week, there could be some advantages to dining at Panera Bread. 

The sandwich chain is hosting “MyPanera Week,” seven days full of discounts on different menu items – and access to the restaurant’s first line of merchandise. 

“MyPanera Week is back and we couldn’t be more excited to bring our guests more perks inspired by their Panera Faves – from BOGO deals on our signature menu items to early access to our newly launched merch,” said Eduardo Luz, chief brand and concept officer at Panera Bread. “MyPanera has always been focused on delivering personalized experiences and disruptive value to our guests, and we look forward to rewarding and celebrating our loyal members all MyPanera Week long.” 

Meal savings all week

From May 1 through May 7, MyPanera Rewards members will get access to special discounts on some of the chain’s most popular menu items. For starters, all week long, rewards members will have free delivery on all orders of $5 or more. 

In addition to discounts, Panera Bread is giving MyPanera rewards members the chance to win some prizes. Five MyPanera members will be selected to win a free You Pick 2 meal every week from May 14 through the end of the year. Members will be automatically entered to win with each purchase made throughout MyPanera Week. 

The rest of the schedule is as follows: 

  • Monday, May 1: Access to The Panera Shop and new Panera merchandise

  • Tuesday, May 2: MyPanera members receive $2.50 off Panera at Home soups and macs and $1 off salad dressings 

  • Wednesday, May 3: Buy one get one 50% off one soup (only on the Panera app)

  • Thursday, May 4: Buy one get one 50% off one salad (only on the Panera app)

  • Friday, May 5: Buy one get one 50% off one sandwich (only on the Panera app) 

  • Saturday, May 6: For National Beverage Day, Panera will offer MyPanera members its Unlimited Sip Club annual membership for $99 plus tax. Existing Unlimited Sip Club members will buy one entree and get one at 50% off. 

  • Sunday, May 7: Starting May 7 and running through June 11, Panera will host MyPanera Knead to Know Trivia. While the game is ongoing, customers will have the chance to win one of 250,000 prizes, including: a free year of the Unlimited Sip Club, $500 in Panera Bread gift cards, $250 to The Panera Shop, and more. Those who want to play can go to playmypanera.com to enter. 

To be eligible for the prizes and the week of discounted food, consumers must be MyPanera rewards members. 

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What fast casual restaurants do diners rate the best? Number one shakes its feathers loudly and proudly

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.
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Sam's Club is offering discounts on gift cards from major brands

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. 

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Are you ready for dynamic pricing and subscriptions at your favorite restaurant?

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.

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The dollar store food wars are heating up again

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. 

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Instacart launches Instacart Business to help business owners save time and money

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. 

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Starbucks is putting olive oil in some coffee drinks. Not everyone's a fan

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.

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The world’s largest food producer says consumers can expect prices to rise thru '23

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.

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Lent means more seafood for fast food customers

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.

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Food prices and availability have changed from last year’s Super Bowl. Will consumers be able to get what they want?

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.

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Whole Foods presses suppliers to stop raising prices

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%. 

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Starbucks and DoorDash join forces to get food orders to customers more efficiently

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.”