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Darci Forrest, senior director of menu innovation, McDonald’s Corp.
On innovating around specialty drinks:
“We sell a lot of our premium-roast coffee, yet we have an entire platform we’re trying to build in terms of specialties. Different flavors and ingredients start to inspire what kind of innovation will go against those platforms. You can put them in coffee, tea and espresso and create an event out of that. That specialty segment is growing and is a place ripe for innovation. Balancing what is right for our customer base and what we’re able to deliver with the expectations our customers have around speed and convenience and value is always the balancing act for us.”
“We sell a lot of our premium-roast coffee, yet we have an entire platform we’re trying to build in terms of specialties. Different flavors and ingredients start to inspire what kind of innovation will go against those platforms. You can put them in coffee, tea and espresso and create an event out of that. That specialty segment is growing and is a place ripe for innovation. Balancing what is right for our customer base and what we’re able to deliver with the expectations our customers have around speed and convenience and value is always the balancing act for us.”
Stan Frankenthaler, senior vice president of food and beverage innovation and menu development, CraftWorks Restaurants & Breweries Inc.
On training employees to optimize beverage programs:
“You know, a great bartender is a professional, and we dedicate a lot of training to them, and they take a lot upon themselves to be top of their game. We don’t really put that much emphasis on the person who is working the coffee station or blender station, but maybe as we see the value of those sorts of beverages increase, it would seem that we should probably up that effort. Starbucks does and is a great example of professionalizing the barista and engaging them in the business of the customer and their choices.”
“You know, a great bartender is a professional, and we dedicate a lot of training to them, and they take a lot upon themselves to be top of their game. We don’t really put that much emphasis on the person who is working the coffee station or blender station, but maybe as we see the value of those sorts of beverages increase, it would seem that we should probably up that effort. Starbucks does and is a great example of professionalizing the barista and engaging them in the business of the customer and their choices.”
Donna Josephson, chief marketing officer, McAlister’s Corp.
On pursuing trends while staying true to the brand:
“We know what we do well, and we want to continue to do that well. We’re not going to go be bad at something just to be on-trend. So it may take us a little bit longer to make sure we can deliver that great experience, but eventually we’ll get there the right way. Bubble tea is something we have our eyes on, but only if it works for us. Or customers really want green tea, because it’s healthy and full of antioxidants. If we can crack that code and develop great-tasting green tea that is consistent, we may have something there. But guests are going to expect them to be really, really good, and we have to make sure that we deliver on that.”
“We know what we do well, and we want to continue to do that well. We’re not going to go be bad at something just to be on-trend. So it may take us a little bit longer to make sure we can deliver that great experience, but eventually we’ll get there the right way. Bubble tea is something we have our eyes on, but only if it works for us. Or customers really want green tea, because it’s healthy and full of antioxidants. If we can crack that code and develop great-tasting green tea that is consistent, we may have something there. But guests are going to expect them to be really, really good, and we have to make sure that we deliver on that.”
Tim Knowlton, director of foodservice research and development, Smucker’s Foodservice
On monitoring trends versus fads:
“We’re not making things on site, so the shelf life has to be there, and it has to go through the supply chain and sometimes has to involve some pretty long-term procurement or processing capabilities. So for us it has to have more legs in a short period of time in order to make it work for us. Frankly, the best way we keep an eye on it is by your demand and how long you are planning on menuing something, so that we can do a pretty good estimate of whether it’s going to be worth the vestment that we have to put into it.”
“We’re not making things on site, so the shelf life has to be there, and it has to go through the supply chain and sometimes has to involve some pretty long-term procurement or processing capabilities. So for us it has to have more legs in a short period of time in order to make it work for us. Frankly, the best way we keep an eye on it is by your demand and how long you are planning on menuing something, so that we can do a pretty good estimate of whether it’s going to be worth the vestment that we have to put into it.”
Rob Morasco, senior director of offer development, Sodexo Education USA
On developing beverages for Millennials:
“Millennials are great customers because they don’t have filters yet and will just tell you exactly what they think. We have a unique opportunity, because at the push of a button, we can ask 2,000 students what they think about a product we’re testing with them. … But I talk to students all the time, or I ask industry people what they think is the most important thing to our clients, and they go down the list with wellness, sustainability or technology. But the No. 1 issue is cost. It’s how it always works and what it all revolves around, so whatever our innovations are, cost is what going to help us drive that for them and keep them there.”
“Millennials are great customers because they don’t have filters yet and will just tell you exactly what they think. We have a unique opportunity, because at the push of a button, we can ask 2,000 students what they think about a product we’re testing with them. … But I talk to students all the time, or I ask industry people what they think is the most important thing to our clients, and they go down the list with wellness, sustainability or technology. But the No. 1 issue is cost. It’s how it always works and what it all revolves around, so whatever our innovations are, cost is what going to help us drive that for them and keep them there.”
Ken Toong, executive director of auxiliary services, University of Massachusetts, Amherst
On navigating shifting preferences because of health or sustainability:
“I think sometimes we as operators get confused, and we look at the consumers and they’re confused as well. … The health component is big-time for us, and so is how we combine it with sustainability. … One thing to think about for R&D then is how we engage with our suppliers, not just in culinary, but also our food science departments and experts in public health. It’s about how we balance between the food science, plus the needs of consumers, and not just Millennials but also even ourselves. I never read the label on my drinks before, but now I do. … You need to tell your story better, so you pass on your information to your customers, because they scrutinize.”
“I think sometimes we as operators get confused, and we look at the consumers and they’re confused as well. … The health component is big-time for us, and so is how we combine it with sustainability. … One thing to think about for R&D then is how we engage with our suppliers, not just in culinary, but also our food science departments and experts in public health. It’s about how we balance between the food science, plus the needs of consumers, and not just Millennials but also even ourselves. I never read the label on my drinks before, but now I do. … You need to tell your story better, so you pass on your information to your customers, because they scrutinize.”
Greg West, vice president of product innovation, Bob Evans Restaurants
On investing further in soft drinks:
“Now brands are jumping all the way to the Coke Freestyle or Pepsi Spire machines. It’s more money, but why would I invest more money in a declining category, right? More choice can make up for soda’s share if coupled with pricing. Many of us in the retail side have taken pricing more aggressively on beverages. Why did we do that? Because we could. It’s easy, it’s high-volume and it has very high flow to the bottom line.”
“Now brands are jumping all the way to the Coke Freestyle or Pepsi Spire machines. It’s more money, but why would I invest more money in a declining category, right? More choice can make up for soda’s share if coupled with pricing. Many of us in the retail side have taken pricing more aggressively on beverages. Why did we do that? Because we could. It’s easy, it’s high-volume and it has very high flow to the bottom line.”
Shirley Whelan, director of restaurants and bars, Hilton Worldwide
On demand for premium beverages:
“We’ve seen a great increase in what people are willing to spend on a quality glass of wine from a restaurant standpoint. People really will push that $20 mark to get what they want by the glass. We’ve had great success with our seasonal cocktail programs, and the training was certainly the hardest part of that. There is no fail-stop between a bartender and the guest. We’re spending as much care and time to make a nonalcoholic beverage as we do for a cocktail, and that translates well to catering and events.”
“We’ve seen a great increase in what people are willing to spend on a quality glass of wine from a restaurant standpoint. People really will push that $20 mark to get what they want by the glass. We’ve had great success with our seasonal cocktail programs, and the training was certainly the hardest part of that. There is no fail-stop between a bartender and the guest. We’re spending as much care and time to make a nonalcoholic beverage as we do for a cocktail, and that translates well to catering and events.”
