The Meat Market

7-Eleven® Introduces Gourmet(?) Wrap Sandwiches
After years of going head-to-head with Mexican fast food chains like Taco Bell with their taquitos and burritos which became the butt of too many late night talk show jokes, C-store king 7-Eleven, Inc. is taking on the likes of Subway®, Quizno’s® and Roly Poly with the introduction of two Big Eats® Wrap sandwiches. The Big Eats Wraps retail for $3.69 each, a high price point for the company.

Based on positive feedback in initial taste tests, Joanne DeLorenzo, 7-Eleven V.P. of fresh foods merchandising, believes these first two items will appeal to 7-Eleven customers:
1. Turkey and Capicolla Ham Club (Capicolla ham and roasted turkey with bacon bits, asiago cheese, romaine lettuce and basil aioli spread on a sun-dried tomato flour tortilla).
2. Chicken Breast with Southwestern Mustard (Roasted chicken, red bell pepper, red onion rings, julienne radish, romaine lettuce and Southwestern mustard on a spinach flour tortilla).

DeLorenzo said the goal was to create portable, easy-to-eat, lighter-tasting menu items. Another growing trend that directed the development of the new Big Eats Wraps was the increasing interest among their core Latino market for products with a Mexican or Tex-Mex flavor.

One of the challenges was to make the Big Eats Wrap -- package and all -- a car-friendly, easy-to-eat lunchtime alternative.

"Once we cleared the hurdle of ingredients that won't fall out and sauces that don't drip (on your work pants while driving down the interstate at 70 miles per hour while trying to eat one-handed, editorial comment), the next question was, 'is it easy to carry and consume?,'" DeLorenzo said. The 7-Eleven fresh-foods group developed a package that holds the wraps in an upright position.

"The package had to fit in a car cup holder," DeLorenzo said. "The wrap comes inside a plastic cellophane bag with easy tear-off pouch that sits inside a cardboard package. It will easily travel in a car cup holder or sit on a desk."

The big question: Can a place famous for Big Bite® hot dogs at a buck-a-piece and taquitos at two for $2 go upmarket far enough to sell a $3.69 wrap? Or convince a crew cab full of construction workers that a wrap is a better deal than two dogs?

Things get fishy at Subway
Subway restaurants in eight Midwestern markets are offering applewood-smoked wild Alaskan salmon as part of a limited time offer, according to a Subway spokeswoman. No word on whether this is a market test aimed at an ongoing product offering or a one-time deal. Tight product supply suggests the latter.

With 18,181+ stores in the U.S., finding enough salmon for a system-wide offering would be prohibitive.The salmon can be ordered in sandwiches, wraps and salads, ranging in suggested retail price from $3.89 for a 6-inch sandwich to $4.99 for a salad. Markets involved in the promotion include Minneapolis, St. Paul and Duluth, Minnesota; Mason City, Iowa; and Eau Claire and La Crosse, Wisconsin.

"I'm Thinking Arby's"™ Might Attract a Younger Audience
Arby's® celebrates 40 years of providing faux roast beef sandwiches by launching a new advertising and branding campaign that focuses on its well recognized cowboy hat.

The "I'm Thinking Arby's" campaign, launched nationwide the week of February 28th, features a series of :30 second TV spots depicting what happens in a day in the life of customers preoccupied with "Thinking Arby's". The punch line comes to life for the viewer with an animated Arby's signature red hat appearing throughout the spots. The bigger question of whether any of these people have a life is never asked.

In possibly an inadvertent recognition of their aging customer base, Debra Mager, Senior Vice President, Brand Communications for Arby's Franchise Association said, "We want to introduce Arby's to a new generation of customers. We believe they will agree that we are different and better than the others."

Arby's new Market Fresh® Chicken Cheddar Jack Wrap is featured in the new campaign. The new wrap, the fifth option in the Market Fresh wrap menu, features pepper bacon, a shredded blend of cheddar and pepper jack cheeses, chicken, lettuce and tomato, and ranch dressing wrapped in a soft tortilla.

McD’s & Co. try to check out of the fat farm
With the recently revived obesity-related lawsuit against McDonald's, activist groups continue to call for reforms in the ways QSR’s attract young customers. The industry defended their marketing practices as responsible and balanced. A number of organizations — including the Center for Science in the Public Interest and the Institute of Medicine — disagree and are demanding government intervention.

McD’s reacted with a new "It's what I eat and what I do” expansion of their “I'm lovin' it" campaign includes television ads, new packaging, an updated Web site and Ronald McDonald videos aimed at teaching children how to eat well and stay active. It’s how "We will use our size and strength to set an example," said C.E.O. Jim Skinner as he positioned the company’s new marketing-to-children efforts on the politically correct side of the public relations fence.

The TV spots feature kid-friendly activities and tennis stars Venus and Serena Williams, retired hockey whiz Wayne Gretzky and 41 year old speed skater Bonnie Blair, who first competed in the Olympics 20 years ago. The Williams sisters might hit the mark with kids but Gretzky and Blair are older generation icons, more likely to appeal to their parents…maybe even their grandparents. McDonald’s marketing geniuses missed the target by a mile and two generations on their selection of aging spokes-athletes.

They did much better with selecting the sub-teen idol and Disney star Raven for their Happy Meals promos (see “Center Stage” story below)

Retiring guests drive the future of the restaurant business
After six decades of forcing their ever-changing lifestyles on the restaurant industry, baby boomers are drifting into another life change: retirement. Beginning in 2007, the floodgates will open wide by 2011. Some 78 million people born between 1946 and 1964 will become eligible to receive full benefits from Social Security, according to the American Association of Retired Persons.

With that in mind, maybe Arby’s should actively court the rapidly aging baby boomers (See “I’m Thinking Arby’s” story above).

Center stage to center court with Happy Meals®
McDonald's® is bringing the Disney’s television series "That's So Raven" and the National Basketball Association (NBA) to Happy Meals and Mighty Kids Meals nationwide. Beginning February 25, 2005 through March 17, 2005 with the purchase of a Happy Meal® or a Mighty Kids Meal®, guests will receive one of six "That's So Raven"-inspired fashion and fortune-telling accessories, or one mini-basketball figure sporting one of 30 mini-NBA jersey replicas.

Papa John's International, Inc. markets a Sicilian Meats specialty pizza Topped with a blend of four meats – Italian salami, pepperoni, sliced Linguica sausage and spicy Italian sausage – Papa John’s Sicilian Meats pizza will be a limited time offer.

The Sicilian Meats pizza promotion runs February 21 through March 27, supported by a combination of print media, local television and two weeks of national television. The television commercial, set to the upbeat tune "Mambo Italiano," features product shots. The Sicilian Meats promotion is also available to customers ordering Papa John's pizza online at www.papajohns.com.

Carl's Jr., tops a Six Dollar Burger with Texas Toothpicks
Carl’s Jr. launched the Spicy BBQ Six Dollar Burger topped with Texas Toothpicks. Texas Toothpicks are spicy batter-fried slivers of onions and jalapenos. They add heat and a nice crunch to the three ninety-nine “Six Dollar” Burger, and will also be offered as a side item on their own.

Carl’s Jr. goes the way of sister company Hardee’s in successfully ignoring the “lite” meal trend. Both are after the heavy user (pun intended), an extremely profitable market vacated by the likes of McDonald’s and Burger King as they bow to pressure exerted by the rabid health foodies.

Chick-fil-A Pays Tribute to USS Nimitz Crew
Chick-fil-A, Inc. paid tribute to the U.S. Armed Forces by hosting lunch for approximately 1,000 service men and women aboard the USS Nimitz. The event was held as culmination to Chick-fil-A's annual operator seminar held this year in San Diego and in conjunction with an aggressive expansion into Southern California.

It would be tough to think of a better public relations venture in a town loaded with military personnel.

No bologna, Kraft takes the center of the plate off the table
In a story first published by FoodProcessing.com, Kraft Foods C.E.O. Roger Deromedi reportedly ignored Oscar Mayer when he listed the businesses the company will focus on. In a presentation to investors, he said Kraft would concentrate on cheese and dairy, crackers and cookies, coffee and specialty beverages.

"It seemed apparent that they were dressing Oscar Mayer up for a sale," says Tim Ewing, senior V.P. of Mesirow Financial Inc., which holds 200,000 Kraft shares. "We've thought for some time that they'll spin off Oscar Mayer."

Morningstar Inc. analyst Mark Hugh Sam says, "Sara Lee would be the most logical buyer of Oscar Mayer. The only others that could afford it would be ConAgra, Tyson or Smithfield."

With the aggressive buying posture shown by Joe Luter in the last few years, Smithfield strikes many as the most likely suitor.

Carl’s Jr.® offers bobbleheaded Kobe
Carl's Jr. Los Angeles area stores will place a big bet on the revival of fallen basketball star Kobe Bryant when it puts a Bryant bobblehead on the table as part of its annual Lakers® promotion next month.

Bobblehead dolls of Bryant and four of his teammates will sell for $4.99 each with the purchase of a value meal, starting with Lamar Odom on March 16. The bobbleheaded Bryant will debut in Los Angeles and Orange Counties for one week in mid-April. Chris Mihm, Caron Butler, and Luke Walton complete the lineup.

Bryant's arrest in 2003 for felony sexual assault after an encounter in a Colorado hotel room ended his off-court career as a pitchman. He lost $4 million to $6 million in endorsement contracts after his arrest plus the cost of the multi-million dollar “apology” ring he bought for his wife. Nike dropped him immediately and McDonald's and Nutella did not renew his contracts

When asked about the appropriateness of including Bryant, "There was some discussion internally" Renae Scott, V.P. of regional marketing and media for Carl's Jr. said. The decision was made because "He is an integral part of the Lakers team and a fabulous player," she said.

In other words, they found it too awkward to leave a starter off the team of bobbleheads, regardless of his considerable legal baggage.