Wave of Flavor Innovation Breaking As Restaurateurs Aim for Relevance

Brandweek,  May 29, 2000  by Theresa Howard

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Now that home meal replacement religion, the cappuccino craze and bagel bonanza are all out of the restaurant spotlight, operators are relying on flavor infusion, frozen beverages and all things exotic in their quest for relevance among consumers. At the convergence of fast-food, family and casual dining restaurateurs last week in Chicago, the emphasis was on ways for operators to take costs out of their operations--including via no fewer than 27 online-oriented solutions for consumer delivery, inventory procurement, and business-to-business solutions--and infuse their offerings with more flavor. They want to avoid the predicament of labor-intensive, cost-heavy operations like the now-stalled Boston Market and Brinker International's Eatzi's.

Taking a leaf from the flavor explorations of drink purveyors like Snapple, food suppliers are augmenting the flavor experience, particularly with french fries and appetizers. Though not yet on the menus of fast food giants, french fries bearing the name "X-treme" fries and fried staples like mozzarella sticks are getting flavor lifts for the new decade. McCain's X-treme comes in Jalapenos Fire Fries, Gusto Garlic and Cracked Black Pepper Fries. The company also is revitalizing plain old cheese with Alpine Swiss Rye Cheese Sticks, Toasted Brie and Greek Saganaki, even as fried appetizer innovator Anchor Foods intro'd Rosemary Brie and Smokin' Jack Mesquite Cheese.

Even fountain will be getting new flavor notes. Operators are making room for more non-carbonated flavors and juices, or opening their doors to a flurry of frozen carbonated soft drinks. Dr Pepper/Seven Up this summer will roll out Sunkist Cherry Limeade at fountain, while Coke will move Frozen Coca-Cola to 35,000 points of distribution and launch a national promo, Fire & Ice, with Burger King in which purchasers of a Spicy Chicken sandwich get a coupon good for a free Frozen Coca-Cola or Minute Maid Cherry.

"This is a strong offering for snacks, and for providing incremental business and increased incidences during the 2 p.m. to 5 p.m. window," said Coke account rep Peter Krogh.

Pepsi is essaying Flavor Splash, a douse of either Cherry Berry or Orange Citrus concentrate served in a Pepsi-shaped packet. Aimed mainly at 32-oz. drinks, the tradeup opportunity has tested in Taco Bell and 7-11 stores at 19 cents to 39 cents, with rollout set for late 2000 or early 2001. Pepsi is touting the product with such descriptors as "creativity, customization and increases variety without equipment."

Then there's Pepsi Freeze, available in Pepsi-Cola and Mountain Dew flavors at 7,000 locations.

On the flavor-free side, both cola giants are looking to boost distribution of their bottled waters at feeders, Coke at top-2 accounts BK and McD's, and Pepsi rolling Aquafina into Taco Bell units in Western markets.

Blimpie Subs is attacking the flavor conundrum in July with wraps in Southwestern, chicken caesar and zesty Italian SKUs, backed by four weeks of national TV around the chain's new "Simply Blimpie" theme and an FSI dangling a buy-one, get-one offer. "They are a way to add more flavors without whole new product lines," said vp-global operations David Kaiser. The chain is also testing in Puerto Rico and Green Bay, Wis., a new store design that sheds light woods and tile for a contemporary warehousey look with block-style color.

Subway will intro by summer's end a "Signatures" line that will add more flavorful offerings with sauces like honey mustard. The chain will position the line on menu boards alongside sub standards that will now fall under the "Classics" moniker. McDonald's is looking to reintroduce pizzas to its own stores starting in late summer/early fall to capitalize on the football season. True, the company has tried for years to get pizza on menus on a national basis, but this time it may have drawn upon the operational learning derived from its acquisition of the well-regarded Donato's chain in the past year. That's also the plan for grabbing extra value from the newly acquired Boston Market and Chipotle Grill chains.

Wendy's, meantime, is eyeing a relaunch of salads--a "top priority" a rep confirmed. Currently the Dublin, Ohio, chain is backing a taco salad in a local marketing window.

Regional operators are becoming more savvy at reaching the families that national players regard as their preserve. Taco Cabana, long targeting adults with its beer and wine license, last month broke the first in a year-long series of four-week promos targeting families. With help from Kid Stuff, Topeka, Kan., the chain claims to have realized a 20% volume boost already.

As everywhere else, the Web had a big presence at this show, whether it was suppliers offering faster and more efficient inventory ordering systems or delivery services like Food.com. Operators finally may be ready to listen. "There has been a hesitancy to embrace one solution wholeheartedly but we see that attitude coming to an end," said Paul Westra, vp-business development at Food.com.

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