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The Pizza Vending Machine

The Pizza Vending Machine

The Pizza Vending Machine

Italian Claudio Torghele has developed a pizza vending machine, complete with dough, sauce, and toppings, all in less than three minutes.  The machine, called “Let’s Pizza,” will knead the dough, spread the sauce, and give you a choice of toppings, including bacon, ham, cheese and tomato, and vegetable.  Customers can watch their pizza being prepared through a window, and the average cost is about 4 euros or 5 dollars.

Torghele hopes to make the pizza vending machine available throughout Europe and North America.  The machine has already done very well in test markets and its novelty always seems to draw crowds of onlookers, which bodes very well for sales, especially as people begin to look for more affordable options in a down economy.

Not everyone is so enthusiastic, however.  Traditional pizzeria owners in Italy have criticized the pizza machine as a cheap gimmick that sacrifices taste and quality.  Torghele responds that sometimes people are looking for value, convenience, and fast delivery over top quality.

The verdict on the pizza machine will be passed in the streets, and so far, it appears the average consumer loves being able to watch a great little pizza prepared fresh by a machine quickly and affordably.

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Gordon Ramsay: The Restaurant Black Widow

Celebrity chef Gordon Ramsay’sshow Ramsay’s Kitchen Nightmares USA has been a huge hit, garnering thousands of American viewers and elevating the chef’s celebrity even further.

Unfortunately, the restaurants he’s supposed to be helping are dropping like flies in the wake of his black widow touch.  The show’s premise is to bring Ramsay’s expertise and creativity into a struggling restaurant and turn the place around.

But it was revealed recently that over half the restaurants that have appeared on the show have since gone out of business.

Some owners and managers complain that Ramsay’s management style, which includes making everything fresh every day and using high-end product and ingredients, created a standard too expensive to maintain in a down economy coupled with rising food costs.

Other victims of the show are less diplomatic, calling Ramsay a jerk who thinks he can impose his lofty standards on any restaurant.  Some are even suspicious it doesn’t really matter to him whether a restaurant on the show makes it or not, as long as ratings remain high, which they have through multiple seasons in the U.S. and the U.K.

Perhaps the most important lesson to take away from the Ramsay “kiss of death” is that every restaurant is different, and managers and owners have to account for the many divergent factors that make up the success of any establishment.

Of course, the ideal situation is to be able to attain Ramsay-style high standards and still make a profit, but any restaurateur will tell you that the situation on the ground is hardly ever ideal.  Instead, being highly adaptive, creative, and flexible are the traits that will eventually spell success in the food service industry.

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Waitress Steals Credit Card Info For Small Fee

Waitress Steals Credit Card Info For Small FeeA waitress at Bubba Gump’s restaurant in the French Quarter of New Orleans was arrested recently and charged with possession of fraudulent documents and credit card skimming.

Jaleesa Jimerson reportedly used a skimming device to record the credit card information of up to 50 Bubba Gump customers.  The device was given to her by a man and a woman who also paid Jimerson $220 for her services.

When police showed up at Bubba Gump’s with a warrant, Jimerson excused herself and tried to hide the skimming device in the bathroom.  Police soon found it and arrested the waitress.  She received 108 counts for each card she skimmed, making for a massive indictment.

The judge in the case, Gerard Hansen, set a $5,000 bond for each count, and since there were so many counts, it soon added up to $1,080,000.  Jamison remained jailed after the hearing since apparently the pay isn’t so good in credit card skimming.

There was no word if any money was stolen using the swiped card info.  Jimerson still awaits sentencing.

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The Golden Gate Restaurant Association Denied By Supreme Court

The Golden Gate Restaurant Association Denied By Supreme CourtThe Golden Gate Restaurant Association (GGRA) petitioned the Supreme Court recently to prevent the city of San Francisco from enacting legislation that would require employers to pay a fee to provide health coverage for their workers.

On Monday, the Supreme Court refused a temporary stay on the San Francisco legislation.  All businesses in the city with 20 or more employees would have to meet the new requirements.

The law in San Francisco was originally passed in 2006, but has since been held up by a successful court challenge by the GGRA.  A federal appeals court decided the law could be enacted temporarily last year, and now the GGRA is appealing to the U.S. Supreme Court for an emergency injunction to prevent the law from going into effect this year.

Similar legislation in New Jersey and Maryland were struck down by other Federal appeals courts, setting up a conflict in the lower courts that usually means the Supreme Court will weigh in.

However, it is also noted that the Court does not like to get involved in current national policy issues, and the Obama administration’s lofty health care goals for this year could prevent the Supreme Court from weighing in on the San Francisco petition.

The $1.17 to $1.76 per hour per employee healthcare fee has been decried by business owners in the Bay Area as putting an undue burden on business.  Business owners also claim the law violates a federal act that prevents local government from enacting separate pension and benefit plans from national ones.

San Francisco lawmakers counter that healthcare for the city is a necessary, progressive service that benefits everyone.  They also say the hourly fee can be applied in multiple ways, including towards a company’s health premiums, the city’s Healthy San Francisco program, or employee health accounts.

The question of how universal health coverage will affect business in the United States is only now heating up as progressive policies are being considered at all levels of government in the U.S.

Will universal health care wreck business and entrepreneurship?  Or will it create a progressive, egalitarian society for the 21st century?  Somewhere in between?  Weigh in with your opinion below!

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No Lemonade? Call 911!

No Lemonade?  Call 911!

A matter of life and death: lemonade availability.

A Boynton Beach, Florida man experienced a terrible emergency recently: the local Burger King was out of lemonade.

66-year-old Jean Fortune was ordering food at a Burger King location in Boynton Beach when he was told that there was no more lemonade at the restaurant.  A distraught Fortune called 911 and complained about the lack of beverages.

Local police were not very sympathetic.  They cited Fortune for misusing emergency services, resulting in a mandatory court appearance.

No word on whether EMTs were able to revive the lemonade supply at Burger King.

No Lemonade?  Call 911!

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The Economics Of Free

The Economics Of Free

Should everything be free in the new economy???

Google has profoundly affected the way business is done the world over.  Besides becoming a frequently used verb (meaning “to search”) in multiple languages, the internet search and advertising giant became an international success on a business model that has never been attempted before.

Google offers its primary service, internet search, for free.  Ten years ago, when Google started, offering anything for free was unheard of, unless you were hocking towels on an infomercial.  Google’s success has shown that such a business model is not only viable, it’s the wave of the future.

While restaurateurs probably won’t start giving away their entire menu for free anytime soon, new economic realities have forced some innovative approaches to luring customers back to the food service industry, and free has played a huge role.

Denny’s kicked off the new approach to restaurant marketing with a Super Bowl ad announcing that Grand Slams would be free for one full day after the big game.  The success of that promotion has encouraged other chains to get in on the act, including Quizno’s, who recently wrapped up a million sub giveaway through a specially created site called millionsubs.com.

A café owner in Ohio even removed prices from his menu and allows customers to pay what they want for the coffee and breakfast items he serves.  Sales and customer visits have shot up as a result.  The practice of pay-what-you-want was invented in Europe, and has become even more popular since the economy started going south.

Of course, it may not work so well if a guest can rack up a few hundred dollars worth of entrees and bottles of wine.

And there are hundreds of more examples of restaurants finding the benefits of giving something away for free.  In a larger sense, however, the advent of giving away products and services for free has become rooted in consumer culture, and once consumers get something for free, they’ll want other things for free in the future.

But the economics of free also make sense, even if they seem a little counter-intuitive at first.

First of all, your customer appreciates the gift, and if they get one thing for free, they are more likely to buy other things from you, either in the future or at the same time they redeem their free item.

Secondly, nothing should ever be free.  If your customer doesn’t pay money for the thing they get for free from you, then they should either be counted on to buy something else either directly or indirectly from the free thing or you should get something from them, like an email address or a survey.

In an information age, collecting data about your customers has become vitally important to the success of any company.  Giving something away for free is one of the cheapest ways to get the information you’re looking for.

Finally, giving something away for free is a great way to create buzz around your brand.  The free publicity chains like Denny’s and Quizno’s have gotten out of their free food promos has more than made up for the cost of the giveaways.

The economics of free are the economics of the future, and the business you can generate from giving away something for free can far outweigh the cost.  And making more money than you spend isn’t anything new: it just makes good old-fashioned business sense.

The Economics Of Free

Giving things away for free can mean more sales and customer loyalty.

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Yelp Has Restaurant Owners Suspicious

The online restaurant review site Yelp has become increasingly suspicious to the small business owners who the site supposedly supports.  The website is based in San Francisco, where it is also the most popular, although Yelp does post reviews about restaurants in 24 cities across the United States.

Restaurant and small business owners in San Francisco, Chicago, and New York have complained that Yelp employees use bad reviews as a way to cajole them into becoming a sponsor of the site, which costs anywhere from $300 to $1,000 per month.

Many owners have reported receiving repeated phone calls from Yelp representatives, particularly after a couple bad reviews appeared on the site’s entry for the owner’s business.

Since it is known that Yelp employees and third party contractors hired by the company have written reviews for the site, suspicion runs high among restaurateurs that Yelp is posting bad reviews as a way to get them to sign on for the monthly sponsorship fee.

For its part, Yelp denies manipulating bad reviews as a sales technique.  But the main problem is that the review ranking system on the site isn’t transparent.  Nobody really knows how Yelp decides which reviews go to the top of an entry on the site.  Sponsors paying the monthly fee are able to decide which reviews appear in the top 5, and this is the primary motivation for them to sign up.

But restaurants that refuse to shell out the money and have many positive reviews seem to be dogged by unfair reviews that consistently appear at the top of their Yelp entry.

Others pay the money, but only because they feel they have no other option to preventing bad publicity.  This is especially true in San Francisco, where Yelp is used by a majority of customers searching for restaurants and other service based businesses in the city.

One popular San Francisco restaurant, Delfino’s Pizza, has fought back by taking some of the more ridiculous negative reviews posted to their Yelp entry and printing them on T-shirts that staff wear while at work.

This subversive tactic has stimulated some good response from customers, and it raised another question about the site: how much do anonymous, unqualified reviews help or hurt a small business?

Either way, Yelp clearly has a customer relations problem, which they have begun addressing in earnest on their blog.  It remains to be seen if Yelp will be seen as a valuable asset or an annoying liability to the small businesses it covers.

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Time To Move the Beef!

Time To Move the Beef!

Prime beef cut prices are at 7 year lows!

Some restaurateurs are taking advantage of a 7 year low in choice and prime beef to offer their customers some great values on more expensive beef cuts like sirloin, T-bones, and ribeyes.

As consumer spending has ground to a halt, expensive cuts of beef have languished while affordable options like hamburger have continued to sell at a brisk pace.  Hamburger prices remain the same, but the oversupply of prime cuts has driven their price down.

Adding to the oversupply is the increased quality of cattle coming to market.  This is because prices on the hoof have stagnated, so ranchers tend to keep cattle longer hoping for a better price, and the older the cow, the more likely it is to qualify as choice or prime.

With top cuts selling at 2002 prices, restaurants have a unique window of opportunity to draw customers in with a great value on prime beef.  Beef prices typically tend to rise in the spring as supply falls, and then again as the residential grilling season heats up.

Still, prices on prime cuts of beef should stay relatively low for about another six months as consumers continue to avoid more expensive meats.

This means restaurants can continue to take advantage of good prices and move some quality beef.

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Restaurant Marketing: Can Facebook Help Your Sales?

Restaurant Marketing: Can Facebook Help Your Sales?As social media matures and becomes one of the leading elements of Web 2.0, business owners, including those in the food service industry, have started to look for ways to engage customers through sites like MySpace and Facebook.

But just how effective is it to make a Facebook page for your restaurant?

Dunkin’ Donuts launched a two-day Facebook event recently that allowed fans to weigh in on the national chain’s new line of healthy menu options, including bagels, lite specialty coffees, and healthy breakfast sandwiches.

The purpose was to engage customers, boost email signups for Dunkin’ Perks, which runs promos for local markets and reinforces national Dunkin’ Donuts messaging, and get feedback on new items.

Their Facebook page has been up for a year and Dunkin’ has 370,000 fans.  They won’t reveal how many people are on the Perks email list, but it’s at least that many.

Those are some pretty impressive numbers.  Independent restaurants are starting to get in the game as well, with more and more pages popping up for local eateries across the nation.

So are sales going to go up the minute your Facebook profile goes up?

Well, maybe, maybe not, but the bottom line is having a profile definitely can’t hurt you, and may very well help.  If you don’t start bringing in loads of new customers, you’ll at least improve retention among existing ones.

That’s because you can easily keep a conversation going with loyal customers through social media like Facebook.  A Facebook profile can be a great way to collect information about your customers and get feedback about your restaurant.  You can leverage this information to connect with customers in new ways and expand your email marketing and other campaigns.

You’ll also have a direct way to find out what’s wrong with your establishment and what needs fixing.

And as your restaurant’s Facebook page gains popularity and fans, more people are bound to find out about you as friends of your friends end up on your Facebook page.  This form of marketing is still in its infancy and remains an inexact science.

The beauty is that Facebook costs nothing but your time, and at that price a little experimental marketing is too cheap to avoid.

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Would-Be Robber Thwarted By Spoon

Would Be Robber Thwarted By Spoon

Say hello to my wooden friend!

It was just another night at William’s Supper Club, in Muskego, WI until there was a rude interruption recently.  Joey Geraci burst through an open door in the kitchen of the restaurant and immediately grabbed a teenaged busgirl, claiming he had a gun.

The would be robber dragged the poor girl into the bar, where he secured a couple bags of cash from the register and then tried to make his escape back through the kitchen.

Chef Erik Minor was waiting for him there and he cracked the robber over the head with a large spoon.  With the help of a couple other employees, Minor held the suspect down until police arrived.

The girl was unharmed in the incident and Mr. Geraci now faces felony armed robbery charges.

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