At times, we become quite concerned about our cattle rancher partners and clients, continually under the gun regarding saturated fats, grain usage, water requirements, outputs, etc. And today, we must add the concern about costs of beef and what it is doing to demand.
But every cloud will have a silver lining, and our silver lining in the beef business is in large part what many restaurants are now doing with beef, and how that is translating into the grocery business as well.
Many restaurants and restaurant chains are changing cuts, changing names, changing style, all of which improves sales. Steakhouses are moving away from the dark wood motif, and are becoming chic with brighter décor, and a sleek look. Others are renaming common cuts of meat, like chuck roast becoming “flat iron” steak, or shoulder roasts becoming Denver steaks. Even flank steak has been exalted by many restaurants.
With people becoming more frugal and eating out less, and with beef prices at an all-time high, what can we expect but decline in revenue? What a pleasant surprise to see that steakhouse themed restaurants saw sales increase 3.5% in 2011 according to Technomic Inc., a research firm that charts the restaurant industry. Compared to all upscale restaurants (with waiters) which saw sales increase 1.8%, we have no complaints about steak themed restaurants which saw double the growth rate.
The culinary creativity of many steakhouses is being transferred to supermarkets which are renaming cuts of meat. Consumers who have eaten them in a restaurant now look for them in their supermarket. Have you seen a Delmonico steak, beef carpaccio, braised beef ravioli, or meatball fontina?
We can call this marketing gimmickry, but if it results in growing sales in spite of multiple pressures, who cares what we call it? Culinary creativity has helped a very big industry in America.
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