What manufacturers need to know: operators and consultants share their views

Cheers, April, 2004

Product manufacturers always have a lot of new products to share with operators, but at this year's conference, Cheers turned the tables and tried letting manufacturers what it is operators want.

In one of two different panels, Jim Barnett, beverage director, Metromedia/Bennigan's, said vendors need to help operators like him drive traffic through promotions. Any promotion suppliers do provide needs to be active and visible. "Get the team behind the promotion," he said. "I'd like to see distributors out there sampling and driving people to the stores."

To make room for new products and tighten the list of mandated beverages, Bennigan's conducts an annual category management review of products that Barnett estimated saves up to $2 million by trimming slow brands and categories.

Pat Droesch, beverage VP, Brinker International, said he reviews core lists for Brinker concepts annually, and uses pilot programs to test new products. He also uses consumer taste panels and depends on regional manager's advice when making changes.

For any of Brinker's restaurants, suppliers need to recognize that concept is the most important decision-maker, he said. Chili's is about beer and tequila, for instance, rather than wine. Successful partners are the ones who understand each concept and where a product might fit. Other panelists agreed that understanding an operator's needs is key to getting new products in the door.

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Building the brands, though, is not the operator's business, said Droesch. "We need the facts to prove that you [manufacturer] will be out there building the brand. Remember how valuable that shelf space is."

But Barnett admitted new brands are very important. "When we were kids and went to 7-11, we had 13 choices of beverages. Today, kids in Gen Y and others who grew up with multitude of flavor profiles expect more choice."

Kathleen Packard, beverage director, Carrabba's, said suppliers are important in such areas as recipe development. "They're the experts in developing drinks. We're the experts in restaurants." Droesch said he's surprised more vendors don't hire experts to work with operators on developing recipes.

When making the annual core list change at Hard Rock, Busi looks for big numbers. "Are our changes moving case sales? Did I move the beverage needle? I look to our vendor partners to help me with that."

Carrabbas' Packard said for her concept, wine is important, with regional promotions and a national core list evaluated twice a year, and area managers making regional decisions.

And while relationships are still very important in the food service/beverage alcohol business, Droesch said that fact-based analysis of products and their fit are what drive changes today.