Why BJ’s Restaurants put a margin improvement team into place

Greg Levin was named CEO of BJ’s Restaurants in the summer of 2021 during perhaps the most disruptive time for the casual dining segment in its history.

Those uncertainties have only grown since, given inflationary and supply chain challenges, as well as a predicted recession on the horizon. Still, BJ’s system sales and comp sales exceeded pre-pandemic levels in Q3. Though margins remain pressured (BJ’s is not anomalous here), Levin and his team have put several initiatives into place to maintain the 214-unit chain’s momentum – uncertainties be damned. Take, for example, the company’s recently-created margin improvement team featuring representation across several functions to actively identify and implement cost savings opportunities, some of which are low-hanging fruit and others that have long-term implications. The team focuses on four areas specifically – cost of sales, labor, operating occupancy and G&A. The ultimate goal is to bring margins back into the mid-to-upper teens, while maintaining quality and portion sizes.

“Most companies came out of Covid thinking inflation would be more transitory but the fact is labor inflation has come in and there are higher input costs than three years ago,” Levin said during a recent interview. “As we looked at margins, we felt it was important to look for areas to improve.”

As an example, when BJ’s chicken wing supplier experienced a labor shortage that significantly increased costs, the chain began testing chicken thighs.

“We have slow-roast ovens, which are unique to BJ’s, so we were able to take those items and put them into these ovens – almost like a crockpot,” Levin said.

The thighs are no longer on the menu, but the experience allowed BJ’s to consider new supply opportunities; in this case, raw jumbo wings that can be cooked in those ovens and then fried when ordered.

“We were able to bring in a commodity wing and cook it better than the rest of the industry. And because of that commodity wing, we are able to save a certain amount of dollars per pound,” Levin said. “The thighs didn’t work out but they made us realize we could introduce more of a commodity product and put our unique spin on it. We had a failure that led to a success down the road.”

Levin estimates this change saves the company about $3 million annually based on current prices. The margin improvement team also looked at ways to trim its fresh salmon differently to yield more product, versus sourcing a cheaper frozen salmon.

“So, again, we’re going to a commodity-type of product and that is giving us savings. These are the types of things we’re doing at the cost of sales – looking at what the commodity products are out there that maintain quality either by slow roasting or adding our sauces or something along those lines,” Levin said. “This initiative is directly reducing pricing required to offset inflation.”

BJ’s is also testing smaller menus and will examine those results in the next few months to understand the cost savings versus customer satisfaction balance. Levin said if the test was successful, a smaller menu could be introduced around June 2023.

“We are mostly looking at things that may not be necessary. We have eight salads, for example. I’m not sure we need eight salads. But we will see where the guest is and what is selling and what is not,” Levin said. “We don’t want to take away the top selling items that our guests want, even if it is complex.”

In addition to the menu, BJ’s is also looking at labor efficiencies for cost savings. Labor is a critical piece for the company’s momentum, as higher staffed restaurants generate stronger topline sales and save on overall costs. Currently, the system is staffed above 90%.

“When we looked at our numbers this year, we were spending a lot of money on overtime and training. We’ve been able to reduce those as we’ve staffed up more, so that has been a big priority,” Levin said. “Also, now that we’ve got this base of people maturing and getting their sea legs under them in the restaurants, we can go back to the traditional labor metrics we’ve had in the past. That’s the switch where we’re getting some efficiencies from because we’re able to understand how to better allocate people in certain timeframes.”

Labor allocation, he notes, has changed with the elevated off-premises business. Pre-pandemic, for instance, about $10,000 of weekly sales came outside of the dining room. That mix has since doubled. To maintain the momentum on labor, BJ’s recently hired its first chief people officer to emphasize culture, which has helped reduce turnover.

Of course, technology is also playing a part in finding efficiencies. To achieve this goal, BJ’s

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3 Outstanding Food Swaps to Improve Brain Health

Tetyana Kovyrina/Pexels

Source: Tetyana Kovyrina/Pexels

Research over the last decades has made it abundantly clear that what we eat plays a major role in our overall, and especially, brain health. For example, we know that people who eat certain patterns of diet (like the Mediterranean or MIND diets) may be protecting themselves against conditions like Alzheimer’s, dementia, and depression. We also know that inflammation in our brains (driven in part by unhealthy diets) may have the opposite effect. Yet often, it’s tough to make an abrupt change from an unhealthy diet to a healthy one. With this in mind, making some simple food swaps is a great way to ease into a brain-healthy diet. Here are three easy ways to subtract dietary junk in favor of healthier alternatives for your brain.

1. Swap processed meat for fish and unprocessed alternatives

Most of us have heard that excessive red meat consumption may be bad for our bodies. On the other side of the spectrum, the rising popularity of diets like the “carnivore” diet has others wondering if there are health benefits from eating more meat.

What does the research actually say? Although the picture is somewhat muddy, several larger studies have shown that when it comes to brain function, it’s the processed meat we want to avoid. For example, an observational study of nearly 500,000 people showed that consumption of processed meat (think hot dogs, chicken nuggets, and many deli meats) was linked to a higher risk for dementia, while eating unprocessed beef, lamb, and pork had the opposite effect .

Want to take it one step further? Seafood, especially omega-3 rich fish, like wild salmon, may be even better for long-term brain health. In a meta-analysis of over 30,000 people published in 2022, researchers found people eating more seafood had a significantly lower risk of developing dementia.

2. Swap out the refined carb snacks for nuts and seeds

One important signal in recent dementia research concerns the connection between metabolic health and brain health. In brain scans of people with dementia, like Alzheimer’s disease, there’s evidence that the brain has trouble using glucose for fuel. This is linked to something called “insulin resistance,” a condition in which our bodies (and potentially our brains) develop problems with blood sugar management.

So how does insulin resistance develop? A major contribution is thought to be the excessive consumption of foods that spike blood sugar, and processed snacks rich in refined carbohydrates (for example, crackers, chips, cookies, pretzel sticks) may do just that. In a study from 2020, researchers found that people who ate afternoon snacks that spiked blood sugar were at a higher risk for developing dementia.

If you want to ditch the refined carbs for something better for the brain, where should you look? One great source of healthier calories and nutrients is nuts and seeds. The studied benefits of nut consumption include better blood sugar control and healthier weight. Nuts are rich in specific fats linked to better brain health. Because of this, it’s been proposed that consistent nut consumption could help offset the risk for brain diseases. Some great options include almonds, walnuts, cashews (technically a seed), and pumpkin seeds.

Berries are another great substitute for sweet and processed carbohydrates. They are rich in plant nutrients called polyphenols, which have been linked to better brain health. In addition, berries tend not to spike blood sugar as much as typical refined carbohydrate-based snacks. One amazing example is blueberries, an especially healthy brain snack that can protect brain cells from age-related damage.

3. Swap soda and energy drinks for sparkling water and unsweetened coffee

In general, we consume far more added sugar than any nutritional organization recommends. For example, the World Health Organization recommends we consume less than 5 percent of our calories from added sugar, yet in the US, that number is closer to 15 percent. Added sugar has been linked to a wide variety of negative health outcomes, including worse brain health, but the evidence here is perhaps most notable for sugary beverages. In addition to the risk for weight gain and metabolic dysfunction, some research suggests that sugary drinks are linked to an increased risk for the development of dementia and depression.

The big reasons we enjoy soda and energy drinks are pretty straightforward: we get thirsty, they taste good, and they often provide a boost of caffeine. So instead of trying a direct swap for basic water, some great alternatives include flavored sparkling waters (when looking for a tasty thirst-quencher) and turning to coffee or tea (both studied for potential benefits to brain function) when you’re looking for an energy pick-me-up.

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World Food Prices Fall to Levels of a Year Ago, UN Says — WSJ

By Yusuf Khan


Food prices fell for the eighth consecutive month in November to levels just above those of a year ago, according to a report published Friday by the Food and Agriculture Organization of the United Nations.

The FAO’s food-price index, a closely watched barometer of global food prices, averaged 135.7 points in November, marginally down from the October reading of 135.9. Prices hit an all-time high in March when the index reached 159.7.

Prices are now sitting just 0.3% ahead of where they were in November 2021, led by easing cereal, meat and dairy prices, the UN body said Friday.

The UN FAO’s cereal price index averaged 150.4 points in November, down 1.3% from the October reading, though this still remains 6.3% higher than November 2021. Wheat prices fell 2.8% on month, dragged by Russia agreeing to renew the Black Sea Grain initiative , allowing for food to pass safely out of Ukraine despite the war.

Rice prices, which have been broadly steady despite the worries over grain supply this year, inched up 2.3% in November, influenced by currency appreciations against the US dollar for some Asian suppliers, the UN FAO said.

The UN FAO cut its forecast for world cereal production in 2022 by 7.2 million metric tons this month and is now pegged at 2.756 million tons, 2% lower on year, on poorer corn harvest prospects in Ukraine.

Vegetable oil prices rose by 2.3%–its first increase in seven months, driven by higher palm and soybean oil prices amid concerns over palm growing in South East Asia and strong biofuel demand soy helping to raise levels.

Dairy prices had their fifth consecutive monthly decline as they fell 1.2% from October. Prices are still 9.2% higher than they were a year ago, although supply pressures in Europe for milk powder and milk have eased.

Meat prices averaged 117.1 points in November, down 0.9% from October–a fifth consecutive monthly decline, on high bovine meat supply from Australia and Brazil. However, poultry prices rose as bird flu cut supply in producing countries.

Harvesting delays in India and higher ethanol prices in Brazil pushed sugar prices up 5.2%, their first rise in six months.

Despite the fall in commodity food prices, experts have warned that consumers are still likely to face higher prices because of volatility in key markets.

“What we’re seeing suggests that prices will stay relatively high and volatile, and that’s because supply is still constrained,” Sophia Murphy, executive director at the Institute for Agriculture and Trade Policy said in a call.

“If demand doesn’t change then suppliers can expect prices to be higher, and then inevitably, more volatile and this sort of reinforces itself,” Ms. Murphy said adding that uncertainty over the shipping corridor in the Black Sea was of major concern.

Last month, the Black Sea Grain deal was renewed, but prices had rallied and dropped as news emerged from discussions on which way the deal would go, with a high degree of uncertainty as to whether Russia would agree to the safe passage of food again.


Write to Yusuf Khan at [email protected]

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