Total Food Sevice October 2011

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Total Food Service's October Issue featuring Buddy Valastro's bakery and an in depth interview with SFM's Barbara Kane.

Text of Total Food Sevice October 2011

  • Pg. 68 // Carlos Bakery

    Pg. 32 // Ocean City BYOB Vote Is Off in NJ for November

    Pg. 2 // Manhattan Based Zagat Acquired By Google

    Metro New Yorks Foodservice Newspaper October 2011 Vol. 21 No. 5

    Barbara KaneSociety for Foodservice Management

    Q&APAGE

    28

  • 2 October 2011 Total Food Service www.totalfood.com

    The founders, hus-

    band and wife team

    Nina and Tim Za-

    gat, said they will

    remain co-chairs

    of the 32-year-old

    company and will

    use Googles resources and expertise to

    expand. We are thrilled to see our baby

    placed in such good hands and to start

    today as official Googlers, the found-

    ers said in a joint statement.

    Local commerce offers services such

    as finding a discount from a nearby

    store, or a review of a neighborhood

    eatery, and the worlds No. 1 search en-

    gine plans to compete in this market

    against Yelp and OpenTable.

    The deal, for which Google did not

    provide financial information, gives it

    valuable content about restaurants, ho-

    tels and nightclubs that can be paired

    with its popular online maps and mo-

    bile search services. The 32-year-old

    Zagat, which polls consumers and com-

    piles reviews about restaurants around

    the world, will become a cornerstone of

    Googles local offering, Google said.

    Google needs to provide more than

    just directions to consumers seeking

    information about restaurants and

    other local businesses, said Marissa

    Mayer, Googles VP of Local, Maps and

    Location services.

    Its also about getting them a sense

    of the place. A sense of what to expect,

    said Mayer. Zagat reviews, in a few

    short lines and a few scores, gives you a

    great sense of a place very quickly when

    youre on the go.

    The move is part of Googles push

    to adapt its online services for a world

    in which consumers increasingly ac-

    cess the Web on mobile phones such

    as Apple Incs iPhone and rely on social

    networking services such as Facebook

    to get information from friends.

    Last month, Google announced

    plans to acquire mobile phone manu-

    facturer Motorola Mobility for $12.5

    billion. The deal, if approved by regu-

    lators, will allow Google to produce its

    own line of smartphones based on its

    Android software.

    A reasonable person would say that

    Google may never beat apple in prod-

    uct design by itself. At least not for a

    sustainable period of time. But Google

    could better integrate content and have

    that become another reason to buy

    those devices, said Stifel Nicolaus ana-

    lyst Jordan Rohan.

    This underscores Googles local and

    mobile initiatives, said Brian Pitz, an

    analyst at UBS, who expected the ac-

    quisition to provide a boost to Google

    Maps as customers look for restaurants.

    Last year, Google moved Mayer, a top

    search executive, to head its local initia-

    tives.

    Google needs reviews and other con-

    tent for its Google Places websites, in

    part to fend off criticism. It has been ac-

    cused of using comments from review

    sites such as Yelp, essentially siphoning

    off their readers and, more importantly,

    their clicks. Google has toned down its

    borrowing of comments recently, Pitz

    said.

    The Federal Trade Commission has

    been looking into the issue as part of a

    broad antitrust investigation, a source

    familiar with the probe has said. The

    move raises the question of whether the

    search giant will start its own restaurant

    reservation service, building on exist-

    ing ties with restaurants that advertise

    on it.

    The shares of restaurant-booking

    service OpenTable, which also pub-

    lishes reviews and ratings, closed down

    more than 8 percent at $57.50 on news

    of the Google/Zagat deal. OpenTable

    is already reeling from financial results

    that have disappointed investors this

    year and the departure in May of CEO

    Jeffrey Jordan, who joined venture-cap-

    ital firm Andreessen Horowitz. Jordan

    remains chairman.

    Pitz said expanding into reservations

    would require extra steps such as build-

    ing out reservation software and getting

    restaurants to install it, as well as building

    different relationships with the restau-

    Manhattan Based Zagat Acquired By Google Google Inc. bought popular dining ratings authority Zagat, last month with the goal of adding a valuable brand to its content offerings and bolstering its push into the rapidly growing local commerce market.

    // NEWS

    Google needs to provide more than just

    directions to consumers seeking information

    about restaurants and other local businesses.

    DEALS

  • 3 October 2011 Total Food Service www.totalfood.com

    Main Office:

    282 Railroad Avenue

    Greenwich, CT 06830

    Publishers:

    Leslie & Fred Klashman

    Advertising Director:

    Michael Scinto

    Creative Director:

    Ross Moody

    Phone: 203.661.9090

    Fax: 203.661.9325

    Email: tfs@totalfood.com

    Web: www.totalfood.com

    Total Food Service ISSN No. 1060-8966 is published monthly by IDA Publishing, Inc., 282 Railroad Avenue, Greenwich, CT 06830. Phone: 203.661.9090. This issue copyright 2011 by IDA Publishing Inc. Contents in full or part may not be reproduced without permission. Not responsible for advertisers claims or statements.Periodicals Postage paid at the post office, Greenwich, CT and additional mailing offices. Additional entry at the post office in Pittsburg, PA. Subscription rate in USA is $36 per year; single copy; $3.00. Postmaster: Send address changes to Total Food Service,

    P.O. Box 2507, Greenwich, CT 06836

    rants. Its apples and oranges, he said.

    Zagat gave Google a tongue-in-cheek

    rating on its home page recently, award-

    ing the Internet company a maximum

    30-point rating for its local, social, mo-

    bile and usefulness categories. Indus-

    try analysts regard the local, social and

    mobile markets as some of the fastest-

    growing areas of the technology sector.

    Zagat enlisted Goldman Sachs to ex-

    plore a sale as early as 2008, although

    no buyers emerged in the middle of a

    recession. The company might fetch as

    much as $200 million, it was reported at

    the time.

    In late 2009 Google was in talks to ac-

    quire Yelp for at least $500 million, ac-

    cording to news reports at the time, but

    the deal fell apart. This iconic pub-

    lisher of restaurant reviews is trusted

    and well-loved by foodies. Customers

    love its ability to innovate and gush

    over its tremendous insight.

    BGC Partners analyst Colin Gillis said

    the purchase was smart. He said Zagat

    is like the little brother of Yelp, the lead-

    ing online review site and a pioneer in

    a space that was founded in 2004. Za-

    gat, based in Manahttan, covers the Tri-

    State area with four different guides.

    The Metro New York books include

    yearly updates for New York City, New

    Jersey, Long Island and Westchester/

    Connecticut.

  • 4 October 2011 Total Food Service www.totalfood.com

  • 5 October 2011 Total Food Service www.totalfood.com

    The Ledyard, Connecticut-

    based gaming facility is

    the largest in North Amer-

    ica, and the tribes debt

    restructuring is the highest among In-

    dian gaming tribes. Like many tribes,

    the Mashantucket Pequots expanded

    its casino during the credit bubble.

    In April 2008, the tribe announced

    plans for a new $700 million resort, the

    MGM Grand at Foxwoods. But days

    later, Lehman Brothers filed for bank-

    ruptcy protection, and like dominoes,

    financial institutions crumbled, and

    the global economy sank. Struggling

    to pay back its highly leveraged debt,

    the Mashantucket Pequots reached an

    agreement with senior lenders in Jan-

    uary 2010 to extend and restructure its

    debt forbearance (in which creditors

    agree not to press demands for pay-

    ments).

    Its the same old story, Joseph Kalt,

    co-director of the Harvard Project on

    American Indian Economic Devel-

    opment, said. A lot of cash flowing,

    tribes investing like mad and then get-

    ting hit by the recession.

    Now the Mashantucket Pequot

    Tribe hopes that debt can be renegoti-

    ated. Under new agreement terms, the

    tribes $1.5 billion now owed would

    be restructured in obligations at fa-

    vorable six percent and eight percent

    interest rates with a lengthy payment

    Foxwoods Mashantucket Pequots Near Debt Restructuring DealThe Mashantucket Pequot Tribal Nation plans to finalize a deal with creditors by the end of 2011 to restructure more than $2 billion in financing related to its Foxwoods Resort Casino and cut the tribes debt load by half a billion dollars.

    // NEWS DEALS

    continued on page 16

  • 6 October 2011 Total Food Service www.totalfood.com

    For the sixth year in a

    row, the event wel-

    comed an incredible

    roster of chefs, pas-

    try chefs, somme-

    liers, mixologists, and

    more, for three days

    of networking, product demonstra-

    tion, and industry exchange. Its the

    6th Annual StarChefs.com Interna-

    tional Chefs Congress, a