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Crystal Flame Award

Best Single Product Rollout

Einstein/Noah Bagel Corp.

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From left: Chad Thompson, director of R&D; Gail Lozoff, chief concept officer; Joanne Sheean Flannery, senior director; Ron Savelli, vice president of operational technology; and Stephanie Pearce, senior director of brand marketing.
 

Portabello Baguette Sandwich

In this country the big statement at lunch is between two pieces of bread," says Ron Savelli, vice president of operations and technical services for Einstein/Noah Bagel Corp.

That explains why the Einstein side of the bagel chain introduced 38 new products to its lunch menu in 1998. Heading the list was the Roasted Portobello and Pepper Baguette Sandwich. It features crusty sourdough bread and earned the company the 1999 MenuMasters Award for the Best Single Product Rollout.

Typically, Einstein Bagel does 70 percent of its business between breakfast and lunch with a core product line of bagels, cream cheese, coffee and assorted bagel sandwiches.

"Before last year all our lunch fare was built on bagels because we had no alternative bread," explains Savelli, who heads the chain's research and development effort. "Customers come to us for a bagel for breakfast but may not want one for lunch. We felt there were opportunities to expand that daypart."

And there were. According to Jeff Rosenkranz, an analyst with The Delaware Bay Co., "The new menu has given a lift to their same-store sales. They've added approximately $500 per store per week on average, or nearly 4 percent, with a goal of adding another $500 on top of that."

A native of Queens, N.Y., Savelli first started working in bagel shops as a teenager. "Through the 1960's, '70's, '80's and '90's, New Yorkers came to view bagel shops as a lot of different things -- catering, hot foods and more. That was our intention -- to have the customer know we could do bagels and a lot of other things."

Making it happen was a big task with a short fuse. Product development began in December 1997, and the menu was launched in mid-July 1998. It was a hectic period for Savelli and his team. "Vacations were canceled," he remembers. "We worked weekends. It was all hands on deck."

While most people relaxed the day after Christmas sleeping off holiday feasts, the Einstein team was sampling soups. "We had just finished these huge meals and here we were tasting 150 soups," Savelli recalls with a laugh. "That's us, passionate about food."

The group that drove new product development included Savelli; Gail Lozoff, chief concept officer; Chad Thompson, corporate chef and manager of research and development; and Stephanie Pearce and Joanne Sheean Flannery, senior directors of marketing.

The expanded lunch menu is now available in all 433 Einstein Bagel shops and features All-American Bagel Sandwiches, Roll-ups served on fresh tortillas, Bagel Focaccia, Green Salads, Baguette Sandwiches, Soups and Chili.

The flagship product is Roasted Portobello and Baguette. "We roast the portobello in a signature balsamic vinaigrette in our ovens at the store," Savelli explains. "Then we slice the cap in half, add roasted red peppers and fresh greens topped with Asiago cheese blend."

How do you launch 38 products in a short time frame to all your stores? "By moving quickly," Savelli says.

The chain's 12 trainers and district managers were rushed to the Colorado test kitchen for hands-on training. Brimming with newfound knowledge, they spent the next day serving and training the six vice presidents of operations.

Einstein also designated two seed stores in every market and trained a whole store. Each general manager and assistant general manager worked in the store for a day or two. From start to finish, the entire transition to the new menu took about a month and a half.

Looking back, Savelli calls the new menu "a big step toward where we want to go, which is to fast-casual, where you can get creative flavor profiles in the right atmosphere at the right price points."


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