A killer? Or a well-deserved meal?

Harvard University medical scientists are reporting that Americans significantly shorten their life spans by consuming red meat — any red meat, fresh or processed. They’re warning us because of the results of a study that was published yesterday, March 12, in the journal Archives of Internal Medicine. In summary, the researchers noted:

Red meat consumption has been associated with an increased risk of chronic diseases. However, its relationship with mortality remains uncertain.

We prospectively observed 37, 698 men from the Health Professionals Follow-up Study (1986-2008) and 83, 644 women from the Nurses’ Health Study (1980-2008) who were free of cardiovascular disease (CVD) and cancer at baseline. Diet was assessed by validated food frequency questionnaires and updated every 4 years.

So the data look pretty convincing given the length of time (20 or more years) and the type of people (well-educated) studied. The report’s conclusion is chilling:

Red meat consumption is associated with an increased risk of total, CVD, and cancer mortality. Substitution of other healthy protein sources for red meat is associated with a lower mortality risk.

In short, red meat consumption is likely to knock years off your life. I’d be pretty happy right now if I owned a vegetarian restaurant — or better — a chain of vegetarian restaurants.

Of course, if I owned a steakhouse, I’d blow off the study, saying that in a year or two there will be another one promulgating a diet of red meat instead. Or I’d argue that the data were faulty or unreliable because it relied on people’s memory of what they consumed.

Which is the message the American Meat Institute began spreading in yesterday’s press release. In it, Betsy Booren, AMI Foundation Director of Scientific Affairs, accused the Harvard researchers of “collecting and analyzing . . . highly inaccurate” data. 

“All of these studies struggle to disentangle other lifestyle and dietary habits from meat and processed meat and admit that they can’t do it well enough to use their conclusions to accurately recommend people change their dietary habits. What the total evidence has shown, and what common sense suggests, is that a balanced diet and a healthy body weight are the keys to good health,” she said

That last sentence sounds reasonable enough. So it’s a baloney sandwich here, a Porterhouse there — and fish, nuts, and grains in between. “Balance” is a very compelling word.

But what if the medical researchers are right? That we should make a concerted effort to drastically trim animal protein from our diet to avoid chronic diseases? The long-term implications for restaurants are, to put it mildly, mind-boggling.

Big flavor: A New York Times' under-$10 favorite.

Yet what caught my eye was this paragraph:

When Shake Shack’s slant-roofed kiosk first landed in Madison Square in 2004, it handily outclassed its nearest rivals, places like McDonald’s and Burger King. But success has bred better competitors. Today, for less than $10, you can get a burger at least as flavorful at Schnipper’s Quality Kitchen, FoodParc, Bill’s Bar & Burger and Steak ’n Shake Signature. (Boldface added.)

Steak ‘n Shake, a Biglari Holdings company, opened the first Signature unit in New York, in January, which may be why it’s mentioned. But the nod in the Times also speaks to quality, at least of the meat.

Contrasting the high level of service at Shake Shack, Wells takes yet another swipe at McDonald’s later in the review:

Before Shack Shack, buying cheap burgers was rarely uplifting. Recently at a McDonald’s in Brooklyn, I waited to order as the people on the registers traded loud profanities with customers who were, I guess, their friends.

Wonder if the folks in Oak Brook will take action.

. . . the cumulative reductions of the past few years are rather shocking in historical context.  These data indicate that the average American will consume 12.2% less meat and poultry in 2012 that they did in 2007.

Note that the high for [boneless equivalent] consumption was in 1999 at just over 190 pounds per person. After a 7-pound decline through 2001 due to reductions in domestic consumption of all three major species — primarily driven by growing exports –- total consumption stabilized from 2002 through 2007 at very near 189 pounds. Then came 2008 and the beginning of this precipitous drop.

Bloomberg News reports that restaurants and grocery stores are sharply raising prices on beef items:

The U.S. cattle herd as of Jan. 1 was the smallest for that date since 1952, and beef exports surged 21 percent in 2011. The U.S. Department of Agriculture forecast a 4.1 percent drop in beef output this year, boosting the cost of the meat for consumers by as much as 5 percent this year, more than any other food group except seafood.

The reasons for the decline vary, yet there’s an “elephant in the room,” claims DLR, namely, U.S. government policy:

If the federal government and its agencies decide to wage war on a product and continue that war for long enough, it will eventually have an impact. And the feds have indeed waged war on meat protein consumption for many years. Add in the efforts of a large number of non-governmental agencies that oppose meat consumption for reasons ranging from the environment to animal rights to social justice and one could conclude that it was amazing that consumption held up as long as it did.

Now consider last week’s Washington Post article that attempts to explain why American’s are increasingly conflicted when it comes to eating animal protein.

Q. Tom, I know that, in the grand scheme of things, this is not an earth shattering issue but I’m wondering why restaurateurs spend so much time on the decor, the cuisine and so many other details but do not bother to have their menus proofread? . . .  I can’t tell you how many times I’ve seen Caesar salad misspelled. I’m sure it wouldn’t be a big expense to hire a proofreader. Actually, I’ll do it for free as a public service.

The investment bank recently released an “outlook” study showing that while sales trends across all categories are likely to mirror last year not everything will remain status quo in 2012. Consider M&A. Bielinski explains:

For 2012, I think you are going to see a slower pace than you have over the past two years. There will be fewer headline transaction because of the dramatic turnover that’s already taken place in private equity portfolios. After all the transactions of 2010 and 2011 there simply aren’t as many mature deals left in private equity portfolios, and since private equity firms typically hold businesses for four to six years, the new owners of these businesses are not yet ready to sell their acquisitions.

Now, completely apart from private equity firms, if 2012 is a strong year from a sales and profits point of view, we could see the beginning of a cycle of franchisee consolidation as older franchisees look to retire and well-capitalized franchisees seek to build scale.

The entire transcript of Bielinski’s remarks (along with a short podcast) is here.

Sadly, not much. It turns out, however, Restaurant Opportunities Centers United, a union for restaurant workers, filed a class-action lawsuit against Capital Grille  parent Darden Restaurants early this week.

Bad tables: Windy City's Capital Grille

The reporter emailed us the 62-page complaint, which was filed in U.S. District Court for the Northern District of Illinois.

As many already know, Darden’s Chairman and CEO Clarence Otis, Jr. is African-American and has worked for  the casual-dining company since 1995. The company announced it would investigate the charges thoroughly, although it believes them to be baseless.

Darden Chairman and CEO Clarence Otis, Jr.

According to the complaint, African-American and other non-white servers at the upscale steakhouse chain say they were typically assigned to “less desirable” table sections and had fewer server assistants assigned to them, resulting in fewer tips than white servers in better sections.

The employees also charge they suffered disciplinary action and were frequently fired “because they did not fit the Capital Grille image.” (A cursory search of Google Images using “Capital Grille server” showed mostly white people in server uniforms.)

Not surprisingly, Restaurant Opportunities Center’s website says ”we work to demonstrate public consequences for employers that take the ‘low-road’ to profitability.”

Darden’s website boasts the company embraces cultural diversity and has been widely recognized for such; it also includes at least one story about a person of color who rose through he ranks at Capital Grille:

Souni Felipa – In Pursuit of a Career Dream
Souni started as a server at The Capital Grille in Miami, but soon took advantage of the company’s career advancement opportunities. After impressing a supervisor with his serving skills, knowledge, and passion, he was promoted to an in-restaurant training position. Today, he is a Lead Server Trainer.

The lawsuit also alleges employee-wage theft in violation of federal and state laws. Here are the specific charges:

– requiring tipped employees to contribute to the wages of non-tipped employees;

– retaining a portion of tips intended for service staff for private parties;

– requiring tipped employees to perform non-tipped work for less than the minimum wage and

– requiring employees to work “off-the-clock” and without pay before and after their assigned shifts.

– In addition, Plaintiffs bring class state law claims under Illinois, Maryland and New York laws for Defendants’ requirement that all of their employees be paid paperlessly, either through direct deposit or a Darden or other pay card, thereby incurring fees to receive their wages and failing to provide its employees with an itemization of their wages and deductions.

– The New York Plaintiffs also bring class action claims under the laws of New York for Defendants’ failure to pay “spread of hours” pay on days they were required to work in excess of ten (10) hours.

That said, PE firms have come in for a pile of negative publicity, mainly the result of Newt Gingrich and Gov. Rick Perry, who have hammered Republican rival Mitt Romney. Closer to home, Star-Tribune business columnist Eric Wieffering battered Caxton-Iseman, owners of bankrupt Buffets Inc., for throwing workers out of their jobs.

Still, charges that PE executives are vulture capitalists who ruin workers’ livelihoods and the companies they invest in — while paying themselves handsome dividends — seems to some people completely misguided. University of Chicago Professor Steve Kaplan is one; he rose up recently to defend investors:

While it is true that the private equity firms get to keep the dividends, it is ridiculous to say that private equity investors actively loot their companies. As Steve Rattner (former Obama administration “car czar” and former private equity investor) pointed out recently, private equity firms can take cash out of a company only when banks are willing to lend more money. That happens only when the company has done well and is expected to do well in the future. In most dividend recaps, therefore, the private equity investors and the banks are positive about the company—the banks expect to be repaid, and the private equity investors expect their equity to be worth even more. When those companies go bankrupt instead, something unexpected (and negative) has usually happened.

Kaplan, the Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance at the Booth School of Business, published his defense in an enlightening essay explaining the risks PE firms take to make money for their general and limited partners. Just thought you’d like to know.

David Farkas moderated a panel that included two beverage directors — Ruth’s Chris Steakhouse’ Helen Mackey and Bonefish Grill’s Leigh Merritt — and Tim McHenry, founder and CEO of Cooper’s Hawk Winery & Restaurant.

The conference, in case you haven’t been, includes the industry’s top bartenders and beverage vendors who, gather to eat and drink (sure) but also to share trends and analyze strategy. And, whenever possible, to make a deal.

Charlotte Voisey makes a cocktail.

Consultant Clark Wolfe, for example, suggested in a keynote speech that in all bar programs should also promote non-alcoholic beverages, including regional sodas and hand-squeezed juices. He reminded the group that drinks are the “entry point” of any dining experience.

Round Robins featured experts who shared ways to boost sales using private labeling, improving service, and exploiting trends.

Harp player in the Benny Turner Blues Band.

When in NOLA, we never pass the up the chance to hear good music . . .

Half-shell treats at the Cheers Beverage Conference.

or scarf down good food!

We dropped by Oceana, a popular watering-hole in the French District shortly after arriving.

Appetite-whetting oysters at Ocena.

And felt comforted knowing the New Orleans police were ready to protect and serve — in case we needed them.

Laissez les bon temps roulez (not too much).

The most difficult part of the trip has been learning to cross the street. Imagine having dozens of scooters, motor bikes and cars heading your way at full speed. Now, step into their path. That’s what one needs to do. It’s like swimming with sharks. You just pray they go around you!

A more frenetic place is the market in HCMC. It’s a giant building with hundreds of stalls selling everything from housewares, clothes, live fish to fresh fruits. It’s a neverending cacaphony of sights, sounds and mostly smells. I always found that it’s the aromas that jar the senses when traveling.

Of course, we are here to explore and find international franchise partners. And that we have been doing. The US Commerce department has done an exceptional job in organizing this trip and we have met some amazing people.

Next stop, Jakarta!