Charting Pitney Bowes Global Ecommerce’s path to bankruptcy


The struggles of Pitney Bowes’ former e-commerce logistics unit have been laid bare in its Chapter 11 bankruptcy process as operations wind down.

Court filings detail the years-long struggle of Global Ecommerce, or GEC, to become profitable and subsequent efforts by Pitney Bowes to offload the business. Despite handling millions of packages every month, servicing hundreds of brands and utilizing a network of 12 U.S. parcel sortation centers, the shipping provider never provided the necessary return for its parent company.

“Simply put, the GEC business is no longer profitable and has not been for some time,” said Eric Kaup, chief restructuring officer of DRF Logistics – GEC’s new name as it heads toward closing – in an Aug. 9 court filing.

That fundamental issue led Pitney Bowes to sell its majority interest in GEC to Hilco Global. The financial services firm will liquidate and close the business through the Chapter 11 process, which is slated to wrap up in early 2025. Several vendors, including UPS and Ambi Robotics, are seeking repayment through the process.

Here’s what led to GEC’s closing, according to Kaup’s account.

Profitability woes never faded

Pitney Bowes originally saw the GEC business as a way to jump into the growing e-commerce package delivery space while hedging against long-term mail volume declines, a threat to its mail processing business.

To build up the GEC segment, Pitney Bowes acquired cross-border services provider Borderfree in 2015 for $395 million. Two years later, it purchased delivery, returns and fulfillment provider Newgistics for about $471 million to expand into the domestic parcel delivery market.

But the potential upside of those acquisitions never materialized, Kaup said, despite Pitney Bowes’ heavy investments to build out GEC’s network infrastructure through the years. GEC reported consistent annual drops in earnings before income and taxes since the Newgistics acquisition in 2017.

Pitney Bowes Global Ecommerce losses mounted for years

Earnings before interest and taxes since 2017

Recent market trends further challenged GEC. The parcel delivery space has grappled with excess capacity, or a supply-demand imbalance, since the pandemic-fueled e-commerce boom cooled off and slowed volume growth.

Carriers have offered up shipping discounts in an attempt to cover fixed costs and fuel volume growth in a softer market. However, this lowered the amount of revenue GEC received per package and further strained profitability.

“These forces (among others) placed significant financial pressure on the GEC business,” Kaup said.

GEC sale explored for months

Amid continued losses, last year Pitney Bowes launched a strategic review of the segment. As part of the review, the company sought out potential buyers.

On Pitney Bowes’ behalf, J.P. Morgan contacted 30 potential purchasers starting in November 2023. Pitney Bowes executed non-disclosure agreements and shared confidential materials with 17 of those potential purchasers.

“This robust and comprehensive marketing process was undertaken over a period of more than eight months,” according to an Aug. 15 disclosure statement.

The company ultimately didn’t receive any binding bids for the GEC unit at a price it found acceptable, Kaup said. Pitney Bowes did manage to make some GEC-related sales beforehand, however. It sold the fulfillment portion of its business to Stord in July for $1.25 million. GEC also sold $500,000 worth of robotics equipment and chargers to healthcare company Medline the same month.

But without a buyer in place for the entire GEC unit, Pitney Bowes determined that a liquidation and wind-down of the business was the best path forward to maximize creditor recoveries, Kaup said.

GEC’s top 30 unsecured creditors, the majority of which are transportation vendors such as UPS, are seeking more than $24.7 million in payment, according to an Aug. 8 court filing.

Vendors seek payment from Pitney Bowes Global Ecommerce

Creditors with the 10 largest unsecured claims against the company

UPS and several other creditors listed did not respond to requests for comment.



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Graphic Packaging’s new technology set to reduce paperboard coatings


Since it announced the project in early 2023, Graphic Packaging International has proclaimed that the coated recycled paperboard mill it is building in Waco, Texas, will be more efficient and bear a lower environmental footprint than many legacy facilities. In its recently released 2023 ESG report, the company describes another potential sustainability gain at Waco: using fewer coating materials in finished paperboard.

The advanced paper pulping technologies being installed at Waco — which is slated to become operational in 2026 — are capable of recycling bleached polycoated paperboard, according to the report. GPI previously had said that the facility would use fiber from up to 15 million paper cups a day as feedstock. All of the clippings and other production waste generated at GPI’s cup and food service packaging plants also can be recycled at Waco, according to the ESG report. 

This material is high-quality fiber that will be used to create the topcoat layer for recycled paperboard, the report states. That could enable GPI to use fewer coating materials in finished paperboard, which would result in waste and greenhouse gas emissions reductions, the report says.

Reprocessing the scrap material generated during production reduces the amount of waste sent to landfill, a GPI spokesperson said via email. In addition, using fewer coating materials overall reduces production waste as well as unused coating waste.

“The technology we are installing in Waco is new to Graphic Packaging. It will allow us to effectively reclaim bleached fiber that is higher in brightness, and the brighter base stock should allow us to reduce the total coating required to achieve our quality specs,” the spokesperson said.

Latex, minerals and pigments are some of the materials used in GPI’s paperboard coatings, the report says; it also points to low-density polyethylene and other fossil-based materials as commonly used in coatings and barriers. The company expects it will see a reduction in all of its three main coating components — clay, titanium dioxide and latex — the spokesperson said.

Altered goals

Along with the release of the ESG report, GPI announced a new goal to achieve net zero greenhouse gas emissions by 2050.

The company had submitted near-term science-based targets to the Science Based Targets initiative, which the organization validated in 2023. Establishing a strategy to reach these science-based targets puts GPI on a path to reach net zero by 2050, the company said in a news release.

In February this year, Graphic Packaging introduced Vision 2030, its strategic plan to replace its legacy Vision 2025 plan. Around the same time, the company announced new ESG commitments that align with Vision 2030. The newly released 2023 ESG report highlights how the company reexamined its sustainability strategy last year to develop these reworked goals.

The process of launching new goals involved replacing some previous ones — even though not all of them had been achieved. For example, GPI moved on from its prior goal to reduce LDPE use by 40% by 2025 and to generate 100% of sales from recyclable products by 2025. In 2023, it achieved 95% for the latter goal, and it reached about a 20% reduction in virgin LDPE use in the last five years, the report says.

“Our sustainability goals were modernized to focus on achieving near-term, absolute greenhouse gas reduction targets, aligned to the Science-Based Targets initiative,” the spokesperson said. “We are taking a holistic approach to meeting those targets, which involves prioritizing initiatives that will make the greatest impact toward limiting global warming to 1.5 degrees C,” which is in line with the Paris Agreement and UN sustainability goals.

Innovating for sustainability

The ESG report underscores the importance of innovation to advance sustainability. GPI describes multiple innovation efforts launched in 2023.

GPI’s FiberLite is a fiber-based barrier material for trays that can be used as an alternative to plastic on standard thermoforming lines.

Permission granted by Graphic Packaging International

 

Some include the insulated, double-walled fiber cup that GPI developed for Chick-fil-A and PaperLite fiber-based flexible barrier materials for trays that can be used on standard thermoforming lines. Projects still in development include paperboard yogurt containers and cookie trays.

Some cups have had a 25% reduction in PE coating thickness, and work is underway to identify plastic alternative coatings, such as with polylactic acid. In 2023, the company saw a 16% year-over-year increase in sales for PLA cups.

Other innovation efforts centered on better barrier materials, such as modifying equipment for biopolymer use and applying thinner coating layers. Cellulose is a material tested in some packaging lids, windows and other films. In addition, GPI is working to create cups and trays that are compostable at home.



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DOJ proposes $5.8 million worker wage settlement for George’s



WASHINGTON — The Department of Justice (DOJ) proposed a settlement that would resolve claims that George’s Inc. and George’s Foods LLC conspired with other poultry processors to suppress workers’ wages.

The consent decree stipulates that George’s pay $5.8 million in restitution to its workers affected by the alleged conspiracy.

According to the DOJ, George’s provided significant and voluntary cooperation to the investigation. George’s would be restricted from retaliating against employees or third parties who disclosed information to the government if the decree is finalized. The settlement would also prohibit George’s from sharing any competitive information about workers’ compensation going forward.

The company’s cooperation would be held accountable by a court-appointed compliance monitor for the next seven years. The compliance monitor would submit regular reports on George’s. Additionally, the DOJ’s antitrust division would be granted access to inspect George’s facilities and interview employees to ensure the company’s compliance.

This proposed consent decree and competitive impact statement will be published in the Federal Register. Any person can submit a written statement concerning the decree during a 60-day comment period.

George’s is the fourth poultry processor to reach a consent decree, following Cargill, Sanderson Farms and Wayne Farms.



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Posted on Categories Poultry

Starbucks announces partnership with Grubhub


Starbucks and Grubhub announced a partnership on Thursday that would allow customers to order Starbucks delivery via the Grubhub app for the first time ever. The delivery partnership will roll out to select markets in Pennsylvania, Colorado, and Illinois in June, and expand to the rest of Grubhub’s markets across the 50 states by August.  

“Customer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter, indicating that our customers continue to want convenience in their everyday lives,” Meg Mathes, vice president of digital experiences at Starbucks, said in a statement. “Our new partnership with Grubhub will help fuel this growth by increasing availability of Starbucks products to Grubhub’s tens of millions of customers, via a leading delivery provider.”

According to Grubhub, Starbucks is the most searched merchant on its app that is not yet available. Overall, Starbucks has been slower to partner with third-party delivery companies than many other top chains in the foodservice industry. While the company began offering third-party delivery through Uber Eats in select markets in 2018, Uber Eats delivery was not available nationally until 2020. Starbucks did not begin offering delivery with DoorDash until last January, and the partnership was not expanded nationally until March 2023.

Grubhub is the final delivery company of the “big three” that Starbucks is now partnering with, though the company has the smallest delivery market share at 8% (as compared with DoorDash’s 67% and Uber Eats’ 23%), according to Bloomberg Second Measure.

“By joining forces with a beloved national brand like Starbucks, we’re offering customers more of what they want on Grubhub while strengthening our enterprise offering and growing our merchant supply in markets nationwide,” Liz Bosone, vice president of enterprise partnerships at Grubhub, said in a statement. “We’re proud to offer national and independent restaurants on our platform — a complementary duo — to give customers more choices and build loyalty.”

This partnership makes sense, given the growing popularity of the delivery channel with Starbucks customers. According to CEO Laxman Narasimhan, delivery business has grown 80% year over year, attributable to the company’s DoorDash partnership. However, there is room for growth in that channel, as delivery still only represents 2% of orders. In January, Starbucks announced a delivery partnership with startup GoPuff to tackle the demand for late-night and overnight deliveries.

The Grubhub partnership also has the potential to alleviate some of the pain points the company is experiencing with meeting demand. Starbucks reported declining same-store sales last quarter for the first time in three years, and Narasimhan said that in addition to improving store efficiencies, Starbucks will continue digitizing its stores. A partnership with Grubhub could be a small step in the right direction of improving digital engagement and opening up omnichannel flexibility.

Contact Joanna at [email protected]



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Who’s News in Catering for April 13, 2024


                                                                                                                                                

Celebrating the best biscuit creations on menus nationwide, General Mills Foodservice announces the four finalists in its 2nd Annual Biskies™ Recipe Contest, who will each receive at least a $5,000 cash prize and qualify for the $20,000 Grand Prize. The Grand-Prize Recipe Winner will be named following a public voting phase taking place today through April 30, 2024, on the General Mills Foodservice website

Furthering its commitment to the Denver market, Oak View Group (OVG) today announced a collaboration with noted culinary expert Christian Navarro,  Edgewood Real Estate Investment Trust, and entrepreneurs Lee Ann and Mark Van Loucks, to create Golden Oak, a state-of-the-art restaurant and culinary academy, in Penterra Plaza located in the Denver Tech Center. Oak View Group, the global leader in live experience venue development, management, premium hospitality services, and 360-degree solutions for a collection of world-class owned venues and a client roster of public assembly facilities around the world, relocated its global headquarters to Denver last summer. Offering a unique blend of culinary excellence, innovative design, and community spirit, Golden Oak is set to become a lifestyle destination for culinary, wine and spirits enthusiasts. The approximately 9,600-square foot restaurant, slated to open in early 2025, will be led by a renowned group of food and wine experts dedicated to crafting a memorable dining experience. 

Hot Off the Presses

Holland America Line is elevating its award-winning dining experience by becoming the first global cruise line to receive both Marine Stewardship Council (MSC) and Aquaculture Stewardship Council (ASC) certifications. The two organizations serve as the most credible standards worldwide for certified seafood. The distinguished certifications take Holland America Line’s Global Fresh Fish Program to the next level, underscoring the brand’s commitment to serving guests the highest quality seafood that is sourced sustainably when wild-caught and raised responsibly when farmed according to the strictest global standards. Marine Stewardship Council’s focus is on sustainable wild-caught seafood, while Aquaculture Stewardship Council works with responsibly farmed seafood, with both organizations seeking to minimize environmental impacts. Aligning with both ecolabels signifies Holland America Line’s commitment to programs that recognize and reward sustainable fishing practices, protect the ocean environment, and transform the seafood market toward greater sustainability. 

Products on the Market

Waring, a trusted source for high-performance kitchen appliances for more than 85 years, today announces the launch of the XPress™ Multipurpose Cooktop, a revolutionary dual-surface cooktop that quickly and easily prepares sweet or savory crêpes, quesadillas, tortillas, omelets, cheese crisps and more. Recently named a featured recipient of the National Restaurant Association Show’s 2024 Kitchen Innovations Awards, which celebrate cutting-edge equipment that’s making a significant impact on the foodservice industry, the XPress™ maximizes output and efficiency for today’s busy foodservice operations by evenly spreading crêpe batter and cooking both sides simultaneously, cutting cook time and eliminating the need to flip foods. With an aluminum cooking surface and embedded heating elements, the XPress™ heats up quickly and can flawlessly produce over 60 crêpes per hour.

                                                                                                                                                

Marking a significant food packaging industry milestone, Klöckner Pentaplast (kp) has launched the first food packaging trays comprising 100% recycled PET (rPET) deriving exclusively from trays. Until now, food packaging trays have been manufactured using ever increasing proportions of recovered PET material; however, the newly launched kp tray is the first to be composed entirely of recycled tray material. This milestone is the direct result of the kp’s Tray2Tray® initiative, which aims to rewrite the PET recycling rules. Thanks to this breakthrough, kp customers can access a fully circular tray solution for food packaging. The kp supply chain is RecyClass certified, ensuring the safety, quality and traceability of its PCR packaging solutions. The new 100% kp Tray2Tray® packaging is ideal for businesses looking to control costs pertaining to eco taxes and plastic tax legislation, as well as those looking to advance their ESG strategies.  



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We Asked 11 Drinks Pros: What’s the Best Macro Light Beer? (2024)


While the light beer wars may be a thing of the past, the numbers suggest that light beer continues to win battles. In 2023, light beer hit a global market valuation of $312.9 billion, and the market’s projected to reach $401.3 billion in 2033. There’s nothing odd or remarkable about the style compared to what exists in the craft beer space, and that’s likely why they’re so popular. While IPAs, sours, and stouts have their dedicated followers, light beer’s mild flavor profile is made for the masses.

It’s also a style that brewers, bartenders, and other folks in the drinks industry can appreciate for various reasons, from feelings of nostalgia to the ease of reaching for something unfussy. But which macro light beer do they tend to reach for after a day of being surrounded by hops and fermentation tanks? We asked 10 professionals to find out. Here’s what they had to say.

The best macro light beer, according to drinks pros:

  • Pabst Blue Ribbon Easy
  • Michelob Ultra
  • Coors Light
  • Miller Lite
  • Suntory All Free
  • Iron City Lite
  • Corona Light
  • Bud Light Lime
  • Yuengling Light Lager


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“My favorite macro light beer has to be Pabst Blue Ribbon Easy. Pabst separates itself from other macro light lagers in that it’s a bit sweeter, but remains super drinkable while still having some flavor behind it. There’s also just something about their timeless can design that makes it stand out when you’re running into the grocery store for beer.” —Michael Bracco, brewer, FlyteCo. Brewing, Denver

“For macro light beers, Michelob Ultra is hard to beat. It only has 2.5 carbs per can, so it’s very drinkable without making you feel bloated.” —Alex Barbatsis, cocktail consultant, Bees & Bats Beverage, Chicago

“I think the proximity of a brewery to where you grew up, nostalgia, and marketing play a huge role in most people’s choice of macro light beer. Coors Light is an all-of-the-above choice for me. Coors Light has always been the unofficial macro lager of the West Coast, because prior to 1981, you could only get Coors beer west of the Mississippi. I also grew up stealing Coors Light out of my dad’s refrigerator when I was in high school, and it’s still my go-to when I plan on putting back more than six beers in a sitting. And there’s something about that frontier, Western-style marketing with the flowing rivers and scenes of the Rockies that’s just so wholesomely American.” —Trevor Walls, chief brewing officer, Brewery X, Anaheim, Calif.

“My go-to has always been and will always be Miller Lite. I grew up seeing that iconic white can with its navy blue writing, and no fishing trip was complete without a cooler full of them nice and ice-cold. I drink it now because it’s nostalgic. Let’s be honest, light beers don’t bring much to the table flavor-wise, so [that preference] is usually inherited, not chosen.” —Dalton Cousar, bartender, White Limozeen, Nashville

“While not saying light on the can, Suntory All Free takes the idea of an NA light to its absolute pinnacle. It has all the flavor you want in a crisp light beer, but it has no carbs, alcohol, or calories. Drinking culture is super strong in Japan, and that means they have also gone to lengths to make sure people who don’t drink can be included. All Free is an amazing example of this. While many great light-style NA beers are on the market, All Free is my go-to for those times when I would have reached for a cold one [before going sober]. For those who want a beer that isn’t a beer, try it; you won’t be disappointed.” —Karl Goranowski, beverage director, BATA, Tucson, Ariz.

“My personal favorite is Michelob Ultra for meeting this single criteria: It tastes the most like water. Or, in other words, it’s crisp and has the least flavor. Regardless of one’s choice, the most crucial element to enjoying any light beer is the temperature; it’s best served ice-cold.” —Aiyana Knauer, operations and distribution coordinator, Grimm Artisanal Ales, Brooklyn

“I have to shout out IC Lite, a legendary Pittsburgh staple. Pittsburgh Brewing Company has a lot of history, and the beer they crank out is unpretentious. IC Lite keeps things balanced; it’s not just thin sugar flavors, which is what puts me off from many light brews. Much love. Can somebody bring me a case?” —Nic Anselmo, head bartender, Bar Meridian, Brooklyn

“I’d go with a very cold Corona Light with lime. I grew up in Brazil, and I’m very used to the adjunct light lagers that we have there. The American beers don’t appeal to me as much as a light, refreshing, and fizzy Corona light.” —Maria Shirts, head brewer, Tin Roof Brewing Co., Baton Rouge, La.

“Truth is, I’m not much of a light beer guy when it comes to the macros. But you know what? I can really get down on some ice-cold Bud Light Lime — in a glass bottle, of course. (Don’t ask, it just hits different!) That bit of acidity really lifts the beer up, and makes it fun to drink. And fun is what I’m after when drinking light beer.” —Jake Guidry, brand director, Hopewell Brewing Co., Chicago

Yuengling Light Lager is my go-to. Like Yuengling, I was born in Pennsylvania, where my mother’s family has been in the hospitality and hotel business for generations. While hardline regional beer, cocktail, and spirit loyalties may have softened, the loyalty to this beer remains strong in my family. Traveling to a state that didn’t carry it for a gathering? We’d bring it. Back East and catching up with friends and loved ones? We’re drinking Yuengling. It has become as much a symbol of East Coast-ness as it is a subtle but poignant way to remember those who might no longer be physically present, but are always there in spirit when we offer up a toast.” —Paul Masterson, Southern California bar operations spirits specialists, Samson & Surrey, Miami

“If I’m reaching for a light lager, my choice is always Miller Lite. It’s dry and crisp. It has lower residual sugar than most of the other macro light beers. It also tastes neutral and clean to me, while its competitors taste unpleasant in a way that I associate with cheap beer as a whole. It also doesn’t hurt that it is quite similar to the Champagne of beers, Miller High Life, which is my all-time favorite macro lager!” —Daniel Galada-Maria, head brewer, Finback Brewery, Glendale, NY





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Posted on Categories Alcohol

NZ’s Synlait Milk warns of insolvency


The company needs to raise $133 mln from top investors


20 August 2024


2 minute read

New Zealand-based dairy producer Synlait Milk on Tuesday warned it might slide into insolvency if it fails to raise NZ$217.8 million ($133.34 million) from its top two investors, reported Reuters

The firm, which seeks to refinance its existing bank facilities, is over-leveraged and its recent earnings have been weak.

Synlait plans to issue shares worth NZ$185 million to China’s Bright Dairy and shares worth NZ$32.8 million to peer a2 Milk.

Bright Dairy is Synlait’s largest shareholder with a 39% stake while a2 Milk holds a near 20% stake in the company.

Synlait will hold a special shareholders meeting on Sept. 18 for investors to vote on the equity raising proposals.

“If the resolutions are not passed, it’s likely Synlait would need to cease trading and initiate a formal insolvency process,” said Synlait chair George Adams.

If it does not stop trading, banks might launch a formal insolvency process, Synlait said.

All tranches of existing bank facilities are due to mature on Oct. 1 and the company must repay all those outstanding amounts by then or refinance its facilities, it said.

Last month, Synlait received investors’ nod to go ahead with a NZ$130 million loan from Bright Dairy.

Bright Dairy and a2 Milk will not be able to vote on resolutions relating to their own placements but have expressed their intent to back each other’s placements.

($1 = 1.6335 New Zealand dollars)





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Posted on Categories Dairy

Hooters launching frozen appetizers and snack items



ATLANTA — Golden West Food Group, the licensed food partner of Hooters of America, LLC, is launching several new frozen appetizer and snack products under the Hooters brand.

The line features a variety of chicken wings and boneless chicken offerings in a convenient format to prepare in home ovens and air fryers. Product flavors at launch include BBQ Smoked Wings, Dry Rub Smoked Wings, Buffalo Style Boneless Wingz and Buffalo Style Popcorn Chicken.

“Whether it’s an easy meal at home, or planning food on the go, consumers now have another way to enjoy the world-famous taste of Hooters with these new frozen appetizers and snacks,” said Bruce Skala, chief marketing officer for Hooters of America.

The product line is available in Publix Super Markets locations across the United States, with more retail distribution expected later this year. Golden West also plans to add four additional Hooters licensed products in 2024.



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Why Engaged Capital seeks changes at Portillo’s


Dive Brief:

  • Engaged Capital, an activist investor with a 9.9% stake in Portillo’s, thinks the company can improve the cash-on-cash returns at its restaurants by 25% to 50%, according to a source familiar with the matter.
  • The source said Engaged wants Portillo’s to shift toward smaller stores and potentially transition away from ownership of its buildings.
  • Portillo’s has pursued a number of operational and development changes in recent years, including efforts to improve the chain’s drive-thru speed of service, which still lags behind 2019 levels.

Dive Insight:

Since Michael Osanloo became the chain’s CEO six years ago, Portillo’s has focused on shrinking its new builds, from an 11,000-square-foot unit with a 107-foot makeline built in 2018, to the 7,700-square-foot Kitchen 23 design that debuted last year and which has a 65-foot makeline. 

Eventually, the chain will build its Restaurant of the Future models, which are 5,500- to 6,000-square-foot units with a 47-foot makeline, Osanloo said in an interview for a previous article. That design is still much larger than the 2,000-4,000 square feet size range the source familiar with the matter said was common among competitors.

Larger store models result in under-utilized space and cause unnecessary expenses in labor, occupancy, utilities and other facilities costs, which drag down restaurant margins, according to the source. Smaller stores, the source said, would have a better cash-on-cash return.

Moving away from store ownership would result in lower construction and development costs, while yielding a moderate increase in rent costs, the source said, and resembled the strategy employed by other restaurant chains. However, giving up ownership in exchange does not always produce a beneficial result; Red Lobster’s sale-leaseback process left the company with escalating rental costs, for instance. 

The source said Portillo’s has been slow to seize on tech that could increase the size of the average check and improve operational efficiency but said the chain’s recent test of in-store kiosks was a sign of positive changes. 

According to the form SC 13D filed by Engaged, which announced the investment firm’s purchase of a stake in Portillo’s, Engaged is interested in “optimizing restaurant performance, improving restaurant-level cash on cash returns, enhancing corporate governance (including through potential changes to the composition of the Board) and/or exploring a sale of [Portillo’s].”

The source said Portillo’s and Engaged have been talking about potential changes for months. 

In a statement emailed to Restaurant Dive, Portillo’s said it “regularly engages with its shareholders to understand their perspectives and we have spoken with Engaged Capital. Our Board and management team will continue to take actions and make decisions that are in the best interests of our shareholders.”



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TekniPlex Consumer Products Receives Compostable Certification for Foam Protein Tray from Biodegradable Products Institute


Part of company’s “GeoPack” product line, protein trays  are compostable in industrial compost settings.

TekniPlex Consumer Products (TPCP), a globally integrated provider of innovative solutions through materials science and manufacturing technologies, has received certification from the Biodegradable Products Institute (BPI) for a compostable foam protein tray. Part of the company’s GeoPack range of sustainability-minded products, the protein tray has been officially designated as biodegradable in industrial compost settings.

The protein tray recognized by BPI is composed of cellulose-based direct food-contact material, and is manufactured in the United States. Conveniently for meat, poultry and seafood brand owners, the GeoPack foamed tray represents a “drop-in” replacement for traditional polystyrene foam trays, as it is compatible with existing overwrap equipment commonly found within case ready packing environments. Additionally, these trays are suitable for use in less automated environments, such as in-store or “back of house” packing.

TekniPlex Consumer Products’ GeoPack solutions meet defined sustainability criteria comprising varying combinations of materials science sustainability’s “4 Rs” – reduce, recycle, reuse and renew. Elements include biodegradable or compostable materials, post-consumer recycled content, recyclability, renewable substrates, and legislation compliance. The goal is to deliver solutions tailored toward customers’ sustainability metrics, including providing information on specific products’ environmental impact. Among other items, GeoPack solutions include molded fiber egg cartons and trays, molded fiber agricultural trays for produce, and recycled polyester (rPET) egg cartons comprised of 100% post-consumer recycled (PCR) content.

“When we look at the current market segments within TekniPlex’s Consumer Products division, sustainability means different things to various stakeholders,” said Chuck Gallagher, Vice President of New Product Development for TekniPlex. “For protein packaging, alternatives to polystyrene foam are limited compared to other segments. Packing protein at scale using fiber-based packages can be a challenge due to the wet packaging environment. Without necessitating substantial equipment investments, the GeoPack compostable tray introduces sustainability elements without sacrificing durability – a crucial factor for the case ready landscape



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