December 10th QSR Roundup: From California Tortilla's Innovative Expansion to Eegee's Bankruptcy Struggles and Culinary Trends

Interviewy Team

Interviewy Team

— 6 min read
December 10th QSR Roundup: From California Tortilla's Innovative Expansion to Eegee's Bankruptcy Struggles and Culinary Trends
QSR news for Dec 10th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 115 articles to bring you the latest. Estimated reading time saved (at 200wpm): 355 minutes. It'll take you only 7 minutes to catch up.

Innovations and Transformations in the Restaurant Industry

California Tortilla is embracing change to stay competitive. CEO Keith Goldman highlights evolution as essential for survival, especially after COVID-19 challenges.

  • Introduced the ACE model: focusing on accuracy, customization, and engagement.
  • Implemented a 'pay last' system, allowing customers direct ingredient selection.
  • Upgraded store aesthetics with new furniture and digital boards.
  • Reports show higher sales performance in revamped locations.
  • Actively expanding post-pandemic, attracting interest from ex-employees.
  • Adopting a hub-and-spoke growth model targeting nontraditional spaces.
  • Predicts continued demand for Mexican cuisine, positioning fast-casual dining as industry leaders.

Source: QSR Magazine

Grubhub's 2024 Delivered Report reveals that 2024 is the "year of doing the most" in food delivery.

  • 15% of Chipotle orders requested extra protein; chicken included in 40% of meals.
  • Cottage cheese orders surged, with Grubhub delivering over one ton just from grocery stores.
  • Espresso drinks boomed, with lattes topping at 15,000 variations delivered.
  • Birria tacos skyrocketed to 1.3 million orders, surpassing traditional quesadillas.
  • A 14% rise in pickle orders, with creative uses like pickle juice sodas.
  • Hot honey sauces and snacks increased by 30% in grocery orders.
  • Restaurant family meals reached 1.6 million orders.
  • 60% of hotel guests opted for delivered dinners to enjoy in comfort.

Source: Restaurant Business

Financial Struggles and Bankruptcies in the Industry

Eegee’s, a Tucson-based sandwich chain, faces severe financial difficulties.

  • Closed five of its 30 locations.
  • Burdened with $24 million in secured debt and $3.1 million in unsecured debt.
  • CEO cites pandemic impacts and increased costs as major setbacks.
  • Attempting to restructure through bankruptcy and expedite asset sales.
  • Mirrors a trend with small chains like Roti and Fired Pie also filing for bankruptcy.

Source: Restaurant Business

The restaurant industry sees a record number of bankruptcies in 2024.

  • Major chains like Red Lobster and TGI Fridays have filed for Chapter 11.
  • Factors include excessive pandemic-related debt, rising interest rates, and decreased consumer spending.
  • Combination of challenges has severely impacted sales and customer traffic.

Source: Nation's Restaurant News

Leadership Changes and Appointments

Lori Chavez-DeRemer is nominated as Secretary of Labor.

  • Viewed positively by the restaurant industry despite her pro-union stance.
  • Industry lobbyists praise her pragmatic approach and small business background.
  • Aligns with restaurateurs’ interests through her entrepreneurial experience.

Source: Restaurant Business

Darden Restaurants welcomes new Board member Daryl Kenningham.

  • Brings extensive experience from multi-unit operations and automotive retail.
  • Aims to bolster Darden’s commitment to full-service dining and shareholder value.

Source: FSR Magazine

Luna Grill appoints Billy Grenham as its first Chief Marketing Officer.

  • Plans to expand the restaurant footprint, targeting one new location each month in 2025.
  • Grenham has a background with Lazy Dog Restaurant & Bar, Taco Bell, and PepsiCo.
  • Aims to enhance relevance in a health-conscious dining market.

Source: Nation's Restaurant News

Technological Advancements in Foodservice

Chipotle introduces Ava Cado, a virtual assistant to streamline hiring.

  • Candidates can schedule interviews within minutes by scanning a QR code.
  • Aims to reduce hiring time by up to 75%, transitioning applicants from “apply to apron” in just days.
  • Automates administrative tasks, freeing up General Managers for critical decisions.
  • Ava functions as a 24/7 assistant, enhancing both candidate and guest experiences.

Source: Restaurant Dive

Yelp revamps business features with over 20 new enhancements.

  • Leverages advanced AI technology to improve user experience.
  • New review insights assign scores from 1 to 100 based on sentiments about food quality, service, and ambiance.
  • Aims to drive more consumer engagement and advertiser performance amidst revenue declines.

Source: Restaurant Dive

Promotions and Marketing Strategies

Sonic Drive-In collaborates with Nicole Richie and Paris Hilton.

  • Launches two exclusive drinks: "The Nicole" and "The Paris".
  • "The Nicole": Dr Pepper with sweet cream, vanilla, strawberries, and whipped topping.
  • "The Paris": Sprite with dragon fruit, real lemon, lime, whipped topping, and Nerds candy.
  • Ties into the premiere of their reunion show, embracing early 2000s nostalgia.

Source: QSR Web, Nation's Restaurant News

Taco Bell and Diversified Restaurant Group launch Live Más Café.

  • Offers specialty coffees and chillers alongside traditional menu items.
  • Aimed at enhancing the beverage menu to appeal to Gen Z consumers.
  • Part of a trend among fast food chains to innovate drink offerings.

Source: Restaurant Dive

A new NBC show "Taste" is in development.

  • Features Julie Bowen as a magazine editor clashing with a young TikTok chef.
  • Reflects emerging dynamics between traditional food media and modern trends.
  • Hollywood's interest in food media is growing, following previous attempts like Max's "Enjoy Your Meal".

Source: Eater

Frozen cream puffs are gaining popularity.

  • Symbolize highbrow culture and offer a convenient, indulgent snack.
  • Enjoyed straight from the tub, providing a unique texture when partially frozen.
  • Serve as an ideal late-night treat without the hassle of baking.

Source: Eater

Health and Environmental Issues

Microbes and pollution at Salton Sea raise health concerns.

  • Agricultural runoff contaminates the sea, creating harmful 'extreme microbes' that produce toxic pollutants like hydrogen sulfide.
  • Residents report chronic headaches and a 24% asthma rate among children, compared to the national average of 7.7%.
  • Toxic compounds contribute to asthma-like conditions in local wildlife and humans.
  • Eutrophic conditions lead to harmful algal blooms, worsening the pollution crisis.
  • Limited water quality data hinders understanding of public health impacts.

Source: Civil Eats

Investments and Acquisitions in the Food Industry

Mondelez International eyes a potential acquisition of The Hershey Co.

  • Initial discussions are in early stages; no certainty of a deal yet.
  • A merger could result in combined sales nearing $50 billion.
  • Hershey's stock surged 11% following the news.

Source: Food Business News

Clairvest Group Inc. invests in Redstone Food Group.

  • Expands its footprint in North America's artisan bread market.
  • Redstone specializes in parbake and thaw-and-sell sliced bread.

Source: Food Business News

OWS Foods acquires Lillie’s Q Sauces & Rubs, LLC.

  • Aims to expand Lillie’s Q's national footprint in grocery, foodservice, and club channels.
  • Lillie’s Q offers a range of Southern-style sauces and rubs.

Source: Food Business News

Food Innovation and New Products

Burcon NutraScience Corp. introduces Peazazz C.

  • New pea protein with over 90% protein purity and low sodium content.
  • Transforms yellow field peas into high-purity protein isolates.
  • Suitable for various applications like beverages, dairy alternatives, and nutrition bars.

Source: Food Business News

A-Sha's 'Squiggly' Noodles gain popularity.

  • Rebranded knife-cut noodles that resonate with consumers as 'squiggly'.
  • Gained popularity through Costco and TikTok.
  • Offers a fresh noodle experience compared to typical instant ramen.

Source: Eater

SkinnyDipped launches Topless Peanut Butter Cups.

  • Feature peanut butter in a dark chocolate shell with only 3 grams of sugar.
  • Available for purchase on Amazon.

Source: Food Business News

Discussions Among Restaurant Owners on Reddit

Choosing POS Systems: SkyTab vs. SmartTab

  • Restaurant owners compare SkyTab and SmartTab for a new QSR.
  • Concerns focus on processing fees and customer service.
  • Recommendations lean towards SmartTab due to positive experiences.

Source: /r/restaurantowners

Staffing Challenges with Employees

  • Owners discuss handling underperforming employees with personal issues.
  • Emphasis on communication and support rather than immediate termination.
  • Importance of addressing performance issues directly.

Source: /r/restaurantowners

Distributor Choices for Alcohol Supply

  • Debate on using a single distributor versus multiple vendors.
  • Consensus on using multiple distributors to increase variety and mitigate dependency.
  • Highlights the importance of versatility in supplier choice.

Source: /r/restaurantowners

Notifying Job Applicants of Rejection

  • Opinions vary on whether to inform applicants not selected.
  • Some stress the importance of courtesy and maintaining goodwill.
  • Others cite potential awkwardness and liability risks.

Source: /r/restaurantowners

Interesting Tidbits from the Food and Entertainment Industries

Nomu Mayo: A drinkable mayonnaise launched in Japan.

  • Priced at ¥198 ($1.30) for 200ml.
  • Marketed as a 'mayonnaise-style drink' made from milk and mayonnaise seasoning.
  • Reactions are mixed, with some finding it salty and awful.

Source: Food & Wine

Ben Stiller defends "Zoolander 2".

  • Feels the sequel didn’t deserve its poor reviews (22% critic rating on Rotten Tomatoes).
  • Reflects on the film's reception and its impact on his career direction.

Source: Salon

All About Cinnamon

  • Cinnamon adds festive flavor to holiday cooking.
  • Comes in two main types: Ceylon (mild and floral) and Cassia (spicier and more common).
  • Was once as valuable as gold due to its historical trade significance.

Source: Food & Wine

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