December 12th QSR Roundup: Local Partnerships Enhance Dining with Unique Menus and Innovative Concepts in Nashville

QSR news for Dec 12th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 62 articles to bring you the latest. Estimated reading time saved (at 200wpm): 265 minutes. It'll take you only 12 minutes to catch up.

Local Partnerships Enhance Menus

Chicken Salad Chick’s Sweet Collaboration

Chicken Salad Chick is thriving by outsourcing its desserts to Piece of Cake, a local bakery known for its hand-frosted, preservative-free cakes. This partnership allows Chicken Salad Chick to cater to customers' sweet cravings while streamlining operations and controlling supply flow. It's a delightful way to enhance customer experience without overcomplicating the menu.

Similarly, HTeaO, a Dallas-based iced tea brand, has teamed up with Just Desserts to offer enticing cupcake flavors like red velvet and cookies and cream. These strategic partnerships with local businesses not only foster synergy but have led to phenomenal sales for both parties.

Key Takeaways:

• Local collaborations can boost sales and customer satisfaction.
• Offering unique, locally-sourced desserts helps differentiate in a competitive market.
• Shared values are crucial for successful partnerships, as emphasized by Nielsen from HTeaO.

Source: QSR Magazine

New Dining Hotspots in Nashville

Shipley Do-Nuts and Sweet Paris Crêperie & Café Coming to Nashville Yards

Nashville Yards is set to welcome two exciting dining destinations in 2025:

• Shipley Do-Nuts will open a flagship location featuring over 60 offerings, including their famous Plain Glazed donut and Sausage and Cheese Kolache.
• Sweet Paris Crêperie & Café will serve artisanal crêpes, fresh salads, and beverages in a prime location inside The Pinnacle.

These additions are expected to enhance Nashville Yards' reputation as a premier entertainment and dining destination, offering residents and visitors new culinary experiences.

Source: QSR Magazine

America’s First Cheese Conveyor Belt Dining Experience Arrives in Nashville 🧀

Mother-daughter duo Jacqueline Palladino and Ashton Judy have opened Culture + Co., introducing the first cheese conveyor belt dining experience in the U.S. Located in Nashville, the restaurant features locally-sourced, artisan cheeses and charcuterie presented on a rotating conveyor belt, allowing guests to select pairings at their leisure.

Highlights:

• Jacqueline brings over 37 years of culinary experience, including a stint at Disney's Epcot.
• The menu dynamically changes based on local availability, emphasizing freshness and variety.
• The restaurant focuses on community and interaction, offering an engaging dining experience.
• Plans are in place to expand and launch a line of packaged goods featuring signature recipes.

Palladino’s Advice for Restaurateurs:

• Build a strong support team.
• Engage with the community to create a loyal customer base.

Source: FSR Magazine

Leadership Changes and Recovery Plans at Dave & Buster's

CEO Resignation and Challenges

• Chris Morris, CEO of Dave & Buster's, has resigned to pursue other interests.
• Kevin Sheehan steps in as interim CEO amidst a challenging financial period.
• The company faces a 7.7% dip in same-store sales and a 3% revenue drop, due to seasonality and remodel disruptions.

Six-Part Recovery Plan by CFO Darin Harper:

1. Marketing Optimization: A new agency aims to better communicate the brand's quality offerings and target the right customers.
2. Food and Beverage Enhancements: Structural improvements have led to a 6-point rise in guest satisfaction scores.
3. Strategic Pricing: Addressing a 25-year chip price freeze to unlock significant revenue potential.
4. Store Remodels: Aggressive remodeling initiatives to enhance attractiveness with innovative entertainment options.
5. Boosting Special Events: Leveraging digital marketing and new on-premises sales managers to increase bookings by low-double digits.
6. Tech Enablement: Investments in technology to improve operational efficiency and guest experience.

Positive Signs:

• The revamped Eat & Play combo and a tested Winter Pass are showing promise for increasing customer loyalty and visit frequency.
• Despite current challenges, the brand is focusing on strategies to drive growth and recover sales.

Source: FSR Magazine

Sra. Martinez Restaurant Reopening in Coral Gables

A Revival of Spanish-Inspired Cuisine

James Beard Award-winning chef Michelle Bernstein and partner David Martinez are set to launch Sra. Martinez in Coral Gables on December 13. The restaurant, originally acclaimed in Miami's Design District, is being revived with a Spanish-inspired menu that emphasizes local ingredients and bold flavors.

What to Expect:

• A vibrant atmosphere with live music and a spacious bar.
• A menu featuring wood-fired specialties, classic and innovative cocktails, and decadent desserts.
• Old World charm in the restaurant's design, offering an inviting dining experience.

Operating Hours:

• Open Tuesday through Sunday, providing a new culinary hotspot for both locals and visitors.

Source: FSR Magazine

Amada Unveils a Refreshed Menu

Making Spanish Tapas More Accessible

Chef Jose Garces is refreshing the menu at Amada, his Spanish tapas restaurant, to enhance affordability and accessibility without compromising on flavor.

New Offerings:

• Fan favorites like Zanahorias and Pinchos Morunos have returned.
• Smaller, budget-friendly portions of Paella, including a new Seafood Paella designed for two.
• Promotions such as the JG Tapas Tour ($45 for nine tapas) and Tapas y Vino on Sundays encourage patrons to indulge without overspending.

Chef Garces's Goal:

• To make Amada a dining destination throughout the week, offering high-quality food at approachable prices.

Source: FSR Magazine

SkyTab Rescue Mission Contest Winners Announced 🏆

Empowering Struggling Businesses

Jon Taffer and Shift4 have announced the winners of the 2024 SkyTab Rescue Mission contest:

• Five winners each receive $20,000 grants, personal consultations with Jon Taffer, and a complete SkyTab POS System.
• Over 100 businesses applied, with 5,000 votes cast for the top ten finalists.

Winning Businesses:

1. Comedy in Harlem (New York, NY)
2. Pips Pub (Lakewood Ranch, FL)
3. Dragonfly Café (Somerset, PA)
4. Kitty’s Cheesecakes (Oklahoma City, OK)
5. Rock Lake Lodge & Campground (Chain of Ponds, ME)

Impact:

• The grants will aid in crucial updates, equipment purchases, and growth opportunities for these businesses facing significant challenges.
• Shift4’s SkyTab POS provides integrated solutions for operational efficiency, enhancing guest experiences and enabling growth.

Source: FSR Magazine

Restaurant Mergers & Acquisitions on the Rise for 2025

Major Deals Signal Investor Confidence

Despite high interest rates, significant acquisitions are reshaping the restaurant industry:

• Blackstone acquired Tropical Smoothie Cafe for $2 billion, demonstrating substantial investment interest.
• Darden made a strategic move with a $600 million acquisition of Chuy’s.
• Brands like Red Lobster and Rubio’s are attracting interest, particularly from private equity firms.
• High valuations for Jersey Mike's and Subway suggest a promising outlook for 2025.

Franchisee Activity:

• Thrive Restaurant Group acquired Modern Market Eatery.
• KBP Brands expanded with 85 Sonic units.

Outlook:

• While anticipation surrounds 2025, investors remain cautious with selective strategies.
• The dynamic landscape hints at resilience in the sector despite economic challenges.

Source: Restaurant Dive

Fast-Food Chains Expand to Airports and Transit Stations ✈️🍔

Capturing the On-the-Go Market

Major fast-food chains are targeting airports and transit stations for brand growth:

• Slim Chickens successfully opened at Northwest Arkansas National Airport, capitalizing on nearly 1 million travelers for brand exposure.
• The airport quick service restaurant market is valued at $174 billion in 2023, expected to exceed $252 billion by 2033.
• Pollo Campero plans new locations in NYC’s Penn Station to tap into the busy travel hub.

Trends and Challenges:

• Passenger Traffic: North American air travel rose 12% last year.
• Operational Challenges: Airport locations require careful planning for staffing, menus, and visibility to attract impulse buyers.
• Flexibility is Key: Brands must adapt menus and layouts to fit airport demands while maintaining convenience.

Future Expansion Plans:

• Slim Chickens aims to open 3 new U.S. airports in 5 years.
• Pollo Campero is adding 29 new units this year, focusing on development in high-traffic urban areas.

Source: Restaurant Dive

Krispy Kreme Faces Cyberattack Disruption

Online Ordering Affected

Krispy Kreme is experiencing operational disruptions due to a cybersecurity incident:

• Online ordering is particularly affected, impacting digital sales that recently grew by 15%.
• The company has notified federal law enforcement and is working to restore services.
• In-store orders and grocery sales remain unaffected.
• This attack follows a recent breach of a third-party vendor, underscoring vulnerabilities in the restaurant industry.

Potential Impact:

• Revenue losses may occur due to the interruption of online sales.
• Highlights the importance of robust cybersecurity measures for businesses heavily reliant on digital transactions.

Source: Restaurant Dive

Grubhub and Hilton Expand Delivery Partnership 🏨🚚

Convenient Dining for Hotel Guests

Grubhub has expanded its partnership with Hilton, now providing food delivery services to over 2,600 hotels under the Hampton, Tru, and Spark brands.

Key Features:

• Guests can access a marketplace of 375,000 restaurants by scanning a QR code in their rooms.
• New guests are offered one free month of Grubhub+, enjoying $0 delivery fees and lower service fees.
• Since the initial partnership in 2023, delivery orders at Hilton properties have more than doubled.
• The expansion enhances guest amenities and promotes brand awareness for Grubhub, the third-largest delivery provider in the U.S.

Strategic Benefits:

• Grubhub is leveraging partnerships beyond hotels, including universities and Amazon, to improve market share.
• The move aligns with efforts to provide seamless, convenient dining options for travelers.

Source: Restaurant Dive

Church's Texas Chicken Adopts AI for Drive-Thru Service 🤖🍗

Enhancing Customer Experience with Voice Ordering Technology

Church’s Texas Chicken is implementing SoundHound’s AI technology for drive-thru voice ordering:

• The AI can process up to 90% of orders without human assistance.
• Aims to speed up transactions and reduce wait times.
• Allows employees to focus on food preparation and customer service.
• Part of a broader trend among national brands adopting AI for enhanced efficiency.

Strategic Move:

• With approximately 900 locations in the U.S. by the end of 2023, this advancement positions Church's Texas Chicken to improve operational efficiency and compete effectively in the market.

Customer Options:

• Guests still have the choice to order with a traditional cashier if they prefer.

Source: Restaurant Dive

Dave & Buster's Leadership Change Amid Sales Decline

CEO Resignation and Financial Challenges

• Chris Morris, CEO of Dave & Buster’s, resigned unexpectedly.
• Interim CEO: Kevin Sheehan steps in to navigate the company through current challenges.
• Financial Decline: Same-store sales dropped 7.7%, with net losses rising from $5.2 million to $32.7 million in Q3 2023.

Factors Contributing to Decline:

• Decreased spending by low-income consumers.
• Seasonality issues and remodel disruptions.

Positive Developments:

• Remodeled stores are outperforming, indicating the potential of the remodeling initiative.
• The chain plans to complete 44 remodels by fiscal 2024.
• Improved events business is expected to boost revenue, with a new banquet menu rolling out.

Industry Context:

• The eatertainment sector is showing mixed results, with some emerging brands gaining traction despite broader challenges.

Source: Restaurant Dive

Gaza Soup Kitchen's Impact Amid Humanitarian Crisis

Feeding Families in Need

The Gaza Soup Kitchen, founded by the late chef Mahmoud Almadhoun, continues to feed 800 families daily amid severe food shortages caused by the ongoing humanitarian crisis.

Key Points:

• Almadhoun was killed by an Israeli drone while delivering produce, sparking accusations of genocide from Amnesty International.
• The kitchen operates with a team of 45 volunteers, providing meals beyond basic soups to offer dignity to those they serve.
• Rising costs of supplies, such as cooking oil now costing $30 per gallon, are straining resources.
• Donations from over 80 countries are critical for the kitchen's operation.
• Almadhoun's brother continues the mission, emphasizing resilience despite ongoing challenges.

Significance:

• The kitchen serves as a beacon of hope and community support during a time of crisis.
• Highlights the dire food shortages and the importance of humanitarian aid in conflict zones.

Source: Eater

Unique Food-Themed Gifts for Kids 🎁🍭

Looking for the perfect stocking stuffers for young food lovers? Here’s a delightful roundup:

• Lego Mobile Bakery Set: Add a cute coffee cart to their toy collection.
• Ooly Food-Themed Gel Pens: Colorful and scented pens invite creative journaling.
• Doughnut Erasers: Fun and interchangeable erasers keep kids entertained.
• Fruit and Vegetable Card Game: Engaging for ages 2-12, combining fun faces and classic games.
• Empanada Plushie: A whimsical stuffed animal for cuddle time.
• Japanese Food Stickers: Charming illustrations of animals in cute food dishes.
• Strawberry-Scented Slime: Comes with a waffle mold for molding fun.
• SmartLab Mini Baking Set: Teaches kids about food science with adorable tools.
• Mini Squishmallows: Pocket-sized plush versions of popular food characters.
• Sand Art Kits: Create gingerbread-themed art with colorful sand.
• Choco Body Scrubs: Fun skincare gifts shaped like chocolates.
• Kids Utensil Set: Mini kitchen tools that are dishwasher safe.
• Fish-Shaped Wooden Knife: A fun tool for toddlers learning to cut.
• Anime Candies: Edible treats featuring popular shows like Demon Slayer.
• Food-Shaped Hair Clips: Adorable felt clips for styling fun.
• Mini Brands Toys: Capsule toys that spark young imaginations.
• Master Chef Craft Set: Miniature cooking projects for aspiring chefs.
• Scented Markers: Washable markers reminiscent of childhood favorites.
• Sushi Go! Game: A quick card game perfect for family nights.
• Fun Socks: Quirky and creative socks for fashion-forward kids.

These gifts are sure to inspire joy and creativity this holiday season!

Source: Eater

Labor and Food Cost Challenges Ahead for Restaurants

Rising Expenses Impacting Operations

Food and labor costs continue to climb, straining restaurant operations and profitability:

• 88% of restaurant leaders face increasing labor expenses.
• 59% report operating below full capacity due to these challenges.
• 53% note food costs have increased, with many experiencing a 1% to 5% rise.

Response Strategies:

• 61% have raised menu prices to cope with rising costs.
• 55% prioritize increasing sales in 2025, despite expecting further cost increases.
• Investments are planned in sales and marketing technology, loyalty programs, and staff training.

Consumer Trends:

• 34% of leaders anticipate a rise in takeout and delivery in 2025.
• Many restaurants rely heavily on third-party delivery services for revenue.

Looking Ahead:

• Restaurants are focusing on adaptivity and innovation to navigate economic challenges.
• Emphasis on enhancing service and meeting shifting consumer preferences.

Source: Restaurant365

Naf Naf Grill Expands to Tennessee

Middle Eastern Flavors on the Move

Naf Naf Grill has opened its 41st location at Love's Travel Stops in White House, Tennessee:

• CEO Greg Willman expressed excitement about serving authentic Middle Eastern food to local customers and travelers on I-65.
• Joe Cotton from Love's noted the partnership aims to enhance dining experiences, with plans for further expansion in 2025.
• This opening marks Naf Naf's continued growth and commitment to bringing unique flavors to new markets.

Source: Fast Casual

Wing Snob Makes Its Debut in Florida 🐔🌴

Expanding Their Flavorful Reach

Wing Snob is set to open its first restaurant in Florida by year-end in Riverview, with additional locations planned for Tampa and Davie:

• Co-founder Jack Mashini describes this expansion as pivotal for establishing a strong presence in the state.
• The Riverview location will feature a fast-casual layout focused on convenient digital ordering and efficient delivery.
• Aims to replicate the success of recent openings in Illinois and Michigan.
• Wing Snob is dedicated to growing in regions that appreciate bold flavors and fresh food, with over 70 locations already established.

Source: Franchising Wing Snob

The Boelter Companies Appoints New VP of Contract Sales

Leadership Promotion

Manny Alvarez has been promoted to Vice President of Contract Sales at The Boelter Companies:

• Will oversee projects offices nationwide.
• Brings over 20 years of experience from Baring Industries.
• Has been with Boelter for five years, previously leading the Southeast projects team.
• Alvarez's extensive experience is expected to contribute significantly to the company's growth and client relations.

Source: Foodservice Equipment & Supplies

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