December 13th QSR Roundup: From Leadership Innovations to Culinary Revivals

Interviewy Team

Dec 13, 2024 — 7 min read

QSR news for Dec 13th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 88 articles to bring you the latest. Estimated reading time saved (at 200wpm): 260 minutes. It'll take you only 8 minutes to catch up.

Leadership Shifts and Ambitious Expansions

Daniel Smith takes the helm as president of Rusty Taco, aiming to open 20 new stores annually. Smith brings experience from roles like COO of Hopdoddy Burger Bar, emphasizing servant leadership and the value of strong teams. Balancing work and family, he integrates activities like surfing and CrossFit, cherishing time with his five children.

In another leadership move, Todd Penegor, newly appointed CEO of Papa John's, outlines plans to revitalize the brand by focusing on core menu items and operational efficiency. Penegor plans to reduce new product introductions and enhance marketing strategies to regain customer interest and sales frequency.

Source: QSR Magazine, Restaurant Business

Restaurant Openings and Culinary Revivals

Bobby’s Burgers by Bobby Flay opens its first Utah location in Orem's University Place Mall, marking the brand's ninth national outlet and first in the state. The restaurant offers made-to-order burgers with certified Angus Beef™, indulgent sides like buttermilk onion rings, and a breakfast menu. The excitement is palpable, with strong community support from the outset.

Buddy’s bar-b-q in East Tennessee brings back its famed Brunswick Stew, offering a hearty, smoky dish featuring Hickory-smoked Pork and Chicken. Priced at $4.99 for 8oz and $6.99 for 12oz, it's a seasonal favorite that aligns with the brand's focus on comfort and flavor since 1972.

Happy Joe’s expands in Illinois with a new location in Kewanee, celebrating with a Lollapalooza Pizza cutting ceremony. Serving beloved items like the Taco Joe pizza and various ice cream treats, the restaurant aims to foster community connection through food. Operating hours are extended to accommodate the enthusiastic response.

Source: QSR Magazine

Technological Innovations in Foodservice

DoorDash is enhancing security by requiring over 150,000 drivers to verify their identities with weekly real-time selfies. The initiative aims to deter account sharing and fraudulent activity, doubling monthly deactivations of fraudulent accounts. An AI system flags suspicious patterns, blocking around 4,600 attempts weekly by previously deactivated drivers.

Gong cha, a Taiwanese bubble tea brand, is revolutionizing ordering with self-service kiosks, now managing over 50% of US transactions. Catering to tech-savvy Gen Z consumers, the kiosks improve customer experience, efficiency, and provide valuable data insights. The brand plans to utilize AI and machine learning for further personalization and operational optimization.

Church's Texas Chicken partners with SoundHound AI to introduce voice AI in drive-thrus, capable of handling up to 90% of orders without human assistance. This technology speeds up transactions and allows staff to focus on food preparation and customer service, enhancing overall guest engagement at over 1,500 locations worldwide.

Source: Restaurant Business, Kiosk Marketplace, Fast Casual

Labor Challenges and Wage Increases

Restaurant workers at Los Angeles International Airport (LAX) will see their pay rise to at least $30 per hour by mid-2028, following a City Council decision. Minimum wage increases will occur in stages, starting at $22.50 in February 2024, aiming to attract necessary staff for the upcoming 2028 Summer Olympics. While celebrated by advocates, the move faces opposition from the Airport Restaurant & Retail Association.

Food and labor costs continue to climb, with 88% of restaurant leaders facing rising expenses. To cope, 61% have increased menu prices. Labor challenges have led 59% of restaurants to operate below full capacity. Despite these hurdles, 55% prioritize increasing sales in 2025, investing in sales and marketing technology.

Source: Restaurant Business, Restaurant365

Mergers, Acquisitions, and Corporate Maneuvers

Blackstone acquires Tropical Smoothie Cafe for $2 billion, signaling substantial investment amid high interest rates.
Darden makes a significant move with a $600 million acquisition of Chuy’s.
Despite slowing acquisition activity, brands like Red Lobster and Rubio’s attract interest, particularly from private equity firms.
The planned $25 billion merger between Albertsons and Kroger abruptly fails after a federal judge blocks it. Albertsons sues Kroger for breach of contract, alleging Kroger prioritized its interests over the merger. Consumer advocacy groups welcome the outcome, urging companies to invest in their stores and employees instead.

Source: Restaurant Dive, Salon, Food Business News

Food Innovations and Festive Offerings

Krispy Kreme, Noodles & Co., and Paris Baguette introduce exciting limited-time holiday menu items to attract customers this season.

Krispy Kreme's "Merry Grinchmas Doughnut Collection" includes creatively themed donuts like the Grinch donut and Cindy-Lou Who Merry Berry Tree donut.
Noodles & Co. celebrates with CrispiDays, featuring unique crispy treat varieties such as S'mores and Chocolate Peppermint.
Paris Baguette delights with a range of festive cakes meant to add warmth and joy to the holiday season.

Conagra Brands launches an 'on track' badge for 26 Healthy Choice items, highlighting their GLP-1 friendly attributes—high protein, low calories, and fiber-rich. This caters to the approximately 15 million US adults using GLP-1 medications for weight management.

Source: Food Business News

Sustainability and Organic Trends

There's a growing demand for organic produce due to increasing health-conscious consumers, leading many farms to adopt organic practices.

Defining Organic: Grown without synthetic pesticides or GMOs, focusing on sustainability and biodiversity.
Business Advantages: Integrating organic items can boost brand awareness, offer a competitive edge, enhance culinary flavor, and strengthen local communities.
Challenges: Higher price tags and shorter shelf life can affect profit margins and distribution.

Restaurants are embracing sustainability, with practices leading to savings in energy, water, and waste management. Despite initial fears of higher costs, eco-friendly operations appeal to younger demographics and can strengthen community ties.

Source: BlueCart, Modern Restaurant Management, Nation's Restaurant News

Bold Flavors and Dining Experiences

Consumers expect bold flavors and unique dining experiences in 2025, with trends like:

Mini cocktails, coffee rubs, miso-infused dishes, and charred citrus on menus.
Social yards: New spaces with outdoor dining, games, and live entertainment fostering community.
Progressive dining nights: Guests enjoy multi-course meals across different locations, making dining an engaging adventure.

Personalized Marketing Strategies

80% of consumers prefer businesses that offer personalized experiences.
McDonald’s uses AI-driven insights from its loyalty program to tailor offers.
Yum Brands reports significant gains from personalized AI marketing campaigns, improving engagement and reducing churn.

Source: Modern Restaurant Management, Nation's Restaurant News

Unique Dining Concepts and Experiences

Mother-daughter duo Jacqueline Palladino and Ashton Judy open Culture + Co. in Nashville, featuring the first cheese conveyor belt dining experience in the U.S. The restaurant focuses on community, offering guests an interactive dining experience where they can select cheese and wine pairings from a rotating conveyor belt.

Pizza maestro Tony Gemignani offers diverse pizza styles at Tony's Pizza Napoletana in San Francisco, attracting enthusiasts of various pizza types. With plans to extend this concept through Slice House, Gemignani aims to introduce more pizza lovers to this inclusive dining environment.

Source: FSR Magazine, Restaurant Business

Retail and Gift Innovations

Amazon's holiday gift guide features a variety of curated items, perfect for quick gifting:

Owala FreeSip Water Bottle ($28): Stylish, leakproof, insulated design with options for chugging and sipping.
Paris Hilton Air Fryer ($80): Combines style with functionality, featuring eight cooking settings.
Ghia Non-Alcoholic Apéritif ($38): Celebrated for its beautiful presentation and rich flavor, perfect for dry celebrations.

Goldbelly offers diverse food gifts ideal for the holidays, appealing to foodie loved ones:

Ina Garten's coconut cake bundle includes her memoir, a hit recommendation.
Chicago-style sandwich kit from Al’s #1 Italian Beef is great for New Year’s fun.
Black-tipped stone crab claws elevate any holiday gathering.

Source: Food & Wine, Eater

Health and Safety Alerts

Granola Bar Recall

Riverside Natural Foods recalls multiple batches of MadeGood granola bars due to potential contamination with pieces of metal. Affected flavors include Chocolate Chip, Mixed Berry, Strawberry, and various Chocolate Drizzled varieties, produced from January to November 2024 and distributed widely. Consumers can return the faulty products for a full refund.

Ultraprocessed Foods and Cancer

Certain ultraprocessed foods high in omega-6 fatty acids hinder the body's ability to combat colorectal cancer cells, according to a recent study.

Omega-6 fatty acids, prevalent in canola oil, soybean oil, corn, and peanuts, are linked to chronic inflammation.
Health experts highlight that the lack of omega-3s is the real problem, with most Americans avoiding fish, increasing health risks.
Incorporating fatty fish, oysters, and mussels in the diet can boost omega-3 levels.

Source: Salon

Community and Cultural Highlights

HTeaO is set to open its first location in Lampasas, Texas, on December 14, 2024. The franchisee, Hayden Hutchens, expressed excitement about bringing the brand's iced teas, specialty coffees, and snacks to the community. Celebrations include:

Free tea from 10 a.m. to 12 p.m.
Limited-edition t-shirts for the first 250 customers.
Half-off teas on opening weekend.
Half-priced gallons of tea from December 14 to December 21.

KFC Canada has teamed up with the Winnipeg Jets to serve fans at the Canada Life Centre. The collaboration includes:

KFC branded food available at concession stands during games.
Special offer: Big Crunch chicken sandwich priced at $4.95 on game days in Winnipeg.
Aims to enhance the fan experience, celebrating community and hockey together.

Source: Fast Casual, KFC Canada News

Reddit Discussions: Industry Challenges and Insights

Struggles with December Business

Many restaurant owners express concern over a slower than expected December, despite having a good overall year. Some report early fears, while others see slight improvements as the month progresses. Rising costs lead customers to opt for home gatherings, impacting restaurant attendance. Catering has emerged as a successful alternative for some, highlighting a potential shift in business strategies.

Restaurant Sales Trends Discussion

The Reddit community shares mixed experiences regarding restaurant sales. Some owners notice a decline in customer frequency due to price increases, while others interpret sales data as stable year-over-year. Discussions emphasize the impact of price increases on customer behavior and the challenges of maintaining profitability.

Cancellation Fee Debate

A New York diner charged a cancellation fee after arriving but leaving without ordering sparks a heated debate. Opinions vary on whether the fee is justified, with some supporting the restaurant's decision and others criticizing it as poor customer service practice.

Source: /r/restaurantowners, /r/restaurant

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