December 18th QSR Roundup: KFC's Saucy Concept, Taco Bell's Chicken Nuggets, and the Fast-Casual Restaurant Surge in 2024

QSR news for Dec 18th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 93 articles to bring you the latest. Estimated reading time saved (at 200wpm): 410 minutes. It'll take you only 10 minutes to catch up.

KFC's New Saucy Concept

KFC is spicing things up with a new restaurant concept called Saucy, focusing on sauces and chicken tenders with 11 unique flavors. Opening in Orlando, the restaurant offers hand-breaded tenders and allows guests to mix and match sauces, creating over 4,000 combinations! New menu items include the EZ Crispy Sandwich and drinks like the Passion Fruit Refresher. A three-piece tender combo is priced at $7.99, and the restaurant features modern ordering technology and live entertainment to enhance the dining experience. Plans are underway to expand Saucy to more locations, tapping into the popularity of sauces among younger guests.

Sources: QSR Magazine, Nation's Restaurant News

Taco Bell's New Chicken Nuggets

Taco Bell is stepping into the chicken nugget arena! 🍗 Starting December 19, 2024, they're offering Crispy Chicken Nuggets marinated in jalapeño buttermilk and coated with tortilla chip breading. They come with three new dipping sauces: Hidden Valley Fire Ranch Sauce, Bell Sauce, and Jalapeño Honey Mustard. The nuggets are priced at $3.99 for five pieces and $6.99 for ten, with combo meals available. This limited-time offer runs until at least January 22, 2025. Taco Bell aims to attract the Gen Z crowd, tapping into the growing demand for chicken products, which have seen an 11% increase in fast-food outlets since 2019.

Sources: Restaurant Dive, Eater, Salon, Food & Beverage, Nation's Restaurant News

Starbucks Workers Vote for Strike

In a significant move, 98% of unionized Starbucks baristas voted to authorize a potential strike ahead of crucial negotiations. Representing over 11,000 employees across 525 stores, the union cites unresolved labor practices and inadequate pay proposals. Baristas demand better wages, improved health and safety conditions, and consistent scheduling. Despite CEO Brian Niccol's commitment to constructive dialogue, tensions remain high as some workers express dissatisfaction with minor raises compared to executive compensation.

Sources: QSR Magazine, Restaurant Dive, Salon, Nation's Restaurant News

Fast-Casual Chains' 2024 Highlights

Wingstop soared with a remarkable 20% increase in same-store sales, thanks to new menu items and savvy marketing. Cava followed with 12-13% growth, capturing market share with healthful offerings. Raising Cane’s achieved 17.5% sales growth and plans for 100 new units in 2025. Meanwhile, Chipotle faced challenges with portion size criticisms and a CEO change but continues to expand. On the flip side, BurgerFi struggled, leading to bankruptcy and acquisition by Savvy Sliders' parent company. Boston Market faced significant setbacks with reduced locations and legal troubles. Overall, 2024 was a mixed bag for fast-casual chains, with notable winners and losers.

Sources: QSR Magazine, Restaurant Business, Nation's Restaurant News

Grubhub's $25 Million Settlement

Grubhub has agreed to a $25 million settlement with the FTC and Illinois Attorney General over deceptive practices. Accusations include misleading customers about delivery costs, inflating driver pay in advertisements, and adding restaurants without permission. The settlement requires Grubhub to increase transparency about fees and driver compensation and to make operational changes to avoid future misrepresentations.

Sources: FSR Magazine, Restaurant Dive, QSR Magazine

Innovations in Restaurant Technology

Square Partners with Sysco

• Square has teamed up with Sysco to enhance restaurant operations.
• New features include preauthorizing bar tabs, Instant Payouts for delivery orders, and House Accounts for regulars.
• These upgrades aim to improve both employee and customer experiences.

Smashie Unveils Self-Service Kiosks

• Italian smashburger chain Smashie implemented self-service kiosks at its Udine location.
• 70% of transactions are now handled through kiosks.
• This move has significantly improved efficiency and customer satisfaction.

Cilantro Taco Grill's New App

• The grill launched a digital ordering app with integrated loyalty rewards and customized promotions.
• Streamlined order management reduces wait times and increases profitability.
• Supports over 100 signed units, emphasizing operational efficiency.

Sources: Networld Media Group, Fast Casual

FTC Decides Not to Regulate Restaurant Service Fees

The FTC has chosen not to classify restaurant service fees as "junk fees," leaving regulation to states and municipalities. This decision comes after advocacy from the National Restaurant Association and others, who argued that such fees help restaurants manage rising costs.

Sources: Restaurant Business, QSR Magazine

Strategies for Reducing Restaurant Costs

Industry expert Doug Peters shares nine strategies for controlling restaurant costs:

• Understand Expenses: Identify main costs to find savings.
• Portion Control: Standardize servings to minimize waste.
• Supplier Negotiation: Partner with vendors for better pricing.
• Menu Engineering: Highlight profitable items.
• Effective Scheduling: Align staffing with demand.
• Cross-Training: Equip staff for multiple roles.
• Incentive Programs: Motivate with performance bonuses.
• Energy Efficiency: Invest in modern equipment.
• Inventory Optimization: Maintain lean stock.

Every penny saved can significantly boost profitability, emphasizes Peters.

Source: FSR Magazine

Moxies' Expansion Journey

Canadian chain Moxies is expanding across North America, moving from deli-style origins to sophisticated dining. Under President Joanne Forrester, the brand plans new locations in major U.S. cities like Washington, DC and Chicago by 2026. Executive Chef Brandon Thordarson crafts a diverse, globally-inspired menu, and each location is designed with local flair. Moxies aims to balance premium casual dining with a community atmosphere.

Source: FSR Magazine

NC Supreme Court Rules in Favor of Restaurants

The North Carolina Supreme Court ruled that restaurants forced to close during COVID are entitled to insurance coverage for pandemic-related losses. This landmark decision overturns a lower court ruling and may influence similar cases nationwide. The court found that ambiguous insurance policy language must be interpreted in favor of the insured, especially since policies lacked explicit pandemic exclusions.

Source: FSR Magazine

Sweet Innovations and Trends of 2024

Fruitcake's Rich History

• Some fruitcakes are over a century old and still edible!
• Originated as an energy bar for Roman soldiers.
• Evolved into the sweet, spiced treat we know today.

Non-Alcoholic Beverages Rise

• Drinks like Ghia Non-Alcoholic Aperitif are gaining popularity.
• Combines sumac and chile warmth for a cozy winter drink.

Cookie Swap Hosting Tips

• Gather dietary info from guests.
• Welcome all types of cookies, even store-bought.
• Balance sweet treats with savory snacks.
• Encourage guests to bring containers for leftovers.

Sources: Eater, Salon

Tech Innovations in the Food Industry

Technological advancements are revolutionizing the food sector:

• AI in Product Development
  • AI boosts productivity and creativity.
  • Helps scientists refine experiments and develop novel materials.
• Produce Sector Efficiency
  • Crop monitoring software assesses crop health and predicts yields.
  • Farming software aids in irrigation and labor management.
  • Supply chain management ensures traceability and reduces waste.
• Embracing AI and Robotics
  • Integration of AI, robotics, and IoT promises to reshape operations.
  • Improves crop management and operational logistics.

Sources: Food Industry Executive, BlueCart

Exciting Restaurant Industry Trends for 2025

Experts predict:

• Data Utilization
  • Over 52% of operators plan to embrace AI within the next year.
  • Applications include drive-thru automation and guest interactions.
• Customized Catering
  • Personalized experiences like Bento Packs are on the rise.
• Digital Wallets and Loyalty
  • Over half of U.S. consumers now use digital wallets.
  • Enhances convenience and personal loyalty incentives.
• Sourcing Locally
  • Authenticity and sustainability through local sourcing become critical.
• Rise of Pop-Up Restaurants
  • Offering unique dining adventures and chef creativity.

Source: Modern Restaurant Management

Morning Meals: The Quick Shift

Americans are opting for quick, heat-and-eat morning meals:

• 90% take less than 15 minutes to prepare breakfast.
• Younger consumers prefer potatoes and breakfast sandwiches.
• Older generations opt for frozen pancakes and waffles.
• Shift towards ready-made and beverage alternatives.
• Emphasis on time-saving and value-added options over just price.

Source: Food Business News

Flavor of the Year 2025: Milky Maple

DSM-Firmenich selects milky maple as the 2025 flavor of the year, combining creamy milk with sweet maple. This reflects consumers' desire for comforting flavors that provide familiarity and indulgence. Maple's rising popularity since 2019 is attributed to its cozy sensation and versatility in various cuisines.

Source: Food Business News

Restaurant Industry Recap 2024

2024 was a tumultuous year for the restaurant industry:

• Bankruptcies on the Rise
  • Increase in bankruptcies and closures of underperforming outlets.
• Cava's Meteoric Rise
  • Same-store sales growth of 2.3% to 18%.
  • 12.9% increase in traffic.
• Taco Bell Thrives
  • Innovative value menu and new items like the $7 Luxe Cravings box.
• Starbucks Struggles
  • Declining sales and a 10% drop in transactions.
  • Attempted to revive brand by changing leadership and lowering prices.
• Chipotle Milestones
  • Opened the 1,000th Chipotlane.
  • Average unit volumes exceeding $3.1 million.
• McDonald’s Challenges
  • Faced E. coli outbreak and other setbacks.
  • Hoping to recover with new value-oriented campaigns.

Source: Restaurant Dive

Supporting Local Food Systems

Farmers' markets play a crucial role in addressing food system challenges:

• Provide diversified product options and resilience against inflation.
• Vendors often absorb costs to protect consumers.
• Highlight community accountability and challenges with regulatory demands.
• Advocated for policy improvements, including support infrastructure.
• Emphasizes the importance of local food systems in national policies for food security and sustainability.

Source: Salon

Good Food NY Bill Deadline

Advocates urge Governor Kathy Hochul to pass the Good Food NY Bill by December 24. This legislation will:

• Allow public institutions to prioritize local food sources.
• Support rural economies and enhance food quality.
• Promote sustainable practices.
• Ensure fair treatment for small producers.
• Potential to transform the food procurement system with positive public health outcomes.

Source: Salon

Culinary Gift Essentials for the Holidays

Looking for the perfect gift for food lovers? This curated guide offers:

• Herb savers and carbon steel roasters for cooking enthusiasts.
• Artisanal dinnerware and elegant tableware for seasoned entertainers.
• Powerful appliances to enhance the culinary experience.
• Items balance beauty and functionality, perfect for home chefs.

Source: Salon

Chef Shota Nakajima's Culinary Journey

Chef Shota Nakajima, a James Beard semifinalist and Top Chef alum, emphasizes:

• Innovative uses of soy sauce:
  • In slow braising for umami flavor.
  • Pairing with eggs for breakfast.
  • Charring vegetables for enhanced taste.
• Cooking as Meditation:
  • Finds transformative experiences in focused cooking.
  • Prioritizes flexibility and adaptability.
• Bringing Japanese Comfort Food to Seattle:
  • His restaurant Taku serves dishes like karaage and miso soup with a modern twist.
  • Reflects his childhood comfort foods with a laid-back dining experience.

Source: Salon

Adapting to Changing Consumer Preferences

Food companies must:

• Embrace health, sustainability, and convenience.
• Tailor offerings for diverse demographics.
• Leverage technology to enhance consumer experiences.
• Foster innovation and responsiveness to market trends.
• Focus on plant-based diets, sustainability practices, and personalized nutrition.
• Those embracing these strategies will thrive in a competitive landscape.

Source: Food Industry Executive

Snackified Tempeh Chips

Mamame Tempeh Chips are a new, innovative snack made from black-eyed beans instead of traditional soybeans.

• Founded by Alvina Chun and her daughter Liz Kang.
• Chips come in flavors like original, sea salt, rosemary, hot chili, cheese, and barbecue.
• Each serving provides 10 grams of protein and 10 grams of fiber.
• Successfully launched into Erewhon and Sprouts Farmers Markets.
• Plans to expand into international markets like South Korea, Japan, Singapore, and Europe.
• Future innovations may include sweet flavors like coconut sugar and cinnamon.

Source: Food Business News

Employee Payroll Drama and Non-Tipping Wage Debate on Reddit

Payroll Issues

• A restaurant owner faced financial strain when an employee cashed six months' worth of paychecks at once.
• Comments emphasized the importance of proper bookkeeping.
• Suggested solutions include separate payroll accounts and direct deposit.

Non-Tipping Wages

• Debates on moving to non-tip wages highlighted challenges.
• Some reported success with higher hourly pay ($18-$25/hour) and improved morale.
• Others warned of losing top talent to competitors who offer tips.
• Necessity of increasing menu prices by 20% to 30% to sustain the model.
• Consensus on the complexity of shifting to a non-tip system without broader industry changes.

Source: Reddit (/r/restaurantowners)

Innovative Trends Transforming Restaurants

Key trends include:

• Solo Dining Surge
  • 29% increase in U.S. solo dining reservations.
  • Calls for intimate dining spaces.
• Smart Menus
  • Dynamic menus boost profits and efficiency.
  • Adapt to customer demand in real-time.
• AI Utilization
  • Artificial intelligence revolutionizes kitchen layouts and guest experiences.
  • Enhances product offerings like AI-designed pizzas.
• Sustainability Focus
  • Shift towards sustainable packaging and ingredients.
  • Consumer-driven demand for environmentally friendly practices.
• Dynamic Pricing Innovations
  • Adjusting prices and menu offerings based on real-time demand.
  • Fine-tuning pricing strategies to maximize revenue.

Source: RestaurantSpaces

Char Siu's Surge in Popularity

Char siu, the traditional Cantonese barbecued pork dish, is gaining traction in U.S. restaurants:

• 14% of American consumers have tried char siu.
• Menu mentions have grown by 29% in the past four years.
• Expected to increase by 30% in the next four years.
• Chefs are featuring char siu using premium meat cuts and modern presentations.
• Reflects a trend towards globally inspired comfort food.

Source: Nation's Restaurant News

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