December 20th QSR Roundup: Starbucks Strikes, Dutch Bros Expands, and Olive Garden Succeeds Amid Restaurant Challenges

Interviewy Team

Interviewy Team

— 6 min read
December 20th QSR Roundup: Starbucks Strikes, Dutch Bros Expands, and Olive Garden Succeeds Amid Restaurant Challenges
QSR news for Dec 20th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 102 articles to bring you the latest. Estimated reading time saved (at 200wpm): 350 minutes. It'll take you only 8 minutes to catch up.

Starbucks Workers Strike Across the U.S.

Starbucks union employees are striking in major cities like Los Angeles, Chicago, and Seattle, extending to hundreds of stores across 45 states by Christmas. The action involves 11,000 workers protesting over stalled contract negotiations and unsatisfactory wage proposals.

Key Points:

  • 98% of union members voted to authorize the strike.
  • Workers accuse Starbucks of not presenting viable economic proposals and breaking promises.
  • The strike aims to pressure Starbucks into meaningful negotiations during the holiday season.
  • Starbucks expressed disappointment, claiming readiness to continue negotiations.

Sources:

  • QSR Magazine
  • Restaurant Business
  • Restaurant Dive
  • Eater
  • Nation's Restaurant News

Dutch Bros Nears 1,000 Locations with Tech-Driven Growth

Dutch Bros is set to reach 1,000 locations by year's end, propelled by mobile ordering and strategic marketing.

Highlights:

  • Mobile Transactions: 2.8 million mobile orders in Q3, comprising 7% of sales.
  • Loyalty Program Success: Over 67% of transactions from loyalty members, boosting customer frequency by 5%.
  • Financial Performance: Revenue surged 27.9% to $338.2 million.
  • Future Expansion: Plans to open 160 new locations in 2025, eyeing a potential 4,000 locations and annual revenue over $6 billion.

Dutch Bros leverages technology and marketing to solidify growth and enhance customer experience.

Sources:

  • QSR Magazine

Olive Garden's Sales Surge Amid Promotions

Olive Garden's Never-Ending Pasta Bowl promotion led to a 2% same-store sales increase, marking a significant boost.

Key Insights:

  • Record Refills: Customers indulged in the promotion, hitting new highs in refill rates.
  • Menu Enhancements: Return of favorites like Steak Gorgonzola and Stuffed Chicken Marsala.
  • Delivery Expansion: Piloted Uber delivery in 100 restaurants, planning post-holiday expansion.
  • Positive Trends: Increased visits from individuals earning $50,000 to $100,000 annually.
  • Financial Growth: Darden Restaurants' total sales rose 6% to $2.9 billion.

Challenges:

  • Fine Dining Struggles: A 5.8% drop in fine dining sales due to changing consumer habits.

Sources:

  • Restaurant Business
  • FSR Magazine
  • Nation's Restaurant News

The foodservice landscape is evolving amid rising costs and shifting consumer preferences.

Emerging Trends:

  • Sustainability Focus: 80% of consumers willing to pay more for sustainable goods.
  • Promotional Strategies: Utilizing discounts and limited-time offers to strengthen customer connections.
  • Customization & Convenience: Emphasizing packaging innovation for take-out trends.
  • Targeting Millennials and Gen Z: Leveraging social media for engagement and menu alignment with younger tastes.
  • Catering Market Expansion: Meeting demand for convenient dining with quality packaging and diverse cuisines.
  • Tech Innovations: AI integration and self-service kiosks enhancing efficiency and customer experience.

Consumers prioritize taste, affordability, and nutrition, reshaping market dynamics.

Sources:

  • QSR Magazine
  • Foodservice Equipment & Supplies
  • Modern Restaurant Management

Sysco Employees Plan Strike

  • Teamsters Local 988 employees in Houston authorize a strike over stalled contract negotiations.
  • Demanding fair wages, quality health care, and secure retirements.
  • Potential impact on supply chains during the holiday season.

Delivery Margin Challenges

  • Razor-Thin Margins: High delivery costs and third-party fees strain profitability.
  • Optimization Needed: Operators using software to analyze and adjust delivery strategies.
  • Consumer Habits: Understanding preferences to enhance profitability without raising fees.

I Heart Mac and Cheese Lawsuit

  • Franchisees sue over misleading promises and operational challenges.
  • Allegations include overstated support and undisclosed closures.

KFC Drops Trademark Lawsuit

  • KFC dismisses lawsuit against Church's Texas Chicken over "original recipe" use.
  • Issue resolved amicably without court resolution.

Virginia Tax Break Proposal

  • Governor proposes exempting tips from state income taxes.
  • Benefits over 250,000 tipped employees, potentially boosting disposable income.
  • Estimated state revenue loss of $70 million reflects commitment.

Legal complexities and labor disputes highlight challenges in the industry.

Sources:

  • Restaurant Business
  • Salon
  • Modern Restaurant Management

New Concepts and Exciting Partnerships

Whataburger and Wrangler Team Up

  • Launching a limited-edition fashion line in Spring 2025.
  • Features denim jackets, jeans, graphic tees, and caps.
  • Aims to connect with younger generations and expand brand presence beyond Texas.

KFC Debuts 'Saucy' Concept

  • New Orlando restaurant focuses on chicken tenders with 11 unique sauces.
  • Offers individual sauce flights and sandwiches.
  • Utilizes advanced AI for order-ahead pickups and digital ordering.

"Saucy reflects a trend where 'more is more,' encouraging culinary exploration."

Outback Steakhouse's 'Steak-cation' Menu

  • Limited-time menu from January 2 to February 18, 2025.
  • Features dishes like Canberra Chopped Steak and Chimichurri Filet.
  • Introduces new beverages like Lavender Fields and Koala Punch.

Catch & Cut Opens in Fort Lauderdale

  • New seafood and steak restaurant launching in January 2025.
  • Led by Chef André Bienvenu, previously at Joe's Stone Crab.
  • Offers an open kitchen, rooftop dining, and a focus on fresh, flavorful dishes.

Sources:

  • QSR Magazine
  • FSR Magazine
  • Restaurant Dive

Franchise Growth and Major Acquisitions

Bain Capital Eyes Sizzling Platter

  • In talks to acquire Sizzling Platter for over $1 billion.
  • Operates 750+ restaurants across brands like Little Caesars, Wingstop, and Dunkin'.
  • Highlights Bain's expansion in the casual dining and franchise market.

Jersey Mike's Hits 3,000 Locations

  • Celebrates opening its 3,000th store, with 322 new locations in 2024.
  • Founder Peter Cancro commends dedication of owners and teams.
  • Expanding in Canada with plans for 300 stores over the next decade.

Playa Bowls Partners with Qu

  • Aims to unify POS and kitchen systems.
  • Plans to grow from 300 to 800-1,000 locations in five years.
  • Enhances guest experience and operational efficiency.

Significant growth and strategic acquisitions are reshaping the franchise landscape.

Sources:

  • Restaurant Business
  • QSR Web
  • Networld Media Group

The Potluck Renaissance

  • Potlucks gain popularity as social gatherings promoting community ties.
  • Offer accessible alternatives to dining out while fostering connections.
  • Encouraged by initiatives like Surgeon General Vivek H. Murthy's Project Gather.

French Toast Recipe Revelations

  • Testing reveals that drying and soaking bread yields superior French toast.
  • Daniel Gritzer's method praised for custardy texture and caramelized crust.

Cookie Season Favorites

  • Ube Crinkle Cookies and Salted Chocolate Chunk Shortbread among top picks.
  • Emphasis on recipes that are both delicious and visually appealing.

Homemade Eggnog Excellence

  • Making eggnog from scratch enhances flavor and allows customization.
  • Fresh eggs and spice variations elevate this holiday classic.

Buckwheat's TikTok Trend

  • Buckwheat gains superfood status on social media.
  • Mixed feelings from those with Slavic heritage due to cultural appropriation concerns.

Evolving consumer tastes emphasize authenticity and shared experiences.

Sources:

  • Eater

Food Industry Innovations and Launches

Nestlé Introduces Vital Pursuit Pizzas

  • Frozen pizzas with 33 grams of protein and 17 grams of fiber per serving.
  • Aims to meet consumer demand for protein-rich options.

General Mills Launches Cheerios Protein

  • New cereal offers 8 grams of protein per serving.
  • Available in cinnamon and strawberry flavors.

Dymatize Debuts Performance Protein Shakes

  • Shakes contain 30 grams of protein.
  • Available in Fruity Pebbles and Cocoa Pebbles flavors.

Bel Group's Cocagne Project

  • Developing fermented, ripened plant-based cheese alternatives.
  • Focus on taste, nutrition, and sustainability.

Tate & Lyle Partners with BioHarvest Sciences

  • Collaborating to create more plant-derived food and beverage ingredients.
  • Utilizing botanical synthesis technology for healthy solutions.

Innovation drives the industry towards healthier and sustainable products.

Sources:

  • Food Business News

Restaurant Industry Highlights of 2024

Bankruptcies and Sales Struggles

  • Notable bankruptcies include Red Lobster and Tijuana Flats.
  • Reflects challenging environment amid economic uncertainty.

Leadership Changes

  • Brian Niccol becomes Starbucks CEO.
  • Leadership shifts also at Papa John's and Bloomin' Brands.

E. coli Outbreak Incident

  • McDonald's linked to deadly E. coli outbreak.
  • Over 100 illnesses and one death reported.

Value Proposition Evolution

  • Chains revamp value offerings to attract cautious consumers.
  • McDonald's $5 Meal Deal gains popularity.

Innovative Restaurant Models

  • Chick-fil-A's new drive-thru prototype enhances efficiency.
  • Pizza Hut introduces an omnichannel restaurant model.

Nostalgic Brand Comebacks

  • Steak and Ale and Chi-Chi's plan returns to the market.

The year showcased resilience and adaptability amid industry challenges.

Sources:

  • Nation's Restaurant News

Employee Retention and Management Strategies

Addressing High Turnover

  • High turnover rates prompt need for effective retention strategies.
  • Emphasize communication, continuous learning, and work-life balance.

Creating Effective Employee Handbooks

  • Crucial for legal protection against claims.
  • Should be reviewed by legal experts to ensure compliance.

Navigating Policy Enforcement

  • Balancing strict policy enforcement with empathy.
  • Consideration of timing and impact on staff morale.

Effective management strategies are key to a stable and productive workforce.

Sources:

  • Food Industry Executive
  • Reddit (/r/restaurantowners)

Kolaches Gain Popularity in New Orleans

  • Traditional Czech pastries become a local favorite.
  • District Donuts sells up to six dozen savory kolaches daily.

Pinkbox Doughnuts Opens 24-Hour Drive-Thru

  • New location in Las Vegas serves customers around the clock.
  • Emphasizes meeting demand for creative doughnut offerings.

Potbelly Expands in Ohio

  • Opens new location in Lakewood, marking the 15th site in the state.
  • Known for toasty sandwiches and fresh salads.

Lee's Famous Recipe Chicken Updates Menu

  • Reintroduces Homestyle Bowl and new Wings and Wedges Box.
  • Responds to high demand for spicy wings.

These developments reflect ongoing innovation and responsiveness to consumer desires.

Sources:

  • Eater NOLA
  • Pizza Marketplace
  • Fast Casual
  • Food & Beverage

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