December 21st QSR Roundup: Strikes Shake Starbucks and Sysco While Dessert Trends Transform Dining Choices

Interviewy Team

Interviewy Team

— 8 min read
December 21st QSR Roundup: Strikes Shake Starbucks and Sysco While Dessert Trends Transform Dining Choices
QSR news for Dec 21st, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 67 articles to bring you the latest. Estimated reading time saved (at 200wpm): 228 minutes. It'll take you only 10 minutes to catch up.

Labor Unrest Rocks the Food Industry

Starbucks Workers Launch Nationwide Strikes ☕️

Starbucks union employees are initiating strikes across major cities including Los Angeles, Chicago, and Seattle, which will impact hundreds of stores by Christmas.

  • 11,000 workers in 45 states are participating, accusing Starbucks of failing to provide a viable economic proposal and not honoring promises.
  • A staggering 98% of union members voted to authorize the strike due to dissatisfaction with wage offers and negotiations.
  • Workers express frustration over unmet commitments while the company invests millions in executives.
  • Starbucks claims disappointment over the union's decision, stating they were ready to negotiate.

Sources: QSR Magazine, Restaurant Business, Restaurant Dive, Eater

Sysco Employees Threaten Walkout 🛒

Sysco employees in Houston, represented by Teamsters Local 988, are prepared to strike, potentially disrupting supply chains for restaurants like The Cheesecake Factory and Jersey Mike's during the holiday season.

  • 430 drivers and warehouse staff authorized the strike due to stalled contract negotiations.
  • Demands include fair wages, quality health care, and secure retirements.
  • Union leaders emphasize their demands are reasonable and stem from Sysco's intransigence.

Source: Restaurant Business

Consumers are becoming more price-sensitive, opting for homemade or retail desserts over restaurant offerings due to rising menu prices.

  • Dessert prices have increased by 3.2% year-over-year (2023-2024), causing a dip in restaurant dessert sales.
  • 39% of consumers buy packaged desserts from stores (up 4%), and 38% make desserts at home (up 5%).
  • Fast casual restaurants saw a 6% decline in dessert purchases, and fast-food down by 3%.
  • Despite the downturn, 580 new dessert menu items debuted in November 2023, up from 386 the previous December, showing continued innovation.
  • Seasonal items like California Pizza Kitchen’s Cinnamon Apple Cobbler remain popular.
  • Ice cream desserts are thriving with prices falling by 9%, boosting their appeal.

Source: Restaurant Business

PizzaExpress Makes Its U.S. Debut 🍕

PizzaExpress, a renowned 60-year-old chain, is entering the U.S. market starting in Florida, with plans to franchise and expand significantly.

  • Operates nearly 360 units in the UK and over 110 internationally, with annual revenue exceeding half a billion dollars.
  • Led by Vik Patel of Purple Square, which manages brands like Dunkin’ and Popeyes.
  • Known for its 'proper pizza', blending Italian and British styles, featuring unique recipes like Padana and La Reine pizzas.
  • Offers more than pizza: includes cocktails, live music events, and even a record label, PX Records.
  • Ambitious goal to reach 1,000 global units by 2030, with a significant focus on the U.S. market.
  • First location will be between 2,500 and 3,800 square feet.

Source: Restaurant Business

Olive Garden's Sales Surge Thanks to Pasta Promo 🍝

The return of the Never Ending Pasta Bowl has significantly boosted Olive Garden's sales and customer engagement.

  • Sales rose 2% in Q2, with systemwide sales reaching $1.29 billion.
  • Popular dishes Steak Gorgonzola and Stuffed Chicken Marsala returned due to customer demand.
  • Launched an Uber delivery pilot in 100 restaurants, with plans to expand after the holidays.
  • Positive consumer sentiment is growing, especially among those earning $50,000-$100,000 annually.
  • Parent company Darden projected $12.1 billion in sales for fiscal 2025, with plans for more restaurant openings.

Source: FSR Magazine

PopStroke's Ambitious Expansion ⛳️

PopStroke is revolutionizing mini-golf by combining it with quality dining, appealing to all ages.

  • Founded by Greg Bartoli, who shifted from Wall Street to create a modern, all-inclusive mini-golf experience.
  • With 17 locations opened, they aim for 200 across the U.S.
  • Utilizes proprietary technology for customer engagement.
  • The concept connects generations through accessible golf and quality food.
  • Plans to open 8-10 venues yearly, ramping up to 20 by 2027.

Source: FSR Magazine

Technology Innovations Transforming the Industry 🤖

Voice AI Enhances Customer Experience

  • Voice technology is becoming essential in self-service interactions, streamlining customer experiences.
  • Automation reduces redundancies in customer service, improving operational efficiency.
  • As AI advances, precision and security become crucial to address reliability and privacy concerns.
  • NextGen Kitchens uses AI to optimize food prep in multi-vendor spaces.
  • The balance between personalization and privacy is pivotal, with consumers wanting tailored experiences without invasiveness.
  • Industry leaders anticipate future integrations of AI and augmented reality, increasing access to automation tools.

Source: Networld Media Group, Foodservice Equipment & Supplies

Restaurants Expand into Retail Space 🛍️

Gourmet products from upscale restaurants are making their way into grocery stores, meeting consumer demand for premium home-cooked meals.

  • Momofuku and Carbone are turning popular dishes into retail products, creating new revenue streams.
  • Rao’s has nearly $1 billion in sales, having debuted sauce products in 1992.
  • Market trends show consumers prioritizing premium food experiences, even among price-conscious shoppers.
  • Restaurants emphasize the importance of quality and optimal shelf placement to succeed in retail.

Source: Restaurant Dive

Festive Treats and Holiday Baking 🎄

Best French Toast and Cookie Recipes

  • Various recipes to elevate classic French toast, with Daniel Gritzer’s method yielding a custardy texture and caramelized crust.
  • Cookie season brings delightful options like Chocolate Peanut Butter Cup Cookies, Ube Crinkle Cookies, and Salted Chocolate Chunk Shortbread Cookies.
  • Home bakers are experimenting with unique flavors and techniques, making holiday baking more exciting.

Homemade Eggnog Delight

  • Making eggnog from scratch offers control over sweetness, spices, and alcohol content.
  • Using fresh eggs enhances flavor and safety; adding alcohol extends shelf life and enriches flavors over time.
  • Variations with vanilla beans, cardamom, or different spirits allow customization.

Sources: Eater

Expressing Gratitude and Boosting Morale 💖

A restaurant manager shared their experience of stepping up to improve morale and operations after a leadership transition.

  • Received an unexpected Christmas bonus and sought ways to express gratitude to the owners.
  • Suggestions included simple gestures like saying 'thank you', acknowledging the team's hard work, or treating them to a special dinner.
  • Emphasizes the importance of appreciation and maintaining strong relationships in the restaurant environment.

Source: /r/restaurantowners

Small Tweaks Lead to Big Gains in Restaurants 💡

Restaurant owners share effective changes that boosted profits:

  • Extended Hours: Closing later doubled dinner traffic from 8-9 PM.
  • Alcohol Menu: Including alcohol increased bills by 20-50%, attracting customers looking for drink options.
  • Targeted Advertising: Running Google Ads on Google Maps increased traffic noticeably.
  • Social Media Marketing: Posts promoting private parties secured multiple bookings.

Additional strategies:

  • Proactive Outreach: Contacting local conferences led to private event bookings.
  • Networking: Joining regional business associations resulted in large corporate bookings.
  • Plans to add catering and delivery services are in place.

Source: /r/restaurantowners

Fast Food Chicken Tenders Ranked 🍗

A lively debate unfolded about which fast food chain offers the best chicken tenders:

  • Wingstop emerged as a top choice among many.
  • KFC received praise for quality comparable to Popeyes.
  • Bojangles, Zaxby's, and Culver's were also highlighted for their superior offerings.
  • Discussions emphasized tenderness, flavor, and regional favorites, showcasing the subjective nature of taste preferences.

Source: /r/fastfood

Taco Bell's Crispy Chicken Nuggets Receive Mixed Reviews 🌮

  • Reactions to Taco Bell’s new crispy chicken nuggets were varied, with some praising their crunch and flavor.
  • The jalapeño honey mustard sauce was a standout for many, even if the nuggets themselves were hit or miss.
  • Price point at $6 for a combo was considered fair by some.
  • Inconsistencies in preparation led to differing experiences, suggesting that location may impact quality.
  • Some questioned the inclusion of chicken nuggets at a Mexican fast-food chain, expressing a desire for returning favorites like the crispy chicken quesadilla.

Source: /r/fastfood

Innovations in Plant-Based Products 🌱

Innovative Plant-Based Cheeses

  • The Cocagne project, led by Bel Group, aims to create fermented, ripened plant-based cheese alternatives.
  • Investment of $9.45 million over three years involves various industry players.
  • Goals include enhancing taste and nutrition, using sustainable ingredients, and ensuring accessibility.

Partnership for Plant-Derived Ingredients

  • Tate & Lyle PLC partners with BioHarvest Sciences to create more plant-derived food and beverage ingredients.
  • Focus on developing botanical sweeteners using non-GMO, plant-derived ingredients.
  • This collaboration aims to revolutionize food solutions in response to consumer demands for healthier options.

Source: Food Business News

Conagra Faces Financial Pressures 💰

  • Increased costs for meat, eggs, cocoa, and sugar are impacting Conagra Brands, leading to adjustments in fiscal expectations.
  • CEO Sean Connolly indicated relief on protein costs will come after the current fiscal year.
  • For fiscal 2025, organic net sales growth is expected to be between down 1.5% to flat.
  • Adjusted earnings projected at $2.45 - $2.50 per share.
  • Economic pressures are shifting consumer behavior toward more value-seeking purchases.

Source: Food Business News

Hain Celestial Opens Innovation Center 🔬

  • Hain Celestial Group Inc. opened the Innovation Experience Center (IEC) in Hoboken, NJ.
  • The 2,200-square-foot facility will serve as a multi-functional lab for product development and testing.
  • Features areas for hands-on creativity and sensory exploration.
  • Aims to integrate consumer insights with culinary trends to shape the future of better-for-you products.

Source: Food Business News

Restaurants are navigating complex labor laws and workplace policies:

  • Anticipate significant shifts in National Labor Relations Board (NLRB) decisions, impacting union organizing and contractor status.
  • Stronger labor movement emerging, especially in quick-service establishments.
  • Wage and hour issues persist, with lawsuits over tipping, overtime, and meal breaks.
  • Generation Z employees are more aware of their rights, demanding accountability.
  • Navigating diverse leave policies across jurisdictions poses challenges.
  • Effective manager training is critical to handle intricate labor laws and employee rights.

Source: Modern Restaurant Management

Music Licensing Made Simple for Restaurants 🎶

  • Many operators misunderstand music licensing complexities.
  • Using personal streaming accounts like Spotify doesn't fulfill legal requirements, risking fines from $750 to $30,000 per infraction.
  • Being licensed with one or two PROs like ASCAP or BMI isn't sufficient; all four are essential.
  • B2B solutions like Soundtrack offer bundled coverage, simplifying licensing.
  • AI-optimized playlists tailored to different atmospheres are on the rise.
  • Music should match the restaurant's vibe, enhancing the dining experience.

Source: Modern Restaurant Management

Protein-Packed New Products Enter the Market 🥛

  • Nestle's Vital Pursuit is launching two protein-rich frozen pizzas with 33 grams of protein and 17 grams of fiber per serving.
  • General Mills introduces Cheerios Protein with 8 grams of protein per serving in cinnamon and strawberry flavors.
  • Dymatize rolls out Performance Protein Shakes with 30 grams of protein, available in Fruity Pebbles and Cocoa Pebbles flavors.
  • These innovations cater to growing consumer demand for protein-enriched options to enhance fitness and nutrition routines.

Source: Food Business News

Chef Karen Akunowicz's Culinary Journey 👩‍🍳

  • Karen Akunowicz is a celebrated Boston chef known for her handmade pasta and Italian-inspired cuisine.
  • Winner of a James Beard Award in 2018 and two-time Top Chef fan favorite.
  • Oversees three restaurants and Fox Pasta Company, shipping pasta nationwide.
  • Emphasizes using fresh ingredients and has debuted a pasta room for guests to watch pasta being made.
  • Her signature dish, Spaghetti al Limone, combines cream with lemon for a bright flavor.

Source: Salon

Restaurant Gift Card Sales Rise 🎁

  • Restaurant gift card purchases increased by 17.7% over Thanksgiving weekend compared to last year.
  • Black Friday saw a 13.2% rise in spending per card.
  • Total gift card purchases reached $17.5 million, up from $15.8 million in 2023.
  • Indicates a growing opportunity for restaurants to enhance sales and customer visits through gift cards.

Source: Restaurant Dive

  • Americans are prioritizing premium dining experiences, with a 24% increase in bookings.
  • 67% of diners seek more than standard reservations, favoring themed meals and multi-course feasts.
  • Restaurants offering unique experiences see 30% higher check averages and 80% more repeat guests.
  • Evening dining times shifting earlier, with 49% preferring reservations between 4-6 p.m.
  • Large groups represent 52% of holiday bookings.

Source: Nation's Restaurant News

KFC Introduces 'Saucy' Concept 🍗

  • KFC unveils 'Saucy', a new concept dedicated to chicken tenders with 11 unique sauces.
  • Debuts in Orlando, offering over 4,000 combinations.
  • Customers can enjoy sauce flights, sandwiches, combos, and desserts.
  • Sauces include Chimichurri Ranch, Thai Sweet 'N Spicy, and more.
  • Reflects the trend where “more is more”, encouraging culinary exploration.

Source: Nation's Restaurant News

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