December 23rd QSR Roundup: Food Companies Navigating Market Trends and Community Support

QSR news for Dec 23rd, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 41 articles to bring you the latest. Estimated reading time saved (at 200wpm): 120 minutes. It'll take you only 6 minutes to catch up.

Franchise Growth and Expansion 🚀

Perkins American Food Co. and Huddle House are experiencing unprecedented growth, with 88 franchise agreements sold this year across multiple states. New leadership from executives with prominent restaurant backgrounds is steering these brands into a rebirth phase. Notably, the shift to modern recruitment tactics and the successful rebranding to Perkins American Food Co. are boosting brand perception. Huddle House has secured 120 agreements in the past three years, signaling robust growth.

Meanwhile, Smalls Sliders is expanding in Southeast Houston with six new locations called "Smorange Cans," led by entrepreneur Matthew Wiggins. The brand plans for over 15 new Cans in Houston.

HTeaO, an iced tea franchise, launched nine new stores in Q4, totaling 42 openings in 2024, and aims to open over 40 more in 2025. Co-founder Justin Howe credits innovation and strong franchise partnerships for the success.

Emerging foodservice franchises like an English tearoom and a French-inspired fast-casual bistro are entering the market, offering international flavors and unique dining experiences in the U.S.

Sources: FSR Magazine, Fast Casual, Modern Restaurant Management, Nation's Restaurant News

Corporate Changes and Innovations 🏢✨

RATIONAL USA has announced key promotions to enhance their iHexagon product line. David Johnivin is promoted to Corporate Chef, and Zac Lennox joins as Corporate Chef. They aim to merge innovation with culinary support, redefining professional kitchens.

Louis Dreyfus Co. (LDC) is acquiring BASF's food and health performance ingredients business, including a manufacturing facility in Germany. This move bolsters LDC's presence in the plant-based ingredients market, aligning with their diversification strategy.

International Food Products Corp. (IFPC) opened its Ingredient Solutions Center in St. Louis, expanding capabilities in plant-based proteins, clean label formulations, and functional ingredients.

Sources: FSR Magazine, Food Business News

Charitable Efforts and Community Support ❤️

Feeding America's network highlights that 13.5% of U.S. households face food insecurity, affecting 47.4 million people. Food banks distribute millions of pounds of food annually, but challenges persist. There’s a growing need for sustainable, localized food systems to address deeper issues of poverty and hunger.

Restaurants like Toups Meatery in New Orleans are stepping up. Owners Amanda and Isaac Toups aim to feed 2,000 people by delivering boxes filled with holiday meals. They emphasize that "Food is a right", and they’re committed to helping their community.

Sources: Eater

Trends and Consumer Behavior 📈

There's a cultural resurgence of cow milk, with social media influencers and mukbang videos showcasing whole milk consumption. Despite declining dairy sales from 2018 to 2022, fears of ultra-processed foods are driving people back to natural options like milk. Influencers like Hannah Neeleman romanticize traditional dairy farming, and even fashion and film are incorporating milk themes.

In the film Babygirl, milk is creatively intertwined with themes of sexuality and power dynamics, reimagining milk's symbolism in modern discourse.

Stickers are making a comeback in restaurant marketing! Brands like Dutch Bros have over 60,000 followers on sticker-drop Facebook pages. Stickers enhance customer connection and brand storytelling, appealing across generations.

Sources: Eater, Nation's Restaurant News

Technology and Digital Marketing 💻📱

Mastering Google reviews is crucial in 2025, with 84% of customers trusting online reviews as much as personal recommendations. Restaurants must actively manage their online presence, respond to reviews, and leverage positive feedback for marketing to enhance customer trust and visibility.

Bar owners are discussing challenges in marketing, with difficulties in tracking promotions, local events, and reviews. Innovative solutions are sought to improve customer engagement and operational efficiency.

Custom neon signs are popular for bars seeking eye-catching decor. While some companies offer low-quality products, others recommend ordering samples and investing in better power supplies for longevity.

Sources: Modern Restaurant Management, Reddit r/BarOwners

Business Challenges and Financial News 📉

Lamb Weston reported disappointing Q2 results for fiscal 2025, with net income plummeting 117% to a loss of $36.1 million. Slow restaurant traffic and rising competition are cited. CEO Tom Werner is stepping down amidst investor criticism.

World of Beer Bar & Kitchen has emerged from Chapter 11 bankruptcy, restructuring its debts after financial losses. CEO Paul Avery is optimistic about the brand's future, planning to open new franchise locations.

Grubhub agreed to a $25 million settlement over allegations of deceptive practices regarding delivery costs and misleading restaurant listings. The funds will compensate affected consumers.

Sources: Food Business News, Salon, Nation's Restaurant News

Food Innovations and Product Launches 🍿🧁

Campbell's Co. introduces Snack Factory Pop'ums, merging popcorn and pretzels in flavors like white cheddar and golden mustard BBQ. This innovative snack aims to redefine pretzels, offering a unique crunchy experience.

Kemin Industries launched Shield V, a mold inhibitor for bakery products, using buffered vinegar and botanical extracts to combat spoilage. It meets consumer demand for clean labels, replacing potassium sorbate.

Sources: Food Business News

Sustainability and Climate Solutions 🌱🌍

The plant-based ingredient market is projected to grow from $9.3 billion in 2024 to $21.2 billion by 2034. Drivers include health benefits, environmental factors, and innovation. Brands have opportunities to expand appeal by enhancing flavor and integrating functional nutrition.

Climate change impacts agriculture significantly. Agriculture contributes to one-third of global greenhouse gas emissions. Innovative strategies like agroforestry, use of wild crop relatives, and renewable energy for farmers are being explored to address these challenges.

The USDA is launching three new Nutrition Hubs to enhance food security and combat diet-related diseases in underserved communities. Each hub receives $1.5 million over three years, focusing on tailored nutrition guidance.

Sources: Food Industry Executive, Civil Eats, Food Business News

Human Stories and Industry Advice 🤝

Ina Garten shares her life journey in her memoir, revealing her troubled childhood and career struggles before finding success in food. The narrative explores themes of luck versus privilege.

Maida Heatter's brownie legacy lives on, with her meticulous recipes and personal touch continuing to inspire bakers. Her Palm Beach Brownies reflect her perfectionism and devotion to quality.

Reddit users discuss evaluating restaurant rent and revenue projections. Experienced restaurateurs advise that rent should be less than 10% of projected sales. Observing similar restaurants and understanding market dynamics are crucial for success.

Aspiring bar owners seek advice on starting a bar. Commenters emphasize the importance of industry experience, adequate funding, and realistic expectations due to high failure rates and operational challenges.

Sources: Eater, Reddit r/restaurantowners, Reddit r/BarOwners

Industry Highlights and Labor Actions 📰

Significant restaurant stories in 2024 include Bloomin' Brands closing 41 underperforming restaurants and Panera Bread introducing 20 new menu items in their biggest transformation ever.

Starbucks workers are escalating strikes across multiple cities due to stalled contract negotiations and demands for higher wages. Nearly 50 stores closed due to these walkouts, impacting the busy holiday season.

Sources: Nation's Restaurant News

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