December 28th QSR Roundup: Unpacking Trends in the Restaurant Sector and Beyond

QSR news for Dec 28th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 25 articles to bring you the latest. Estimated reading time saved (at 200wpm): 95 minutes. It'll take you only 8 minutes to catch up.

Revving Up the Pizza Scene: Patel's Ambitious Expansion

Chris Patel transformed four struggling Papa John's units into nearly 70 thriving locations by:

• Boosting Employee Wages: Increased morale and improved service quality.
• Streamlining Marketing: Emphasized clear value with offers like Papa Pairings at $6.99.
• Investing in Leadership: Focused on training, mentorship, and promoting from within.
• Setting Bold Goals: Plans to reach 250 locations in five years, expanding into new states.

Despite recent sales declines for Papa John's, Patel remains optimistic, focusing on better ingredients and simplified operations to fuel growth in the competitive pizza market.

Source: QSR Magazine

Paris Baguette Celebrates Milestones and Growth

• Opened its 200th North American location in Glen Ellyn, Illinois.
• CEO Darren Tipton highlights commitment to an authentic bakery café experience and fostering community connections.
• Impressive stats include:
  • 4,000 global locations.
  • 36% increase in loyalty members, totaling nearly 750,000.
  • 115 additional U.S. locations planned for development.

This growth reflects Paris Baguette's successful expansion and strengthening brand identity across North America.

Source: Fast Casual

Historic Keens Steakhouse Enters New Era

Tilman Fertitta, billionaire restaurateur, acquires the iconic Keens Steakhouse in NYC for $30 million.

• Established in 1885, Keens is a cultural landmark visited by Theodore Roosevelt, Babe Ruth, and more.
• Houses a collection of over 90,000 churchwarden pipes.
• Fertitta aims to blend tradition with modern appeal, ensuring the legacy continues.
• General Manager Bonnie Jenkins emphasizes preserving the restaurant's essence and community ties.

Source: Total Food Service

2025 Restaurant Trends: Embracing AI and Digital Transformation

Cautious Dining and Loyalty Challenges

• Dining Out Less: 36% of consumers plan to reduce restaurant visits due to high prices.
• Loyalty Struggles: Nearly 80% prefer returning to familiar QSRs; promotions may only attract temporary interest.

Digital Dominance and AI Integration

• Successful brands will drive 70% of sales through digital channels.
• Gen Z expects seamless, tech-driven experiences.
• AI-Powered Loyalty Programs:
  • Data-Backed Insights: Tailor promotions based on guest preferences.
  • Unified Guest Profiles: Enhance targeted marketing and operational efficiency.
  • Predictive AI: Increase customer engagement with personalized offers.

Rising Competition and Self-Service Technologies

• Convenience Stores are attracting younger consumers for meal options.
• Self-Service Kiosks:
  • Address labor costs.
  • Lead to larger order sizes and personalized experiences.

Intelligent Kitchens and Robust Infrastructure

• Automation in Kitchens: Improves efficiency and addresses labor challenges.
• Edge Computing Solutions: Support AI and real-time data demands in operations.

Value Balance and Engaging Hybrid Workers

• Offer unique, premium options to stand out.
• Tailor promotions for hybrid workers, emphasizing personalized experiences.

Sources: Modern Restaurant Management

Sweet Treats and Snack Innovations

• Pepperidge Farm's Goldfish Grahams:
  • New flavors: Strawberry Shortcake, Vanilla Cupcake, and Cinnamon Roll.
  • Targeting Gen Z and millennial snackers.
  • 140 calories per serving.
• Saco Foods' Baileys Irish Cream Melting Wafers:
  • Easy melting for decorating.
  • Combines chocolate and Baileys flavors.
• Fire Brands' Shelf-Stable Chocolate Milks:
  • Inspired by Snickers, Twix, and Milky Way.
  • Contains 2% reduced fat.
  • Focused on taste and convenience for on-the-go consumers.

Source: Food Business News

Addressing Food Insecurity and Celebrating Culture

Food Insecurity Misconceptions

• Sara Lee Bread and U.S. Hunger survey reveals significant misconceptions:
  • Only 24% of Americans view food insecurity as a major issue.
  • 29% are unfamiliar with the term.
  • Households earning up to $149,000 can experience food insecurity.
  • 90% of female caregivers often skip meals to feed their families.
• Sara Lee commits $1 million to hunger relief by 2025.

Source: Food Business News

Kwanzaa Keepsake and Cookbook Revival

• Dr. Jessica B. Harris republished her 1995 book, featuring:
  • Updates and new recipes.
  • Foreword by Carla Hall.
  • Family pages for recording personal traditions.
  • Biographies celebrating figures across the African diaspora, including LGBTQ+ representation.
• Emphasizes the significance of Kwanzaa's seven guiding principles and fostering unity within the Black American community.

Source: Salon

Industry Challenges: Food Safety and Legal Settlements

Advancements in Food Safety Testing

• Food safety testing is crucial to protect consumer health and uphold food supply integrity.
• FDA proposes a $7.2 billion budget for 2025 to enhance initiatives.
• Technologies like metal detection and X-ray inspection combat foreign object contamination.
• Challenges include integrating detection systems into production lines and training staff effectively.
• AI advancements promise improved detection accuracy and operational efficiency.

Source: Food Industry Executive

Poultry Industry Wage-Fixing Settlement

• Preliminary approval for a $180 million settlement involving nine poultry processors.
• Allegations of wage-fixing conspiracies aimed at depressing worker salaries.
• Companies involved include:
  • Tyson Foods ($115.5 million)
  • Koch Foods ($18.5 million)
  • Butterball ($8.5 million)
• No admission of wrongdoing from the companies.

Source: Food Business News

Mondelez Shelves Hershey Acquisition Speculation

• Mondelez International cooled speculation about acquiring The Hershey Co..
• Hershey Trust rejected Mondelez's bid as too low.
• Mondelez announced a $9 billion share repurchase plan, focusing on smaller acquisitions.
• Analysts suggest this may be a negotiating tactic, considering the Hershey Trust's stance.

Source: Food Business News

Taco Bell Enters the Chicken Nugget Game

• Collaborated with Hidden Valley Ranch to introduce limited-time chicken nuggets.
• Nuggets feature breading made from tortilla chips and bread crumbs.
• Served with new dipping sauces: Bell Sauce, Jalapeño Honey Mustard, and Hidden Valley Fire Ranch.
• Nuggets are marinated in jalapeño buttermilk.
• Aims to reinvent the chicken nugget experience with bold flavors.

Source: Food Business News

Octonuts Unveils New Cashew-Based Delights

• Launching new cashew-based snacks and butters with unique flavors.
• New nut butters:
  • Churro-Inspired
  • Strawberry
• Snack packs available in:
  • Gochujang
  • Crème Brûlée
• Products are peanut, soy, and dairy-free, appealing to health-conscious consumers.
• Pricing:
  • Nut butters: $11.99 for a 16-oz jar.
  • Snacks: $6.99 for a 5-oz pouch.
• Available at retailers like Sprouts Farmers Market and Hannaford in 2025.

Source: Food Business News

Smalls Sliders Expands into Southeast Houston

• Plans to open six new locations through a partnership with entrepreneur Matthew Wiggins.
• The first cans (restaurants) expected to open in 2025.
• Bold expansion with nearly 100 locations planned throughout Texas.
• Backed by investors including Drew Brees.
• Over 350 units in development across various locations.

Source: QSR Web

Navigating Inventory Management Systems

Restaurant owners discuss challenges and solutions for effective inventory management:

• R365 (Restaurant365):
  • Comprehensive features but high cost.
  • Powerful if used properly, concerns about pricing and complexity.
• Alternatives:
  • MarginEdge: Recommended for recipe management and lower costs.
  • Craftable: Praised for strong inventory capabilities and cost efficiency.
• Key Considerations:
  • Importance of staff training.
  • Potential partnerships with suppliers to offset software costs.
  • Need for constant attention to inventory management tools.

Sources: /r/restaurantowners

KFC's Sauce-Centric Concept and Online Reactions

KFC introduces a new restaurant concept focusing on various sauces, aiming to attract attention on TikTok and social media.

• Positive Notes:
  • Appreciation for variety with 10 additional sauces compared to competitors.
  • Recognition that custom sauce choices are popular among younger demographics.
• Skepticism and Criticism:
  • Concerns about actual food quality, with comparisons to frozen tenders.
  • Skepticism about the concept's lasting appeal, suggesting it's more of a social media spectacle.
  • Absence of popular sauces like hot sauce and buffalo noted.
• Calls for Improvement:
  • Suggestions for KFC to focus on improving food quality over gimmicky marketing.
  • Comments on the lack of originality in the concept.

Sources: /r/fastfood, /r/restaurant

Hungry Howie's Nostalgic Deals Delight Fans

• Introduced a limited-time deal lineup featuring $10, $20, and $30 options.
• Fan Reactions:
  • Nostalgia: Customers reminisce about Hungry Howie's quality pizza.
  • Unique Offerings: Highlighting their distinctive sandwiches combining calzone-bread with garlic herb butter and generous fillings.

Source: /r/fastfood

Debate Over Employee Accountability for Mistakes

An incident at Whataburger where a manager suggested employees should personally pay for mistakes sparked discussions.

• Legal and Ethical Concerns:
  • Consensus that making employees pay is generally illegal and unethical.
  • Seen as a sign of poor management practices.
• Advice to Employees:
  • Contact corporate and file complaints to protect rights.
  • Highlight that federal law prohibits deductions that drop wages below minimum wage.
• Industry Practices:
  • Mistakes are part of business costs; restaurants should absorb them.
  • Shared experiences indicating widespread dissatisfaction with such policies.

Source: /r/restaurant

A Festive Misunderstanding at a Mexican Restaurant

A restaurant owner shares a humorous encounter where a customer was surprised the restaurant closes for Christmas, thinking they only celebrate 'Feliz Navidad'.

• Community Responses:
  • Playful comments about cultural understanding.
  • The customer felt embarrassed, leading to a moment of realization and learning.

Source: /r/restaurant

Navigating Allergy Complaints and Legal Threats

An ice cream shop faces a complaint after a customer claims her daughter had an allergic reaction from a non-dairy product containing sodium caseinate.

• Shop's Position:
  • Menu clearly states the non-dairy option contains milk derivatives.
  • Order was processed without any allergy notes.
• Customer's Demands:
  • Initially accepted a gift card.
  • Later requested payment for hospital bills, escalating the issue.
• Community Advice:
  • Involve legal counsel.
  • Be cautious of potential misuse of allergy claims.
  • Importance of transparent ingredient communication.
  • Enhance staff training and protocols.

Source: /r/restaurant

Legal Concerns Over Tip-Out Practices

An employer requires staff to tip out bartenders, bussers, and hosts nightly while delaying their own tip payments by a week.

• Legal Issues:
  • Practice is likely illegal and uncommon in the industry.
  • May violate labor laws regarding tip distribution and timely wage payments.
• Advice:
  • Report the employer to labor boards.
  • Consider seeking legal counsel or changing employment.
• Industry Reflections:
  • Discussions on fairness of tipping systems.
  • Suggestions to rethink tip distribution and management.

Source: /r/restaurant

Strategies for Pitching to Bar Owners

An entrepreneur seeks advice on expanding their vape vending machine business into bars.

• Preferred Approaches:
  • Avoid direct cold calling owners.
  • Opt for emails or in-person visits to make a connection.
• Effective Tactics:
  • Upfront Cash Offers may pique interest.
  • Ensure proposals minimize additional work for bar owners.
  • Building rapport and personalizing outreach is key.
• Presentation Matters:
  • Professional appearance during visits is crucial.
  • Understand the bar's clientele and align the product accordingly.

Source: /r/BarOwners

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