December 2nd QSR Roundup: Exploring Sweetgreen's Growth, Port of Subs Expansion, and Trendy Seasonal Menus

QSR news for Dec 2nd, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 58 articles to bring you the latest. Estimated reading time saved (at 200wpm): 215 minutes. It'll take you only 13 minutes to catch up.

Innovations and Growth in the Food Industry

Sweetgreen's Innovative Journey

Sweetgreen cofounders Jonathan Neman, Nicolas Jammet, and Nathaniel Ru started in 2007 with a vision to redefine fast food by offering healthy, quick-service options. Leveraging their inexperience, they focused on local produce and sustainable supply chains, which became central to their brand identity. Embracing technology, they developed an app and introduced the Infinite Kitchen, automating operations and enhancing the customer experience. With substantial growth, Sweetgreen aims to scale further while maintaining quality through local partnerships and expanding beyond salads to reach new customer segments and drive profitability.

Source: QSR Magazine

Port of Subs' Ambitious Expansion

Port of Subs is on an aggressive growth path, planning to expand from 125 to 500 stores in five years. President Healey Mendicino is implementing a regional developer model, where groups manage territories with a minimum of 10 units. Significant commitments include 70 units in D.C., 60 in Minnesota, and 30 in Sacramento, totaling 300+ new units. Under new ownership by Area 15 Ventures, the chain is financially robust, allowing focus on operations over capital raising. They emphasize authentic engagement from developers passionate about the brand over mere financial capability. Launching a new prototype store in Denver with digital enhancements, Port of Subs is fostering a vibrant atmosphere for growth.

Source: QSR Magazine

Couche-Tard Competes with QSRs

Alimentation Couche-Tard is expanding its foodservice operations, positioning itself as a competitor to traditional QSRs. Through its Fresh Food, Fast program available in nearly 5,800 Circle K locations, they offer sandwiches, pizza, and baked goods since 2020. They launched a permanent $3, $4, and $5 meal deal menu, selling over 300,000 meals weekly within two months, targeting price-conscious consumers. Despite a 1.6% decline in same-store merchandise revenues in the U.S., CEO Alex Miller is confident in growth, emphasizing attractive meal deal margins and unique supplier partnerships.

Source: Restaurant Dive

Chicken Salad Chick Enters Kansas City

Chicken Salad Chick opens its first location in the Kansas City area at 1020 NW Pryor Road in Lee's Summit, Missouri. Franchisee Kendra Greenwood, after being a longtime fan, expressed excitement about bringing the beloved brand to her community. President and CEO Scott Deviney praised the Greenwoods as exceptional partners with contagious passion, aligning with the brand's mission and values.

Source: Fast Casual

MAP Restaurant Supplies Celebrates 30 Years

Paul Pimentel leads MAP Restaurant Supplies, a family-owned business with $23 million in annual sales, ranked No. 71 in FE&S 2024 Distribution Giants. Embracing the shift towards internet purchases, they've innovated by sourcing directly from international factories during supply chain disruptions. Looking ahead, they emphasize a people-first approach, combining technology with premium customer service to ensure satisfaction and continued growth, aiming for a larger market presence.

Source: Foodservice Equipment & Supplies

Future of CPG Investments

Steve Young from Manna Tree is optimistic about health and wellness investments in the CPG sector by 2025 and 2026. Despite recent slowdowns, rising interest in health-oriented products is driving funding potential. Investment activity has decreased, with average per-deal capital of $53.6 million in 2024, lower than previous years. Key acquisitions include Blackstone's $8 billion deal for Jersey Mike’s and Campbell Soup’s $2.7 billion buy of Sovos Brands. Young notes a shift in startup culture towards profitability and cash flow focus, amid rising acquisition multiples.

Source: Food Business News

Seasonal Menus and Holiday Promotions

Festive Menus Delight Diners

Restaurants are embracing the festive spirit with special seasonal offerings:

• Popeyes introduces the Festive Family Box for $20, including four pieces of chicken and sides, plus Midday Mardi Gras Happy Hour deals for snacks and drinks.
• Krispy Kreme rolls out the Merry Grinchmas Doughnut Collection with three unique doughnuts inspired by Dr. Seuss's classic.
• KFC launches a unique 2024 Holiday Collection with streetwear-inspired items by Yeye Weller and new meal deals like the Festive Feast for $25.99, featuring a holiday bucket of fried chicken.
• Bar Louie, Snooze A.M. Eatery, Perkins, and Rita’s offer festive flavors and holiday treats to attract customers this season.

Source: Restaurant Business, Nation's Restaurant News

CrispiDays Return at Noodles & Company

Noodles & Company brings back its CrispiDays celebration in December, offering a variety of Rice Crispy desserts:

• S’mores Crispy (Dec. 2-8): with graham crackers and chocolate chips.
• Cinnamon Crunch Crispy (Dec. 9-15): includes cinnamon crunch flakes.
• Chocolate Peppermint Crispy (Dec. 15-22): made with chocolate rice cereal and peppermint.
• Cake Batter Crispy (Dec. 23-29): features cake batter and rainbow sprinkles.

All priced at $3, or add to a $15 order for $1 with promo code CRISPIDAYS. CEO Drew Madsen emphasizes the festive aspect to foster memorable guest experiences amid declining sales and a struggling stock price.

Source: Nation's Restaurant News

Red Lobster's Happy Hour Launch

Red Lobster introduces a Happy Hour menu available Monday to Friday, 3-6 PM:

• $5 drink specials like classic margaritas.
• $2 off select starters including Lobster Flatbread and Crab Queso.

Chief Marketing Officer Nichole Robillard notes it's a great option during the busy holiday season. This launch follows a menu revamp with new pasta and seafood dishes, as part of Red Lobster’s turnaround strategy under new CEO Damola Adamolekun.

Source: Nation's Restaurant News

Subway's Sweet Holiday Campaign

Subway launches a holiday cookie contest, offering daily chances for a free cookie via its Subway Cookie Club until year's end. Customers can enjoy a complimentary footlong cookie with qualifying orders on delivery platforms like DoorDash, Uber Eats, and Grubhub. MVP Rewards members receive free cookie coupons from Dec. 9 to Dec. 31, with various cookie flavors available. With nearly 37,000 locations worldwide, Subway aims to enhance customer engagement with this festive promotion.

Source: Nation's Restaurant News

Craftsman Row Saloon's Holiday Wonderland

Craftsman Row Saloon in Philadelphia transforms into a vibrant Holiday Wonderland each Christmas season:

• Incredible decor: 3,000 new lights, 500 tree ornaments, 20 Christmas trees, and 1,000 hanging ornaments.
• Unique menu items: Festive drinks like gingerbread margaritas and an extravagant eggnog milkshake, plus a Christmas Dinner Burger topped with stuffing and cranberry sauce.
• Serving as a community hub, it's now a cherished holiday destination, known for promoting joy during the festive season.

Source: Eater

Black Friday and Cyber Monday Deals

Shoppers enjoy significant discounts on kitchenware and pantry items:

• Amazon: Deals on gadgets like the Breville Barista Express Espresso Machine ($550, originally $750), Instant Vortex Plus Air Fryer ($90, down from $150), and Lodge Cast Iron Skillet ($20, originally $34).
• Le Creuset: Up to 43% off on cookware, including the 5-Quart Oval Dutch Oven ($330, was $400) and 3-Quart Heritage Square Dish ($39, was $55).
• Cyber Monday Coffee Deals: Save on popular models like Technivorm Moccamaster (30% off), Keurig K-Elite (42% off), and Nespresso Vertuo (30% off).
• REI: Up to 50% off on outdoor gear from brands like Stanley, Hydro Flask, and The North Face.
• Black Friday Pantry Deals: Discounts on gourmet items from Blue Pheasant, Brightland, Fly By Jing, and more.

It's the perfect time to upgrade kitchen essentials or find gifts for food enthusiasts!

Source: Eater, Food & Wine

Challenges in the Restaurant Industry

Pinstripes Faces Sales Decline

• 9.4% drop in same-store sales during Q2.
• 13% decline in open play and 6% dip in events.
• Low cash reserves at $3.2 million with $114 million in debt.
• Implementing happy hour discounts and local promotions to attract customers.
• Q3 saw a positive shift with +10.1% in same-store sales due to renewed marketing and holiday events.

Despite challenges, Pinstripes aims for positive earnings, leveraging the holiday season to boost cash flow.

Source: FSR Magazine

Casual Dining Faces Hurdles and Opportunities

• Moderate growth expected for 2025, with consumer spending projected to reach $921.7 billion.
• 2.6% decline in overall restaurant traffic in 2024 amid inflation.
• Millennials (72.2 million) now dominate dining behavior, shifting focus from Baby Boomers.
• Fast-casual segment projected to grow 1.6% in 2025; chains like Cava thriving.
• Texas Roadhouse reports a 13.5% sales boost, showcasing resilience.
• Alcohol sales account for 25% of casual dining revenues, with innovation in beverage options to attract younger customers.
• Takeout trends: Off-premises sales make up about 30% of total revenue.

Operators are navigating inflation and labor challenges, focusing on value-driven success and technological integration.

Source: Foodservice Equipment & Supplies

Employee Concerns: Dine and Dash Responsibility

A Reddit discussion highlights the debate over who should bear the cost of dine and dash incidents. The consensus is that servers should not be held accountable, as it's often illegal for employers to demand payment from staff. The conversation emphasizes that while attentive service can minimize risks, management should enhance policies rather than blame individual servers.

Source: /r/Restaurant_Managers

Pizza Hut Tip Theft Allegations

An employee raises concerns about tips being collected but not redistributed, suggesting possible legal issues. Commenters advise reporting to the Department of Labor, citing such practices as illegal. The situation underscores the importance of compliance with employment laws regarding tip distribution.

Source: /r/restaurant

Food Trends and Culinary Innovations

Flavor Trends for 2025: Asian Fusion and Sustainability

• Korean, Vietnamese, and Filipino cuisines expected to lead food trends, focusing on sustainably sourced ingredients.
• Over 70% of U.S. counties have at least one Asian restaurant.
• South Korea's global cultural impact is fostering curiosity in Korean cuisine.
• Chains like Bonchon aim to double presence by 2028; Gen Korean BBQ expands after going public.
• Trend for fermented foods and blends like hot honey and spicy maple set to maintain appeal.

Source: Restaurant Dive

Global Culinary Mash-Ups

The rise of ethnic fare leads to creative food combinations:

• 40% of consumers prefer dining at restaurants with innovative flavors.
• American/Chinese fusion tops mashups.
• Global Fusion RVA, co-founded by Scott Traber, combines flavors from South Africa, Greece, Vietnam, and America.
• Standout dishes include the Southern Reuben and Havana sandwich with smoked meats and global ingredients.

Source: Foodservice Equipment & Supplies

Dosa Delight: A South Indian Favorite Goes Global

Dosas, a South Indian delicacy made from rice and lentils, are gaining popularity:

• Noted for being gluten-free and high in protein.
• Made with fermented batter for enhanced texture and taste.
• Variants like masala dosa (stuffed with spiced potatoes) and innovative versions with crab or Nutella.
• Dosas feature on just under 1% of menus, with a 15% increase on appetizer menus over the past year.

Chefs are introducing dosas to diverse audiences, expanding beyond traditional settings.

Source: Nation's Restaurant News

Reimagining House Wines

Bay Area restaurants are redefining house wines through collaborations with local wineries:

• Bodega SF's Jurassic Vineyard Riesling pairs perfectly with Vietnamese dishes.
• Flour + Water features blends like “Pasta Water” and “Pasta Sauce.”
• Custom wines foster deeper diner connections and highlight local terroirs.
• Reflects the evolving relationship between food and wine, emphasizing storytelling in dining.

Source: Salon

Gelato vs. Ice Cream: Uncovering the Differences

Both gelato and ice cream share similar ingredients but differ in production methods:

• Air content: Ice cream is churned faster, incorporating more air for a fluffier texture; gelato is denser.
• Fat content: Ice cream must have at least 10% milk fat; gelato varies around 4-9%.
• Sugar differences: Vanilla gelato typically has 3g more sugar than vanilla ice cream.
• Nutritional value: Both are considered "sometimes foods" to be enjoyed in moderation.

Understanding these differences can elevate your dessert experience!

Source: Salon

Agtech Innovations Combat Ingredient Shortages

Climate change and population growth threaten staples like coffee and cocoa:

• Severe weather events push prices to record highs; cocoa prices have more than doubled in a year.
• Agtech solutions include lab-grown ingredients like cell-cultured vanilla and coffee.
• Companies explore alternatives like beanless coffee from upcycled ingredients.
• Innovations offer hope for a resilient food industry amid challenging food supply futures.

Source: Food Industry Executive

Technology and AI in Restaurants

AI Integration: Enhancing or Intrusive?

Discussions on Reddit highlight mixed feelings about the application of computer vision and AI technologies in restaurants:

• Potential benefits: Optimizing table turnover, tracking server efficiency, menu interactions, and reducing food waste.
• Concerns: Invasion of privacy, creating a dystopian dining experience, undermining the human aspect of restaurant management.
• Alternatives: Many believe existing PoS systems provide sufficient data without invasive technology.

This debate illustrates a significant divide on the use of such technology in the industry.

Source: /r/restaurantowners

Portable Dishwasher Revolutionizes Small Kitchens

A portable dishwasher, like the 5-liter Novete countertop model, offers space-saving solutions:

• Fits four full place settings, operates without water hook-up.
• Features sanitation options for baby items and efficient cleaning modes.
• Ideal for those without traditional dishwashers, simplifying kitchen chores.

Despite limitations, it's recommended for anyone looking to ease dishwashing burdens.

Source: Eater

Temp-to-Hire Staffing Strategy

Restaurants face staffing challenges with high turnover and cost risks:

• Temp-to-hire models allow employers to trial employees before committing long-term.
• Beneficial as the foodservice industry expands, necessitating more staff.
• Provides flexibility and cost-effectiveness; if a temp doesn't fit, request a replacement from the staffing company.
• Emphasizes the importance of committed training and intentional onboarding.

This approach helps businesses stay efficient and competitive in a changing job market.

Source: Nation's Restaurant News

Leadership Changes and Acquisitions

J&J Snack Foods Appoints New CFO

Shawn Munsell is named Chief Financial Officer of J&J Snack Foods Corp., effective Dec. 2, succeeding the retiring Ken Plunk:

• Munsell brings over 15 years of financial and operational leadership experience.
• Previously CFO of Calvo, overseeing finance structure and growth initiatives.
• Experience includes significant roles at Tyson Foods and CF Industries.

CEO Dan Fachner expresses confidence in Munsell's ability to enhance growth and shareholder value.

Source: Food Business News

Ingredion Appoints New VP of M&A

Mark Karns joins Ingredion as the new vice president of corporate development and mergers and acquisitions:

• Brings experience from investment banking, private equity, and strategy consulting.
• Successful in valuation and execution of transactions across various sectors, including food and beverage.
• Aims to align corporate strategy and M&A efforts for Ingredion’s growth ambitions.

Source: Food Business News

TreeHouse Foods Acquires Harris Freeman

TreeHouse Foods acquires Harris Freeman & Co. for approximately $205 million, enhancing its tea category presence:

• Deal includes manufacturing facilities in New Jersey and Georgia, adding about 300 employees.
• Expected to bolster TreeHouse's capabilities in the growing tea market.
• Acquisition projected to close in the first quarter of 2025, financed with cash reserves.

Source: Food Business News

Reviving the Hostess Brand

Mark Smucker, CEO of J.M. Smucker Co., shares plans to invigorate the acquired Hostess brand:

• Strategies include refreshing marketing to target millennials and Gen Z.
• Enhancing distribution and introducing new product innovations.
• Aims for a 4% long-term sales growth for Hostess, supported by early cost synergies estimated at $100 million by fiscal 2026.

Despite current underperformance, Smucker is optimistic about the brand's potential.

Source: Food Business News

Community and Cultural Spotlights

Empowering Diversity in Baking

Joanne Canady-Brown, founder of The Gingered Peach, advocates for diversity in the baking industry:

• Left corporate life to establish her notable bakery in New Jersey.
• Owns Melba Ice Creamery and Rojo’s Roastery, focusing on workforce diversity.
• Faces challenges as a Black woman entrepreneur, stressing the need for inclusion in leadership positions.
• Implementing changes to aid local communities, including a new facility to provide jobs closer to home.

Emphasizes practical solutions in diversity, equity, and inclusion efforts.

Source: Foodservice Equipment & Supplies

Open-Mic Opportunities in San Francisco

An initiative to create a free open-mic night focused on spoken word poetry seeks a bar in San Francisco to host weekly events:

• Observes a lack of such opportunities compared to other cities like Paris.
• Aims to include musical and comedic acts.
• Comments highlight potential challenges like audience engagement and venue support.
• Some suggest alternative venues like coffee shops and emphasize maintaining a purchasing requirement to sustain the hosting venue.

Source: /r/BarOwners

Boosting Winter Bar Business

Bar owners look for strategies to enhance business during slow winter months:

• Experimenting with promotions like jello shot campaigns during sports games.
• Suggestions include hosting trivia nights, karaoke, and unique entertainment options.
• Emphasis on providing experiences that encourage patrons to venture out despite cold weather.

Owners acknowledge the importance of effective promotion and consistency.

Source: /r/BarOwners

Food Safety and Operational Strategies

Proactive Food Safety Strategies

Foodborne illnesses affect around 48 million Americans each year, costing about $15 billion:

• Sourcing ingredients from certified suppliers.
• Maintaining proper storage temperatures: 40°F for cold food, 140°F for hot.
• Fostering a culture of food safety within the team.
• Having an incident management plan to handle outbreaks effectively.

Embedding a safety-first mindset helps mitigate risks and protect a restaurant's reputation.

Source: Modern Restaurant Management

Restaurant Site Selection Strategies

Choosing the right location involves analyzing various factors:

• Site considerations: Strip malls, city centers, standalone buildings each offer unique pros and cons.
• Data-driven decisions: Tools like Sitewise Analytics help match locations with target audiences.
• Types of spaces: End caps and urban spots attract crowds but come with higher rents; standalone locations offer more space but may lack foot traffic.
• Non-traditional venues: Hotels and airports provide high exposure but have higher costs.

Success hinges on detailed market research and careful planning to resonate with target customers.

Source: Restaurant Dive

Responsibility for Dine and Dash Revisited

Further discussions emphasize that while servers shouldn't be held financially responsible for dine and dash incidents, management should address systemic issues:

• Employers bear the loss as a cost of doing business.
• Mismanagement often contributes to ongoing issues.
• Enhancing policies and training can minimize occurrences.

The restaurant industry must balance accountability and support for staff.

Source: /r/Restaurant_Managers

Lawsuits and Legal Concerns

Kroger and Albertsons Face Antitrust Lawsuit

Supermarket giants Kroger and Albertsons are sued for allegedly conspiring against unionized workers during a 2022 strike:

• Accused of a “no-poach” agreement, undermining worker bargaining power.
• Lead plaintiff Valarie Morgan cites collaboration to prevent hiring striking workers seeking better pay and treatment.
• The lawsuit claims the alleged collusion could have affected the strike's outcome and potential bargaining gains.
• The controversy intensifies scrutiny over the proposed $24.6 billion merger amidst regulatory concerns.

The lawsuit seeks compensation for lost wages and preventive measures against similar corporate agreements.

Source: Salon

Stay tuned for more concise news updates delivered right to your fingertips, saving you valuable time. As industry professionals and restaurant operators, your time is precious—spent on running your businesses, innovating menus, and enhancing customer experiences. Let us keep you informed with quick, comprehensive summaries so you can focus on what you do best. Subscribe now and join us again for the latest insights in the restaurant industry!