December 5th QSR Roundup: Revolutionizing Fast Dining with AI-Integrated Ordering, Kiosk Innovations and Culinary Expansions

QSR news for Dec 5th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 110 articles to bring you the latest. Estimated reading time saved (at 200wpm): 320 minutes. It'll take you only 12 minutes to catch up.

AI and Technology Innovations in Fast Dining

Torchy's Tacos Integrates Voice AI

Torchy's Tacos has partnered with SoundHound to implement voice AI Smart Ordering across its 130 locations. This technology allows customers to place customized orders naturally and handles multiple calls simultaneously. It also answers questions about menu items and store hours, enhancing efficiency and focus on food preparation.

• Nearly 80% of diners believe AI will dominate food ordering in the near future.
• SoundHound's solutions are already deployed in over 10,000 restaurants, processing millions of interactions.

Source: QSR Magazine, Networld Media Group

Optimizing Self-Ordering Kiosk UI

Self-ordering kiosks are transforming quick-service restaurants, and a well-designed user interface (UI) is essential for maximizing efficiency.

Best Practices Include:

• Simplicity is Key: An intuitive interface minimizes customer frustration.
• Visual Hierarchy: High-quality images of popular items attract interest.
• Easy Navigation: Logical categories and smooth scrolling enhance user experience.
• Personalization: Encourage customization and suggest relevant upsells.
• Accessibility Matters: Accommodate all customers with large text and clear messages.

By implementing these strategies, restaurants can leverage kiosk technology to enhance customer experience while driving sales.

Source: QSR Magazine

Expansions and New Openings

Wing Snob Expands to Florida

Wing Snob is opening its first Florida location in Riverview in December 2024. This marks the brand's expansion into the Sunshine State, with plans for additional sites in Tampa and Davie.

• Emphasizes fresh, never-frozen wings and a variety of housemade sauces.
• Offers vegetarian options and indulgent sides.
• Fast-casual layout with a streamlined digital ordering system.

The brand aims to appeal to a diverse population, strategically enhancing its footprint across Florida and beyond.

Source: QSR Magazine

Dave's Hot Chicken Debuts in London

Los Angeles-based Dave's Hot Chicken opens its first UK store in London on December 7, marking its 250th restaurant.

• Plans for 60 units across the UK and Republic of Ireland.
• Rapid expansion from 2 locations in early 2020 to 250 by the end of 2024.
• Celebrates its roots with street art reflecting its beginnings in a parking lot.

The chain is committed to serving the "hottest and juiciest" hot chicken, bringing a unique culinary experience to Londoners.

Source: Restaurant Dive, Fast Casual

Qdoba Expands in Arizona

Qdoba is launching its first standalone restaurants in Phoenix and Scottsdale, with plans to open up to 10 locations in Arizona over the next two years.

• Features open grills and reduced size to meet rising demand.
• Maricopa County's growth makes it a prime market for fast-casual dining.
• Aims to double its 800-unit footprint in the next decade.

The expansion reflects Qdoba's strategy to enhance customer experience and capitalize on market opportunities.

Source: Restaurant Dive, Franchising

Culinary Trends and Menu Updates

Snack Wraps Return to McDonald's

McDonald's is set to bring back the beloved Snack Wrap in 2025 after being removed from the menu in 2016.

• Responding to overwhelming customer demand and its cult following.
• Will feature crispy or grilled chicken with various sauces in a tortilla.
• Competitors have filled the gap with similar products, prompting McDonald's revival.

This move is expected to resonate with returning customers and attract new fans alike.

Source: Restaurant Business, Nation's Restaurant News

Chipotle Raises Menu Prices

Chipotle has increased its menu prices by 2% nationwide to combat rising inflation, marking the first increase in over a year.

• Previous increases were in 2022 and 2021 due to wage adjustments.
• Despite the hike, Chipotle reports positive transaction growth, with revenues increasing by 13% to $2.8 billion.
• Focuses on maintaining portion consistency and investing in kitchen technologies.

This strategic adjustment supports their goal of sustaining profitability amid economic pressures.

Source: Restaurant Business, Restaurant Dive, Nation's Restaurant News

KFC's Festive Feast Deal

KFC has launched a new festive feast deal and a Chicken & Tenders Feast available for a limited time this holiday season.

• Aims to embrace the holiday spirit and offer customers value-added meals.
• Includes favorite menu items packaged for festive gatherings.

Customers have mixed reactions, with some expressing nostalgia for past items like potato wedges, but many appreciate the new holiday offerings.

Source: /r/fastfood

Industry Challenges and Legal Updates

Smalls Sliders vs. Smashburger Trademark Dispute

Smalls Sliders has sued Smashburger for trademark violations, claiming that the new 'S-formative' logo and the use of the color orange are too similar to its branding.

• Smalls Sliders has used their orange, S-shaped logo since 2019.
• Seeks to protect its brand integrity and prevent consumer confusion.
• Smashburger is reviewing the lawsuit and allegations seriously.

This case highlights the ongoing challenges smaller brands face against larger chains in protecting their trademarks.

Source: Restaurant Business, Nation's Restaurant News

Restaurant Bankruptcy Wave 2024

The year 2024 saw a surge in restaurant bankruptcies due to rising labor costs and reduced consumer foot traffic.

• Major brands like TGI Fridays and Rubio’s filed for Chapter 11.
• 30% increase in restaurant prices over the past five years led to reduced spending.
• Rising interest rates made capital harder to access, exacerbating financial strains.

While strong brands thrived, many with weaker propositions struggled significantly, marking a concerning trend in the industry.

Source: Restaurant Dive

Court Blocks Ownership Reporting Requirement

A federal court has halted a mandate requiring most restaurants and small businesses to report their ownership information to the Treasury.

• Fearing fines up to $10,000 for non-compliance.
• The law was deemed unconstitutional, infringing on state responsibilities and violating privacy of LLCs.
• Protects small businesses from potential overreach and threats to financial privacy.

The ruling poses a challenge to the Treasury's efforts to combat money laundering through increased transparency.

Source: Restaurant Business

Sustainability and Health-Conscious Movements

Health-Conscious Dining Revolution

Consumers are increasingly demanding health-conscious dining options, prioritizing ingredient quality and transparency.

• Menus featuring fresh and minimally processed ingredients.
• Catering to diverse dietary preferences, including plant-based and gluten-free options.
• Avoidance of harmful ingredients and promoting transparency builds customer trust.

Restaurants must adapt by investing in health and wellness strategies to enhance customer loyalty and stand out in a competitive landscape.

Source: FSR Magazine

Smart Refrigeration Solutions

Restaurants are adopting smart refrigeration to tackle food waste challenges.

• Advanced fridges monitor food usage and prevent spoilage, leading to significant savings.
• Users report a waste reduction of 4.1% per month, saving approximately $500 per location.
• Features remote monitoring to address temperature issues proactively.

This innovation opens up new business avenues, enhancing convenience and reducing waste, improving sustainability and operational efficiency.

Source: FSR Magazine

Complimentary Sparkling Water Experience

Many restaurants are now offering complimentary sparkling water, enhancing the dining experience without extra charges.

• Aims to make customers feel valued without the 'nickel and diming' for extras.
• Costs average $300 a month per restaurant but are seen as essential for customer satisfaction.
• Reduces waste and elevates the overall meal experience.

This trend reflects a growing preference for value over upselling, contributing to a memorable dining atmosphere.

Source: Eater

Other Notable Updates

Campbell's Snacks Struggle

• Campbell’s Snacks unit saw a 2% decline in organic sales.
• Increased competition impacts market share, especially in cookies and crackers.
• Meanwhile, the Meals & Beverages segment is booming with a 22% sales increase.

The company plans to focus on innovation and marketing to regain momentum in the snack segment.

Source: Food Business News

ADM's Financial Integrity Focus

ADM is under a criminal investigation regarding past financial practices.

• New CFO emphasizes integrity and accuracy in financial reporting.
• Recent earnings showed a drastic net income drop from $821 million to $18 million year-over-year.
• Despite setbacks, ADM is optimistic about future growth in functional foods and decarbonization trends.

The company plans to enhance productivity and adjust market strategies in anticipation of regulatory changes.

Source: Food Business News

J.M. Smucker Divests Voortman Cookies

• J.M. Smucker Co. sold Voortman cookie business to Second Nature Brands for $305 million.
• Includes a manufacturing plant and 300 employees transitioning with the sale.
• The divestiture aligns with J.M. Smucker's strategy to focus on larger growth opportunities.

The company aims to unlock costs and reduce complexity to drive quality and projected a 7.5% to 8.5% increase in net sales for fiscal 2025.

Source: Food Business News

Tyson Foods Closes Plants

Tyson Foods is shutting down two plants, affecting over 1,000 workers.

• Closing of the Emporia, Kansas plant will lead to 809 layoffs.
• Aims to enhance operational efficiency amid challenging decisions.
• Reflects ongoing consolidation within Tyson Foods, impacting communities and employment.

Tyson emphasizes support for affected workers through resource allocation and opportunities within the company.

Source: Food Business News

Consumer Preferences in Food Industry

• Clean label ingredients dominate consumer demand.
• 62% of respondents assert that product quality and taste are key drivers of brand loyalty.
• Sustainable packaging preferences reveal that 32% favor biodegradable options.

Brands must adapt to these evolving consumer expectations to build trust and loyalty.

Source: Food Industry Executive

Opportunities in Retail Media

• CPG brands are utilizing retail media networks to access first-party data.
• Shift from traditional metrics to focusing on incrementality and customer lifetime value.
• Mondelēz's Triscuit campaign achieved a 16% increase in incremental sales.

Retail media proves essential in navigating an increasingly digital and data-driven market.

Source: Food Industry Executive

Leadership Changes at Jack in the Box

• Tony Darden, SVP COO, is leaving Jack in the Box after serving since June 2021.
• Ryan Ostrom will take on added responsibilities as Chief Customer and Digital Officer.
• Aims for greater alignment and value creation in future operations.

CEO Darin Harris expresses confidence in Ostrom's leadership to enhance customer focus.

Source: QSR Web

Andy's Frozen Custard Expands

• Opening two new locations in Burleson and Bedford, Texas.
• Introduces December flavor, Reindeer Tracks.
• Founded in Osage Beach, Missouri, now has 162 stores in 15 states.

Continuing to spread joy through their delicious treats and family tradition.

Source: Pizza Marketplace

Supplier Shipment Dilemma

A catering company faced issues when their holiday cheese order was delayed by a national supplier.

• Delay left the business scrambling to find alternatives for orders.
• Supplier enforced a strict no cancellation policy despite the delay.
• Highlights the importance of reliable suppliers and contingency planning.

Source: /r/restaurantowners

Effective Restaurant Promotions

Restaurant owners share strategies to attract customers during slow months.

• Avoid lowering prices; instead, offer value-added combos or specials.
• Implement themed nights or loyalty programs to enhance engagement.
• Utilize social media for advertising with engaging content.

Understanding operational metrics is crucial, and customer service quality remains key for retention.

Source: /r/restaurantowners

Ramen Making Process in Restaurants

Discussion on efficient ramen preparation in a restaurant setting.

• Use of boiling pots with strainers to pre-cook noodles.
• Limiting the menu to allow for customization without overwhelming the kitchen.
• Pre-making and freezing broth to save time.

Balancing authenticity with operational efficiency is essential.

Source: /r/restaurateur

Chi-Chi's Return

CHI-CHI'S Mexican restaurants are making a comeback after 20 years.

• Elicits nostalgia among those who remember the brand.
• Fans recall favorite menu items like corn cakes and chimichangas.
• Mixed opinions on the revival's potential success.

Reflects the power of nostalgia and brand loyalty in the restaurant industry.

Source: /r/fastfood

Unexpected McDonald's Dipping Sauce

A suggestion to try caramel sauce as a dipping option for McDonald's chicken nuggets sparks mixed reactions.

• Some adventurous eaters are open to new flavor combinations.
• Others prefer traditional condiments and express skepticism.
• Highlights diversity in customer preferences and willingness to experiment.

Source: /r/fastfood

Manager Misconduct Issues

A restaurant owner's daughter deals with a problematic manager who mismanaged finances and gave away free items.

• Investigation uncovered unpaid invoices and unauthorized withdrawals.
• Faced backlash from loyal customers after his departure.
• Emphasizes the importance of accountability systems in management.

Legal action and proactive management practices are advised.

Source: /r/restaurant

ADHD-Friendly Restaurant Roles

Discussion among restaurant employees with ADHD about suitable roles.

• Roles involving multitasking like serving and bartending are favored.
• Prep work can be beneficial but may lead to hyper-focusing issues.
• Importance of finding positions that keep them engaged and active.

Sharing personal strategies helps others cope with ADHD in restaurant settings.

Source: /r/restaurant

Complementary Sparkling Water Experience

Restaurants enhancing customer satisfaction by offering complimentary sparkling water.

• A significant trend aiming to avoid 'nickel and diming' customers.
• Demonstrates value over upselling, contributing to a memorable dining atmosphere.
• Highlights a growing preference for thoughtful customer service.

Source: Eater

Restaurant Tableware Trends

Tableware selections are evolving to enhance customer experience.

• Sustainability: Eco-friendly alternatives gain traction.
• Minimalism: Neutral palettes and simple designs remain popular.
• Bold Patterns and Colors: Vibrant hues offer creative plating options.
• Handcrafted Items: Unique pieces enrich the dining atmosphere.

Restaurants must adapt to consumer preferences and modern aesthetics.

Source: BlueCart

Maximizing Seasonal Sales

Bakeries and restaurants capitalize on seasonal flavors to boost sales.

• Limited-Time Offerings (LTOs) create urgency and drive foot traffic.
• Monitoring changing flavor profiles keeps offerings appealing.
• Visual appeal and strategic product organization enhance shopping experiences.

Adapting to consumer trends while fostering loyalty is key.

Source: Modern Restaurant Management

Campbell's Snacks Struggle

• Snacks unit hit hard with a 2% decline in organic sales.
• Increased competition and private labels impact market share.
• Meals & Beverages segment saw a 22% increase, driven by acquisition.

The company expects recovery through innovation and marketing, especially during the holiday season.

Source: Food Business News

Tyson Foods Closes Emporia Plant

• 809 employees laid off at Tyson's Emporia beef plant.
• Operations to relocate to the Holcomb, Kansas facility.
• Reflects ongoing consolidation and challenging decisions within the company.

Tyson emphasizes support for affected workers.

Source: Food Business News

Fast Food First Date

A recent survey reveals shifting dating preferences, showing that men are favoring fast-food spots like Chick-fil-A for first dates.

Source: Salon.com

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