December 6th QSR Roundup: Exciting New Fast-Food Openings and Innovations Across America
QSR news for Dec 6th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 93 articles to bring you the latest. Estimated reading time saved (at 200wpm): 295 minutes. It'll take you only 9 minutes to catch up.
Exciting Fast-Food Openings and Expansion Plans
Chick N Max Aims for 50 New Locations
Chick N Max, known for its chef-crafted chicken dishes, plans to open up to 50 new locations across the Central U.S. in the next two years. With existing restaurants in Kansas, Texas, and South Dakota, they are targeting key markets along the I-35 corridor, including Des Moines, Topeka, and Dallas-Fort Worth. New prototypes will range from 1,500 to 2,400 sq ft, featuring indoor/outdoor seating for 80 customers, drive-thrus, and enhanced digital experiences. Total investment ranges from $650,000 to $2.5 million, with a franchise fee of $35,000.
Sources: QSR Magazine
Krystal Expands in South Carolina
Krystal is opening a new location in Orangeburg, SC on December 9, backed by media star Charlamagne Tha God. The event includes prizes and community festivities. The new menu features unique items like Smash’d & Stack’d burgers and Churro Fries, with operations running 24/7.
Sources: QSR Magazine
Layne's Chicken Fingers Makes Utah Debut
Layne's Chicken Fingers is set to open in Clearfield, Utah by year's end. With franchisee Scott Davis at the helm, Layne's plans to introduce its iconic crispy tenders to Utah, aiming for 16 locations over the next five years.
Sources: Fast Casual
Technological Advancements in Restaurants
Torchy's Tacos Adopts Voice AI Ordering
Torchy’s Tacos partners with SoundHound AI to launch an advanced voice AI Smart Ordering system across all 130 locations. This technology allows customers to place customized orders naturally, while handling multiple calls simultaneously. The system also addresses common inquiries about the menu and store details, enhancing focus on food preparation and service quality. Nearly 80% of diners believe AI will dominate food ordering in the near future.
Sources: QSR Magazine, Restaurant Dive, Networld Media Group
Chipotle Raises Menu Prices Amid Tech Investments
Chipotle is raising menu prices by 2% to offset inflation, marking the first increase in over a year. Despite these changes, Chipotle reports positive transaction growth, with revenues increasing by 13% to $2.8 billion. The focus is on enhancing efficiency and innovation, including investment in new kitchen technologies to maintain food quality.
Sources: Restaurant Business, Restaurant Dive
Community Support and Sustainability Efforts
Sweetgreen Supports LA Farmers Markets
Sweetgreen commits to Food Access LA, supporting eight farmers markets in Los Angeles. This ensures their continued operation through 2025, connecting local farmers with the community and enhancing food security in underserved areas. The markets draw over 10,000 visitors weekly. Sweetgreen's roots in local agriculture date back to its founding, prioritizing partnerships with small growers.
Sources: QSR Magazine, Restaurant Business
Sonny's BBQ's Vision for 2025
Sonny’s BBQ is embracing change as it moves into 2025, focusing on community, technology, and enhancing customer experiences. With over 320,000 members in their new mobile app generating $14 million, they emphasize refinement across price, quality, and guest experience for future expansion.
Sources: FSR Magazine
Innovations in Menu Offerings
McDonald's to Bring Back Snack Wraps in 2025
McDonald's announces the return of the beloved Snack Wraps in 2025, responding to strong customer demand. The wraps feature crispy or grilled chicken with various sauces in a tortilla and have been absent from U.S. menus since 2016.
Sources: Restaurant Business, QSR Web, /r/fastfood
Jollibee Launches Signature Sips
Jollibee introduces a permanent line of premium beverages called Signature Sips, featuring quenchers, freezes, iced teas, and cold brew coffee. Prices start at $4.99. The aim is to attract Gen Z customers and boost sales, especially in North America.
Sources: Restaurant Dive, Networld Media Group
Insights from Industry Leaders
Texas Roadhouse Shares Secrets to Success
Texas Roadhouse stands out with nearly $5 billion in sales at 638 locations in 2023. CEO Jerry Morgan attributes success to empowering owner-operators, celebrating employee performance, and maintaining quality food and service, all without heavy discounting.
Sources: Nation's Restaurant News
Walk-On's Sports Bistreaux Transformation
Walk-On's introduces a new restaurant prototype with a smaller footprint and bar-centric layout for increased energy and efficiency. Significant investment by 10 Point Capital drives fresh leadership and enhancements, focusing on improving the bar program for revenue boost.
Sources: FSR Magazine
Labor and Operational Developments
Upcoming Minimum Wage Hikes in 2025
In 2025, over half of U.S. states will increase minimum wages, averaging 75 cents more per hour, with significant variations:
- Michigan plans two increases, including phasing out the tip credit.
- California fast-food workers will earn at least $20 per hour.
- National average expected to reach $11.18 per hour.
These changes underline a considerable divide in pay levels across the country.
Sources: Restaurant Business
Cross-Training Enhances Efficiency and Morale
Cross-training in restaurants leads to:
- Operational efficiency: Staff can adapt during peak times.
- Employee growth: Opportunities for promotions and skill enhancement.
- Boosted morale: Employees feel valued, reducing turnover rates.
Effective cross-training includes identifying key skills and ensuring managerial support.
Sources: Nation's Restaurant News
Consumer Behavior and Market Trends
Burger Trends and Innovations
Burgers dominate menus at 40% with cheese as the top topping at 43%. Prices of cheeseburgers surged by 20% from $9.74 in 2019 to $11.74 in 2023. Trends include:
- Smashburgers
- Sliders
- Unique buns and artisanal ingredients.
Pharmacy Burger in Nashville is embracing local flavors with offerings like the White Oak BBQ Burger featuring Coca Cola barbecue sauce.
Sources: Restaurant Business
Fast-Food Delivery Markup Concerns
A study reveals that fast-food delivery services impose significant markups on menu prices. Consumers express:
- Disbelief that such a study was necessary.
- Personal experiences regarding excessive delivery costs.
- The consensus is that delivery is convenient but not economical, often doubling the price of meals.
Sources: /r/fastfood
Restaurant Operations and Management
Uber Eats Disputes and Challenges
Restaurant owners report frustrating experiences with Uber Eats regarding disputes and denials for driver errors. Issues include:
- Accountability for mistakes they didn't make.
- Persistent denial in attempts to resolve issues.
- Financial losses and feeling misled.
Commenters suggest exploring alternate delivery options like DoorDash.
Sources: /r/restaurant
Managing General Manager Issues
A catering company owner faces challenges with a new GM who cannot work early shifts as expected. Advice from peers includes:
- Emphasizing accountability
- Considering replacement
- Ensuring future hires have clear contracts outlining expectations.
The importance of flexibility and accountability is highlighted.
Sources: /r/restaurantowners
Product Launches and Business Moves
Barry Callebaut Introduces Upcycled Cacao Fruit
Barry Callebaut introduces upcycled cacao fruit into its product lineup, suitable for confectionery, ice cream drinks, dairy products, and snacks. This innovation opens up opportunities for collaboration across different brands.
Sources: Food Business News
Nestle USA Names New CEO
Martin Thompson appointed as CEO of Nestle USA, succeeding in a vital role following his leadership in coffee ventures. He previously expanded brands like Nescafé and Starbucks at Home.
Sources: Food Business News
Holiday Specials and Consumer Engagement
Casa Juancho's Holiday Extravaganza
Casa Juancho in Miami transforms into a dazzling holiday spectacle every December, merging Spanish tradition with festive decor. Highlights include:
- Thousands of lights and oversized ornaments.
- Live guitarists serenading guests with Spanish tunes and Christmas carols.
- A grand Christmas tree creating an opulent atmosphere.
Sources: Eater
Delightful Tinned Fish Candles
For tinned fish enthusiasts, adorable candles designed to resemble tinned seafood are a quirky trend. Scents include:
- Ocean breeze
- Tomato leaf
- Holiday-themed vanilla and egg nog.
These candles encapsulate the fun of the tinned fish craze.
Sources: Eater
Industry Predictions and Future Outlook
Technomic's Restaurant Trends Predictions for 2025
Key predictions include:
- Chipotle climbing to the No. 7 spot in sales rank, surpassing Burger King and Subway.
- Full-service dining facing contraction due to rising costs and fast-casual competition.
- The chicken market maintaining double-digit sales growth, driven by younger consumers.
- Top 500 sales projected to rise by 4.2%, approaching $440 billion in 2024.
Sources: Nation's Restaurant News
Restaurant Bankruptcy Wave in 2024
2024 saw a surge in restaurant bankruptcies due to:
- Rising labor costs and dwindling consumer foot traffic.
- Major brands like TGI Fridays and Rubio’s facing Chapter 11.
- Rising interest rates making capital harder to access.
Strong brands thrived, but those with weaker propositions struggled significantly.
Sources: Restaurant Dive
Culinary Trends and Home Cooking
Rediscovering Cooking Amid Delivery App Fatigue
- Personal cooking rebirth: After reliance on delivery apps, individuals are rediscovering the joy of home cooking.
- Impact on restaurants: Delivery apps hurt restaurants due to high fees, leading to sustainability concerns.
- Valuing personal connections: Ordering directly from restaurants restores human interaction and gratitude in the dining experience.
Sources: Salon
French Onion Delights and Hot Toddy Tips
- Elevate classic dishes: Explore recipes that turn French onion soup into grilled cheese or pasta delights.
- Hot Toddy customization: Use flavored bases like tea, select unique sweeteners, and consider adding butter for richness.
Sources: Food & Wine
Miscellaneous Updates
Rachael Ray Shrugs Off Online Trolls
Rachael Ray remains unfazed by internet trolls discussing her health and appearance. She emphasizes not caring about negative opinions and focuses on her work.
Sources: Salon
Pantone's Color of the Year 2025
Pantone selects 'Mocha Mousse' as its Color of the Year for 2025, described as a mellow, rich brown that evokes feelings of comfort and warmth.
Sources: Salon
Employee Well-being and Work Culture
Sick Leave Dilemma in the Restaurant Industry
Workers face pressures regarding calling out sick, with expectations to work even when ill. The consensus emphasizes:
- Prioritizing health over work.
- Recognizing that customer safety is paramount.
- The need for better working conditions and understanding from management.
Sources: /r/restaurant
Best Shoes for Bar Staff
Bartenders seek supportive and comfortable shoes for long hours on hard floors. Recommendations include:
- Servsafe Vans
- On Cloud and Saucony with gel inserts.
- Non-slip shoes like Birkenstocks, Birkis, and Crocs.
Sources: /r/BarOwners
Financial Insights and Business Performance
First Month Earnings for New Bars
- Earnings vary greatly depending on concept and location.
- Reports range from $12,500 to $15,000 in first-month earnings.
- Marketing and patience are crucial, with profitability often taking up to a year or more.
Sources: /r/BarOwners
Chipotle's Rise in Sales Rankings
- Chipotle is set to surpass Burger King and Subway for the No. 7 sales spot.
- Despite having fewer locations, consistent sales growth and international expansion drive success.
- They raised menu prices by 2% to combat rising costs.
Sources: Nation's Restaurant News
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