December 7th QSR Roundup: Taco Bell's Live Más Café Redefines Beverage Choices While Restaurant Chains Shift Towards Personalized Loyalty Programs and AI Innovations

QSR news for Dec 7th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 64 articles to bring you the latest. Estimated reading time saved (at 200wpm): 209 minutes. It'll take you only 8 minutes to catch up.

Taco Bell's Live Más Café and the Beverage Boom

Taco Bell has launched the Live Más Café, a new beverage-focused prototype in Chula Vista, California, aiming to shake up the specialty drink market.

• Offers unique drinks like the Caramel Cafe Churro Chiller and Mexican Mocha Iced Coffee.
• Equipped with tech enhancements like self-ordering kiosks and digital menus.
• Open from 7 a.m. to 3 a.m., catering to late-night customers.
• Taco Bell emphasizes innovation and strong franchise partnerships for growth.
• Competitors like McDonald's are also entering the rapidly growing beverage category.

Sources: QSR Magazine, Nation's Restaurant News

Revamping Loyalty Programs and Embracing AI

Quick-service restaurants are overhauling loyalty programs to maximize ROI and meet customer expectations.

• 91% of diners prefer personalized loyalty experiences.
• Proper onboarding is crucial to retain interest and avoid reliance on discounts.
• Solutions like micro-journeys and gamified interactions boost engagement.
• AI technologies like voice AI are being adopted to alleviate rising labor costs.
• Experts advise careful implementation to enhance customer engagement.

Sources: QSR Magazine, Networld Media Group

Ambitious Expansion Plans: Dunn Brothers Coffee & Vicious Biscuit

Dunn Brothers Coffee plans to expand from nearly 50 to 250 stores in the next five years.

• Focus on high-demand areas along I-35 with drive-thru locations.
• Franchise partnerships and innovative menus are key to growth.
• Emphasizes high traffic areas and operational efficiency.

Vicious Biscuit aims for 75 locations in five years, with 40 new sites from recent deals.

• COO Amanda Kahalehoe has overseen significant growth.
• Prioritized strong foundations before franchising.
• Employs data-driven marketing and focuses on company culture.

Sources: QSR Magazine

Legislation and Leadership Shaping the Industry

Rep. Jan Schakowsky reintroduces the Franchisee Freedom Act to empower franchisees.

• Aims to grant franchisees court access against franchisors' compliance failures.
• Addresses issues with the FTC’s Franchise Rule lacking a private right of action.
• Supporters believe it will mitigate risks; critics fear excessive litigation.

The Women in Restaurant Leadership Summit in Nashville highlights female empowerment.

• Focuses on challenges faced by women in the industry.
• Emphasizes mentorship and strategies for advancing into leadership roles.
• Industry leaders stress the importance of women's contributions.

Sources: QSR Magazine, QSR

AI and Staffing: Embracing Technological Solutions

Restaurants are increasingly adopting voice AI technology to tackle labor shortages.

• Automates ordering, allowing staff to focus on other tasks.
• 75% of calls at Costa Vida’s call center are now handled by AI.
• Vinay Shukla of ConverseNow notes AI manages complex interactions.
• Experts advise starting with measurable projects to avoid pitfalls.

Sources: QSR Magazine, Networld Media Group

Restaurant Hiring Surge and Financial Struggles

• The restaurant industry added 28,900 jobs in November, a significant increase.
• Leisure and hospitality employment saw an increase of 53,000 jobs.
• Noodles Company has lost 80% of its value this year amid sales weakness.
• Eegee’s files Chapter 11 bankruptcy after closing multiple locations.
  • Assets and liabilities between $10 million and $50 million.
  • Over 30 restaurant chains declared bankruptcy this year.

Sources: Restaurant Business

Innovations and Expansions: In-N-Out and Emerging Trends

In-N-Out Burger is set to launch an 8,000 square feet location in Las Vegas in 2026.

• Located at The BLVD, focusing on retail and entertainment.
• Features indoor and outdoor seating, but no drive-thru.
• Includes a company store with exclusive merchandise.

Emerging Restaurant Trends for 2025:

• Sober Bars: Rise in alcohol-free spaces driven by wellness trends.
• Sustainable Growth: Shift towards profitability over rapid expansion.
• Transparent Pricing: Push against hidden service fees.
• Community Engagement: Deeper connections with local causes.
• Authenticity First: Focus on genuine food experiences.
• Indian Cuisine Rise: Branching out into fusion options.
• Gastropub Influence: Innovating casual dining approaches.
• Data-Driven Decisions: Leveraging guest data for personalization.

Sources: Restaurant Business, FSR Magazine

Strategic Growth: Sonny's BBQ and Kyuramen

Sonny’s BBQ is embracing change as it moves into 2025.

• Focus on community, technology, and customer experiences.
• New mobile app with over 320,000 members, generating $14 million.
• Brand campaign boosted awareness by 33%.

Kyuramen, an authentic Japanese ramen chain, expands to Sarasota, Florida.

• Now over 30 locations in the U.S.
• Features 8 private dining rooms and popular menu items.
• Aims to attract both tourists and locals.

Sources: FSR Magazine

Transformations and Innovations: Walk-On's and Jollibee

Walk-On's Sports Bistreaux undergoes significant changes under new CEO Chris Porcelli.

• Introduces a new prototype with a smaller footprint and bar-centric layout.
• Menu simplification based on consumer research.
• Plans for corporate stores in Atlanta to fuel expansion.

Jollibee launches Signature Sips, a line of premium beverages.

• Includes quenchers, freezes, iced teas, and cold brew coffee starting at $4.99.
• Enhancing burger menu with Angus beef options.
• Aims to attract Gen Z customers and boost North American sales.

Sources: FSR Magazine, Restaurant Dive

Industry Outlook: Job Growth and Sales Projections

• The restaurant industry added 29,000 jobs in November, showing stabilization.
  • 65% of operators describe the labor market as tight.
  • Projected to add over 150,000 jobs in 2024.
• Chipotle is set to surpass Burger King and Subway in sales by 2025.
  • Raised menu prices by 2% to combat rising costs.
  • McDonald's plans to revive the Snack Wrap in 2025.

Sources: Nation's Restaurant News

Entrepreneurial Moves and Acquisitions

Cherry Bounce Hospitality acquires Nashville-based Party Fowl.

• Aims to revitalize the brand and expand in the Southeast.
• Plans for menu innovations and new locations by 2025.

Layne's Chicken Fingers expands to Utah.

• New location opening in Clearfield by the end of the year.
• Plans to establish 16 locations in Utah over five years.

Sources: Nation's Restaurant News, Fast Casual

Voice AI Revolutionizing Customer Experience

Voice AI is rapidly transforming customer interactions across industries.

• Significant investments from major tech players.
• Enhances customer experience in restaurants and retail sectors.
• Businesses are shifting budgets toward AI solutions to remain competitive.
• Experts advise starting small and focusing on measurable outcomes.

Sources: Networld Media Group

Food Innovations and Industry Trends

• Blue Diamond launches Almonds and More mixed nuts.
• SNAX-Sational Brands creates PB&J Pop in collaboration with J.M. Smucker.
• Skinny Dipped releases topless peanut butter cups with only 3 grams of sugar.
• Utz Brands, Inc. opens the Rice Distribution Center in Pennsylvania.
  • Can handle 1.1 billion lbs of product annually.
• Coca-Cola aims for 4%-6% annual growth targeting emerging markets.

Sources: Food Business News

Leadership Changes and Market Strategies

• SK Capital Partners acquires Spectra Confectionery.
• Kroger CEO updates on the $24.6 billion merger with Albertsons.
  • Digital sales rose by 11% despite an earnings dip.
• Martin Thompson appointed CEO of Nestle USA.
  • Known for expanding Starbucks business globally.

Sources: Food Business News

Bee Colony Losses and Honey Production

• US beekeepers faced 55% colony losses, the highest in over a decade.
• Main issue: varroa mite affecting nearly half of US bee colonies.
• US honey production improved to 139 million lbs but remains lower than past peaks.
• Imports now make up 80% of US honey consumption.

Sources: Food Business News

Community Engagement and Local Marketing

Health Nut builds community loyalty through local marketing strategies.

• Uses social media to showcase dishes and celebrity customers.
• Collaborates with micro-influencers for trust and visibility.
• Partners with GiftAMeal to donate meals, aiming for over 2,500 meals.
• Hosts events with fitness organizations to draw health-conscious patrons.
• Expands product offerings into local grocery stores.

Sources: Modern Restaurant Management

Reddit Discussions: Challenges in Restaurant Ownership

Struggling Second Location

• Owner struggles with an underperforming second restaurant despite efforts.
• Commenters suggest focusing on quality and reconsidering the location.

Negotiating Equipment Financing

• User faces high interest rates from Clicklease.
• Community advises exploring other financing options and being cautious with equipment choices.

Handling Restaurant Errors

• Customer charged for a more expensive dish served by mistake.
• Commenters believe the restaurant should have adjusted the bill for good customer service.

Sources: /r/restaurantowners, /r/restaurant

Employee Policies and Tipping Practices

Employee Meal Policies

• Owner considers updating outdated meal charges for employees.
• Emphasis on feeding employees to foster loyalty and morale.

Tip Pool Discrepancy Issues

• GM uncovers issues with tip pool distribution.
• Community agrees the practice is likely illegal, stressing transparency and legal compliance.

Sources: /r/restaurateur, /r/Restaurant_Managers

Fast Food Favorites and Menu Updates

Chefs' Favorite Chicken Sandwich

• Three chefs choose the Popeyes Classic Chicken Sandwich as their favorite.
• Community debates between Popeyes, Jollibee, and Chick-fil-A.

Potato Wedges Return to Jack in the Box

• Fans rejoice as potato wedges make a comeback.
• Hope expressed for it to become a permanent menu item.

McDonald's Snack Wraps Return

• The beloved Snack Wraps will return in 2025 after strong fan demand.

Sources: /r/fastfood, QSR Web

Industry Debates and Customer Expectations

Food Influencer Credibility

• Concerns over authenticity of influencer reviews versus critics.
• Consensus that critics provide more impartial feedback.

Wasting Food Fees at Buffets

• Discussion on restaurants charging for wasted food.
• Seen as a common practice to encourage responsible eating.

Tipping Coat Check Staff

• Noting a decline in tipping among younger guests.
• Mixed opinions on the necessity of tipping for coat check services.

Sources: /r/restaurant

Winter Supper Specials Inspirations

Bar owners seek ideas for winter supper specials as wing nights wane.

• Suggestions include hearty comfort foods like soups, stews, and casseroles.
• Grilled cheese and tomato soup recommended as classic winter options.
• Emphasis on non-messy dishes suitable for cold weather.

Sources: /r/BarOwners

Restaurant Job Growth and Economic Outlook

• Restaurant job growth stabilizes with 29,000 positions added in November.
• Businesses preparing for 2025 with measured hiring.
• Despite growth, many operators find the labor market tight.
• Total U.S. job market added 227,000 jobs, unemployment at 4.2%.

Sources: Nation's Restaurant News

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