December 9th QSR Roundup: Eegee's Bankruptcy and Exciting New Offers from Honeygrow and Original ChopShop Unveiled

QSR news for Dec 9th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 40 articles to bring you the latest. Estimated reading time saved (at 200wpm): 149 minutes. It'll take you only 13 minutes to catch up.

Eegee's Bankruptcy Filing and TGI Fridays Acquisition Bid

Arizona-based Eegee’s has filed for Chapter 11 bankruptcy, aiming to expedite a sale of the brand amidst financial challenges and declining revenues. Founded in 1971, Eegee's closed five restaurants and struggled with fixed costs in the post-COVID economic climate. The chain owed $24 million by late 2024 and $3.1 million to unsecured creditors. The interim CEO emphasized the necessity of this step for preserving the brand's legacy.

Meanwhile, Ray Blanchette, former CEO of TGI Fridays, is aiming to acquire nine TGI Fridays restaurants out of bankruptcy, bidding $30.5 million through his company, Sugarloaf Hospitality. The five airport locations alone generated sales of $44.5 million in the past year. TGI Fridays declared bankruptcy in November, impacting 39 corporately owned units while still having 122 franchised locations in the U.S. In 2023, the brand reported a $1.4 billion systemwide revenue decline of 12.5% compared to 2022.

Sources:

• QSR Magazine
• FSR Magazine

New Seasonal Offerings from Honeygrow and Original ChopShop

honeygrow has introduced Buffalo Chicken Stir-fry and Buffalo Chicken Salad as seasonal offerings, available until winter 2025.

• Buffalo Chicken Stir-fry: 707 calories, features whole wheat noodles, roasted chicken, cauliflower, crispy jalapeños, topped with blue cheese and ranch, priced at $13.40.
• Buffalo Chicken Salad: 520 calories, includes the same bold ingredients over chopped romaine, priced at $13.97.
• Both items are customizable to fit dietary needs, appealing to a wide audience.

CEO Justin Rosenberg responded to customer demand for these favorites, ensuring guests can personalize their meal.

Simultaneously, Original ChopShop is set to launch a new location in College Station, Texas, in late January at 1133 University Drive, Suite 100. The eatery offers a versatile menu filled with customizable bowls, salads, sandwiches, and juices catering to students, faculty, and the community. CEO Jason Morgan expressed excitement about becoming part of College Station, known for its vibrant community.

Sources:

• QSR Magazine

Festive Holiday Treats and Promotions

The holiday season sparks excitement for restaurant patrons with a plethora of festive menu items across various chains:

• Tim Hortons introduces the festive 12 Days of Tims celebration with daily deals from December 13-24, making the holiday season sweeter and more affordable.
• Dunkin' debuts decorated shortbread cookies and offers a free classic donut on Wednesdays for Rewards members.
• Carrabba's brings two full-size cakes: Cannoli Cream Cake for $64 and Strawberry Cheesecake for $51, available until January 13.
• Paris Baguette showcases whimsical holiday cakes like the Nutcracker Strawberry Soft Cream Cake and individual pastries through Christmas.
• Bruster’s Real Ice Cream features seasonal flavors like Gingerbread Man and Eggnog; Handel’s adds a Gingerbread Cookie Ice Cream to its lineup.
• At BJ’s Restaurant & Brewhouse, festive cocktails like Frosty Lucky Ducky and a new Winter Paradise Margarita join a diverse menu.
• Golden Corral is back with a Holiday Buffet, offering a selection of holiday entrees, sides, and desserts.
• Popular chains like IHOP and Bonchon unveil holiday feasts and viral snacks like the MoPo Corn Dog.
• Southwest chains like Gott’s Roadside and Jinya Ramen Bar feature regional favorites for the season.
• Smoothie offerings are reimagined at Smoothie King and Juice It Up, integrating holiday flavors.

Sources:

• Restaurant Business
• QSR Magazine

SIGEP World 2025 Preview: A Global Confectionery Showcase

SIGEP World 2025 is set to be the largest edition yet, covering 138,000 square meters and featuring new areas dedicated to pizza, gelato, pastry, and coffee.

• Sustainability Focus: Introduction of the Sustainability District, promoting ethical practices in coffee and cocoa supply chains, with micro-roasting demos and Bean To Bar experiences.
• Global Participation: Expected to attract 20% more top international buyers than the last edition, with notable attendance from Saudi Arabia as the Guest Country, emphasizing its growing tourism sector.
• US Representation: Major American companies including IHOP, Marco’s Pizza, and Cold Stone Creamery will participate, showcasing the importance of the US foodservice market at SIGEP.
• Competition Highlight: The event will feature the World Pizza Champion Games, spotlighting the best pizza chefs globally across 17 categories.

Sources:

• Restaurant Business

Restaurant Industry Leadership Changes in 2024

The year 2024 saw significant executive shifts in the restaurant sector due to declining sales and a need for fresh strategies.

• Major CEOs Replaced:
  • Todd Penegor at Wendy’s was succeeded by Kirk Tanner.
  • Ed Nelson of Whataburger announced retirement after 20 years.
  • Charlie Watson of Tropical Smoothie Cafe stepped down.
• Chipotle's Leadership Change:
  • Brian Niccol left unexpectedly for Starbucks, replaced by Scott Boatwright to maintain strategies.
• Subway’s Transition:
  • John Chidsey departed, with interim leader Carrie Walsh continuing brand efforts.
• Red Lobster's New CEO:
  • Damola Adamolekun named CEO after bankruptcy, initiating a major transformation.
• CFO Departures:
  • CFOs at Wendy’s and Chipotle also left.
• Organizational Restructuring:
  • Jack in the Box and CKE brands suggested a shift to distinct brand identities.

These changes highlight an industry undergoing pivotal transformation, showcasing the struggle for stability and innovation.

Sources:

• Restaurant Dive

Smashburger's Fresh Start and Rebranding Efforts

Smashburger resets focus on growth with new C-suite leadership, including Starbucks veteran Denise Nelsen as CEO.

• Brand Identity Refresh:
  • CMO Thomas Prather emphasizes the need for a cohesive brand identity due to previous recognizability issues.
• Menu Streamlining:
  • Newly streamlined menu reinforces the focus on their signature smash burgers, moving away from chicken and wings.
• Rebranding Design:
  • Features bold design with dark orange, burgundy, cream, and black colors for a contemporary look.
• New Logo:
  • Represents the unique cooking method, enhancing brand visibility in a crowded market.

Sources:

• Restaurant Dive

Chipotle's Hiring Revolution with Virtual Assistant Ava Cado

Chipotle introduces Ava Cado, a virtual assistant designed to streamline the hiring process.

• Efficiency Boost:
  • Candidates can schedule interviews within minutes by scanning a QR code at Chipotle locations.
  • The initiative aims to reduce hiring time by up to 75%, transitioning applicants from “apply to apron” in just days.
• Managerial Support:
  • Ava automates administrative tasks, allowing General Managers to focus on critical hiring decisions.
  • Functions as a 24/7 assistant, answering questions and collecting candidate information.

Overall, Chipotle is leveraging technology to modernize the recruitment process, promising an exciting improvement for job seekers and managers alike.

Sources:

• Restaurant Dive

Innovations in Restaurant Technology: Palmer Digital Group

Palmer Digital Group debuts at the Digital Signage Experience, showcasing innovative kiosks targeted at QSR and retail sectors.

• First-time Exhibitor: Engaging with a new audience beyond their usual QSR market at Booth 3511.
• Growth Focus: Anticipating major growth in retail sector, particularly with outdoor kiosks for wayfinding in large centers.
• Hot Products:
  • Featuring all-in-one outdoor digital menu boards (QSRDMB155 and QSRDMB255) with seamless connectivity.
  • Emphasis on interactive kiosks (IDPK55 and ODPK55BB), leveraging datacasting for engaging advertising.
• Consumer Attraction: Kiosks designed to increase engagement through promotional offers and informative content about retailers.
• Durability: Emphasizing robust, sleek designs for outdoor kiosks that function in various climates without AC units.

Sources:

• FSR Magazine

Ya Oaxaca Wins PepsiCo Grant

Ya Oaxaca, known for its artisanal Mexican mole sauces, adobos, and salsas, won the PepsiCo Greenhouse Accelerator Program: Juntos Crecemos, receiving a $100,000 grant.

• Company Growth:
  • Increased revenue by 350% and expanded retail distribution by 200%.
• Founders:
  • Founded by Chef Susana Trilling and her sons.
• Recognition:
  • Praised for commitment to sustainability and consumer needs.
  • Showcased impressive growth during the five-month mentorship program.

Sources:

• QSR Web

Zaro's Family Bakery Expands Through Licensing

Zaro's Family Bakery, a fourth-generation establishment known for its Black & White Cookies, is expanding through licensing opportunities.

• New Locations:
  • Opened at Drew University and Manhattan University, enhancing their reach to students.
• Legacy:
  • Serving New Yorkers since 1927, with locations in major transit hubs like Grand Central Terminal and Penn Station.
• Mission Alignment:
  • Move aligns with their mission to connect people through traditional recipes and expand their family legacy.

Sources:

• Fast Casual

Exploring Tableware Varieties and Materials

Tableware encompasses more than just plates, glasses, and cutlery; it includes various types influenced by regional cuisines.

Types of Tableware:

• Dinnerware: Plates and bowls of diverse sizes.
• Cutlery: Forks, knives, spoons, and hybrid utensils like sporks.
• Drinkware: From beer mugs to espresso cups and stemware.
• Serveware: Bowls, trays, gravy boats, teapots.
• Accessories: Napkin rings, centerpieces, condiment holders.
• Unique Items: Culturally specific pieces like sake cups.

Materials Used:

• Ceramics: Porcelain for durability.
• Glass: Common in drinkware; crystal for upscale touch.
• Metals: Stainless steel predominant; silver or gold for luxury items.
• Plastics/Synthetics: Common for disposables in fast-paced food service.
• Eco-friendly Options: Cardboard and cornstarch materials for sustainability.

Tableware not only serves a functional purpose but also enhances the dining experience and brand aesthetics.

Sources:

• BlueCart

Festive Pop-Up Dining: Engaging Holiday Experiences

Holiday pop-up dining experiences provide engaging and memorable moments for guests while boosting restaurant traffic and revenue.

• Lotus Concepts Management has successfully established pop-up traditions across its nine Colorado restaurants, enhancing their appeal during the festive season.

• Founding Tips:

• Importance of team involvement and unique branding to differentiate from competitors.
• Effective marketing strategies include inviting influencers and using cohesive campaigns across all channels.

• Positive Outcomes:

• Pop-ups generate urgency and excitement, attracting both returning and new guests.
• Custom décor and year-round brainstorming lead to creative ideas and increased profitability.

Sources:

• Modern Restaurant Management

Optimizing Holiday Demand in Restaurants

• Increased Dining Out: Christmas sees 63% of adults dining out, indicating a spike in restaurant bookings.
• Historical Sales Data: Essential for forecasting festive demand, breaking down sales by time and day.
• Seasonal Menus: Reflect seasonal favorites, leveraging past POS data to highlight popular dishes.
• Group Reservations: Up 38%, necessitating careful planning of employee schedules.
• Accurate Inventory: Mitigates shortages and overstocking, essential for holiday staples.
• Real-time Monitoring: Adjust to unforeseen changes in demand, ensuring smooth operations and customer satisfaction.

Sources:

• Modern Restaurant Management

Microbes and Pollution at Salton Sea Impacting Health

• Agricultural Runoff contaminates California’s Salton Sea, creating harmful ‘extreme microbes’ that produce toxic air pollutants like hydrogen sulfide.
• Health Impact:
  • Residents report chronic headaches.
  • 24% asthma rate among children, compared to the national average of 7.7%.
• Research Findings: Direct link between the sea’s poor water quality and worsening respiratory health outcomes.
• Community Response: Local organizations advocate for urgent environmental action and better education on health risks.

Sources:

• Civil Eats

Retail and Restaurant Sales Outlook for 2025

US retail and restaurant sales are expected to grow modestly by 1.8% in 2025, up from 1.1% in 2024.

• Consumer Behavior: Favoring essentials over discretionary spending due to high prices and financial pressures.
• Grocery Growth: 28.7% growth since 2019.
• Food-Away-From-Home: Set for low single-digit growth; QSRs predicted to outperform full-service restaurants.
• Economic Projections: Fitch projects 1.6% GDP growth in 2025.

Sources:

• Food Business News

Rising Biotics Trends for 2025

• Consumer Awareness: 76% of consumers recognize the link between gut health and overall wellness.
• Key Trends:
  • Expanding microbiome benefits to overall health aspects.
  • Demand for scientifically validated and transparent prebiotic products.
• Industry Insight: Loula Merkel, CEO of Comet, emphasizes increased consumer knowledge on microbiome benefits.

Sources:

• Food Business News

Clairvest Invests in Redstone Bakery

Clairvest Group Inc. invests in Redstone Food Group, expanding its presence in North America's artisan bread market.

• Redstone: Founded in 1972; specializes in parbake and thaw-and-sell sliced bread with three facilities in Toronto.
• Partnership Goals: CEO Rob Wheeler aims for growth and enhancing customer value.
• Clairvest: Managing $4.4 billion; marks its second investment in food manufacturing.

Sources:

• Food Business News

McCormick's New Chairman Announced

Brendan Foley will become chairman of McCormick & Co. starting January 1, 2025.

• Current Role: President and CEO.
• Experience: Leadership roles at McCormick since 2014; previous positions at H.J. Heinz and General Mills.
• Transition: Lawrence Kurzius will remain on the board but not seek re-election in March 2025.

Sources:

• Food Business News

Coca-Cola's New Sustainability Goals for 2035

Coca-Cola has set new goals targeting packaging, water usage, and emissions reduction for 2035.

• Packaging: 35-40% recycled material in primary packaging; 30-35% recycled plastic globally.
• Collection: Aim to collect 70-75% of bottles and cans annually.
• Water Stewardship: Return 100% of water used to nature and communities.
• Emissions Reduction: Align with a 1.5°C trajectory by 2035.
• Corporate Commitment: CEO James Quincey emphasizes sustainable practices as central to business strategy.

Sources:

• Food Business News

Butterball Plant Closure and Industry Layoffs

Butterball LLC will close its processing facility in Jonesboro, Arkansas, impacting about 180 employees.

• Closure Date: Effective February 3, 2025.
• Industry Trend: Similar layoffs by Tyson Foods and Cargill due to financial struggles.
• Significance: Highlights a shift in the food manufacturing sector.

Sources:

• Food Business News

Childcare Crisis for Restaurant Workers

Access to affordable childcare remains a significant issue for restaurant employees.

• Impact:
  • 74% of parents report missing work due to childcare disruptions.
  • 40% of single mothers in the food industry live in poverty.
• Industry Response: Texas Restaurant Association initiates the Employers for Childcare Task Force.
• Nationwide Efforts: Emphasize that addressing childcare is crucial for the service industry.

Sources:

• Salon

Layne's Chicken Fingers Expansion

Layne's Chicken Fingers is opening a new location in Benton, Arkansas on December 16.

• Franchisee: Jake Willett, plans to open 10 units.
• Growth Goals: Aim for over 100 units nationwide in three years; recruiting new franchisees in Texas and Florida.

Sources:

• QSR Web

Reddit Discussions: Instagram Location Issues and Bonus Plans

Instagram Location Issues:

• Problem: Restaurants not appearing on Instagram due to previous listings.
• Solutions:
  • Claim Google My Business.
  • Maximize SEO efforts.
  • Be patient; new listings may take time.

Manager Bonus Plans:

• Objective: Encourage ownership-like behavior in GMs.
• Suggestions:
  • Set clear, achievable goals.
  • Consider profit-sharing or equity stakes.
  • Avoid compromising service quality for cost savings.

Consensus: Focus on overall business health with balanced incentives.

Sources:

• /r/restaurantowners

Additional Reddit Insights: Restaurant Name Ideas and Watching Sports

Restaurant Name Ideas:

• Challenge: Naming a fusion restaurant blending diverse cuisines.
• Suggestions: 'Beans and Rice', 'Mama Mofongo', 'The Dream Cafe'.
• Feedback: Caution advised due to potential confusion.

Watching Sports in Bars:

• Question: Is it okay to watch a game without drinking alcohol?
• Consensus: Yes, if food is ordered and staff is tipped well.

Sources:

• /r/restaurant

Soda Machine Troubleshooting

• Issue: Soda machine leaking uncontrollably.
• Advice:
  • Contact the vendor (Coke or Pepsi).
  • Check inlet valve hose or coupling.
  • Implement temporary fixes until professional help arrives.

Sources:

• /r/restaurant

Restaurant Shoe Recommendations

• Inquiry: Are Nike running shoes suitable for restaurant work?
• Recommendations:
  • Use non-slip shoes like Birkenstock, Dansko, Skechers, or New Balance.
• Consensus: Safety is paramount; prioritize functionality over style.

Sources:

• /r/restaurant

Bar Owners Q&A

• Topics Covered:
  • Managing staff perks.
  • Marketing strategies (SEO, social media).
  • Budgeting for expenses.
• Advice:
  • Stay updated on local events.
  • Monitor Google reviews.
  • Effective marketing is crucial for success.

Sources:

• /r/BarOwners

Cheapest Place for Custom Coasters

• Seeking: Affordable custom coasters.
• Suggestions:
  • Get free coasters from distributors.
  • Consider alternative marketing like social media ads.
  • Use online suppliers like Webstaurant.
• Creative Ideas: Use dollar bills or carpet tiles as coasters.

Sources:

• /r/BarOwners

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