February 15th QSR Roundup: AI Innovations for Boosting Sales, Uber Sues DoorDash, and Papa John's Stock Soars

QSR news for Feb 15th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 91 articles to bring you the latest. Estimated reading time saved (at 200wpm): 195 minutes. It'll take you only 14 minutes to catch up.

Wendy's Breakfast Expansion and AI Innovations Lead to Sales Surge

Wendy’s has witnessed remarkable growth thanks to strategic partnerships and technological advancements.

• Sales Surge: October 2024 marked a 10% year-over-year increase in same-store sales.
• SpongeBob Collaboration: The partnership resulted in a 20% sales lift, one of the best performances since 2021.
• Global Growth: For the year, global same-store sales grew by 4.3%, aided by strategic reductions in underperforming locations.
• Breakfast Boom: Breakfast sales rose 6%, surpassing industry growth.
• AI Drive-Thrus: Wendy’s invests in voice AI technology for drive-thru operations, reaching nearly 100 locations.
• Future Plans: By 2025, AI drive-thru technology will expand to 500-600 locations. The brand aims for 2-3% global growth, emphasizing value, innovation, and enhanced customer experience through technology.
• Upcoming Collaborations: A partnership with Girl Scouts is on the horizon.

Sources: QSR Magazine, Restaurant Business

Uber Sues DoorDash Over Alleged Antitrust Violations

The competition between food delivery giants intensifies as Uber takes legal action against DoorDash.

Uber is suing DoorDash for allegedly coercing restaurants into exclusive contracts with DoorDash Drive, using threats like multimillion-dollar penalties and higher fees if they choose Uber. The lawsuit claims this violates antitrust laws, harming competition and causing restaurants to feel pressured to comply. As both companies push for growth, with DoorDash holding a dominant market share, this legal battle highlights the fierce competition in the delivery industry.

Source: Restaurant Business

Papa John's Stock Soars Amid Takeover Rumors

Papa John's experiences a significant stock surge following acquisition interest.

• Investment Interest: An investment fund linked to the Qatar royal family shows interest in acquiring the pizza chain.
• Stock Increase: Shares have increased by 30%, rising 32% over the past week.
• Share Purchase: 1.6 million shares bought by Irth Capital Management, representing nearly 5% of total shares.
• Challenges: The company faced a 6% decline in same-store sales last year, struggling with delivery share loss to third-party apps.
• Investor Optimism: January sales data indicates slight recovery, boosting investor confidence.

Source: Restaurant Business

Panera Bread Closes Facilities Amid Baking Model Shift

Panera Bread is closing two fresh dough facilities in California, resulting in about 350 layoffs.

• The closures in Stockton and Ontario will impact the supply to 196 cafes across the state.
• Panera is moving to an on-demand baking model, using third-party bakeries to par-bake bread.
• Benefits: Improves freshness, reduces waste, and allows for innovation in bread varieties.
• Leadership Changes: Under new interim CEO Paul Carbone, following CEO José Alberto Dueñas’ departure.
• Concerns: Some critics express worries about the loss of commitment to artisan-style bread that initially defined Panera’s success.

Source: Restaurant Business

Revolutionizing Hospitality Through Employee Ownership

Your 3rd Spot in Atlanta is setting new standards by offering employees actual ownership in the brand.

With a fun-filled atmosphere featuring over 80 games, upscale shared plates, and craft beverages, the venue creates a vibrant social hub for adults. Recognized by Newsweek as a top workplace, their commitment to employee growth and satisfaction is evident. Founder Josh Rossmeisl emphasizes autonomy and continuous improvement, driving national expansion with new locations planned across various states, all while prioritizing team empowerment and guest experience.

Source: FSR Magazine

Redefining Date Nights in Modern Times

Couples are reimagining date nights due to changing routines, finances, and family structures.

• At-Home Experiences: Cook-at-home nights with themed meals and splurging on ingredients like proteins and wine are gaining prominence.
• Seeking Quality: Couples prioritize experiences that justify the costs of going out, focusing on ambiance and meaningful conversations.
• Unique Traditions: Many have developed personalized at-home date rituals, such as themed nights or using local ingredients.
• Solo Dates: Individuals continue to enjoy treating themselves to solo outings, maintaining personal time.
• Underlying Desire: Despite varied practices, the desire to connect and enjoy quality time remains consistent.

Average Costs:

• At-home date nights: $15-$30
• Dining out: $75-$200

Source: Eater

A Taco Bell Love Story: From First Date to Marriage

The author met her husband via OkCupid, with her username tacobellforever, showcasing her love for Taco Bell.

• First Date at Taco Bell: They bonded over differing menu choices, hers being the quesarito and his the potato soft taco.
• Anniversary Traditions: Celebrated their anniversary at the same Taco Bell, humorously using the ‘marry me’ Fire Sauce packets.
• Cultural Impact: Taco Bell has inspired a literary magazine, Taco Bell Quarterly, highlighting its cultural significance.
• Enduring Love: Despite menu changes, their relationship remains strong, symbolizing a unique love story tied to Taco Bell.

Source: Eater

Surge in Gourmet Tinned Seafood Popularity

Gourmet tinned seafood is everywhere, transforming from a niche interest into a widespread phenomenon in just five years.

• Sales Growth: From 2018 to 2023, U.S. canned seafood spending rose from $2.3 billion to $2.7 billion.
• Changing Perceptions: Once seen as unappetizing, tinned fish is now an ‘affordable luxury’, embraced enthusiastically by many.
• Convenience and Elegance: Easy to prepare and shelf-stable, high-end canned seafood can elevate casual gatherings with a touch of elegance.
• Variety: Offerings from Spain, Portugal, and the U.S. are popular, with brands like Fishwife and Siesta Co. leading the trend.
• Bright Future: This era marks a golden age for tinned seafood with a promising future ahead.

Source: Eater

New Food Products Launch Through Exciting Collaborations

Several brands are rolling out innovative products in response to consumer demand.

• Checkers and Rally's:
  • Launching all-white meat chicken bites in grocery stores like Kroger and Family Dollar.
  • Responding to consumers wanting restaurant favorites at home.
• Dunkin’ and Danone North America:
  • Introducing cold foam creamers in flavors like extra extra, chocolate, and limited-time s’mores.
  • Enhancing the home coffee experience.
• Prairie Farms and Hiland Dairy:
  • Offering ProPack Snack, a high-protein cottage cheese snack with 12 grams of protein per serving.
  • Aimed at health-conscious consumers.

Source: Food Business News

USDA Undergoes Major Changes with New Leadership

Significant transformations are happening at the USDA with a focus on efficiency and policy shifts.

• Brooke Rollins: Appointed as Secretary of Agriculture.
  • Plans to restructure the USDA, emphasizing efficiency and staff reductions.
  • Ending DEI initiatives and mandating in-person work.
• Robert F. Kennedy Jr.: Confirmed as Secretary of Health and Human Services.
  • Known for his stance on vaccines and food industry regulations.
• Industry Impact: Agricultural groups express optimism and readiness to collaborate on food safety, affordability, and regulations affecting consumers and producers.

Sources: Civil Eats, Food Business News

Nestlé Faces North American Challenges Amid CEO's Defense of Packaged Foods

Nestlé is dealing with market struggles while highlighting the importance of packaged foods.

• Market Challenges:
  • Disappointing growth due to underperformance in frozen food and coffee creamers.
  • Overall company sales are down compared to last year.
• Cost-Saving Mission: Aiming to save 2.5 billion Swiss francs by 2027, leveraging AI for procurement efficiency.
• CEO's Defense: Laurent Freixe emphasizes that packaged foods ensure safety, reduce food waste, and maintain quality.
  • Responds to Robert F. Kennedy Jr. labeling ultra-processed foods as 'poisonous'.

Sources: Food Business News, Salon

Starbucks Limits Mobile Orders to Improve Customer Experience

Starbucks is updating its mobile ordering system as part of a strategic plan.

• Order Limitation: Mobile app orders are now limited from 15 to 12 items to ease barista workloads.
• 'Back to Starbucks' Plan: CEO Brian Niccol focuses on returning to community roots, emphasizing connection and quality coffee.
• Additional Changes:
  • Certain drink modifications will no longer be permitted.
  • Clarifying distinctions between to-go and for-here services.

Source: Salon

Mastering Restaurant-Quality Risotto at Home

With the right approach, anyone can create a delicious risotto at home.

• Active Cooking: Requires attention, patience, and precision.
• Preparation: Proper mise en place is essential to avoid undercooked results.
• Classic Technique: Following steps like soffritto and mantecatura ensures a creamy, flavorful dish.
• Quality Rice: Using Arborio or Carnaroli rice is crucial for the right texture.
• Suggested Recipe: Fennel, hazelnuts, and chives risotto, serving 3 to 4 people.
  • Cooking Time: Approximately 30 minutes after 15 minutes of prep.

Source: Salon

Crumbl's Valentine's Day Limited-Edition Red Boxes

Crumbl is celebrating Valentine’s Day with a special packaging change and themed flavors.

• Red Boxes: Temporarily replacing the signature pink cookie boxes with red ones.
• Special Flavors: Showcasing eight specially-themed flavors for the holiday.
• Branding Shift: A significant departure from their established branding as a tribute to Valentine's Day.
• Availability: Red boxes at all locations until they sell out; pink boxes will return afterward.

Source: Salon

Mohaimina Haque Leads Tony Roma's Global Expansion

Insights into the leadership and strategies of Tony Roma's CEO, Mohaimina Haque.

• Global Presence: Leading a restaurant chain active on five continents.
• Expansion Strategy: Mentoring franchisees and exploring partnerships.
• Balancing Roles: Also founded her own law firm, showcasing versatility.
• Industry Trends:
  • Emphasizes the role of predictive technology in efficiency.
  • Notes the rise of ghost kitchens transforming the industry.
• Advice for Newcomers: Build expertise and remain adaptable to change.
• Personal Joys: Enjoys traveling with family, seeking unique cultural experiences.

Source: Networld Media Group

Krystal's Major Rebranding to Attract New Generations

Krystal is undergoing significant changes while honoring its 92-year legacy.

• Modernized Logo: Featuring vibrant colors to enhance brand appeal.
• Menu Updates: Introducing items like Smash'd & Stack'd burgers and churro fries.
• Restaurant Remodels: New designs in Georgia with digital menus and inviting atmospheres.
• Customer Engagement: Launching a new loyalty program based on customer feedback.
• Future Plans: More remodels and innovative offerings to come.

Source: QSRweb

Mr. Charlie's Celebrates Anniversary with Mike Tyson Collaboration

Mr. Charlie's Told Me So marks its third anniversary with a unique plant-based offering.

• Introducing Mr. Fluff-Head: A cassava-based vanilla ice cream topped with Mike Tyson's Mike Bites chocolate ear.
• Celebrity Appearance: Mike Tyson will attend the celebration, meeting fans and promoting new merchandise.
• Promotion: Free ice cream with purchase during the event, promoting a mission of second chances.
• Brand Commitment: Showcases innovation and community focus in the plant-based QSR space.

Source: Networld Media Group

Restaurant Owners Discuss Operational Challenges on Reddit

Reddit users share insights on various operational topics in the restaurant industry.

Easy Prep Focaccia Pizza:

• Challenge: Seeking food items that require minimal prep without needing a hood or grease trap.
• Solution: Using pre-baked focaccia with toppings heated in a convection oven.
• Community Advice: Emphasize convenience, quality, and compliance with health permits.

Captive Air Exhaust Fan Issues:

• Problem: Recurring issues with a new exhaust fan tripping breakers.
• Suggestions:
  • Check for shared breakers or improper wiring.
  • Ensure electrical components match the fan's specifications.
  • Installation team should resolve under warranty.

Walk-in Cooler Door Dilemma:

• Situation: Deciding whether to repair or replace a damaged cooler door after a city inspection.
• Consensus: Replacement is preferable for long-term benefits and compliance.
• Considerations: Costs range from $6,500 to $7,500 for replacement.

Boosting Restaurant Reviews:

• Strategies:
  • Utilize QR codes linked to custom review sites.
  • Personal follow-ups after positive service experiences.
  • Offer incentives like gift cards to encourage reviews.
• Emphasis: Target satisfied customers and avoid pressuring patrons.

Source: /r/restaurantowners

KFC's Mike’s Hot Honey Chicken Receives Mixed Reactions

KFC has launched a new menu item, but customers have varied opinions.

• Product Highlight: Mike’s Hot Honey Chicken is prominently advertised on the app.
• Customer Feedback:
  • Some find the sauce watered down and not spicy enough.
  • Others miss previous flavors like Carolina Gold or honey BBQ wings.
• Overall Sentiment: Divided; some enjoy the new offering, while others are disappointed with the flavor profile.

Source: /r/fastfood

Denny's to Close Over 150 Locations Amid Mixed Reactions

Denny's announces significant closures, sparking a range of public responses.

• Closure Details: Over 150 locations are set to close.
• Public Opinion:
  • Many express that food and service quality have declined over the years.
  • Some share nostalgic memories with family at Denny's.
  • Others are relieved, citing unclean environments and overpriced food.
• Historical Note: The owner of Nvidia once started a company at a Denny's, highlighting its place in history.

Source: /r/restaurant

Breakfast Industry Faces Challenges but Brands Remain Optimistic

Despite a downturn in breakfast traffic, companies are adapting and finding growth opportunities.

• Traffic Decline: Down 6.9% in January compared to 2024.
• Contributing Factors:
  • Weather conditions.
  • Lower-income consumers reducing restaurant visits to manage budgets.
• Brand Responses:
  • Taco Bell scaling back breakfast offerings.
  • Wendy's reports 6% growth in breakfast sales, plans more advertising and innovation.
  • McDonald's celebrates the 50th anniversary of breakfast in the U.S.
• Outlook: Brands remain optimistic, focusing on value and customer experience.

Source: Nation's Restaurant News

In-N-Out Consolidates Headquarters and Expands Eastward

In-N-Out Burger is streamlining operations and planning expansion.

• Headquarters Move: Closing Irvine office and relocating to Baldwin Park, California, by 2029.
• Historical Significance: Returning to the origins where founders Harry and Esther Snyder started the chain.
• Expansion Plans:
  • Establishing new offices in Tennessee.
  • Responding to consumer demand for locations in the eastern U.S.
• Owner's Vision: Lynsi Snyder emphasizes family values and enhancing customer service.

Source: Nation's Restaurant News

Leadership Changes and Sales Growth Across the Industry

Notable executive appointments and positive sales figures highlight industry momentum.

• KFC U.S.: Catherine Tan-Gillespie appointed as president, succeeding Tarun Lal.
• Wendy's:
  • Same-store sales rose 4.1% in Q4.
  • The Krabby Patty Collaboration led to a 10% increase during October.
• Dutch Bros:
  • Experienced a 6.9% rise in same-store sales.
  • Growth driven by mobile orders and loyalty program members.
• California Pizza Kitchen: Testing vending machines to expand brand reach.
• McDonald's Spinoff: CosMc’s opens a new location in Allen, Texas.

Source: Nation's Restaurant News

Wingstop Partners with NBA Star Jalen Green for Bold Flavors

Wingstop collaborates with Houston Rockets' Jalen Green for new advertising campaigns.

• All-Star Game Ads: Featuring 15-second commercials spotlighting Wingstop's bold flavors.
• Shared Energy: Emphasizing the brand's uniqueness and Green's dynamic presence.
• Platforms: Ads will appear on streaming and social media services.
• Brand Growth: Founded in 1994, Wingstop now boasts over 2,350 locations globally.

Source: Nation's Restaurant News

DEI Policies Under Scrutiny Leading to Corporate Re-evaluations

Recent legal pressures prompt companies to reassess their Diversity, Equity, and Inclusion initiatives.

• Executive Orders: President Trump's directives are influencing corporate policies.
• Company Actions:
  • McDonald's, Goldman-Sachs, and Disney are altering or dismantling DEI programs.
• Legal Considerations: Aimed at avoiding potential civil rights violations.
• Industry Impact: Reflects evolving attitudes and significant implications for corporate practices.

Source: Nation's Restaurant News

Debate Over Excessive Fry Portions at Burger Joints

Customers voice frustrations over receiving more fries than requested.

• Customer Experience: Despite asking for smaller orders, they receive excessive portions.
• Business Perspective: Some establishments believe it adds value and enhances customer satisfaction.
• Suggestions from Community:
  • Patronize other places.
  • Share excess food.
  • Adjust ordering habits to match preferences.
• Opinions Vary: Some view it as wasteful, others see it as a generous gesture.

Source: /r/restaurant

Pricing Strategies for Liquid Death at Festivals

Bar owners discuss appropriate pricing for Liquid Death water at events.

• Cost Consideration: Each can costs $1.42.
• Suggested Pricing:
  • Minimum of $5 to ensure profitability.
  • Many recommend $6-$7, aligning with festival pricing norms.
• Market Context: Vendors charge $6-$8 for beer; customers expect higher prices at festivals.
• Consensus: Pricing below $5 may not justify profit margins.

Source: /r/BarOwners

Doughbird Expands to Dallas Offering Pizza and Rotisserie Chicken

Doughbird, a concept by Fox Restaurant Concepts, opens its fifth location.

• New Location: In Dallas, featuring a 5,258 sq ft interior and outdoor patio.
• Menu Highlights: Specializes in pizzas and rotisserie chicken.
• Off-Premise Sales: Offers popular items like the $39 Family on the Fly.
• Beverage Program: Includes a variety of cocktails catering to different tastes.
• Growth Strategy: With locations in Arizona and Tennessee, Doughbird is expanding under the Cheesecake Factory's portfolio.

Source: Nation's Restaurant News

Industry Outlook: Executive Changes and Strategic Movements

Leadership shifts and strategic decisions shape the restaurant landscape.

• In-N-Out Burger: Streamlining operations and moving headquarters.
• KFC U.S.: New president Catherine Tan-Gillespie takes the helm.
• Wendy's and McDonald's: Despite breakfast segment challenges, brands remain optimistic.
• Technological Innovations:
  • Wendy's AI drive-thru expansions.
  • California Pizza Kitchen's vending machine trials.

Source: Nation's Restaurant News

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