February 18th QSR Roundup: Beverage Automation Tech, Biscuit Belly Growth Recipe, and Pita Pit's in Alaska

QSR news for Feb 18th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 78 articles to bring you the latest. Estimated reading time saved (at 200wpm): 300 minutes. It'll take you only 8 minutes to catch up.

Jollibee's Beverage Revolution with Botrista

Jollibee Foods Corporation partners with Botrista to elevate its beverage offerings in the U.S., focusing on automation and innovation.

• Game Changer: The partnership aims to deliver an exceptional customer experience while ensuring profitable growth.
• Signature Sips Menu: Features tropical-inspired drinks like Tropical Breeze and Coconut Dream, after testing 46 flavors in just 78 days.
• Consumer Craving: Research shows 84% of diners seek unique beverage experiences, aligning with Jollibee’s goals.
• Tech Advantages: Botrista's system allows for easy training, regional customization, and higher-quality drinks with reduced prep time.
• Result-Driven: Early feedback indicates increases in both beverage sales and customer satisfaction, setting the stage for further innovations.

Source: QSR Magazine

Chipotle Partners with NASCAR's Ryan Blaney

Chipotle has partnered with NASCAR driver Ryan Blaney ahead of the Ambetter Health 400, showcasing his custom order, The Ryan Blaney Bowl, on their app.

• What's in the Bowl: Brown rice, black beans, chicken and steak, tomatillo red-chili salsa, guac, and cheese.
• Pop-Up Restaurant: Setting up a pop-up at the Atlanta Speedway, offering $8 bowls, burritos, and tacos.
• Exclusive Offer: Free entrées for the first 500 guests.
• Commitment to Athletes: Highlights Chipotle's dedication to nourishing athletes with fresh, real food.

Source: QSR Magazine

Hopdoddy's Spicy Margarita Showdown

Hopdoddy Burger Bar hosts the Rings of Fire Margarita Battle for National Margarita Day, allowing guests to vote for their favorite spicy margarita from February 18 to 22.

• Contenders: Cool Burn (jalapeño and cucumber) vs. Blazing Saddle (habanero and pineapple).
• Guest Participation: Voters receive a $5 reward to redeem on the winning cocktail after the event.
• Interactive Experience: Underscores Hopdoddy's commitment to bold flavors and engaging dining experiences.

Source: QSR Magazine

Growth Strategies and Expansion

Biscuit Belly's Recipe for Growth

Chad Coulter's journey from pharmacy to culinary entrepreneurship led to the creation of Biscuit Belly, a popular brunch spot known for gourmet biscuit sandwiches.

• Background: Transitioned from pharmacy to the restaurant industry, co-founding Biscuit Belly in 2018.
• Expansion: Now at 12 locations across several states, with more on the way.
• Leadership Focus: Emphasizes hiring experienced individuals in building restaurants from the ground up.
• Inspiration: Draws motivation from a dedicated team working collaboratively to grow the brand.
• Advice: "Hire those with start-up experience who understand tight budgets."
• Personal Life: Enjoys flying and traveling internationally with his family.

Source: QSR Magazine

Pita Pit's Alaskan Expansion

Pita Pit USA is expanding in Alaska with two new locations in Wasilla and Palmer, led by franchisee Kaleb Crawford, who has a background in healthcare foodservice.

• Fresh Offerings: Known for fresh and customizable menu options, including the new Greek Grilled Cheese.
• Growth Potential: CEO Peter Riggs highlights Alaska's remarkable growth opportunities.
• Drive-Thru Model: Smaller drive-thru locations accommodate more delivery orders and reduce financial commitments.
• National Presence: Currently, Pita Pit has 68 locations nationally and seeks more franchise partners.

Source: Fast Casual

Uncommon Brands' Leadership Assembly

Uncommon Brands is forging a strong leadership team to propel restaurant concepts, partnering with brands needing infrastructure or capital to grow.

• Key Leaders:
  • VP of Operations Robb Cherne, with experience at Velvet Taco and Texas Roadhouse.
  • VP of Technology Adam Griffith, who scaled Original ChopShop.
  • VP of Real Estate Stephen Wall, expert in shaping restaurant spaces for major brands.
• CEO's Vision: Garrett Mills emphasizes a hands-on approach to enhance brand identities and success, supported by Crux Capital's resources.

Source: Fast Casual

Legal Battles and Industry Mergers

Uber Sues DoorDash Over Anticompetitive Practices

Uber has filed a lawsuit against DoorDash, alleging anticompetitive practices that harm competition in the food delivery market.

• Allegations: DoorDash pressures restaurants into exclusive contracts through coercion, threatening higher fees and reduced visibility.
• Impact on Restaurants: Some restaurants backed out of deals with Uber due to DoorDash's tactics, feeling trapped by DoorDash's market power.
• Uber's Action: Seeking an injunction to prevent these practices and compensation for lost revenue.
• DoorDash's Response: Denies the allegations, asserting they lack merit.

Sources: FSR Magazine, Restaurant Dive

RBI Acquires Burger King China

Restaurant Brands International (RBI) has acquired Burger King China for $158 million, gaining nearly full ownership.

• Strategic Move: Aims to inject capital and partner with local operators to enhance growth and adapt to the market.
• Franchise Investments: RBI has invested in franchise operations like Carrols and Popeyes China.
• Challenges: Burger King China faces slower growth and negative systemwide results, needing operational improvement.

Source: QSR Magazine

Industry Insights and Trends

2025 QSR Industry Outlook

As 2025 unfolds, the restaurant industry reflects on the past and prepares for future growth amidst challenges.

• Market Value: Quick-service restaurant market valued at $289.68 billion in 2024, projected to reach $468.98 billion by 2034.
• Growth Projection: 5% annual growth anticipated over the next decade.
• Record Sales: U.S. restaurants hit a record $1.1 trillion in sales in 2024.
• Consumer Spending: Tightening due to household debt reaching $1.14 trillion.
• Labor Shortage: 82% of food businesses are hiring; skilled positions like chefs are critical.
• Cybersecurity Risks: Average cost of data breaches soared 14% to $3.36 million.
• Enterprise Risk Management: Emphasis on combining operational risk, HR, and insurance planning.
• Management Training: Vital for retention, combating turnover caused by toxic workplace culture.

Key Takeaway: To thrive, QSRs must enhance risk management, upgrade infrastructure, strengthen cybersecurity, and invest in managerial skills and workforce engagement.

Source: QSR Magazine

Early Week Reservations on the Rise

Early week dining reservations have increased significantly, opening new revenue opportunities for restaurants.

• Monday and Tuesday Boost: Reservations up 11% and 8% respectively.
• Consumer Preferences: More diners favor quieter weekday experiences.
• Loyalty Programs: 38% of patrons prefer establishments with loyalty rewards.
• Online Reservations: Essential, with 20% of diners booking through restaurant websites.
• Early Evening Popularity: Slots at 4 p.m. and 5 p.m. are gaining traction.
• Operational Optimization: Analyzing reservation data helps adjust staffing and maximize revenue.

Source: FSR Magazine

Customer Engagement and Loyalty Programs

Sweetgreen Launches SG Rewards

Sweetgreen is introducing a revamped loyalty program called SG Rewards, launching on February 17 with a nationwide rollout in April.

Members will earn 10 points for every dollar spent, redeemable for free menu items and exclusive deals. This follows the earlier Sweetpass program, which had limited success. CEO Jonathan Neman hinted significant changes were needed to boost customer engagement. The new program emphasizes flexibility and aims to create a seamless experience, tracking sign-ups and engagement to refine offerings.

Source: QSR Magazine

Financial and Operational Challenges

Burger King's Profitability Focus

Burger King and its franchisees are prioritizing long-term profitability after significant changes within the brand.

Operators express optimism, indicating that this shift is steering the brand in a positive direction. Franchisees feel that recent strategies are empowering them to achieve greater financial success, highlighting a promising future for the iconic fast-food chain.

Source: Restaurant Business

Chipotle's Growth and Innovation Amidst Challenges

Chipotle plans to increase the number of Chipotlanes, enhancing customer convenience and efficiency.

• Financial Growth: Reported a 14% increase in net income for FY 2024, totaling $1.53 billion.
• Comparable Sales: Rose by 7.4%, driven by diverse sourcing strategy amid potential tariffs.
• Supply Chain: 50% of avocados come from Mexico; 2% of sales overall are sourced from Mexico.
• New Openings: Opened 304 new restaurants in 2024, with over 80% featuring a Chipotlane.
• Kitchen Innovations: Implementing produce slicers and a dual-sided plancha to improve efficiency.
• 2025 Outlook: Predicts low-to-mid-single-digit sales growth amid tougher comparisons from last year.

Source: Food Business News

Culinary Trends and New Offerings

Krispy Kreme's Theater-Themed Doughnuts

Krispy Kreme and Hulu have teamed up to launch four new doughnut flavors inspired by classic cinema snacks.

• New Flavors:
  • Blue Raspberry Slush Doughnut
  • Caramel Popcorn Doughnut
  • Cookie Dough Superstar Doughnut
  • Candy Double Feature Doughnut
• Limited Time Offer: Available in-store or via the Krispy Kreme app.
• Customer Engagement: Chance to win a one-year Hulu subscription.
• Global Presence: Krispy Kreme operates in 40 countries.

Source: Nation's Restaurant News

Wendy's Menu Success with SpongeBob SquarePants Collaboration

Wendy’s Co. reported significant growth due to successful promotions and seasonal menu items.

• Collaboration Impact: SpongeBob SquarePants promotion boosted same-restaurant sales by 10%.
• Peak Sales: Promotion led to a 20% increase in sales.
• Innovative Offerings: Salted caramel frosty and mushroom bacon cheeseburger.
• Breakfast Growth: Sales grew by over 6%.
• Digital Sales: Soared nearly 40%, aided by new technology implementations.

Stock Performance: Company's stock up 3.8% post-earnings call.

Source: Food Business News

KFC's New Korean BBQ Bowls

KFC has launched new limited-time offerings:

• Korean BBQ Loaded Fries Bowl
• Korean BBQ Mac & Cheese Bowl
• Exclusive Availability: Through their app and online.
• Promotions: Temporary free delivery for the next week.
• Customer Reception: Positive buzz among fast food enthusiasts.

Source: /r/fastfood

Impact of External Factors on the Industry

Prolonged Egg Price Surge Expected

Expect higher egg prices through Easter and into 2025, driven by:

• Bird Flu Impact: Affects 100 million hens.
• Cage-Free Demand: Increasing demand with a 20% consumption rise since 2016.
• Industry Adaptation: Despite fewer hens, the industry adjusts.
• Operational Strategies:
  • Locking in supply contracts to manage price fluctuations.
  • Cost-saving strategies without hurting customer experience.

Source: Modern Restaurant Management

Labor Shortages and Technology Partnerships

• Tariff Concerns: Potential disruptions in the food service and hospitality industries in Canada and the U.S.
• Rising Costs: Leading to higher consumer prices and potential job losses for nearly two million workers.
• AI Revolution: Enhancing personalized guest experiences by analyzing data for tailored services.
• Automation Benefits: Increases staff productivity, freeing personnel for valuable guest interactions.
• Guest Expectations: Value and quality in dining experiences prompt innovations like smaller portions and bundled deals.
• System Integration: Demand for connecting POS with CRM and inventory management.

Key Takeaway: Adapting to technology and change is essential for sustaining guest satisfaction and loyalty.

Source: Modern Restaurant Management

Discussions from Reddit

Analyzing P&L Statements Frequency

Restaurant owners share their practices on how often they analyze their Profit & Loss statements.

• Weekly Analysis: Common among many owners to catch irregularities quickly, especially labor and food costs.
• Daily Checks: Some perform daily checks for immediate adjustments.
• Monthly Reviews: Preferred by others depending on operational structure.
• Importance of Inventory: Regular inventory checks emphasized.
• Tech Integration: Use of technology for real-time data.

Consensus: Frequent analysis enhances profitability and efficiency.

Source: /r/restaurantowners

Dealing with Clock-Out Issues

Owners discuss strategies for employees not clocking out, leading to payroll inefficiencies.

• Management Responsibility: Emphasizes proactive oversight and clear communication.
• Technology Solutions: Implement tools like Bluetooth beacons and POS systems that auto-clock out employees.
• Establish Consequences: Formal policies and potential write-ups to deter behavior.

Key Point: Management oversight is key to solving this issue effectively.

Source: /r/restaurantowners

Impact of Restaurant Ownership on Family

Restaurant owners reflect on how their work affects their children.

• Challenges: Balancing work and children's emotional well-being.
• Children's Perspectives: Mixed feelings; some appreciate the experience, others note missing family time.
• Work-Life Balance: Importance of establishing balance to prevent burnout and maintain family relationships.
• Advice: Hiring trusted staff to alleviate pressures.

Consensus: Despite challenges, the restaurant business can foster valuable life lessons if balance is maintained.

Source: /r/restaurantowners

Co-owning a Restaurant Dilemma

An individual considers co-owning a restaurant with a friend but is uncertain about the time commitment.

• Community Advice:
  • Reconsider: Many advise against the venture due to risks.
  • Friendship Risk: Potential strain on the relationship.
  • Financial Commitment: High demands of restaurant management.

Important Insight: Partnerships in volatile industries like hospitality rarely succeed without full commitment.

Source: /r/restaurantowners

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