February 19th QSR Roundup: KFC's Big Move to Texas, Applebee's and IHOP Unite, and Innovations in Delivery

QSR news for Feb 19th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 96 articles to bring you the latest. Estimated reading time saved (at 200wpm): 270 minutes. It'll take you only 8 minutes to catch up.

KFC Relocates Headquarters to Texas 🐔

In a significant move, Yum! Brands announced that KFC's U.S. headquarters is relocating from Louisville, Kentucky, to Plano, Texas, over the next 18 months. This decision impacts approximately 190 employees and is aimed at fostering greater collaboration and sustainable growth within the company.

Details:

• Despite the move, KFC will maintain a presence in Louisville with a new flagship restaurant and a $1 million scholarship fund for the University of Louisville.
• The relocation aligns KFC's headquarters with those of Pizza Hut, also based in Plano.
• This move comes amid challenges, including a 5% drop in same-store sales and the closure of 122 U.S. restaurants last year.

This relocation has stirred emotions, given KFC's deep roots in Kentucky, where it was founded by Colonel Harland Sanders in 1930.

Sources: QSR Magazine, Restaurant Business, Restaurant Dive, Nation's Restaurant News

Applebee's and IHOP Unite Under One Roof 🍎🥞

Dine Brands has unveiled its first dual-branded Applebee's-IHOP restaurant in Seguin, Texas. This innovative concept combines the best of both menus, offering guests the ability to mix and match items any time of day.

What's New:

• Unique menu mashups like the Loaded Buffalo Chicken Omelette and Ultimate Breakfast Burger.
• The location features a full bar on one side and IHOP's signature booths on the other.
• Plans to open 12 to 15 additional dual-branded sites by 2025.

This hybrid model aims to generate higher revenue compared to single-brand locations, tapping into consumer demand for flexibility and variety.

Sources: Restaurant Business, FSR Magazine, Restaurant Dive

Burger King's China Acquisition 🇨🇳

Restaurant Brands International (RBI) has acquired Burger King China for $158 million, gaining nearly full ownership. The move is designed to inject capital and partner with local operators to enhance growth and adapt to the market.

• The acquisition comes as Burger King China faces challenges with slower growth rates and negative systemwide results.
• RBI plans to find a new local partner to drive operations and strategy for the brand's future in China.

This strategic investment highlights RBI's commitment to expanding its global footprint and addressing regional market dynamics.

Sources: QSR Magazine, Nation's Restaurant News

Torchy's Tacos Welcomes New CEO 🌮

Torchy's Tacos has appointed Paul Macaluso as the new CEO, succeeding founder Mike Rypka, who will become Chief Innovation Officer. Macaluso brings over 30 years of restaurant experience, previously leading Another Broken Egg Café and holding key roles at major chains like Sonic and Burger King.

Why It Matters:

• Macaluso's expertise is expected to drive Torchy's expansion, which now operates in 16 states.
• The chain aims to enhance technology and menu offerings, having recently launched a rewards program with over a million members.

Torchy's is positioning itself for significant growth under new leadership while staying true to its innovative culinary roots.

Sources: Restaurant Business, Restaurant Dive

Innovations in Delivery: Serve Robotics Expands 🤖

Serve Robotics is rolling out its autonomous sidewalk delivery robots in Miami, partnering with Shake Shack and Mister O1 Extraordinary Pizza. This marks their first East Coast operation.

• The robots aim to serve 120,000 residents, reducing traffic and emissions.
• Future plans include expanding to the Dallas-Fort Worth area.
• Serve Robotics recently acquired Vebu and introduced an advanced robot model, targeting 2,000 bots deployed with Uber Eats.

This expansion represents a significant step toward integrating AI and robotics into food delivery, enhancing efficiency and sustainability.

Sources: Restaurant Dive

Biscuit Belly's Rapid Growth Journey 🥪

Co-founded in 2018 by Chad Coulter, Biscuit Belly has quickly expanded to 12 locations across several states, with plans for more. Known for its gourmet biscuit sandwiches, the 'craft casual' brunch spot emphasizes strong leadership and innovative menu offerings.

Highlights:

• Coulter transitioned from a pharmacy background to food entrepreneurship.
• Emphasizes hiring individuals with startup experience who can thrive on tight budgets.
• Retains a focus on team inspiration and brand growth.

Biscuit Belly's success demonstrates the impact of passionate leadership and a unique concept in the competitive brunch market.

Sources: QSR Magazine

2025 QSR Industry Insights 📈

As 2025 unfolds, the quick-service restaurant (QSR) industry reflects on past challenges and prepares for future growth.

Key Statistics:

• $289.68 billion: Value of the QSR market in 2024, projected to reach $468.98 billion by 2034.
• 5% annual growth anticipated over the next decade.
• Labor shortages persist, with 82% of food businesses hiring.
• Cybersecurity risks are rising; average cost of breaches increased 14% to $3.36 million.

Strategic Focus:

• Enhancing enterprise risk management.
• Investing in management training and employee well-being.
• Upgrading technology infrastructure and strengthening cybersecurity.

QSRs must adapt to changing consumer demands and operational challenges to thrive in the evolving market.

Sources: QSR Magazine

Sweetgreen Revamps Loyalty Program 🥗

Sweetgreen is phasing out its subscription program, Sweetpass, to introduce a new loyalty program called SG Rewards.

• New Program Features: Earn 10 points for every dollar spent, redeemable for food and exclusive offers.
• The change aims to personalize customer relationships and enhance engagement.
• Existing Sweetpass members will automatically transition to SG Rewards.

While subscription models are rare in the industry, Sweetgreen is focusing on a points-based system to drive customer loyalty.

Sources: Restaurant Business

Uncommon Brands Assembles Leadership Team 🚀

Uncommon Brands is building a strong leadership team to expand restaurant concepts that need infrastructure or capital.

Key Appointments:

• Robb Cherne, VP of Operations (Velvet Taco, Texas Roadhouse background).
• Adam Griffith, VP of Technology (scaled Original ChopShop).
• Stephen Wall, VP of Real Estate (expert in restaurant spaces for major brands).

CEO Garrett Mills emphasizes a hands-on approach to amplify brand identities and success, leveraging Crux Capital's resources.

Sources: Fast Casual

Foodservice Industry Updates 🍽️

Notable Developments:

• Welbilt plans to establish the Welbilt Experience Center in Texas by mid-2025.
• Popeyes targets an equipment overhaul with 85% franchisee support by 2030.
• California Pizza Kitchen explores vending machines for airport growth.
• Starbucks saw an 11.3% increase in traffic from a free coffee promotion.

These movements reflect the industry's focus on innovation, operational efficiency, and customer engagement.

Sources: Foodservice Equipment & Supplies

Repurposing Vacant Spaces for Dining 🏢

Fast-casual dining brands are capitalizing on vacant real estate to create unique concepts while saving costs.

Advantages:

• Prime locations at reduced rents attract new ventures.
• Existing infrastructure lowers establishment costs and setup time.
• Architects face challenges in reconfiguring spaces but enhance guest experience with immersive designs.

This trend underscores the industry's adaptability and focus on providing unique dining experiences post-pandemic.

Sources: Modern Restaurant Management

Alaska Native Culinary Future 🍽️

Chef Rob Kinneen, an innovative Tlingit chef, advocates for food sovereignty by emphasizing local ingredients and ecological knowledge.

• Focuses on subsistence hunting and fishing traditions.
• Aims to educate on the abundance of local foods in Alaska.
• Supports tribal nations in maintaining and enhancing their culinary traditions.

Kinneen's work highlights the importance of preserving ancestral knowledge while adapting to future needs.

Sources: Civil Eats

Coca-Cola Enters the Prebiotic Soda Market 🥤

Coca-Cola is launching Simply Pop, a prebiotic soda line containing 25%-30% fruit juice, prebiotic fiber, vitamin C, and zinc.

• Targets Gen Z and millennials interested in wellness brands.
• Available in five flavors, including strawberry and pineapple mango.
• Set to debut in select retailers and Amazon Fresh, with broader availability planned for 2025.

This move taps into the growing demand for functional beverages with health benefits.

Sources: Food Business News

MeliBio Wins Pitch Competition for Plant-Based Honey 🍯

Startup MeliBio won Ajinomoto's inaugural pitch competition, receiving a $25,000 prize.

About MeliBio:

• Creates honey without bees using plant science.
• Aims to offer sustainable and ethical alternatives to traditional honey.

Competition Highlights:

• Focused on innovative food technologies.
• Other winners included The Protein Brewery and Cellibre.

The recognition emphasizes the industry's shift toward sustainable and innovative food solutions.

Sources: Food Business News

Meghan Markle Launches Lifestyle Brand 'As Ever' 🌸

Meghan Markle announced her new lifestyle brand, As Ever, focusing on food, gardening, and thoughtful living.

• The brand reflects her long-standing passions and aims to bring joy to everyday life.
• Replaces the previously considered name American Riviera Orchard.
• Draws on her experience with her former blog, The Tig.

Markle's venture adds a high-profile presence to the lifestyle and wellness market.

Sources: Salon

Sustainable Waste Management in Food Distribution ♻️

The food distribution industry faces $218 billion in annual losses due to waste.

Strategies for Improvement:

• Strategic waste partnerships to enhance efficiency.
• Implementing composting to reduce landfill waste.
• Utilizing predictive analytics for better inventory management.
• Consolidating waste services can lead to 15-25% annual savings.

These measures can reduce environmental impact and improve profitability.

Sources: Food Industry Executive

Krispy Kreme Introduces Movie Snacks Doughnuts 🎥🍩

Krispy Kreme, in collaboration with Hulu, has launched a collection of doughnuts inspired by movie snacks.

Flavors Include:

• Blue Raspberry Slush Doughnut
• Caramel Popcorn Doughnut
• Cookie Dough Superstar Doughnut
• Candy Double Feature Doughnut

Available in-store and online, these treats offer a fun twist for movie lovers.

Sources: QSR Web

Reddit Discussions on Restaurant Management 📝

Cleaner 1099 Requirements:

• Business owners need to file a 1099-NEC if paying over $600 annually to an individual.
• Important to collect the cleaner's SSN and address for tax purposes.
• Emphasis on consulting an accountant for clarity.

Restaurant 365 vs. Margin Edge:

• Margin Edge praised for better user experience and cost tracking.
• Restaurant 365 offers comprehensive management features.
• Choice depends on specific operational needs of the restaurant.

Sources: Reddit (/r/restaurantowners)

Chipotle's NASCAR Collaboration 🏎️

Chipotle partnered with NASCAR driver Ryan Blaney to feature a special menu item during the Ambetter Health 400 race.

• Marks a new promotional effort combining food and sports.
• Aims to engage fans and enhance the brand's visibility.

Sources: Nation's Restaurant News

KFC's Emotional Departure from Kentucky 💔🐔

KFC's move from its birthplace in Kentucky has stirred strong emotions.

• Louisville locals express disappointment over losing the headquarters.
• Yum Brands emphasizes the move is for operational efficiency.
• Balancing the brand's heritage with future growth is a key challenge.

Sources: Nation's Restaurant News

What's Brewing: Challenges and Innovations in Fast Food ☕

• Dutch Bros achieves over 1,000 units, showing significant growth.
• McDonald's faces sluggish sales post-E. coli outbreak.
• Operators are unsatisfied with current technology investments.

Sources: Nation's Restaurant News

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