February 20th QSR Roundup: Reducing Labor Costs, First Hybrid Restaurant, and Kitchen Modernizations

Interviewy Team

Interviewy Team

— 7 min read
February 20th QSR Roundup: Reducing Labor Costs, First Hybrid Restaurant, and Kitchen Modernizations
QSR news for Feb 20th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 96 articles to bring you the latest. Estimated reading time saved (at 200wpm): 275 minutes. It'll take you only 8 minutes to catch up.

Strategies to Reduce Labor Costs in Quick Service Restaurants

Labor costs are a significant concern for quick-service restaurants (QSRs), with up to 66% of sales going towards labor and food expenses. A whopping 98% of operators cite labor costs as a major issue, and the industry faces a 64% turnover rate.

Key Strategies:

  • Conduct Labor Cost Analysis: Utilize metrics like scheduling and productivity to identify high expenditure areas.
  • Cross-Train Employees: Enhance skills and flexibility to reduce overtime and reliance on additional staff.
  • Increase Employee Retention: Offer competitive salaries and growth opportunities to reduce churn.
  • Leverage the EB-3 Visa Program: Hire dedicated foreign workers to fill staffing shortages.
  • Implement Labor Management Software: Streamline scheduling, time tracking, and payroll.
  • Minimize Overtime Hours: Establish strict approval policies to prevent unnecessary overtime.
  • Foster a Cost-Conscious Culture: Educate employees on resource management and reward cost-saving suggestions.

By adopting these strategies, QSRs can effectively manage labor costs, improve employee satisfaction, and boost profit margins.

Source: QSR Magazine

El Pollo Loco's Mango Habanero Tostadas Launch

El Pollo Loco has spiced up its menu with the new Mango Habanero Double Tostadas, available starting February 20. These tostadas come in three hearty options:

  • Fire-Grilled Chicken
  • Baja Shrimp
  • Chicken and Shrimp Combo

Each tostada is loaded with fresh ingredients and drizzled with a vibrant Mango Habanero sauce, all served in a crispy shell starting at $11.29.

Source: QSR Magazine

Dual-Branded Applebee's and IHOP Open First Hybrid Restaurant

In an innovative move, Applebee's and IHOP have opened their first co-branded restaurant in Seguin, Texas. This unique establishment allows guests to enjoy:

  • A full bar and Applebee's favorites.
  • IHOP's signature booths and breakfast items.
  • Exclusive menu mashups like the Loaded Buffalo Chicken Omelette and Ultimate Breakfast Burger.

By combining menus, the restaurant aims to serve guests any time of day, potentially generating higher revenue than single-brand locations.

Source: Restaurant Business

Flower Child Experiences Growth Surge

Flower Child reports impressive growth with same-store sales increasing by 11% year over year in Q4. Highlights include:

  • Average Weekly Sales: Reaching $83,000.
  • Catering Services and Rewards Program: Significant contributors to performance.
  • Expansion Plans: Cheesecake Factory plans to open 6-7 new locations this year, with over 200 potential sites nationwide.

Source: Restaurant Business

Wingstop Invests in Kitchen Modernization to Support Ambitious Expansion

Wingstop is launching a kitchen modernization initiative as it aims for 10,000 restaurants and average sales over $3 million. Key points:

  • Record Performance in 2024: Domestic same-store sales up nearly 20%; systemwide sales up 36.8% to $4.8 billion.
  • AI Integration: New kitchen systems utilizing AI to improve service and productivity.
  • Digital Sales Surge: Digital orders account for 70% of sales.

Source: Restaurant Business

KFC's Headquarters Relocation Sparks Conversation

KFC is moving its U.S. headquarters from Louisville, Kentucky, to Plano, Texas, aligning with Yum Brands' strategic operations. Key details:

  • Transition Timeline: Over the next 18 months.
  • Employee Support: Relocation and transition assistance provided.
  • Brand Heritage Concerns: Fans express mixed feelings due to KFC's Kentucky roots.

Sources: QSR Web, Nation's Restaurant News

Taco Bell's Sweet Collaboration with Milk Bar

Just in time for its 63rd birthday, Taco Bell has teamed up with renowned pastry chef Christina Tosi to launch Milk Bar Birthday Cake Churros. Highlights:

  • Unique Dessert Offering: Crispy churros filled with birthday cake frosting and topped with pink confetti sprinkles.
  • Pricing: $2.99 for two or $1.99 for one.
  • Availability: Limited time, nationwide.

Sources: Restaurant Business, Nation's Restaurant News

Dutch Bros Expands Food Offerings Amid Strong Financials

Dutch Bros is testing an expanded food program, including more bakery items and hot foods, in select locations. Financial highlights:

  • Net Income for Fiscal 2024: $35.26 million, up from a loss the previous year.
  • Revenues: $1.28 billion, a 33% increase.
  • Future Plans: Broader rollout of food program in 2026 and beyond.

Source: Food Business News

Potbelly Sandwich Shop's Ambitious Franchise Growth

Potbelly plans to exceed 720 units nationwide by adding nearly 300 new restaurants. Key strategies:

  • Successful Franchise Agreements: Over 300 store commitments signed since 2022.
  • New Prototype Stores: Designed for efficiency at 1,800 square feet.
  • Non-Traditional Locations: Exploring military bases and airports.

Source: Restaurant Dive

Managing Food Waste: Restaurants Take Action

Restaurants are implementing innovative strategies to tackle food waste, which contributes to 28% of global food waste according to the UN. Effective approaches include:

  • Inventory Management Technologies: Reducing waste significantly.
  • Menu Design Optimization: Minimizing unused ingredients.
  • Portion Control: Offering flexible sizes to reduce leftovers.
  • Food Donations: Partnering with local charities.
  • Creative Recycling: Turning scraps into compost or biofuel.

Source: Nation's Restaurant News

Innovations in Quick Service Restaurants

The QSR industry is witnessing exciting innovations:

  • Savvy Sliders Launches Savvy Nuggets: Available across multiple states with a promotion offering free nuggets with a minimum purchase.Source: QSR Magazine
  • Jollibee Introduces New Signature Drinks: In partnership with Botrista, offering fruit-forward Quenchers and creamy Frozen Freezes.Source: QSR Web

Reddit Discussions: Insights from Restaurant Owners and Managers

Handling Owner Discounts:

  • A brewpub owner seeks advice on managing owner discounts totaling $1,000 per month.
  • Suggestions include capping comps, tracking discounts meticulously, and maintaining financial transparency.Source: /r/restaurantowners

Headphones in the Kitchen:

  • A discussion on the safety concerns of using noise-canceling headphones in restaurant kitchens.
  • Consensus leans towards banning headphones to ensure situational awareness and prevent accidents.Source: /r/restaurantowners

Negroni Cocktail Variations:

  • The classic Negroni is celebrated for its adaptability.
  • Variations include additions like sake, apricot, sour cherry, and even Prosecco.Source: Food & Wine

Upgraded Boxed Mac and Cheese:

  • Chefs share creative ways to enhance boxed mac and cheese with ingredients like kimchi, dashi, or lobster.Source: Food & Wine

Industry Leadership Changes and Expansions

Noodles & Company Appoints New President and COO:

  • Joe Christina takes over, bringing experience from Tijuana Flats and Church’s Chicken.
  • Aims to enhance menu and operational excellence.Sources: Restaurant Dive, Nation's Restaurant News

The Coffee Bean & Tea Leaf Names New President:

  • Tara Hinkle appointed as President and Head of Americas.
  • Focus on expanding across the Americas and enhancing customer experience.Source: Nation's Restaurant News

MTY Food Group's Acquisition Ambitions

MTY Food Group, owner of brands like Wetzel's Pretzels and Papa Murphy's, is keen on acquiring another restaurant chain. Highlights:

  • Waiting for the Right Deal: After restructuring and digesting past acquisitions.
  • Financial Readiness: Reduced debt to enable flexibility for future deals.

Source: Restaurant Business

Consumer Goods Updates

Mondelez's Cocoa Strategy:

  • CEO warns of potential 50% increase in chocolate prices by end of 2025.
  • Strategies to retain consumers include offering more size choices and focusing on premium products.Source: Food Business News

Gerber Launches New Snack Line:

  • Introducing Get’ems!, a snack line aimed at children with wholesome ingredients.
  • Available at Walmart and Amazon, expanding to Target in March.Source: Food Business News

Startup Innovations in Food Tech

Startups are revolutionizing food production with technologies like fermentation systems, cell cultivation, and 3D printing. Notable advancements:

  • Perfect Day's Animal-Free Whey Protein: Achieved FDA GRAS status.
  • UPSIDE Foods' Cultivated Chicken: FDA clearance for a cultivated chicken product.

Challenges remain in scalability and regulation, but the potential for sustainable food production is significant.

Source: Food Industry Executive

Keke's Breakfast Cafe Expansion and Challenges

  • Growth: More than doubled locations to 69, with 55 franchised.
  • Challenges: Termination of two franchises affecting 11 units.
  • Financials: Open restaurants have over $2 million in average unit volume.

Source: FSR Magazine

Community Involvement and Fundraising

Chicken N Pickle's Mustache Month:

  • Annual fundraiser raising money for pediatric hospice organizations across 11 locations.
  • Has raised over $40,936 since 2020.Source: FSR Magazine

Texas Food and Fashion Event:

  • Designers create fashion inspired by the foodservice industry.
  • Event supports the Texas ProStart program, benefiting culinary students.Source: Nation's Restaurant News

Uber Sues DoorDash:

  • Allegations of anti-competitive practices by DoorDash coercing restaurants into exclusive contracts.
  • DoorDash denies wrongdoing, asserting Uber's claims lack merit.Source: Nation's Restaurant News

Starbucks Faces DEI Lawsuit:

  • Missouri lawsuit alleges racial and gender discrimination in Starbucks' DEI programs.
  • Starbucks denies allegations, asserting fair and inclusive practices.Source: Restaurant Dive

Restaurant Chain's New Menu Items and Promotions

Golden Corral's All-You-Can-Eat Shrimp & Steak:

  • Offering unlimited Butterfly Shrimp & Steak until April 6.
  • New seafood options and Minute Maid beverages added.Source: FSR Magazine

White Castle's Meal Deals:

  • Introducing a $6 Crave & Save Meal Deal and bringing back the $7.99 Cheesy 10 Sack.
  • Available in select markets until April 20.Source: /r/fastfood

Interesting Reddit Discussions

Opening a New Bar: Tips and Concerns

  • Aspiring bar owners seek advice; suggestions include thorough planning and understanding market demands.
  • Emphasis on importance of location, experience, and financial preparedness.Source: /r/BarOwners

High Cable Costs for Sports Bars

  • Owners discuss the high costs of cable services for sports entertainment.
  • Recommendations include negotiating deals, exploring alternatives, and verifying occupancy calculations.Source: /r/BarOwners

Culinary Journey and Cultural Insights

Chef Alexander Smalls' Culinary Journey:

  • Emphasizes food as a connector of cultural identity for the African diaspora.
  • Focuses on celebrating soul food through upscale concepts and preserving culinary traditions.Source: Salon

Environmental and Regulatory Topics

Restaurants Urged to Act on Climate:

  • Funding uncertainty for climate-friendly farming projects.
  • Advocates call on restaurants to support sustainable agriculture initiatives.Source: Restaurant Business

FDA Staff Cuts Impact Food Safety:

  • Layoffs of FDA food safety team members raise concerns about food additive safety.
  • Advocacy groups warn of potential harm to food safety efforts.Sources: Civil Eats, Salon

In the Fast Casual Scene

Smalls Sliders Expansion:

  • Signed first development deal in Indiana for 15 units.
  • Backed by investors including Drew Brees.Sources: Fast Casual, QSR Web

Currito's Franchise Growth:

  • Signed nine deals to open 16 new locations across the Midwest.
  • Focus on community engagement and fresh dining experiences.Source: Fast Casual

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