February 24rd QSR Roundup: Starbucks Layoffs, Harnessing Digital Signage in QSR, and Texas Roadhouse's Growth Strategy

QSR news for Feb 24rd, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 13 articles to bring you the latest. Estimated reading time saved (at 200wpm): 225 minutes. It'll take you only 8 minutes to catch up.

Starbucks Announces Significant Layoffs and Strategic Shift

Starbucks is undergoing a major corporate restructuring, resulting in the layoff of 1,100 office workers and the elimination of several hundred unfilled positions. This move focuses on:

• Simplifying Operations: CEO Brian Niccol emphasizes the need to enhance efficiency as part of a transformation plan.
• Office Presence Requirement: VPs and higher are now required to maintain a minimum in-office presence in Seattle or Toronto.
• Continued Hiring: Despite layoffs, Starbucks will hire for key positions aligned with the new structure.
• Customer-Centric Changes: Initiatives like serving drinks in reusable containers and reinstating condiment bars aim to improve the customer experience.
• Performance Metrics: Despite a 4% decline in same-store sales, there's improved customer engagement and a shift towards coffee drinks.

Sources:

• QSR Magazine
• Restaurant Dive
• Nation's Restaurant News

Harnessing Digital Signage in Quick-Service Restaurants

Digital transformation is reshaping the quick-service restaurant (QSR) industry with the adoption of digital signage, bringing numerous benefits:

• Boost in Sales: Over 80% of restaurant owners report increased orders after implementing digital signage. 68% of customers are more likely to purchase from digital displays.
• Real-Time Adaptability: Allows for scheduling content to promote timely offers and align with customer data insights.
• Enhanced Customer Experience: 73% of diners believe technology improves their dining experience. Interactive displays can reduce perceived wait times by 35%.
• Employee Productivity: Simplifies content management, freeing staff to focus on guest services.

Major chains like McDonald's and Domino's are heavily investing in this technology, but it's also accessible for smaller restaurants aiming to stay competitive in the digital era.

Sources:

• QSR Magazine

Texas Roadhouse's Strategy and Growth

Texas Roadhouse is focusing on providing value to guests while planning strategic growth:

• Modest Price Increase: Implementing a 1.4% menu price increase in Q2 2025 to maintain customer value perception.
• Record Financials: Achieved $5.4 billion in revenue for 2024, with average unit volumes reaching a record $8 million.
• Strong Sales Growth: Same-store sales grew by 7.7%, propelled by a 4.9% increase in traffic and a 2.8% higher average check.
• Expansion Plans: Aiming to open 30 new restaurants in 2025, focusing on quality over rapid expansion.
• Technology Upgrades: Investing in digital kitchen systems to improve operational efficiency.
• Marketing Efforts: Introducing $5 drink specials and engaging with local communities to attract new customers.

Sources:

• FSR Magazine

Logan's Roadhouse Launches Cajun-Inspired Menu

Starting February 24, Logan's Roadhouse is offering a new Cajun-inspired menu perfect for Lent observers and food enthusiasts:

• Delicious Offerings: Dishes like Cajun Seafood Dip, Shrimp Stacked Trout, and Blackened Shrimp & Sausage Gumbo.
• GiftAMeal Partnership: Expanding their collaboration to help provide meals to local families in need—over 20,000 meals supplied last year.
• New Additions: Introducing Cedar Plank Salmon, Coconut Shrimp Dinner, Key Lime Cheesecake, and the Logan's Espresso Martini.
• Availability: Seasonal menu accessible at corporate locations, with franchise participation varying.

Sources:

• FSR Magazine

Leadership Changes in the Restaurant Industry

Church's Texas Chicken Names Roland Gonzalez as CEO

• Roland Gonzalez has been promoted to CEO, succeeding Joe Guith.
• Brings experience from major brands like Burger King and Popeyes.
• Aims for significant expansion, targeting $2 billion in sales and improving franchisee profitability.
• Focuses on innovation and community investment, continuing the brand's legacy of bold flavors.

Sources:

• QSR Web
• Nation's Restaurant News

Amoroso's Baking Company Welcomes New Leadership

• Jesse Amoroso steps in as President and COO, leading innovation for the 120-year-old bakery.
• Kevin Barr joins as CFO, aiming for continuous improvement and technology investments.
• Plans to expand market presence while preserving quality and tradition.

Sources:

• Food Industry Executive

Notable Food Industry Mergers and Acquisitions

Flowers Foods Acquires Simple Mills

• Flowers Foods, Inc. acquires Simple Mills for $795 million, enhancing its portfolio in the better-for-you snack sector.
• Simple Mills reported approximately $240 million in sales for 2024.
• Focus on expanding distribution, driving innovation, and increasing brand visibility.

Sources:

• Food Business News

Mondelez's Cake Expansion and Legal Settlement

• Mondelez International aims to grow in the cakes and pastries market, currently ranking No. 3 globally.
• Cake and pastry division generated $2 billion, fueled by acquisitions and brand extensions.
• Settles a lawsuit over deceptive labeling on Wheat Thins, agreeing to pay $10 million and revise packaging.

Sources:

• Food Business News

Cultural Revival: Kava's Resurgence in Hawaii

Kava, a traditional Polynesian beverage with over 2,000 years of history, is experiencing a revival in Hawaii:

• Kava Queen: Oahu's first kava bar opens, emphasizing community bonding and cultural significance.
• Health Benefits: Recognized for reducing stress and anxiety.
• Regulatory Support: Hawaii declares kava as Generally Recognized As Safe (GRAS), aligning with WHO standards.
• Cultural Preservation: Efforts by the Association for Hawaiian ‘Awa (AHA) to preserve cultivars and promote kava's relevance.
• Economic Impact: Revival of kava farming contributes to local agriculture and reduces reliance on imports.

Sources:

• Civil Eats

Industry Insights: Sugar Wholesale Trends

The demand for wholesale sugar is on the rise, driven by various industries:

• Global Popularity: Sweet products are universally favored, directly linked to dopamine release.
• Health Concerns: Increased consumption raises issues about obesity and diabetes.
• Market Growth: The global sugar market is valued at $65 billion, expected to reach $125 billion by 2030.
• Sustainability Trends: A shift towards sugar alternatives and sustainable practices is shaping the industry.

Sources:

• BlueCart

Combating Restaurant No-Shows

No-shows significantly impact restaurant revenues, especially in the UK:

• Financial Loss: Accounts for £17.6 billion in lost revenue annually.
• Demographics: 18-34 age group most likely to no-show.
• Strategies to Reduce No-Shows:
  • Implementing reservation systems with deposits.
  • Clear cancellation policies.
  • Educating customers on the impact.
  • Encouraging walk-ins.

Sources:

• Modern Restaurant Management

Consumer Trends: Coffee Tourism and Egg Shortage

Coffee Tourism Rising ☕🌍

• Global Boom: Americans' high coffee consumption fuels coffee tourism worldwide.
• Unique Experiences:
  • Vietnam: Sustainable brews with organic beans.
  • Melbourne: Guided café tours.
  • London: Historical coffee tours.
  • Dubai: Coffee Museum tastings.

Sources:

• Salon

Egg Shortage Crisis 🥚🚫

• Rising Prices: Average cost of a dozen eggs in California hits $8.97.
• Bird Flu Impact: Over 20 million egg-laying chickens lost, causing supply shortages.
• Store Limits: Retailers like Trader Joe’s and Costco impose purchase limits.
• Forecast: USDA expects prices to improve by April 2025.

Sources:

• Salon

Reddit Discussions Among Restaurant Owners

Do We Need Salads?

Restaurant owners debate the necessity of offering salads, which constitute only 2% of sales:

• Inclusivity: Keeping salads accommodates dietary restrictions and group preferences.
• Menu Audit: Suggestions to improve salad offerings or streamline the menu.
• Customer Satisfaction: Balancing efficiency with meeting customer needs.

Sources:

• /r/restaurantowners

Health Inspection Preparation Tips

Key advice for smooth health inspections:

• Immediate Corrections: Fix issues promptly during the inspection.
• Inspector Interaction: Let them lead and demonstrate food safety knowledge.
• Facility Readiness: Ensure all signage, sinks, and equipment are in proper order.
• Documentation: Keep records accessible and organized.

Sources:

• /r/restaurantowners

Navigating Marketing and Operational Challenges

Paying for Marketing Services

Restaurant owners contemplate fair pricing for comprehensive marketing services:

• Service Scope: Includes social media management, email marketing, and growth strategy.
• Pricing Range: Varies widely from $300 to $3,000 per month.
• Considerations:
  • Define specific needs and workload.
  • Assess the expertise of the service provider.
  • Evaluate the return on investment.

Sources:

• /r/restaurantowners

Sustainability of 50% Food Cost

Meal prep services face challenges with high food costs after promotional deals:

• Upselling Strategies: Offer add-ons like extra protein or desserts to improve margins.
• Profitability Concerns: 50% food cost considered unsustainable without high volume.
• Business Adjustments:
  • Reevaluate pricing.
  • Adjust portion sizes.
  • Focus on high-margin items.

Sources:

• /r/restaurantowners

Converting Third-Party Delivery Customers

Restaurants seek ways to shift customers from third-party delivery apps to in-house ordering:

• Financial Benefits: Reduces fees paid to delivery platforms.
• Strategies:
  • Include flyers with orders promoting direct ordering.
  • Offer exclusive deals for ordering through the restaurant's website.
  • Emphasize supporting local businesses.
• Challenges: Customer habits and convenience often keep them on third-party apps.

Sources:

• /r/restaurantowners

Restaurant Industry News and Discussions

Hooters Bankruptcy Talks

• Bankruptcy Rumors: Hooters is reportedly preparing to file for bankruptcy.
• Community Reactions: Discussions highlight poor food quality and outdated business models as potential causes.

Sources:

• /r/restaurant

Restaurant Music Preferences

• Customer Experience: Complaints about restaurants playing conflicting music genres at high volumes.
• Consensus: Background music should enhance, not detract from, the dining atmosphere.

Sources:

• /r/restaurant

Operational Equipment Insights

Choosing the Right Pizza Oven

• Conveyor Ovens: Recommendations for brands like Middleby Marshall, Edge, and XLT.
• Considerations:
  • Budget vs. quality.
  • Production capacity needs.
  • Maintenance and reliability.

Sources:

• /r/restaurantowners

Best Handheld Can Openers

• Durability: Importance of finding long-lasting, health department-approved can openers.
• Recommendations:
  • Edlund S-11: Praised for longevity.
  • Japanese Manual Openers: Noted for quality.
  • Gangy Opener: Compact and durable option.

Sources:

• /r/restaurantowners

Food Industry Innovations

Cultivated Meat Advancements

• Ever After Foods partners with Bühler to revolutionize cultivated meat production.
• Efficiency Gains: Promises a 90% cost reduction while improving taste and nutritional value.
• Global Impact: Aims to address food security with sustainable protein solutions.

Sources:

• Food Industry Executive

New Ice Cream Candy Bars Launch

• Wells Enterprises and Ferrero North America release ice cream bars inspired by Butterfinger, Baby Ruth, and 100 Grand.
• Availability: Sold in packs of six for $5.99 nationwide.

Sources:

• Food Business News

Economic Highlights: US Corn Exports Surge

• Record Shipments: US corn exports reach 1.6 million tonnes weekly—35% increase from last year.
• Price Impact: Futures prices surpass $5 per bushel, a 16-month high.
• Concerns:
  • Potential trade disputes with Mexico, a major importer.
  • Global production decreases due to adverse weather in South America.

Sources:

• Food Business News

Closing Notes on Industry Trends

• Timeless Truths for Success: Outstanding guest service remains the key competitive advantage.
• Adaptability and Culture: Embracing change while maintaining core values is essential.
• Technology Integration: Leveraging digital tools improves efficiency and customer engagement.

Stay tuned for more concise news updates delivered right to your fingertips, saving you valuable time. As industry professionals and restaurant operators, your time is precious—spent on running your businesses, innovating menus, and enhancing customer experiences. Let us keep you informed with quick, comprehensive summaries so you can focus on what you do best. Subscribe now and join us again for the latest insights in the restaurant industry!