February 25th QSR Roundup: Roti Mediterranean's Revival, Starbucks Layoffs, and Chi-Chi's Comeback Through Crowdfunding

QSR news for Feb 25th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 119 articles to bring you the latest. Estimated reading time saved (at 200wpm): 225 minutes. It'll take you only 12 minutes to catch up.

Roti Mediterranean's Revival After Bankruptcy

Revitalizing Roti Mediterranean Grill with New Ownership and Bold Menu Transformations

Roti Mediterranean, once facing bankruptcy due to rising costs and underperformance, has been acquired by BroadPeak Capital, led by Tariq Farid, the founder of Edible Arrangements. The acquisition includes 17 restaurants, recipes, and the brand, marking a significant opportunity for growth and revitalization.

Key Highlights:

• New Leadership: Somia Farid Silber, daughter of Tariq Farid, steps in as the new CEO to spearhead the turnaround.
• Menu Overhaul: Plans to expand the menu beyond Mediterranean offerings to include South Asian and Pacific influences.
• Operational Upgrades: Emphasis on improving operational efficiency and brand identity.

Roti's bankruptcy filing was a strategic move to facilitate the sale, orchestrated by Ravinia Capital. With the new ownership, Roti aims to stabilize and expand, bringing fresh concepts to the restaurant industry.

Sources:

• QSR Magazine

Domino's Bets Big on Value and Innovation

Domino's Introduces Stuffed Crust Pizza and Expands Delivery Partnerships

Facing anticipated pressure on consumer spending in 2024, Domino's CEO Russell Weiner is focusing on providing greater value to customers. The company is launching stuffed crust pizza in the U.S., a product previously missing from their menu, to attract new and existing customers.

Notable Points:

• Value Promotions: Offering 50% off menu-priced pizzas and any crust with any toppings for $9.99 online.
• Loyalty Growth: Domino's Rewards has grown to 35.7 million active members, up 2.5 million from the previous year.
• Delivery Aggregators: Expanded partnership with Uber Eats, with negotiations underway with other delivery platforms, tapping into a $1 billion opportunity.
• Market Share Gain: Same-store sales grew by 3.2% in fiscal 2024, with a 1% increase in U.S. market share.

Franchisees reported a strong cash flow, and Domino's concluded 2024 with a net gain of 160 locations, totaling 7,014 U.S. restaurants.

Sources:

• QSR Magazine
• Restaurant Dive
• Food Business News

Just Salad's $200 Million Funding Boost

Valued at $1 Billion, Just Salad Aims for Menu Innovation and Tech Enhancements

Just Salad has raised $200 million in new funding led by Wellington Management, bringing the company's valuation to $1 billion. The investment is set to support menu innovation, technology enhancements, and expansion of their nearly 100 locations across several states.

Key Information:

• Sustainability Focus: Initiatives like the reusable bowl program have saved 43,000 pounds of waste annually.
• Tech Innovations: Introduction of Salad AI for personalized meals and opening a drive-thru in New Jersey.
• Growth Strategy: Backed by experienced investors recognizing Just Salad's strong sales growth and solid market position.

CEO Nick Kenner emphasizes the company's commitment to healthful, convenient food options.

Sources:

• QSR Magazine
• Fast Casual
• Nation's Restaurant News
• QSR Web

Starbucks Layoffs and Corporate Restructuring

Over 1,100 Jobs Cut as Starbucks Streamlines Operations

Starbucks is undergoing significant corporate restructuring, resulting in the layoff of 1,100 employees and the elimination of several hundred unfilled positions, primarily focusing on corporate and support roles.

Key Points:

• Efficiency Focus: The move aims to simplify the organizational structure, enhance accountability, and create smaller, more agile teams.
• In-Office Presence Requirement: Vice presidents and higher-level executives are now required to work from the company's Seattle or Toronto offices at least three days a week to better support operations.
• Ongoing Hiring: Despite layoffs, Starbucks continues to hire for key positions aligned with the new structure.
• Customer Experience Enhancements: Initiatives include serving drinks in reusable containers, reinstating condiment bars, and reducing wait times in stores.
• Financial Performance: While same-store sales declined by 4%, the company notes improved metrics in customer engagement and product preferences, such as a shift towards coffee drinks.

CEO Brian Niccol emphasizes that these changes are part of a transformation plan to enhance operational efficiency and better serve customers.

Note: There is a discrepancy in the content regarding the CEO's name. Brian Niccol is actually the CEO of Chipotle Mexican Grill, not Starbucks. However, in this summary, we are following the content provided.

Sources:

• QSR Magazine
• Restaurant Business
• FastCasual.com
• Food Business News
• Nation's Restaurant News

Golden Corral's New Fast-Casual Concept

From Homeward Kitchen to Golden Corral Favorites

Golden Corral is rebranding its fast-casual spinoff from Homeward Kitchen to Golden Corral Favorites, aligning closely with its well-known brand identity.

Highlights:

• Concept Change: Homeward Kitchen locations will transition to Golden Corral Favorites, focusing on signature comfort foods with modern convenience.
• Service Style: The new concept features counter service, drive-thru, and mobile ordering, with a small dining area.
• Menu Focus: Popular dishes like meatloaf and fried chicken will be offered in a quick-service format.
• Employee Retention: Existing staff are being retained, with training and bonuses during the transition.

Golden Corral aims to blend its traditional offerings with contemporary service methods to meet consumer demand for convenience.

Sources:

• QSR Magazine
• Restaurant Business
• FSR magazine
• Fast Casual
• Nation's Restaurant News

Chi-Chi's Plans a Comeback Through Crowdfunding

Beloved Mexican Chain Seeks to Reopen Restaurants

Chi-Chi's, the once-popular Mexican casual-dining chain, is making plans for a resurgence nearly 20 years after closing its last U.S. restaurant.

Key Points:

• Crowdfunding Goal: Aiming to raise $3.5 million through StartEngine crowdfunding platform.
• Expansion Plans: Intent to open two new restaurants this year.
• Franchising Strategy: Developing a franchising program to accelerate growth.
• Brand Nostalgia: Leveraging the chain's legacy to reconnect with long-time fans and new customers.
• Partnership: Agreement with Hormel Foods to use existing trademarks.

Chi-Chi's aims to rekindle its charm and reintroduce its dining experience to the market.

Sources:

• Restaurant Business
• Nation's Restaurant News

Industry Challenges: Bankruptcies, Sales Slumps, and Layoffs

Restaurant Industry Faces a Tough Start to the Year

The restaurant industry is grappling with several negative trends as the year begins.

Issues Faced:

• Rampant Bankruptcies: Continuation of financial struggles leading to closures.
• Sales Shortfalls: Sales results falling below expectations, indicating reduced consumer spending.
• Layoffs: Companies like Starbucks and Jack in the Box are implementing significant layoffs.
• Diminished Optimism: Industry leaders express concerns over ongoing challenges and lackluster recovery.

Despite these difficulties, some brands are finding ways to adapt, focusing on value, innovation, and operational efficiency.

Sources:

• Restaurant Business
• QSR Web
• Nation's Restaurant News

Taco Bell's Spicy Caliente Cantina Chicken Menu Launch

New Fiery Offerings Heat Up Taco Bell's Menu

Taco Bell is introducing its Caliente Cantina Chicken Menu on February 27, featuring five new spicy items inspired by its popular Cantina Chicken.

Menu Highlights:

• Caliente Cantina Chicken Crispy Taco ($2.99)
• Caliente Cantina Chicken Soft Taco ($2.99)
• Caliente Cantina Chicken Burrito ($5.99)
• Caliente Cantina Chicken Quesadilla ($6.49)
• Caliente Cantina Chicken Bowl ($7.99)

Additionally, Nacho Fries will receive the Caliente treatment in March for $4.99. Taco Bell Rewards Members receive early digital access.

Sources:

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

McDonald's Breakfast Expansion and Krispy Kreme Partnership

Bagel Sandwiches Nationwide and Doughnut Offerings in NYC

McDonald's is expanding its breakfast menu with the nationwide introduction of bagel breakfast sandwiches and is expanding its partnership with Krispy Kreme doughnuts in New York City.

Key Updates:

• Bagel Sandwiches: Options include bacon, egg, and cheese; steak, egg, and cheese.
• Egg McMuffin Celebration: On March 2, select breakfast sandwiches offered for $1 via the McDonald's app.
• Krispy Kreme Partnership: Aims to make doughnuts available in over half of U.S. locations by the end of 2025.

McDonald's continues to innovate its menu and partnerships to attract customers and celebrate milestones.

Sources:

• Restaurant Dive
• Salon
• Nation's Restaurant News

Digital Transformation Elevates Quick-Service Restaurants

Embracing Digital Signage and AI to Enhance Customer Experience and Efficiency

Quick-service restaurants (QSRs) are increasingly adopting digital technologies to stay competitive and meet evolving customer expectations. Tools like digital signage, AI-driven search, and interactive platforms are revolutionizing the way restaurants operate.

Key Points:

• Digital Signage Increases Sales and Engagement:
  • Over 80% of restaurant owners report increased orders after implementing digital signage.
  • 68% of customers are more likely to purchase advertised items displayed digitally.
  • Real-time content scheduling allows restaurants to promote timely offers and adapt to trends instantly.
  • Interactive displays can reduce perceived wait times by 35%, enhancing the overall customer experience.
• Adaptability and Personalization:
  • Digital tools enable restaurants to tailor promotions based on customer data and preferences.
  • Personalization can increase customer loyalty and repeat business.
• Operational Efficiency:
  • Simplifying content management reduces the administrative burden on staff, allowing them to focus more on customer service.
  • Platforms like AI-powered assistants provide 24/7 customer service, improving reservation systems and customer satisfaction.
• Leveraging Online Platforms:
  • A significant portion of restaurant searches are non-branded, highlighting the importance of using nuanced search terms.
  • Presence on platforms like Google, TikTok, and Instagram is crucial for visibility.
  • AI technologies like OpenAI are transforming how consumers discover restaurants.
• Major Chains Leading the Way:
  • Chains such as McDonald's and Domino's are investing heavily in digital transformations.
  • Smaller restaurants can also benefit, ensuring competitiveness in the digital era.

Industry Insight:

Adapting to modern search behaviors and technology trends is essential for restaurants to maintain visibility and attract customers. Investing in digital tools can yield significant returns in sales and customer engagement.

Sources:

• QSR Magazine
• Modern Restaurant Management
• Restaurant Dive

Uber Eats Sues DoorDash Over Anti-Competitive Practices

Legal Battle Heats Up Between Delivery Giants

Uber Eats has filed a lawsuit against DoorDash, alleging anti-competitive practices that hinder Uber Eats' ability to acquire delivery clients.

Allegations Include:

• Exclusive Agreements: DoorDash forcing restaurant chains into exclusivity by threatening higher fees.
• Tortious Interference: The lawsuit centers on claims of intentional interference with contractual relations.

Experts suggest that Uber Eats aims to challenge exclusivity deals rather than seek financial damages, focusing on future market behavior.

Sources:

• Restaurant Dive

Leadership Changes at Jack in the Box

CEO Darin Harris Steps Down; Lance Tucker Named Interim CEO

Jack in the Box announces the departure of CEO Darin Harris, who is leaving to pursue opportunities outside the restaurant sector.

Key Details:

• Interim CEO: Lance Tucker, EVP and CFO, appointed as interim CEO.
• Background: Tucker has over 20 years of experience in finance and the restaurant industry, with previous roles at CKE Restaurants and Papa John's.
• Future Plans: The company expresses confidence in Tucker's ability to navigate the quick-service market.

Additionally, Dawn Hooper will serve as interim principal financial officer.

Sources:

• Restaurant Dive
• Fast Casual
• QSR Web

Egg Shortage Crisis Causes Skyrocketing Prices and Restaurant Surcharges

Avian Influenza Decimates Poultry Population Leading to Record Egg Prices

The United States is facing a severe egg shortage due to deadly avian influenza outbreaks, causing egg prices to soar and prompting both retailers and restaurants to take unprecedented measures.

Key Details:

• Price Surge:
  • In California, the average cost of a dozen eggs has reached $8.97.
  • The national average stands at $4.85 per dozen, significantly higher than previous years.
• Supply Impact:
  • Over 20 million egg-laying hens have died due to the avian influenza outbreak.
  • The reduction in supply has strained the market, unable to meet consumer demand.
• Retailer Actions:
  • Purchase Limits: Grocery stores like Trader Joe's and Costco have imposed limits, allowing customers to purchase only a certain number of egg cartons.
  • Stock Shortages: Some stores are experiencing empty shelves in the egg aisle.
• Restaurant Adjustments:
  • Surcharges: Waffle House has added a 50-cent surcharge per egg, and Denny's has implemented temporary surcharges on egg dishes.
  • Menu Changes: Restaurants are re-evaluating their menus and pricing to adapt to the increased costs.
• Government Projections:
  • The USDA forecasts egg prices to increase by 20.3% for 2025.
  • An expected improvement may occur by April 2025, potentially bringing prices down to around $2.50 per dozen.
• Economic and Consumer Impact:
  • High egg prices are straining household budgets, especially for families that rely on eggs as an affordable protein source.
  • Businesses that use eggs as a primary ingredient are facing increased operational costs.
• Political Commentary:
  • The White House has commented on the situation, attributing some supply issues to past poultry management decisions, though not directly acknowledging the impact of the bird flu outbreak.

The egg shortage crisis exemplifies how vulnerable the food supply chain can be to disease outbreaks, and it underscores the importance of biosecurity measures in agriculture.

Sources:

• Salon
• Nation's Restaurant News
• Food Business News

Restaurant Industry Adapts to Challenges and Trends

From No-Shows to Digital Engagement

Restaurants are navigating various challenges, implementing strategies to adapt and thrive.

Noteworthy Trends:

• Combating No-Shows:
  • UK restaurants face significant revenue loss due to no-shows, estimated at £17.6 billion annually.
  • Strategies include implementing clear cancellation policies, requiring deposits, and using technology to manage reservations.
• Boosting Digital Visibility:
  • Emphasizing the importance of nuanced online search terms to capture customer attention.
  • Leveraging platforms like Google for factual information, TikTok for visual discovery, and Instagram for aesthetic showcasing.
  • Utilizing AI-driven search and customer service to enhance reservations and loyalty.

The industry recognizes the need to adapt to changing consumer behaviors and technological advancements to maintain competitiveness and improve customer experiences.

Sources:

• Modern Restaurant Management
• Food Business News

Other Industry Highlights

Various Updates Across the Food and Restaurant Sector

• Independent Restaurants Adapt:
  • Reports show 54% of restaurant owners experienced positive business performance in 2024.
  • 92% increased staff wages due to rising costs, and 55% raised menu prices, primarily between 5-10%.
  • 85% implemented non-traditional business models to maintain profitability.
• Growth in Organic Foods:
  • Sales projected to hit $348 billion by 2028.
  • Health benefits are the prime motivator, especially among Millennials and Gen Z.
  • 58% of shoppers believe organic products are healthier.
• 2025 Food Manufacturing Trends:
  • Focus on health and transparency, with traceability becoming essential due to recalls.
  • Sustainability is a priority, with manufacturers adopting biodegradable packaging.
  • Workforce challenges addressed through investment in AI and automation.
• PepsiCo Closes PopCorners Plant:
  • Shutting down a manufacturing plant in Liberty, impacting nearly 300 employees.
  • Cites challenges in maintaining long-term viability due to slower growth in the product line.

Sources:

• Food Industry Executive
• Foodservice Equipment & Supplies
• Food Business News

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