February 28th QSR Roundup: Menu Expansions, Leadership Changes, and Delivery Challenges

QSR news for Feb 28th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 101 articles to bring you the latest. Estimated reading time saved (at 200wpm): 320 minutes. It'll take you only 13 minutes to catch up.

Menu Innovations and New Product Launches

Sweetgreen Introduces Ripple Fries and Expands Menu

Sweetgreen is set to launch its first-ever Ripple Fries 🍟 in spring 2025. Made with just five ingredients and air-fried in avocado oil, these fries are a healthy twist on a classic favorite. They come with house-made pickled ketchup or garlic aioli for dipping. This is part of Sweetgreen's plan to ramp up menu innovation after a stable operational phase in 2024. Other menu additions include caramelized garlic steak and air-fried Brussels sprouts.

Key Highlights:

• Returning to five seasonal menu launches in 2025.
• Plans to introduce 3-4 new seasonal items this year to excite frequent customers.
• Implementing an Automated Infinite Kitchen to improve efficiency, with plans to expand from 12 to 33 locations.

Sources:

• QSR Magazine
• Nation's Restaurant News

Arby's Brings Back Beloved Potato Cakes

Arby's has permanently returned its iconic Potato Cakes 🥔 to the menu due to overwhelming customer demand. To ensure their future, Arby's made a unique promise: if they ever remove the Potato Cakes again, they'll sue themselves! Fans can participate in a pre-class action lawsuit, potentially earning a share of $1 million in food credits if Arby's goes back on their word.

Sources:

• Restaurant Business
• Nation's Restaurant News

Taco Bell Launches New Steak & Queso Crunchwrap Sliders

To celebrate the 20th anniversary of the Crunchwrap Supreme, Taco Bell is introducing the Steak & Queso Crunchwrap Sliders. Priced at $4.99, these sliders feature grilled steak, chipotle sauce, and a mini tostada, all wrapped in a warm tortilla and served with a new Green Chile Queso for dipping.

Sources:

• Nation's Restaurant News

Bloom Power Spring Drinks from Black Rock Coffee Bar

Black Rock Coffee Bar is launching its vibrant "Bloom Power" spring drink lineup from March 1 to April 30, featuring three exciting new beverages:

• Toffee Delight: A cozy blend of English Toffee, Caramel, and Hazelnut Latte.
• Honey Haze Shaken Espresso: Refreshing espresso shaken with honey and vanilla, topped with creamy oat milk.
• Matcha with Lavender Cold Foam: An aromatic blend of matcha and milk, crowned with lavender cold foam.

These drinks are available at all 151 locations nationwide.

Sources:

• QSR Magazine

Spindrift Launches New Soda Line

Spindrift Beverage Co. is introducing a new soda line with five flavors:

• Concord Freeze
• Ginger Ale
• Orange Cream Float
• Shirley Temple
• Strawberry Shortcake

Each soda contains less than 8 grams of naturally occurring sugar from fruit. CEO Dave Burwick aims to redefine the soda aisle with exceptional taste and quality ingredients.

Sources:

• Food Business News

DiGiorno's Ranch-Inspired Pizzas in Collaboration with Hidden Valley Ranch

Nestlé has unveiled two new pizzas under the DiGiorno brand:

• Spicy Rancheroni: Features spicy Buffalo-style Hidden Valley Ranch sauce, zesty pepperoni, jalapeños, and mozzarella on a thin crust.
• Chicken Bacon Ranch Stuffed Crust Pizza: Includes a bacon and cheese-stuffed crust, grilled chicken, and ranch sauce, topped with Hidden Valley seasoning.

The Spicy Rancheroni will retail for $6.99 at Kroger from March, while the stuffed crust pizza will be available nationwide in April for $9.49.

Sources:

• Food Business News

Simplot's Avocado Promotion

Simplot is offering a historic 30% discount on Harvest Fresh® avocados to food service operators. This unprecedented pricing aims to:

• Encourage menu innovation ahead of events like the Super Bowl, March Madness, and Cinco de Mayo.
• Help operators increase profitability with aggressive savings.
• Expand Simplot's commitment to avocados with a new production facility.

Sources:

• Total Food Service

Crispy Cruncheros Birria Tacos by Posada

Posada introduces Cruncheros Birria Beef Rolled Tacos, a crispy snack inspired by traditional Jalisco flavors. Key features:

• Fresh tortilla filled with boldly seasoned shredded beef.
• Dipped in a savory batter for lasting crunch.
• Birria has seen a 350% menu increase over four years.
• Ideal for shareable plates, takeout, and delivery due to consistent quality.

Sources:

• Total Food Service

New Beverage Innovations

• Clean Simple Eats launches a Frosted Lemonade Clear Protein Soda with 20 grams of ultra-filtered whey protein per can.
• Simply (Coca-Cola) introduces a prebiotic soda line with flavors like strawberry, pineapple mango, and citrus punch, containing 25% to 30% fruit juice and 6 grams of prebiotic fiber.

These innovations cater to health-conscious consumers seeking familiar brands with wellness benefits.

Sources:

• Food Business News

Gumbo: A Cultural Stew

Gumbo, a rich stew from Louisiana, blends various meats or shellfish with vegetables and herbs, reflecting the fusion of African, Native American, and European influences. Variations include:

• Creole Gumbo: Popular in New Orleans, typically includes seafood and sausage.
• Cajun Gumbo: From Lafayette, features a darker roux and robust flavors from smoked sausage and fowl.
• Green Gumbo: Made with various vegetables, served during Lent.

Gumbo symbolizes the diverse cultural heritage of Louisiana.

Sources:

• Food & Wine

Pokeworks Expands in Texas

Pokeworks is set to expand in Texas with a new location in Mission opening in May, managed by Agustin Guzman, a former Olympic swimmer. Plans include:

• Launching 30 restaurants in Texas and Mexico.
• Emphasizing discipline learned from athletics as key to business success.
• Expanding to two more sites in Houston.

Sources:

• Fast Casual

Leadership Changes and Strategic Moves

Culver's Appoints New Head of Culinary

Culver Franchising welcomes Kasey McDonald as the new head of culinary. Highlights:

• McDonald brings 15 years of experience in culinary development.
• Previously worked at Firehouse Subs and Carl's Jr..
• Will lead the team from Wisconsin, focusing on menu innovation for over 1,000 locations.
• McDonald is excited to enhance iconic items like ButterBurgers and Fresh Frozen Custard.

Sources:

• QSR Magazine

Jack in the Box Leadership Transition

Jack in the Box CEO Darin Harris has stepped down, with CFO Lance Tucker serving as interim CEO. Key points:

• Harris led the company through post-pandemic recovery and expansion via franchising.
• Tucker aims to build on this momentum with plans for 35-45 new restaurants in 2025.
• The company faces recent same-store sales challenges but is focusing on growth.

Sources:

• QSR Magazine

Bloomin' Brands Restructures Operations

Bloomin’ Brands is halting U.S. restaurant openings to focus on operational simplification and brand restructuring, primarily at Outback Steakhouse.

• Major Layoffs: Laid off 100 corporate workers to decentralize decision-making.
• Future Plans: Opening 18 to 20 company-owned and about 30 franchised restaurants in 2025.
• Sales Declines: All brands, except Fleming’s Prime Steakhouse, saw drops in same-store sales.
• Menu Changes: Aiming to reduce menu items by 10% to 20% to enhance quality and efficiency.

Sources:

• Restaurant Dive

Leadership Changes at J.M. Smucker

The J.M. Smucker Co. has promoted Judd Freitag to senior vice president and general manager of Pet and Sweet Baked Snacks.

• Succeeds Dan O’Leary, who is leaving the company.
• Freitag has over 15 years at Smucker, previously turning around the Pet business unit.
• Focus on advancing the Sweet Baked Snacks strategy for the Hostess brand.

Sources:

• Food Business News

Papa John's Turnaround Strategy

• Facing a 4% decline in same-store sales for Q4.
• CEO Todd Penegor emphasizes returning to brand roots with the slogan “better ingredients, better pizza.” 🍕
• Launching the ‘Meet the Makers’ ad campaign to highlight pizza craftsmanship.
• Focusing on unique, operationally simple menu items to avoid complex SKUs.

Sources:

• Nation's Restaurant News

Restaurant Closures and Financial Challenges

Red Robin Plans to Close Underperforming Restaurants

Red Robin anticipates closing nearly 70 underperforming restaurants over the next five years:

• Starting with 10 to 15 locations this year.
• These closures represent 14% of its 500 outlets.
• Aims to enhance profitability and reinvest in higher-performing units.
• Despite closures, loyalty membership surged to 14.9 million, a 1.5 million increase in 2024.

Sources:

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

Del Taco's Colorado Woes

A major fallout with franchisee Newport Ventures resulted in the closure of 18 Del Taco locations in Colorado:

• Newport Ventures faced bankruptcy due to a $125,000 unpaid development fee.
• Declining sales and financial mismanagement led to 'serious health and safety failures.'
• Del Taco terminated franchise agreements and is taking action against the franchisee.

Sources:

• Restaurant Business
• Restaurant Dive

Twin Peaks Cuts Smokey Bones Locations

• Twin Peaks will close nine underperforming Smokey Bones locations.
• This leaves about 45 Smokey Bones remaining, with 30 to be converted to Twin Peaks.
• CEO Joe Hummel states closures could continue if operations don't improve.
• Smokey Bones has historically had nearly 130 locations.

Sources:

• Restaurant Business

Smucker's $1 Billion Impairment Charges

The J.M. Smucker Co. reported non-cash impairment charges totaling nearly $1 billion due to poor performance in Sweet Baked Snacks and the Hostess brand.

• $794 million impairment charge for Sweet Baked Snacks goodwill.
• $208 million for Hostess trademark.
• Sweet Baked Snacks sales dropped by 8% to $279 million in the last quarter.
• Overall, Smucker faced a $662 million loss.

Sources:

• Food Business News

Delivery and Digital Challenges

Restaurant Delivery Experience Challenges

Consumer reliance on delivery apps grows, but service quality issues persist:

• 46% of delivery reviews are negative.
• Delays and incorrect orders top complaints.
• 50% of diners who've had poor delivery vow to avoid the restaurant in future visits.

Strategies to Improve Experience:

• Gather More Feedback: Use QR codes for direct customer surveys.
• Optimize Menus and Prices: Over 55% cite high delivery fees as a deterrent.
• Enhance Customer Service: Implement clear service procedures.
• Innovative Packaging: Helps food travel better and arrive hot.

Source:

• QSR Magazine

Digital Risks in Restaurants

Krispy Kreme's stock plummeted to an all-time low due to a cyberattack, highlighting the dangers of increasing digital sales.

• Restaurants are urged to prioritize cybersecurity as they adapt to online sales strategies.
• Incident serves as a reminder that as digital sales rise, so do associated risks.

Sources:

• Restaurant Business
• Salon

DoorDash's $17 Million Settlement

DoorDash agrees to pay nearly $17 million to settle claims of misleading consumers and pocketing delivery drivers' tips.

• Investigation revealed the company used customer tips to subsidize workers' guaranteed base pay.
• Settlement includes $16.75 million in restitution and up to $1 million for administration fees.

Sources:

• Salon

Community Support and Sustainability Initiatives

Jersey Mike’s 15th Annual Month of Giving

Jersey Mike’s Subs launches its 15th Annual Month of Giving this March to raise funds for over 200 charities nationwide.

• Customers can round up their purchases or donate $1, $3, or $5.
• Each local Jersey Mike’s will donate all sales on March 26, with a goal of surpassing last year’s $25 million total.
• Founder Peter Cancro invites families to participate and support local causes.

Source:

• QSR Magazine

Red Lobster's Ocean Sustainability Challenge

Red Lobster invites middle school students to create innovative solutions for ocean and waterway issues.

• Part of Red Lobster's Seafood with Standards initiative.
• Submissions due by March 28, 2025.
• Top teams can win prizes including registration for the 2025 FIRST Robotics competition and a trip to meet ocean sustainability innovators in California.

Sources:

• FSR Magazine

Chipotle's Metaverse Ad and Sustainability Efforts

Chipotle Mexican Grill launched its first-ever metaverse ad in Roblox with the 60-second spot "Unfolded".

• Showcases sustainable agriculture, set to Halsey’s cover of “She’s a Rainbow.”
• First 50,000 users receive a free entrée code for watching the ad.
• Committed $2 million to universities supporting young farmers.

Sources:

• Restaurant Dive

Technology and Innovation in Operations

Sweetgreen's Automated Infinite Kitchen

Sweetgreen is focusing on technology to enhance efficiency:

• Expanding Automated Infinite Kitchens from 12 to 33 locations.
• These kitchens offer labor savings of 7% and can handle 500 orders per hour.
• Implementing AI-powered workforce systems to enhance labor efficiency and scheduling.

Sources:

• QSR Magazine
• Nation's Restaurant News

Portillo's Utilizes AI to Improve Drive-Thru Times

Portillo's is leveraging technology to enhance operations:

• Goal to cut drive-thru times by 45 seconds.
• Using AI-driven cameras for real-time insights.
• Each 30-second reduction can equate to 1 point of sales growth.

Sources:

• Nation's Restaurant News

T. Hasegawa Expands R&D Facility

T. Hasegawa USA Inc. has renovated and expanded its flavor product and development facility by 50%.

• Adding 2,400 square feet to enhance R&D capabilities.
• New labs for sweet and savory flavors, and a specialty area for beverage flavor innovation.

Sources:

• Food Business News

Franchise Expansion and New Ventures

Franchise Expansion of I Heart Fries

Miami-based I Heart Fries is partnering with Dylan Gonzalez for international franchise expansion.

• Offers a mix of international cuisines on fries.
• Currently operates two locations in Florida.
• Promotes brand awareness through innovative community events like 'Date Night with Dyl'.
• Aims to create a global brand with an emphasis on community involvement and cultural diversity.

Sources:

• Modern Restaurant Management

Dickey's Sausages Hit Grocery Shelves

Dickey's and Rancher's Premium Sausages are now available in over 400 grocery stores.

• Flavors include Dickey's Original and Spicy Cheddar Links, Rancher's Bacon Cheddar, Brisket Burnt Ends, and Philly Cheesesteak.
• Aims to enhance accessibility to premium quality foods.

Sources:

• Fast Casual

Co-Branded Treats in Ohio

FAT Brands launches a co-branded location featuring Great American Cookies and Marble Slab Creamery in Huber Heights, Ohio.

• First of its kind in the state.
• Offers signature items like Create Your Own Cookie Shakes and Ice Cream Sandwiches.

Sources:

• QSR Web

Industry Trends and Consumer Behavior

On-Premise Dining Surge

The National Restaurant Association's 2025 report highlights:

• Growing trend towards on-premise dining, driven by strong consumer demand.
• 81% of diners expressed a desire for more frequent visits to full-service restaurants.
• 60% of QSR operators prioritize on-premise over off-premise dining.
• Cleanliness is crucial: 73% of limited-service diners cite it as a key factor.

Sources:

• Restaurant Dive

Fast-Food Apps and Drive-Thrus

The rise of fast-food apps has transformed ordering at drive-thrus:

• Customers appreciate customization options and time savings.
• Increase in order accuracy with app orders.
• Some express frustrations with app usability and accessibility.

Sources:

• /r/fastfood

Managing Rising Food Costs

Restaurant owners are coping with rising ingredient costs:

• Price adjustments are necessary to maintain profitability.
• Sustainable pricing strategies include constant menu adjustments.
• Emphasis on quality and value to justify price increases.

Sources:

• /r/restaurateur

Regulatory Changes and Legal Issues

Ban on Red Dye 3

The FDA's recent ban on Red Dye 3 affects over 9,000 food products:

• Pushes the industry towards natural color alternatives.
• Companies must navigate complex transitions without compromising quality.
• Deadline for compliance is January 2027.

Sources:

• Food Industry Executive

USDA's $1 Billion Bird Flu Plan

The USDA announced a $1 billion plan to combat HPAI and soaring egg prices.

• Investing $500 million in biosecurity measures.
• Allocating $400 million to indemnify producers who have to cull flocks.
• Exploring vaccines and therapeutics to reduce depopulation.

Sources:

• Food Business News

SNAP Restrictions on Undocumented Immigrants

Agriculture Secretary Brooke Rollins announced efforts to prevent undocumented immigrants from accessing SNAP.

• Affirmed the program is only for U.S. citizens and legal residents.
• Undocumented immigrants contributed $96.7 billion in taxes in 2022.
• The USDA aims for clearer messaging to reinforce these restrictions.

Sources:

• Civil Eats

Fun and Cultural Food Highlights

Celebrating King Cake Season

King cake season runs from January through March in New Orleans:

• Pastry chef Kaitlin Guerin experiments with flavors like rosemary pecan and chocolate praline.
• Traditionally linked to Mardi Gras, featuring vibrant colors: green, gold, and purple.
• The tradition of finding a plastic baby within the cake symbolizes luck and community gatherings.

Sources:

• Eater

The 2024 Food Movie Awards

The Eater team celebrates the best cinematic food moments of 2024:

• Recognizes creative use of food in films and performances.
• Categories capture unique culinary artistry from comedic to dramatic.
• Showcases how food influences character depth and emotional connection.

Sources:

• Eater

Gumbo: A Cultural Stew

Gumbo is a rich stew from Louisiana, reflecting a blend of cultures.

• Originates from African, Native American, and European influences.
• Creole Gumbo includes seafood and sausage.
• Cajun Gumbo features a darker roux and smoked sausage.
• Symbolizes the diverse cultural heritage of Louisiana.

Sources:

• Food & Wine

Tibetan Butter Tea Tradition

Butter tea, or po cha, is a centuries-old Tibetan beverage:

• Made from black tea, yak butter, and salt.
• Essential for survival in high-altitude conditions.
• Has deep cultural significance and is a daily ritual for Tibetans.

Sources:

• Food & Wine

Upgrade Your Marinara Sauce

• High-quality marinara can substitute long-cooked sauces when short on time.
• Brands like Rao's come pre-seasoned with olive oil, onions, garlic, and salt.
• Perfect for creating quick creamy vodka sauces or traditional dishes like baked shells and lasagna.

Sources:

• Food & Wine

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