February 7th QSR Roundup: Yum! Brands Embraces Tech, AI Adoption Challenges in Restaurants, and Importance of 5-Star Reviews

QSR news for Feb 7th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 99 articles to bring you the latest. Estimated reading time saved (at 200wpm): 260 minutes. It'll take you only 11 minutes to catch up.

Edible's Sweet Transformation Under Somia Farid Silber

Somia Farid Silber, the CEO of Edible, has been integral to the company's evolution from a family venture to a modern gifting powerhouse.

• Valentine’s Day Focus: With over 500,000 orders in one week, preparations for Valentine’s begin as early as January.
• Targeting Millennials and Gen Z: Introducing an experiential gifting approach, with features like a gift finder and expanded product lines including baked goods and flowers.
• Next-Gen Stores: Plans to open new locations that offer an interactive shopping experience, blending in-store and online elements.

Edible is redefining gifting, making it more personalized and engaging for younger generations.

Source: QSR Magazine

KFC's Flavorful Innovation with the Saucy Concept

KFC's U.S. division is shaking things up:

• The Saucy Concept: Introduced in Orlando, it focuses on 11 proprietary sauces and hand-breaded chicken tenders.
• Tech Integration: Features kiosk ordering to enhance convenience.
• Positive Early Results: Encouraging feedback has led to plans for significant expansion in 2025.
• Facing Challenges:
  • 5% drop in same-store sales.
  • Closure of 122 restaurants.
• Leadership Change: New U.S. president, Scott Mezvinsky, aims to drive modernization.
• Tech Advancements: Utilizing innovations like Byte by Yum! to improve customer experience.

KFC is aiming to attract the next generation of chicken lovers with bold flavors and tech-savvy solutions.

Source: QSR Magazine

Yum! Brands Embraces Cutting-Edge Technology

Yum! Brands is taking big strides in tech:

• Byte by Yum! Launch: An integrated tech platform enhancing operations across brands.
• Digital Sales Surge: Over $30 billion in digital sales in 2024.
• Taco Bell's Success:
  • 5% increase in U.S. same-store sales in Q4.
  • Leveraging Byte by Yum! for seamless operations.
• KFC's Digital Growth: 20% rise in digital sales through kiosk implementation.
• Pizza Hut's Focus: Improving app experience amid stiff competition.
• Aggressive Expansion: Opened over 1,800 new units in Q4 and 4,500 in 2024.

Yum! Brands is betting big on technology to drive growth and enhance customer engagement.

Source: QSR Magazine

2024 Franchising Growth and Economic Outlook

Franchising Sector:

• Surpassed expectations with a 2.2% growth in 2024.
• Projected growth of 2.4% for 2025.

Quick-Service Restaurants:

• On track for 2.2% growth, nearing 204,000 units.
• Employment expected to increase by 2.6%.

Economic Factors:

• Lower inflation and stabilized interest rates boosting consumer confidence.
• Increased spending during breakfast and lunch hours.

Challenges and Trends:

• 50% increase in bankruptcies amid financial distress.
• Shifts toward perceived value and personalization in dining.
• Rising importance of sustainability in consumer choices.
• AI and robotics adoption in operations for efficiency.
• Food prices up 29% since 2019; labor costs rising.

Top states for franchise expansion in 2025 include Georgia and North Carolina.

Source: QSR Magazine

Unfiltered Insights from Restaurant CEOs

In a candid conversation:

• Geoff Alexander of Wow Bao and Josh Halpern of Big Chicken share experiences.
• Topics Discussed:
  • Building effective teams.
  • Selecting appropriate technology.
  • Motivating staff.
• QSR's new series promises more insider perspectives from industry leaders.

An open look into the realities of restaurant leadership and management.

Source: QSR Magazine

AI Adoption Challenges in Restaurants

Despite AI's potential:

• Lagging Adoption: Restaurants are behind other sectors in AI integration.
• Key Issues:
  • Financial constraints hinder investment.
  • Lack of expertise slows implementation.
• Industry Dynamics:
  • Tech firms invest heavily in AI despite losses.
  • Restaurants need ready-made solutions to keep up.
• Job Market Shifts:
  • Initial fears of AI replacing lower-skilled jobs have shifted.
  • Creators and programmers are experiencing unexpected displacement.
• Expert Insights:
  • Bruno Mota highlights operational challenges in adopting AI.

Effective AI integration requires collaboration and practical applications tailored to the restaurant industry.

Source: QSR Magazine

Starbucks' Revitalization Strategies

Key takeaways from Starbucks' comeback plan:

• Emphasize Experience: Fostering customer engagement to build loyalty.
• Innovate Offerings: Updating menu selections to align with current trends.
• Streamline Operations: Improving efficiency for better service quality.
• Focus on Sustainability: Adopting eco-friendly practices to attract conscious consumers.
• Leverage Technology: Utilizing tech for ordering and personalization.

These strategies serve as guidance for struggling restaurant chains aiming to revitalize their brands.

Source: Restaurant Business

Restaurants Oppose Immigration Sweeps

Nationwide response:

• Protests and Support Initiatives: Restaurant workers unite against immigration enforcement actions.
• One Fair Wage's Role:
  • Launched an Emergency Relief Fund for affected workers.
• Industry Impact:
  • Restaurants employ about 14 million people.
  • In cities like New York, up to 70% of workers are foreign-born.
• Fear Among Workers: Concerns over deportation leading to unwillingness to work.
• Advocacy Efforts:
  • Fundraisers and protests, including "A Day Without Immigrants".
  • Calls for policy changes to protect workers.

The restaurant industry is rallying to support its immigrant workforce amid heightened enforcement.

Source: Restaurant Business

Super Bowl Snack Promotions

Restaurants capitalizing on game day:

• Nando’s Peri-Peri Sauce:
  • Encouraging customers to purchase sauces in grocery stores.
  • Recipe for Peri-Peri Buffalo Chicken Dip shared.
• White Castle's Queso Dip:
  • Utilizing Jalapeno Cheese Sliders for a unique spin.
  • Recipes available on their website.
• Checkers & Rally's Chicken Bites:
  • Introducing heat-and-serve options in major grocery stores.
  • Joining their famous fries in the freezer aisle.

Brands are leveraging retail channels to be part of customers' Super Bowl celebrations.

Source: Restaurant Business

Applebee’s Revamped Date Night Pass

Making Valentine's Day special:

• Date Night Pass:
  • Available until Feb. 12.
  • 3,000 passes at $100 each.
  • Offers one meal per month worth up to $50.
• Improved Offering:
  • Last year's success led to an expanded program.
  • Aim to make date nights more indulgent and manageable.
• Savings:
  • Potential to save almost $1,000 over the year.

Applebee's is enhancing value for couples looking for affordable dining experiences.

Source: Restaurant Business

Restaurant Industry's $1.1 Trillion Sales Surge

Impressive projections for 2025:

• Sales Expected: To exceed $1.1 trillion.
• Growth Factors:
  • Pent-up demand fueling consumer spending.
• Operator Sentiment:
  • 80% expect sales to stay the same or improve.
  • 48% anticipate increased competition.
• Consumer Behavior:
  • 89% of millennials would dine out more if financially able.
• Labor Challenges:
  • 95% cite labor costs and recruitment as top concerns.
• Value Promotions:
  • 82% of delivery customers prioritize value.
  • 76% of limited-service operators see success with loyalty programs.

The industry is optimistic but remains mindful of operational challenges.

Source: Restaurant Business

Panera Bread's New Chief Information Officer

Leadership update:

• Santhosh Kumar appointed as CIO starting Feb. 12, 2025.
• Responsibilities:
  • Overseeing technology across over 2,200 cafes.
  • Focusing on innovation and integration.
• Background:
  • Formerly with Dunkin' Brands and United Natural Foods.
  • Improved operational efficiencies through modernization.
• Panera's Tech Advancements:
  • Implementing drive-thru AI.
  • Launching digital-only locations.
• Strategic Growth:
  • Recent executive additions emphasize commitment to innovation.

Panera continues to strengthen its leadership to spearhead technological growth.

Source: Restaurant Dive

Chipotle Enhances Total Guest Experience

Strategic initiatives for 2025:

• Focus Areas:
  • Employee experience.
  • Streamlined order throughput.
• Chipotlanes Expansion:
  • Four out of five new locations will feature drive-thru lanes.
  • Reduces mobile order pick-up to 30 seconds on average.
• Financial Highlights:
  • Comparable restaurant sales rose 5.4% in Q4 2024.
  • Total revenue reached $11.3 billion for the year.
• Kitchen Upgrades:
  • Introducing produce slicers and dual-sided planchas.
  • Aims to enhance team efficiency.
• Digital Orders:
  • Represent 35% of sales in 2024.
  • Testing augmented production lines.

Chipotle is investing in operational efficiencies to improve both employee and customer experiences.

Source: Restaurant Dive

Milk Bar Debuts in the Midwest

Christina Tosi brings Milk Bar to Chicago:

• First Midwest Location: Opening at the Hoxton Chicago Hotel.
• Signature Items:
  • Chicago-style Hot Dog Bombs.
  • Corn Cookie: A fan favorite despite its simplicity.
• Exclusive Offerings:
  • A cookie inspired by Portillo’s chocolate cake.
• Customer Experience:
  • Patio seating and a vibrant atmosphere.
• Tosi's Vision: Combining nostalgia with unique, region-specific treats.

Milk Bar aims to create a unique culinary experience, blending Chicago flavors with beloved classics.

Source: Eater Chicago

Tous les Jours Launches Mobile App with Rewards

Enhancing customer engagement:

• App Features:
  • Over 300 artisan pastries, cakes, and desserts available.
  • Rewards Program:
    • Free cookie upon sign-up.
    • Free cake slice on birthdays.
  • Point System:
    • Earn 10 points for every $1 spent.
    • Redeem points for menu items.
• Convenience Tools:
  • Easy ordering and tracking.
  • Secure payment options.
  • Built-in store locator.
• Brand Growth:
  • 138 U.S. stores and nearly 1,800 worldwide since 2004.

Tous les Jours is leveraging technology to enhance the customer experience and loyalty.

Source: Fast Casual

AI in Restaurant Operations and Omnichannel Strategies

Evolving technologies in dining:

• Unified Commerce vs. Omnichannel:
  • Unified Commerce: Centralized data for seamless experiences.
  • Omnichannel: Interconnected systems that may cause delays.
• Similarities:
  • Both focus on multichannel customer engagement.
  • Utilize technology to improve shopping efficiency.
• Differences:
  • Data Management: Unified commerce offers real-time updates.
  • Customer Experience: Unified commerce provides synchronized experiences.
• Recommendations:
  • Omnichannel suits smaller businesses.
  • Unified commerce ideal for medium to large enterprises.

Adopting the right strategy is crucial for improving customer experience and operational efficiency.

Source: BlueCart

Restaurant Branding Trends for 2025

Key design trends shaping the industry:

• Hand-Drawn Logos:
  • Evoke authenticity and a homemade feel.
  • Examples: Jeni's Ice Creams, Superiority Burger.
• Scrapbook Design:
  • Combines nostalgic elements for a personal touch.
  • Examples: Cafe Gratitude, HomeState.
• Clean Yet Stylish:
  • Minimalist with artistic details.
  • Examples: Sailor, Atoboy.

Great design and storytelling are essential in a crowded market to invite diners into a unique culinary world.

Source: Modern Restaurant Management

Building a Feedback Culture in Restaurants

Emphasizing open communication:

• Positive Relationships: Crucial yet often overlooked.
• Two-Way Communication:
  • Encourages ongoing dialogue beyond formal reviews.
• Benefits:
  • Fosters personal and professional growth.
  • Empowers employees.
• Leader's Role:
  • Model feedback behavior.
  • Seek openness and share insights promptly.
• Constructive Criticism:
  • Essential for development.
  • Should be delivered thoughtfully.

Creating a culture of feedback strengthens relationships and promotes collaboration within teams.

Source: Modern Restaurant Management

Mandatory Country-of-Origin Labeling for Meat

Legislative efforts:

• Bipartisan Bill: Reintroduced by Senators John Thune (R-SD) and Cory Booker (D-NJ).
• Purpose: Require labels indicating the country of origin for all meat products.
• Support for Farmers:
  • Aims to level the playing field for domestic producers.
• USDA Actions:
  • Closing loopholes that allowed misleading labels.
• Industry Resistance:
  • Anticipated opposition from powerful meat industry groups.

The bill seeks transparency in meat labeling to support American farmers and inform consumers.

Source: Civil Eats

Innovations in Chicken Products

New offerings from various brands:

• Jollibee:
  • Launching hand-breaded chicken tenders made with all-white meat.
• KFC:
  • Collaborating with Mike's Hot Honey for a spicy-sweet flavor twist.
• Krispy Krunchy Chicken:
  • Introducing new chicken nuggets made from marinated whole-muscle breast.

Brands are expanding their chicken product lines to meet consumer demand for variety and quality.

Source: Food Business News

Hershey's Financial Outlook Amid Cocoa Price Surge

Anticipating challenges:

• Record High Cocoa Prices: Expected to impact 2025 financials.
• Projected Earnings:
  • Adjusted earnings per share to drop by mid-30%.
  • Net sales estimated to grow at least 2%.
• Current Performance:
  • 8.7% increase in Q4 2024 net sales to $2.88 billion.
• Salty Snacks Growth:
  • Sales increased by 36%.
• Leadership Transition:
  • CEO Michele Buck plans to retire in June 2026.

Hershey is navigating commodity volatility with strategic planning and monitoring market impacts.

Source: Food Business News

Lancaster Colony's Sales Boost Through Licensing Deals

Success through partnerships:

• Licensing with Major Chains:
  • Texas Roadhouse, Buffalo Wild Wings, Chick-fil-A, Olive Garden.
• Product Highlights:
  • Frozen Texas Roadhouse dinner rolls sold in 4,000 Walmart stores.
  • Combined sales with Sister Schubert's rose 15.9%.
• Market Share Gains:
  • Frozen dinner roll category: 60.8% market share.
  • New York Bakery garlic bread sales up 2.8%.
• Financials:
  • Net sales increased 4.8% to $509.3 million for the quarter.
• Expansion Plans:
  • Acquiring Winland Foods for enhanced sauce production capacity.

Lancaster Colony leverages strategic partnerships to drive revenue and market share.

Source: Food Business News

KitchenAid's Color of the Year: Butter Yellow

A nostalgic touch:

• New Color Announcement:
  • 'Butter' yellow for Artisan stand mixers.
• Significance:
  • Evokes comfort, nostalgia, and joy in baking.
• Product Features:
  • Range of high-quality attachments.
• Brand Legacy:
  • Over a century of being a kitchen staple.

KitchenAid continues to blend functionality with style, adding warmth to kitchens with its new color choice.

Source: Salon

Importance of 5-Star Reviews for Restaurants

Influence on customer decisions:

• Key Statistics:
  • 91% of diners consider reviews important.
  • 64% focus on recent reviews.
• Strategies for Encouraging Reviews:
  • Incentivizing staff for mentions in reviews.
  • Using QR codes to direct customers to review platforms.
• Impact:
  • High review counts enhance customer perception.
  • Recent, positive reviews can significantly boost business.

Maintaining a strong online reputation is essential in attracting new customers and staying competitive.

Source: /r/restaurantowners

Popeyes' Cajun Rice Makes a Comeback

Fan favorite returns:

• Cajun Rice:
  • Also known as Rice Dressing.
  • Reintroduced in select markets.
• Customer Reactions:
  • Excitement among fans.
  • Calls for more discontinued items to return.
• Pricing:
  • Small size at $9, large at $23.
• Menu Variety:
  • Desire for more nutritious sides alongside fried chicken.

Popeyes responds to customer demand by bringing back a beloved menu item.

Source: /r/fastfood

The Debate Over Earbuds in Restaurants

Concerns over professionalism:

• Growing Trend:
  • Staff wearing earbuds during service.
• Opinions:
  • Largely viewed as unprofessional and distracting.
  • Impacts customer experience negatively.
• Acceptable Situations:
  • Some see it as acceptable during prep or slow shifts.
• Maintaining Standards:
  • Emphasis on upholding hospitality professionalism.

The consensus highlights the need for attention to customers and adherence to service standards.

Source: /r/restaurant

Employees First: The Future of Restaurant Tech

Shifting focus in technology:

• Employee Experience:
  • Becoming a priority in tech advancements.
• Examples:
  • First Watch uses social media-style videos for training.
• Turnover Rates:
  • High rates at 70.9% in 2023 emphasize the need for staff retention.
• Long-Term Success:
  • Investing in employees leads to better customer experiences.

Restaurants are recognizing that happy employees contribute significantly to overall success.

Source: Nation's Restaurant News

Chick-fil-A's Employee-Centric Design Prototype

Innovative drive-thru model:

• New Prototype Features:
  • Four lanes for increased efficiency.
  • Meal transport system to speed up service.
• Employee Benefits:
  • Enhanced workspace design.
  • Aims to boost team engagement and satisfaction.
• Business Impact:
  • Reduced turnover costs.
  • Potential losses from disengagement estimated between $228M to $355M.

Thoughtful design can improve employee morale and, in turn, enhance customer service.

Source: Nation's Restaurant News

Restaurant Industry's Optimistic Outlook for 2025

Key highlights:

• Projected Sales:
  • Expected to reach $1.5 trillion.
• Consumer Eagerness:
  • Strong desire to dine out fueling growth.
• Yum Brands' Tech Consolidation:
  • Launching Byte by Yum for global tech initiatives.
• Taco Bell's Performance:
  • 5% lift in same-store sales in Q4 2024.
• Changes at Canlis Restaurant:
  • Executive Chef Aisha Ibrahim departing.
  • Brothers Mark and Brian Canlis amicably part ways.

The industry is poised for growth, embracing innovation and adapting to change.

Source: Nation's Restaurant News

Starbucks Taps into Super Bowl Marketing

Strategic advertising moves:

• Super Bowl Ads:
  • Airing during pregame and postgame shows.
• Promoting:
  • 'Starbucks Monday' campaign.
• Franchising Growth:
  • Set to grow 4.4% this year.
  • 2.5% increase in unit count, outpacing overall economic growth.
• Tariff Impact:
  • Chipotle's CEO notes minimal impact from tariffs.

Brands are leveraging major events and strategic planning to boost visibility and growth.

Source: Nation's Restaurant News

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