February 8th QSR Roundup: Domino's Closing Stores, Edible Evolves, and Job Cuts in Restaurants

QSR news for Feb 8th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 85 articles to bring you the latest. Estimated reading time saved (at 200wpm): 220 minutes. It'll take you only 13 minutes to catch up.

Domino's Closes 205 Stores to Streamline Operations

Domino’s Pizza Enterprises, the largest franchisee of the chain, announces the closure of 205 low-performing restaurants to enhance profitability and focus on high-density markets.

• Majority in Japan: 172 locations will close in Japan, Domino's largest market with about 950 stores.
• Reasons for Closure:
  • Decreased post-pandemic demand.
  • Higher input costs affecting profitability.
• Financial Impact:
  • Expected annual savings of $9.72 million.
  • One-time cost of approximately $60.8 million.
• Strategic Focus:
  • Commitment to disciplined expansion.
  • Offering a stronger value proposition to drive long-term growth.

Source: QSR Magazine

Edible Enhances Customer Experience Under Somia Farid Silber

Under CEO Somia Farid Silber, Edible is evolving to meet changing consumer trends, especially targeting millennials and Gen Z.

• Valentine’s Day Peak:
  • Over 500,000 orders in one week.
  • Preparations begin in January.
• Experiential Gifting:
  • Introduction of a gift finder feature.
  • Expansion into baked goods and flowers.
• Next-Gen Locations:
  • Plans to open interactive stores enhancing the shopping experience.

Source: QSR Magazine

KFC's Bold Move with New Saucy Concept

KFC introduces a new restaurant concept in Orlando, emphasizing bold flavors and convenience to attract younger customers.

• Saucy Restaurant Concept:
  • Focus on 11 proprietary sauces.
  • Featuring hand-breaded chicken tenders.
• Technology Integration:
  • Implementation of kiosk ordering.
• Encouraging Results:
  • Positive early feedback with plans for expansion in 2025.
• Challenges Faced:
  • 5% drop in same-store sales.
  • Closure of 122 restaurants.

Source: QSR Magazine

Starbucks Shares Key Strategies for Revitalization

Struggling restaurant chains can learn from Starbucks’ successful comeback plan, focusing on five essential strategies.

• Emphasize Experience: Foster customer engagement and loyalty.
• Innovate Offerings: Refresh menu selections to align with current trends.
• Streamline Operations: Enhance efficiency without compromising service quality.
• Focus on Sustainability: Adopt eco-friendly practices to appeal to conscious consumers.
• Leverage Technology: Utilize tech solutions for ordering and personalized experiences.

These strategies offer a roadmap for brands aiming to rejuvenate their presence in the market.

Source: Restaurant Business

Twin Peaks Franchisee Faces Lawsuit for Financial Misconduct

Former COO Austin Hester sues his partners at Double Mountain Development Ventures (DMD) over allegations of financial improprieties.

• Allegations:
  • Misuse of corporate funds for personal expenses.
  • Wrongful termination after raising concerns.
• Financial Turmoil:
  • DMD faced a $12 million loan lawsuit.
  • Filed for Chapter 11 bankruptcy for two locations.
• Hester's Claims:
  • Asserts the restaurants were profitable.
  • Questions the necessity of bankruptcy filings.

Source: Restaurant Business

Job Cuts in Restaurants Amid Economic Challenges

The restaurant industry sees a significant decline in employment, facing pressure from rising costs and slowing sales.

• Employment Decline:
  • Lost 15,700 jobs in January.
  • Second consecutive January with job losses.
• Current Workforce:
  • Industry hosts 12.36 million jobs.
• Financial Pressures:
  • Rising labor costs leading to a focus on efficiency.
• Wage Increases:
  • Average hourly earnings rose to $19.91.
  • Reflects a 3.6% year-over-year increase.

Source: Restaurant Business

Industry Insights: Rising Costs and Strategic Adjustments

Restaurants are navigating a landscape of increasing costs and supply chain challenges.

• Egg Price Surge:
  • Waffle House adds a 50-cent surcharge per egg.
• Tariff Impacts:
  • Potential economic shrinkage of 0.4% due to tariffs.
  • Chipotle shifts sourcing to Colombia and Peru.
• Menu Pricing Trends:
  • Inflation slowing, with Q4 increases at 1.4%.
  • Upscale restaurants see more notable price hikes.
• Starbucks' Strategy:
  • Utilizing Super Bowl ads and promotions to boost sales.

Source: Restaurant Business

Executive Shifts in the Restaurant Industry

Several key appointments aim to drive growth and innovation across major restaurant brands.

• Panera Bread:
  • Santhosh Kumar appointed as CIO.
• Fogo de Chão:
  • Georganne Erickson takes over as CMO.
• Just Salad:
  • Jennifer Lally promoted to CMO.
  • Mark Berinato becomes Chief Experience Officer.
  • Stephen Blum named Chief Development Officer.
• Burgerville:
  • May Han joins as Chief Development Officer.
• Sonny’s BBQ:
  • George McAllan appointed as Chief Growth Officer.

Source: Restaurant Business

Applebee’s Revives Date Night Pass with Enhanced Offers

Applebee’s brings back its popular Date Night Pass, offering greater value and indulgence for couples.

• Offer Details:
  • 3,000 passes available until Feb. 12.
  • Each pass is $100, providing one $50 meal per month.
• Customer Appeal:
  • Last year’s success led to an expanded offering.
  • Aims to provide nearly $1,000 in savings over a year.

Source: Restaurant Business

Chili's Achieves Viral Success with Triple Dipper

Chili’s leverages social media trends to drive impressive sales growth and brand engagement.

• Sales Boost:
  • 31.4% increase in same-store sales in Q2 2024.
  • 19.9% lift in traffic.
• Triple Dipper Popularity:
  • Accounts for 14% of sales.
  • Over 29 million sold last year.
• TikTok Influence:
  • 63% of orders include mozzarella sticks.
  • Viral trends fuel customer interest.
• Brand Strategy:
  • Focus on everyday value and cultural relevance.
  • Plans to introduce a new fajitas platform.

Source: FSR Magazine

Sonny's BBQ Expands with New Chief Growth Officer

Sonny’s BBQ strengthens its leadership to accelerate growth plans in a challenging economic climate.

• Appointment:
  • George McAllan named Chief Growth Officer.
• Experience:
  • Over decades of experience in the industry.
  • Managed up to 350 restaurants previously.
• Growth Objectives:
  • Enhance operations and support franchise expansion.
  • Focus on delivering quality BBQ and customer experience.

Source: FSR Magazine

Panera Bread Enhances Technology with New CIO

Panera is investing in technology leadership to continue its innovation trajectory.

• New CIO:
  • Santhosh Kumar begins tenure on Feb. 12, 2025.
• Responsibilities:
  • Oversee technology for 2,200+ cafes.
  • Drive customer and team member experience improvements.
• Background:
  • Former roles at Dunkin' Brands and UNFI.
  • Led global IT and operational efficiency initiatives.

Source: Restaurant Dive, Food Business News

Restaurants Anticipate Impact from Potential Tariffs

Industry operators are preparing for possible cost increases due to new tariffs.

• Survey Findings:
  • One-third of independent restaurants expect sales declines.
  • Tariffs could worsen existing challenges like the egg shortage.
• Operational Adjustments:
  • Menu changes and sourcing strategies being considered.
  • Waffle House introduces an egg surcharge.

Source: Restaurant Dive

Super Bowl LIX Brings Culinary Celebrations to New Orleans

New Orleans hosts Super Bowl LIX with a lineup of food-focused events and festivities.

• Game Details:
  • Kansas City Chiefs vs. Philadelphia Eagles on February 9, 2025.
• City Preparations:
  • Infrastructure improvements and security enhancements.
• Public Events:
  • Tostitos Cantina, Super Bowl Opening Night.
  • Pepsi NOLA Eats Fest featuring local cuisine.
• Exclusive Experiences:
  • Celebrity-hosted parties.
  • VIP tailgates priced up to $975 per person.

Source: Eater NOLA

Chocolate Sardines Make a Comeback as a Novelty Treat

The rise of tinned fish popularity leads to the resurgence of chocolate sardines.

• Historical Significance:
  • Originated in early 20th-century Europe.
  • Associated with holidays and cultural traditions.
• Modern Revival:
  • Brands like Bixby Chocolate and Fishwife reintroduce them.
• Culinary Craftsmanship:
  • Artisans create unique designs and flavors.
  • Appeals to nostalgia and novelty in confections.

Source: Eater

Milk Bar Arrives in Chicago with Local Inspirations

Chef Christina Tosi brings Milk Bar to Chicago, infusing local flavors into her iconic treats.

• Location:
  • Opened at the Hoxton Chicago Hotel.
• Signature Items:
  • Chicago-style Hot Dog Bombs.
  • The beloved Corn Cookie, a fan favorite.
• Exclusive Offerings:
  • New cookies inspired by local establishments like Portillo’s.
• Customer Experience:
  • Offers patio seating and a vibrant atmosphere.
  • Aims to be a morning spot and nighttime destination.

Source: Eater Chicago

Scott Mobley Shares Insights on Building Profitable Franchises

At the upcoming Restaurant Franchising & Innovation Summit, Scott Mobley of Stoner’s Pizza Joint will discuss strategies for franchise success.

• Role:
  • Director of Culinary at Stoner's Pizza Joint.
• Experience:
  • Grew the brand from 13 to over 50 locations.
• Philosophy:
  • Emphasizes training, trust, and embracing failure.
• Summit Participation:
  • Will offer advice on building profitable and sustainable franchises.

Source: Networld Media Group

Jollibee Accelerates North American Expansion

Filipino fried chicken chain Jollibee scales up its presence with ambitious growth plans.

• Current Footprint:
  • Over 2,000 units globally.
  • Surpassed 100 locations in North America.
• Growth Objectives:
  • Aim to reach 350 North American stores by 2028.
• Strategy:
  • Launching a new franchising initiative.
  • Leveraging unique products to attract a wider audience.
• Leadership:
  • President Maribeth Dela Cruz to share insights at an upcoming summit.

Source: Fast Casual, FastCasual

Toppers Pizza Opens New Location with First Latino Franchisee

Toppers Pizza celebrates diversity with the opening of its 71st location in Concord, North Carolina.

• Milestone:
  • Operated by Ruzlan Quevedo Gonzalez, the first Latino franchisee.
• Background:
  • Gonzalez immigrated from Cuba and became a U.S. citizen.
• Company Commitment:
  • Reflects Toppers' dedication to inclusivity and community representation.

Source: Toppers Pizza

Restaurants Adjust Strategies Amid Slowing Traffic

Restaurant owners report a decline in customer traffic, exploring ways to adapt.

• Economic Factors:
  • Increased prices and reduced disposable income.
  • Seasonal slump during January and February.
• Owner Responses:
  • Considering cost-cutting measures.
• Customer Behavior:
  • Shift in dining habits due to economic uncertainties.
• Industry Outlook:
  • Casual dining establishments face tighter margins.
  • Emphasis on improved service and value offerings.

Source: /r/Restaurant_Managers, /r/restaurant

Egg Prices Surge, Forcing Restaurants to Adapt

Rising egg costs are impacting menu pricing and operational strategies across the industry.

• Cost Increases:
  • Cases of eggs exceeding $200.
• Restaurant Responses:
  • Implementing temporary surcharges for egg dishes.
  • Adjusting menu prices to reflect costs.
• Supply Challenges:
  • Egg shortages due to bird flu and regulations.
  • Seeking alternative suppliers or reducing egg usage.

Source: /r/restaurantowners, /r/Restaurant_Managers

POS System Switches Under Consideration

Restaurants reevaluate their POS systems to reduce costs and improve functionality.

• Case Study:
  • Switching from Toast to SkyTab for lower monthly fees.
• Community Feedback:
  • Mixed experiences with SkyTab regarding bugs and support.
  • Importance of evaluating fees, integrations, and reliability.
• Alternatives Explored:
  • Considering systems like Simphony and Cake.

Source: /r/restaurantowners

Understanding Restaurant Leasing Concerns

Potential restaurant buyers express caution over lease arrangements.

• Issue Highlighted:
  • Landlord prefers subleasing instead of changing the lease name.
• Risks Identified:
  • Potential lack of commitment from the landlord.
  • Complications with lease obligations and liabilities.
• Advice Given:
  • Importance of due diligence.
  • Ensuring clear communication and proper lease terms.

Source: /r/restaurantowners

Managing Overtime and Staffing in Restaurants

Owners seek solutions to control Back of House (BOH) overtime.

• Challenges:
  • Exceeding scheduled labor hours.
• Solutions Proposed:
  • Hiring more staff to distribute workload.
  • Utilizing software like 7shifts or Homebase for real-time tracking.
• Considerations:
  • Ensuring employees are fairly compensated.
  • Balancing operational needs with labor costs.

Source: /r/restaurant

Automated Coffee Shop Debuts with Robot Barista

Richtech Robotics introduces Clouffee & Tea, an automated coffee shop in Las Vegas.

• Features:
  • Adam, an AI-powered robotic barista.
  • Serves milk teas, coffees, and desserts.
• Customer Interaction:
  • Engages customers with small talk.
• Business Impact:
  • Aims to boost hospitality revenue through automation.
• Future Plans:
  • Additional locations planned.

Source: Nation's Restaurant News

Starbucks' Personalized Cup Messages Stir Reactions

Starbucks encourages baristas to write handwritten names and positive notes on cups.

• Objective:
  • Enhance customer connection and experience.
• Barista Feedback:
  • Mixed feelings due to added pressure during busy times.
• Customer Responses:
  • Some appreciate the personalization, others find it unnecessary.
• Implementation:
  • Gradual rollout with 200,000 Sharpie pens acquired.

Source: Nation's Restaurant News

Yum Brands China Reports Profit Surge and Growth Initiatives

Yum Brands China demonstrates resilience with significant profit increases and innovative concepts.

• Financial Performance:
  • 36% profit surge in Q4 2024.
  • 4% sales growth despite challenges.
• Innovative Concepts:
  • Launch of Pizza Hut Wow and KCoffee.
  • Targets younger demographics and solo diners.
• Menu Development:
  • Over 600 menu items developed annually.
• Expansion Efforts:
  • Opened 534 new stores in Q4.

Source: Nation's Restaurant News

Restaurant Industry Projects $1.5 Trillion in Sales for 2025

The National Restaurant Association forecasts significant growth driven by consumer demand.

• Key Projections:
  • Sales expected to reach $1.5 trillion.
• Contributing Factors:
  • Eagerness to dine out.
  • Innovation in service and experience offerings.
• Operational Focus:
  • Addressing labor and food cost challenges.
  • Emphasizing value and hospitality.

Source: Nation's Restaurant News

New Food and Beverage Launches to Excite Consumers

A variety of innovative products hit the market, catering to evolving consumer tastes.

• CAULIPOWER's Dill Pickle Pizza:
  • First frozen pizza with dill pickle flavor on a cauliflower crust.
• Nature’s Path Protein Granola:
  • Offers 10g of pea protein and 21g of whole grains.
• Kettle Brand's Chamoy Chips:
  • Sweet and tangy limited-edition flavor.
• SYNERGY Wildflower Kombucha:
  • New flavor with 9 billion probiotics.

Source: Food Industry Executive

Future Policy Shifts Impacting Food & Beverage Industry

Upcoming changes in energy, labor, and taxes present both challenges and opportunities.

• Energy Production:
  • Potential for lowered costs due to increased domestic production.
• Deregulation:
  • Could reduce production costs but introduce risks.
• Labor Shortages:
  • Tightened immigration policies leading to increased adoption of AI and automation.
• Tariff Implications:
  • Protective tariffs might raise costs, affecting consumer prices.
• Tax Changes:
  • Expiration of tax cuts in 2025 could increase liabilities for businesses.

Source: Food Industry Executive

Building a Culture of Feedback in Restaurants

Fostering positive relationships with staff is key to success.

• Continuous Feedback:
  • Encourages two-way communication.
• Leadership Role:
  • Leaders should model openness and prioritize sharing insights.
• Overcoming Discomfort:
  • Essential for growth and constructive atmosphere.
• Empowering Teams:
  • Improves collaboration and resolves conflicts.

Expert Insight: Elizabeth Meltz, founder of EM PATH.

Source: Modern Restaurant Management

Mandatory Country-of-Origin Labeling for Meat Proposed

A bipartisan effort aims to introduce more transparency in meat labeling.

• Legislation Details:
  • American Beef Labeling Act reintroduced.
  • Requires labeling of country of origin for all meat products.
• Support Rationale:
  • Helps domestic producers by distinguishing their products.
• USDA Actions:
  • Closing loopholes on misleading labels.
• Industry Opposition:
  • Expected resistance from the powerful meat industry.

Source: Civil Eats

Chicken Innovations from Leading Brands

Major chains introduce new chicken products to entice customers.

• Jollibee's Chicken Tenders:
  • All-white meat, hand-breaded for superior flavor.
• KFC's Collaboration with Mike's Hot Honey:
  • Spicy-sweet twist on classic chicken meals.
• Krispy Krunchy Chicken's Chicken Nuggets:
  • Marinated whole-muscle breast meat for increased appeal.

Source: Food Business News

Hershey Co. Prepares for Record High Cocoa Prices

Hershey anticipates challenges due to rising commodity costs.

• Financial Outlook for 2025:
  • Adjusted earnings per share expected to drop by mid-30%.
  • Net sales projected to grow at least 2%.
• Recent Performance:
  • 8.7% increase in Q4 2024 net sales.
• Strategic Focus:
  • Monitoring consumer trends and potential impacts from weight-loss drugs.
  • CEO Michele Buck plans to retire in June 2026.

Source: Food Business News

Applebee's and McDonald's Bring Back Nostalgic Favorites

Popular chains reintroduce beloved items and promotions.

• Applebee's Date Night Passes:
  • Offering savings and monthly meals to couples.
• McDonald's Shamrock Shake:
  • Returns alongside the reappearance of Uncle O'Grimacey.
  • Part of a promotion supporting Ronald McDonald House Charities.

Source: Salon

Game-Day Recipes and Tailgating Traditions

Food plays a central role in Super Bowl celebrations.

• Slow Cooker Appetizers:
  • Recipes to keep snacks warm throughout the game.
• Tailgating History:
  • From ancient celebrations to modern-day sports events.
• Culinary Innovations:
  • Chefs share unique recipes to elevate the experience.

Source: Food & Wine, Salon

Discussions on Restaurant Operations from Reddit Communities

Reddit users share experiences and advice on various operational topics.

• Implementing Reservation Software:
  • Mixed success in casual dining environments.
• Handling Rising Costs:
  • Strategies for managing egg price increases.
• Equipment Concerns:
  • Addressing issues with new installations like kitchen hoods.
• Leasing vs. Owning Linens:
  • Pros and cons discussed among owners.
• Employee Management:
  • Challenges with tip-out practices and labor management.

Source: /r/restaurantowners, /r/Restaurant_Managers, /r/restaurant

Starbucks Enhances Personalization Amid Mixed Reactions

Baristas are encouraged to personalize cups, aiming to improve customer connections.

• Implementation:
  • Handwritten names and positive notes.
• Staff Feedback:
  • Some find it adds pressure during peak times.
• Customer Experience:
  • Reactions vary from appreciation to indifference.

Source: Nation's Restaurant News

Automated Innovations in the Coffee Industry

Robotics company Richtech introduces AI-powered coffee experiences.

• Clouffee & Tea:
  • Automated shop with robotic barista Adam.
• Customer Engagement:
  • AI interacts with guests for an enhanced experience.
• Industry Impact:
  • Represents a shift towards automation in hospitality.

Source: Nation's Restaurant News

Restaurant Workforce Faces Decline Despite Economic Growth

Contrasting trends in employment highlight sector-specific challenges.

• Job Losses:
  • 15,700 jobs lost in the restaurant sector in January.
• Overall Economy:
  • U.S. workforce added 143,000 jobs.
• Unemployment Rate:
  • Dropped to 4%, the lowest in eight months.
• Recruitment Challenges:
  • 77% of operators struggle with staffing.

Source: Nation's Restaurant News

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!