January 10th QSR Roundup: Beverage Innovations and Restaurant Transformations Drive Growth in 2025

Interviewy Team

Interviewy Team

— 7 min read
January 10th QSR Roundup: Beverage Innovations and Restaurant Transformations Drive Growth in 2025
QSR news for Jan 10th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 93 articles to bring you the latest. Estimated reading time saved (at 200wpm): 290 minutes. It'll take you only 9 minutes to catch up.

McDonald's Beverage Concept Growth

McDonald's is optimizing its beverage-focused spinoff, CosMc’s, by leveraging smaller, digitally-focused designs for expansion. After initial success in Bolingbrook, Illinois, the chain opened six Texas locations but opted to close three larger ones to focus on smaller units better suited for testing customer preferences.

Highlights:

  • Key Beverages and Food Items: Popular drinks like Island Pick Me Up Punch and food items like Hashbrown Bites are driving sales.
  • Digital Advancements: Enhancements in digital services have significantly boosted revenue, contributing to over $9 billion in Q3 2023.
  • Future Plans: McDonald's aims to expand its tech-driven approach and increase loyalty memberships to 250 million by 2027.
  • Strategy Shift: The closures reflect McDonald's strategy to adapt quickly and drop unprofitable ventures while capitalizing on the popularity of drive-thru beverage brands.

Source(s): QSR Magazine, Restaurant Business

Chuck E. Cheese's Bold Revival

Chuck E. Cheese has undergone a complete makeover, emerging from bankruptcy with a fresh image and modern facilities.

Key Points:

  • Significant Investment: A $350 million investment focused on renovations, technology enhancements, and retaining managerial staff during the pandemic, resulting in less than 20% turnover.
  • Entertainment Expansion: Introduction of Adventure Zones with trampolines and obstacle courses aims to boost customer satisfaction and encourage multiple visits per year.
  • Menu Modernization: The menu has been revamped to include diverse and appealing options for both children and adults, catering to multi-generational and multi-ethnic guests.
  • Fun Pass Success: Over 400,000 Fun Passes sold, offering unlimited visits and significantly increasing customer value. Customers with passes are worth 2.5 to 8 times more.
  • Positive Sales Trends: The brand experienced positive same-store sales in 8 out of 9 months, signaling strong recovery.
  • Brand Partnerships: Collaborations with Buddy V’s, Kidz Bop, and the Harlem Globetrotters enhance visibility and engagement.
  • Future Focus: Aiming to redefine its appeal to both returning visitors and new families, ensuring it remains a top destination for kids aged 2 to 12.

Source(s): QSR Magazine

Building Food Brands Authentically

At the EatOkra's Culinary Creatives Conference, entrepreneurs highlighted the importance of community and authenticity in food entrepreneurship.

Summary:

Entrepreneurs like JaMor Johnson and Jatee Kearsley shared how they are filling local food gaps and supporting their communities. Johnson created Jerk at Nite to address late-night food needs for students, while Kearsley of Je T'aime Patisserie accepts EBT payments to support families.

The landscape of marketing is shifting, with social media platforms like TikTok transforming brand visibility. This change empowers creators to share authentic narratives, making relatability crucial for brand connection and success.

Navigating Viral Fame: Going viral can lead to overwhelming demand, as experienced by Kearsley, who emphasizes sticking to core values amid rapid growth.

Strategic Collaborations: Entrepreneurs stressed the importance of aligning values in partnerships to build credible brands.

Ultimately, building an influential food brand requires both passion and resilience, with authenticity at the core.

Source(s): QSR Magazine

Rita’s Italian Ice Acquisition

Private equity firm Maple Park Capital Partners has acquired a majority stake in Rita's Italian Ice, the largest Italian ice concept globally with over 575 locations.

Key Details:

  • Product Offering: Rita’s offers a wide range of frozen treats made fresh daily, including gelatis and milkshakes.
  • Growth Potential: CEO Linda Chadwick emphasized the potential for growth with this partnership.
  • Investment Goals: Maple Park aims to invest in various sectors including dining and hospitality.
  • Expansion Plans: The deal marks a significant step in Rita's expansion, building on its 40-year legacy and previous investment by Argosy Private Equity.

Source(s): QSR Magazine, Restaurant Business, Restaurant Dive, Food Business News

Empowering Young Leaders at Jeremiah’s Italian Ice

Jeremiah's Italian Ice began franchising in 2019 and is growing rapidly, now boasting 165 locations. A key player in this expansion is Julianna Voyles, who started as a teen employee and has climbed the ranks to Senior Director of Franchise Operations.

Voyles' leadership reflects the company's focus on internal promotions and training, which is crucial for its success in new demographic markets. The business strategy prioritizes family-friendly suburban areas for expansions across the southeastern U.S.

Jeremiah's aims to empower young leaders with a younger executive team, promoting fresh ideas and relatable leadership styles while still valuing genuine connections with franchisees. Upcoming product launches include a significant to-go program, marking a new growth chapter.

Voyles highlights the brand's role as a stepping stone in many people's careers, emphasizing its commitment to employee development, especially for first-generation college students.

Source(s): QSR Magazine

Football Stars Turning into Franchisees

Football players are transitioning into restaurant franchising, leveraging skills from their sporting careers.

Highlights:

  • Cam Jordan, eight-time Pro Bowler, opened eight Little Caesars locations in Indianapolis, emphasizing teamwork and trust with franchisee Andrew Feghali.
    • Reminisces about enjoying Little Caesars as a student and now aims for a successful franchise.
  • Vernon Davis, retired NFL player, operates multiple Jamba franchises and has expanded into other restaurants.
    • Credits his success to a strong ownership team and leadership skills from football.
    • Manages acting projects alongside franchise meetings through Zoom.
  • Anthony Cioffi joined his family’s Salad House franchise, applying time management skills from college football to help run a healthy-eating restaurant.
  • Common Themes: All these athletes underline the importance of teamwork, skills transfer, and support in their business ventures.

Source(s): QSR Magazine

Subway Franchisees Elect 2025 Board

The North American Association of Subway Franchisees (NAASF) has announced its elected Board officers for 2025, reaffirming its commitment to advocate for franchisee members.

Key Appointments:

  • Bill Mathis reprises his role as Chairman, emphasizing profitability for franchisees and representing their collective voice.
  • Milton Cooke steps in as Vice Chairman.
  • Ray Burrows, re-elected Treasurer.
  • Patrick Buckley continues as Secretary.

All bring extensive experience in the Subway system.

Source(s): QSR Magazine

RATIONAL USA Partners with Cre8tive Hospitality

RATIONAL USA has announced a strategic partnership with Cre8tive Hospitality Solutions, enhancing its presence in the MAFSI Region 16, which includes Nebraska, Iowa, Kansas, Missouri, and southern Illinois.

This collaboration allows RATIONAL to expand its reach into the foodservice equipment market effectively. Cre8tive is known for nurturing strong partnerships and providing premium resources to its customers, positioning both companies for future success in the industry.

Source(s): QSR Magazine

HTeaO Opens in Pflugerville

HTeaO, a leading iced tea franchise, opens its first Pflugerville location on January 11, 2025.

Key Details:

  • Owned by Bethany Beeman, the store features 20+ flavors of sweetened and unsweetened tea using natural ingredients and a proprietary filtration system.
  • Grand Opening Celebrations: Customers can enjoy free tea samples, events, and happy hour prices.
  • The store aims to be a welcoming spot for the community.

Source(s): QSR Magazine

AI and Chefs: A New Era

A growing number of consumer devices claim to replicate chefs' work, but chefs remain unfazed and even intrigued by the technology.

Despite the rise of AI and smart kitchen devices capable of automating cooking processes, professional chefs are not worried about being replaced. Instead, they see these advancements as tools that can enhance their creativity and efficiency in the kitchen. Chefs believe that the human touch, creativity, and the experience they bring cannot be replicated by machines.

Source(s): Restaurant Business

Job Growth in Restaurants

  • 29,800 new jobs were added in December, showcasing strong employment growth in the restaurant sector.
  • Restaurants and bars accounted for 12% of all job growth in the economy, with the unemployment rate sitting at 4.1%.
  • The restaurant industry now employs nearly 12.5 million people in the U.S.
  • Despite challenges, including bankruptcies and closures, the industry appears healthier, demonstrating confidence with ongoing job additions.
  • In 2024, the monthly job growth averaged 24,000 in the leisure and hospitality sector.
  • Wages in leisure and hospitality grew 3.2% year-over-year, but average earnings rose only 2.4%, indicating potential cutbacks in staff hours.
  • Chains like Red Lobster and TGI Fridays faced bankruptcy, highlighting competitive pressures in the market.

Source(s): Restaurant Business, Nation's Restaurant News

Krispy Kreme's Leadership Changes

Krispy Kreme has restructured its leadership team with four key promotions to strengthen global growth and enhance partnerships.

Key Changes:

  • Nicola Steele becomes COO, focusing on modernizing doughnut production.
  • Dave Skena is now Chief Growth Officer, focusing on global marketing and increasing sales.
  • Raphael Duvivier transitions from Chief Development Officer to President of International, leading franchise expansion in Europe and Latin America.
  • Alison Holder is appointed Chief Product Officer to innovate doughnut offerings.

These changes come after the appointment of new CEO Josh Charlesworth in 2024.

Source(s): Restaurant Business, Restaurant Dive, Food Business News

Wingstop's New Sauce Launch

Wingstop introduces its new limited-time sauce, Pacific Glaze, inspired by Asian flavors.

Details:

  • The sauce combines sweet and heat, with influences from Thai, Chinese, and Singaporean cuisines.
  • Features ingredients like red chili, vinegar, and hoisin.
  • Initially created for Thailand locations and tested in Singapore.
  • The culinary team selects from over 100 ideas to ensure authenticity.
  • Wingstop anticipates significant growth in 2024, planning to promote this sauce with in-store signage.

Source(s): Restaurant Business

KFC's Concept Evolution

KFC has launched a new chicken fingers brand called Saucy to compete with Raising Cane's, showcasing its strategy of creating brands in response to market competition.

Historically, KFC has experimented with several concepts like Kentucky Roast Beef, The Colonel’s Kitchen, and The Colonel’s Lady Dinner House, although most did not succeed. Despite their lack of lasting impact, these past attempts offer valuable insights as KFC navigates its current branding initiatives.

Source(s): Restaurant Business

Impact of Fires on LA Restaurants

Fires in Los Angeles pose a significant threat to the restaurant industry, with potentially devastating long-term effects. While the full extent of property and job losses remains unclear, industry experts suggest proactive measures for recovery. They urge restaurant owners to strategize and adapt to the challenges ahead to mitigate future impacts.

Source(s): Restaurant Business

Starbucks' Revamped Mission

Starbucks introduced a new mission statement focusing on quality coffee and community connections under new CEO Brian Niccol.

Key Points:

  • The statement emphasizes sourcing the finest coffee and nurturing the human spirit.
  • This change comes after a challenging year with declining sales and customer feedback about high prices and menu complexity.
  • Actions Include:
    • Refocusing on coffee quality and community atmosphere.
    • Plans for menu simplification and enhancing store comfort.
    • A new customer promise to deliver not just coffee but also personal connections.
  • Commitment to employees, ensuring benefits and promoting from within for leadership roles.

Source(s): Restaurant Business

Turning Point's Rise

Turning Point Restaurants transformed from a struggling coffee shop to an acclaimed daytime dining destination.

Summary:

CEO Kirk Ruoff saw potential in a failing business and re-imagined it into a bustling brand. Ruoff shifted focus from dinner to breakfast, launching a successful menu featuring healthy and indulgent options.

  • The brand now has over 30 locations, aiming for 40 by 2025.
  • Together with COO Bonnie Iavaroni, they emphasize guest experience with consistent quality, high-rated coffee, and a cozy atmosphere.
  • Response to Feedback: Proactive, maintaining an impressive 4.5-star average on Google.
  • Leverages technology, like a branded app, to enhance customer interaction.
  • Received strategic backing from NewSpring Capital, aiding expansion.

Source(s): FSR Magazine

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