January 11th QSR Roundup: McDonald's Beverage Expansion and Chuck E. Cheese's Bold Transformation Post-Bankruptcy

Interviewy Team

Jan 11, 2025 — 7 min read

QSR news for Jan 11th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 43 articles to bring you the latest. Estimated reading time saved (at 200wpm): 160 minutes. It'll take you only 9 minutes to catch up.

McDonald's CosMc's Strategy Shift

McDonald's is adjusting its beverage-focused CosMc's concept, closing three larger locations shortly after their debut and opening two smaller ones in Texas. The original CosMc's in Bolingbrook, Illinois, initially drew significant interest, especially for drinks like the Island Pick Me Up Punch and food items like Hashbrown Bites. However, the company found that smaller, digitally-focused designs are more efficient for expansion, particularly catering to off-premise customers with drive-thru services.

Highlights:

McDonald's leverages smaller, tech-driven CosMc's units for better efficiency.
Popular items include specialty beverages and snackable bites.
The shift reflects McDonald's willingness to pivot quickly based on performance.

Source: QSR Magazine, Restaurant Business, Restaurant Dive

Chuck E. Cheese's Bold Transformation

Emerging from bankruptcy, Chuck E. Cheese has undergone a complete makeover with a $350 million investment focused on renovations and technological enhancements.

Entertainment Expansion: Introduction of Adventure Zones with trampolines and obstacle courses to boost repeat visits.
Menu Modernization: A revamped menu caters to both children and adults, aiming at multi-generational and multi-ethnic guests.
Retention Success: Maintained managerial staff during the pandemic, resulting in less than 20% turnover.
Fun Pass Success: Over 400,000 Fun Passes sold, offering unlimited visits and increasing customer value.
Positive Sales Trends: Positive same-store sales in 8 out of 9 months, signaling strong recovery.

Chuck E. Cheese is redefining its appeal to ensure it remains a top destination for kids aged 2 to 12.

Source: QSR Magazine

Restaurant Job Growth Trends

The restaurant industry continues to be a significant contributor to job growth despite ongoing challenges.

Key Points:

29,800 jobs added in December; restaurants and bars represent 12% of all new jobs.
Total industry employment nears 12.5 million jobs.
Wages rose by 3.2% year-over-year, but average weekly earnings increased by only 2.4%, indicating possible hour cuts.
Reflects business confidence and an effort to manage higher wage expenses.

Source: Restaurant Business, Nation's Restaurant News

Executive Moves Shaping the Industry

Several key leadership changes are occurring across major restaurant brands:

White Castle

Anthony Joseph promoted to President, the first non-family member in 104 years.

Outback Steakhouse

Pat Hafner named President, overseeing 674 units.

Bartaco

Anthony Valletta appointed CEO, succeeding co-founder Scott Lawton who becomes Chairman.

Krispy Kreme

Nicola Steele becomes Chief Operating Officer.
Dave Skena named Chief Growth Officer.
Raphael Duvivier steps in as President of International.

Shake Shack

Justin Mennen appointed as Chief Information and Technology Officer, bringing experience from Rite Aid and Estee Lauder.

These leadership shifts aim to drive growth, innovation, and operational excellence within their respective companies.

Source: Restaurant Business, FSR Magazine, Fast Casual

Company Expansions and New Openings

Turning Point's Rise

Turning Point Restaurants has transformed from a struggling coffee shop to an acclaimed daytime dining destination with over 30 locations.

CEO Kirk Ruoff shifted focus from dinner to breakfast, launching a successful menu featuring healthy and indulgent options.
Aims for 40 locations by 2025, emphasizing guest experience with consistent quality and a cozy atmosphere.
Leveraging technology like a branded app to enhance customer interaction.

PopUp Bagels Opening in Boston

New York-based PopUp Bagels launches its first Boston location at The Superette.
This 770-square-foot shop marks the brand's first franchised location.
Founder Adam Goldberg sees expansion into Boston as vital, given the city's rich food culture.

Source: FSR Magazine, Fast Casual

Restaurants are spicing up their menus with exciting new offerings:

Panera Bread introduces asiago-bagel inspired sandwiches for breakfast, like the chicken Roma and spicy steak.
Taco Bell launches its first-ever chicken nuggets, marinated in jalapeño buttermilk, with new dipping sauces.
Hardee's debuts seasonal maple breakfast items and a maple bacon burger for lunch.
Pepperidge Farm releases new Milano white chocolate cookies in flavors like strawberry, lemon, and coconut.
Dunkin' x Native Collaboration unveils a collection of doughnut-scented personal care items, including deodorants and body washes inspired by classic doughnut flavors.

These launches showcase brands tapping into trends and expanding their offerings to delight customers.

Source: Food Business News, Salon

Restaurant Design and Tech Trends for 2025

Restaurants are embracing innovative design and technology to enhance guest experiences and operational efficiency.

Design Trends

Bar Evolution: Bars as social hubs with interactive menus.
Local Integration: Use of regional materials and collaborations with local artists.
Flexible Layouts: Adaptable spaces with movable furniture.
Art-Centric Experiences: Playful, artistic designs to engage diners.

Tech Predictions

AI Integration: Voice assistants transforming ordering and reservations.
Cloud Kitchens: Offering flexibility and efficiency, reducing labor costs.
Automation: Increase in self-service kiosks and mobile ordering.
Immersive Experiences: Personalized ordering systems and social media integration.
Cloud-Based POS Systems: Real-time data management becoming standard.

Overall, the industry is gearing up for a positive shift, aiming to improve service quality while managing costs.

Source: Modern Restaurant Management, Networld Media Group

Charity and Community Support Efforts

Coupon Fundraiser for Childhood Cancer

Garden Catering launches a coupon booklet fundraiser.
100% of proceeds support LivFree and Circle of Care.
Inspired by COO Tina Carpenteri's daughter Willa, battling leukemia since 2023.

FAT Brands Donates Meals

Donating 10,000 meals via the Fatmobile to support first responders and evacuees from Los Angeles wildfires.
CEO Andy Wiederhorn expresses heartfelt condolences and appreciation for first responders.

Los Angeles Wildfires Relief

Wildfires have destroyed over 9,000 structures and displaced at least 130,000 residents.
Organizations like American Red Cross, World Central Kitchen, and Restaurants Care are providing aid.
The hospitality industry rallies to support frontline workers and evacuees.

Source: Fast Casual, Pizza Marketplace, Food & Wine

Industry Challenges and Changes

Impact of Weight-Loss Drugs

Americans on weight-loss medications are changing consumption habits:
- Increasing intake of water, fruits, vegetables, protein, and grains.
- Potential decrease in packaged food consumption; 42% may eat less.
Obesity rates over 40% fuel the popularity of these medications.
Food manufacturers and restaurants may need to adjust strategies.

Challenges of Small Condiment Brands

Small brands face high overhead costs and fierce competition.
Issues with pricing, retailer practices, and rising ingredient costs.
Controversies over trademarking and cultural appropriation impact the industry.
Producers struggle with distribution challenges and being placed in 'ethnic' aisles.

Source: Food Business News, Food & Wine

Notable Personalities and Stories

Spotlight on David 'Rev' Ciancio

Marketing expert behind brands like Salad House and Crazy Pita.
Set to speak at the Restaurant Franchising & Innovation Summit about tech-driven talent strategies.
Learned early on that every problem in restaurants can be solved with the right mindset.
Enjoys rollercoasters and aims to visit every MLB park.
Fun fact: He was once a third place winner in the Pinewood Derby and has been featured in MTV videos!

Celebrating Unitaskers

Eater staff share their love for single-use kitchen tools, known as unitaskers, highlighting their practicality:

Zester: Perfect for zesting fruit only.
Cheese Knife: Ideal for cutting Brie cheese.
Apple Corer: Essential for making apple pies.
Garlic Press: A must-have for garlic lovers.
Despite being single-use, these tools enhance cooking experiences with efficiency.

Source: Pizza Marketplace, Eater

Non-Alcoholic Beverage Revolution

The non-alcoholic beverage market is booming, catering to those seeking less alcohol consumption.

Athletic Brewing valued at $800 million, with over 50% sales growth.
Emergence of quality non-alcoholic spirits and improved non-alcoholic wines.
Majority of non-alcoholic beverages consumed by moderate drinkers.
Offers a balance between enjoyment and minimizing alcohol-related risks.

Source: Food & Wine

Reddit Discussion Highlights

Discount Strategies for Restaurants

Owners share mixed experiences:
- Discounts can attract customers but may devalue the brand.
- Themed specials and limited-time offers recommended over constant discounts.
- Quality food and service are key to customer retention.

Cost of Restaurant Build-Outs

Costs vary widely, from $20k to over $2 million.
Savings through DIY efforts and taking over existing spaces.
Importance of budgeting for unexpected expenses emphasized.

Credit Card Dispute Issues

Concerns about potential fraud with multiple disputes from one customer.
Recommendations include reporting to authorities and verifying cardholder identity.

Fast-Food Deals Reactions

Burger King's $7 Trio Deal: Many feel it's overpriced compared to previous offers.
Fast-Food Value Menus: Disappointment with minimal adjustments and inflated prices.
Sonic's New Deals: Mixed reactions; some find offerings underwhelming.

Source: /r/restaurantowners, /r/fastfood, /r/restaurateur

Quick and Tasty Soups

Satisfy your cravings with delicious soups ready in just 30 minutes! 🥣

Creamy Tomato Soup: Boosted with homemade brown butter croutons.
Broccoli and Potato Soup: Topped with savory Parmesan, both wholesome and satisfying.
Avgolemono Chicken Soup: A hearty Greek-style soup with lemon-egg sauce and shredded chicken.

Enhance Your Soup:

Add crushed red pepper flakes or crème fraîche.
Top with homemade croutons or soft-boiled eggs to elevate your soup game.

Source: Food & Wine

Devastating Fires in Los Angeles

The 2025 wildfires in Los Angeles have caused widespread destruction:

Over 20,000 acres burned in the Palisades Fire; 37,000 evacuations.
Eaton Fire burned more than 13,000 acres; about 100,000 evacuations.
Iconic restaurants like Fox’s, Side Pie, and Moonshadows destroyed.
Deep-rooted community venues lost, highlighting the fires' impact on beloved establishments.

Source: Eater, Food & Wine

December Jobs Growth in Restaurants

Positive trends in restaurant employment:

172,500 net new jobs added in 2024.
Eating and drinking establishments added 29,800 jobs in December.
Leisure and hospitality sector gained 43,000 positions.
Quick-service and fast-casual segments show growth exceeding pre-pandemic levels.
Average hourly earnings saw 3.8% year-over-year growth, the slowest since 2021.

However, full-service restaurants and certain states still lag behind pre-pandemic employment levels.

Source: Nation's Restaurant News

MBC Acquires Nardone Brothers

MBC Companies expands into frozen pizza by acquiring Nardone Brothers Baking Co..
Enhances market presence beyond breakfast to include lunch and dinner offerings.
Nardone Brothers offers diverse pizza products, serving the $23.6 billion frozen pizza market.
Acquisition increases manufacturing capacity with a new facility in Wilkes-Barre.
Aims to capitalize on the 8.1% CAGR growth projected for the frozen pizza market through 2030.

Source: Food Business News

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