January 13th QSR Roundup: Franchise Pushback Against Sunday Openings and Restaurant Expansion Trends in 2024

QSR news for Jan 13th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 16 articles to bring you the latest. Estimated reading time saved (at 200wpm): 195 minutes. It'll take you only 9 minutes to catch up.

Restaurant Expansions and Growth Strategies

Slim Chickens Soars Globally

Slim Chickens is set to open its 42nd restaurant in 2024 in Cambridge, led by KChicken of Boparan Restaurant Group. The brand has nearly 300 locations worldwide and over 1,200 more planned, solidifying its position in the better-chicken segment. Known for hand-breaded tenders and 14 house-made sauces, Slim Chickens has seen 70% growth in three years and a 40% increase in same-store sales over four years.

Shake Shack's Ambitious Goals

Shake Shack plans to expand to 1,500 company-operated units, surpassing its previous target of 450. As of FY2024, it operates 329 locations, with a 4.3% increase in same-store sales during Q4. Total revenue rose by 14.8%, and the company expects revenue growth of 16%-18% year-over-year for FY2025.

Call Your Mother Deli Grows

Call Your Mother, a Washington D.C.-based "Jew-ish" deli, secured an investment from global firm Artal. Starting as a bagel shop in 2018, it now has 15 locations in D.C. and Denver, with plans to expand to warmer markets like Nashville and Austin. The brand focuses on creating Great Freakin’ Experiences (GFEs) with a diverse menu.

Papa Johns Reaches 6,000 Locations

Papa Johns celebrates the opening of its 6,000th restaurant in Pittsburgh. Franchisee Yasir Hussain, with the company since 2019, plans further expansion in Pittsburgh and Cleveland. In Q4 2024, Papa Johns opened 122 restaurants globally, emphasizing collaboration with franchisees for continued growth.

HTeaO's Texas Expansion

HTeaO opened a new store in Pflugerville, Texas, led by franchisee Bethany Beeman. Known for fresh beverages and snacks, guests enjoyed half-priced gallons of tea during the opening week. The brand is experiencing rapid growth, hitting 100 units and partnering with private equity firms for strategic expansion.

Sources: QSR Magazine, Restaurant Dive, Papa Johns, Fast Casual

Innovations and Technology in Restaurants

Just Salad's First Drive-Thru Debut

Just Salad launched its first drive-thru restaurant in Livingston, NJ, aiming to make healthy eating more convenient. The new format offers on-the-go customers access to a diverse menu, including seasonal salads and wraps, while maintaining fresh ingredient preparation. Promotions engage the community and showcase climate-conscious choices.

Chowly's All-in-One Platform

Chowly introduced the Chowly Platform, an integrated solution for independent restaurants to manage off-premise business. It combines online ordering, website and app building, third-party coordination, and digital marketing tools into a single system. CEO Sterling Douglass highlights that this integration not only improves efficiency but also reduces costs.

Olive Garden Accelerates Uber Eats Partnership

Olive Garden is expanding its partnership with Uber Eats across all locations by late February, earlier than planned. Positive feedback from operators and an increase in order sizes have prompted this acceleration. Uber delivery currently represents 6% of Olive Garden's to-go business, with increasing guest checks observed.

Sources: QSR Magazine, Restaurant Business, FSR Magazine

Industry Challenges and Issues

Franchisees Push Back Against Sunday Openings

Franchisees of Nothing Bundt Cakes are resisting a corporate mandate requiring Sunday openings, deviating from the brand's policy since 1997. Set to take effect by February 2, the mandate requires a minimum of 62 operating hours weekly, including five hours on Sunday. Concerns include labor challenges and sales viability. A Utah state representative introduced legislation to protect franchisee rights regarding Sunday operations.

Potential Restaurant Overload in 2024

The restaurant industry is facing oversaturation due to aggressive expansion. In 2019, there were already too many locations, and post-pandemic reopenings have exacerbated the issue. Experts predict potential closures in 2024 as a result of this oversupply.

Insurance Complications Amid Wildfires

Los Angeles wildfires have caused damage estimated between $135 billion and $150 billion with at least 16 fatalities. The strained insurance market complicates coverage for restaurant owners facing operational disruptions. Legal experts advise owners to document damages and consult brokers to strengthen claims.

Alaska's SNAP Processing Delays

Alaska is experiencing a food assistance crisis due to processing delays for SNAP applications. Only 72% of initial applications were processed on time by October 2024, down from 89% in June. A federal judge has mandated monthly progress reports and expedited handling to address the systemic failures.

Managing Food Recall Crises

With food recalls at a five-year high, strategic communication is essential for restaurants. Transparent communication during recalls prevents misinformation and maintains consumer trust. An example is the recent onion recall, where clear updates helped avoid further health risks. Hiding from the media can result in worse outcomes for brands.

Sources: QSR Magazine, Restaurant Business, Modern Restaurant Management, Salon

Consumer and Menu Trends

Bowls Take Center Stage

Menus are showcasing an array of exciting bowls this week:

• Cava's Mediterranean Bowls: Collaborations with Gabby Thomas introduce the Spicy Lamb + Avocado Bowl and Vegetarian Falafel Crunch Bowl.
• Rubio’s Rainbow Bowl: A colorful mix topped with new al pastor sauce.
• KFC's $5 Value Bowls: Including the Nashville Hot Loaded Fries Bowl.
• Bojangles' Chicken-Rice Bowl: Combining chicken with dirty rice and Cajun pintos.
• Tender Greens' Grilled Sea Bass Bowl: A health-focused option with sustainably sourced fish.

Rise of Vegan Dairy Alternatives

Demand for vegan dairy alternatives is surging. Options include:

• Plant-Based Milks: Almond, coconut, oat, and soy milk.
• Vegan Cheeses: Made from nuts like cashews.
• Cream Substitutes: For beverages and cooking.
• Vegan Spreads and Butters: Blending avocado, olive, and coconut oils.
• Vegan Ice Cream: Flavors made from coconut and almond milk delight dessert lovers.

Le Creuset's Valentine's Collection

Le Creuset launched a new collection perfect for Valentine's Day, featuring:

• Shallow Heart Cocotte: Practical and stylish at $165.
• Mini Heart Pinch Bowl Set: A delightful addition for $50.
• Heritage Fluted Pie Dish Set: On sale for $80, down from $112.
• Nonstick Heart Cakelet Pan: Perfect for baking at $25, originally $36.

Sources: Restaurant Business, BlueCart, Food & Wine

Leadership and Personnel Changes

Leadership Change at Bartaco

Anthony Valletta has been promoted to CEO of Bartaco, succeeding co-founder Scott Lawton, who becomes Chairman of the Board. Valletta brings over 20 years of experience, having previously served as Bartaco's president for the past three years.

Michele Buck to Retire as CEO of Hershey Co.

Michele G. Buck, CEO of The Hershey Co., will retire on June 30, 2026. Since 2017, Buck has led Hershey's transition from a confectionery company to a diversified snack manufacturer, with salty snack sales reaching $1.1 billion in fiscal 2023.

Sources: Foodservice Equipment & Supplies, Food Business News

Community and Social Initiatives

Support for LA Restaurant Workers

Restaurants Care, a program by the California Restaurant Foundation, is providing $100,000 in aid to food and beverage workers affected by wildfires in Los Angeles. Grants of up to $1,500 will help those who have lost homes or jobs, reflecting the organization's ongoing commitment since 1981.

Seattle's Little Free Libraries Flourish

Seattle's Little Free Libraries have evolved into a community phenomenon, embracing sharing initiatives like bakeries, seed libraries, and art galleries:

• Little Free Bakery in Magnolia: Serves fresh baked goods without charge, encouraging neighborhood bonding.
• Little Free Seed Library at UW Farm: Promotes food security by providing free seeds for local gardeners.
• Artisan Galleries and Toy Libraries: Foster connections and community support.

This movement showcases a spirit of giving that flourished during the pandemic.

:INCLUDED Celebrates Inclusivity Milestone

:INCLUDED celebrates five years of empowering BIPOC entrepreneurs in the food and beverage sector. Since 2020, they've created over $5 million in value, benefiting 500+ members through sponsorships and retail connections. Achievements include 22 regional pitch slam winners and 15 NEXTY award recipients.

Sources: QSR Magazine, Civil Eats, Food Industry Executive

Beverage and Food Product Launches

Odwalla's New Beverages

Odwalla is launching new juices and smoothies:

• Smoothie Flavors: Mango, strawberry-banana, and berries.
• Juice Flavors: Orange, guava, ginger blend; green juice with pineapple, apple, and nopal; and not-from-concentrate orange juice.
• Backed by Grupo Jumex, with over 60 years of experience.
• Smoothies come in 13.9-oz glass bottles, juices in 16-oz and 32.4-oz cartons.

Nescafé's Liquid Espresso Debut

Nescafé is introducing a new line of liquid espresso concentrate in black and sweet vanilla flavors. Each 300-ml bottle is made from Arabica beans, catering to younger consumers seeking convenient, customizable coffee experiences at home.

Manischewitz Launches Kosher Hot Dogs

Manischewitz introduces New York Style All-Beef Hot Dogs, available in both regular and low-fat versions. Priced at $9 for a 10.3-oz package containing six hot dogs, they're initially available at Publix with plans for a nationwide rollout.

Global Amari Innovations

Producers worldwide are reinventing Italy’s classic amari concept, blending local traditions and ingredients:

• Mondino Aperitivo: Italian-German blend with hibiscus brightness. Price: $40, ABV: 18%.
• Scarlet Aperitivo Bitter: Japanese amaro with 25 botanicals and bold citrus. Price: $60, ABV: 28%.
• Siete Rayas Mountain Yolixpa: Mexican liqueur with 13 botanicals. Price: $60, ABV: 30%.
• Sông Cái Mẩy Amaro: Vietnamese amaro with 15 local botanicals. Price: $44, ABV: 40%.
• Xila Licor de Agave: Mexican aperitif highlighting roasted pineapple. Price: $35, ABV: 20%.

Sources: Food Business News, Punch

Retail and Grocery News

H-E-B Tops Grocery Rankings Again

For the third consecutive year, H-E-B was named the No. 1 grocery retailer in the US according to the dunnhumby Retailer Preference Index (RPI) 2024. Emotional connection with customers significantly affects performance. Key factors for success include:

• 38%: Price, promotions, and rewards.
• 27%: Quality.
• 16%: Digital performance.

Conversely, the Kroger-Albertsons merger negatively impacted perceptions, causing ranked declines.

Flowers Foods Acquires Simple Mills

Flowers Foods Inc. announced a $795 million acquisition of Simple Mills to diversify into healthier baked goods. Simple Mills reported estimated net sales of $240 million in 2024, up 14% from the previous year. The acquisition aims to enhance distribution, accelerate innovation, and increase brand awareness.

Every Body Eat Gets Seed Oil Free Certified

Every Body Eat, a cracker and cookie brand based in Evanston, achieved the Seed Oil Free Certified seal from the Seed Oil Free Alliance. Founded in 2020, the brand offers thin crackers and cookie bites free from the top 14 food allergens.

Sources: Food Business News

Restaurant Owners' Queries and Discussions

Choosing the Right Card Processor

Restaurant owners discuss the complexities of selecting credit card processors, weighing options like Payment Depot, Helcim, and OrderPort. Considerations include:

• Transaction Costs: Evaluating fees as a percentage of sales.
• Startup Costs: Some systems like Toast have high initial costs.
• Contracts: The need for agreements with providers like Shopify.
• User Experiences: Community members share personal insights to help navigate decisions.

Tips for New Restaurant Owners

A new restaurant owner expresses feeling overwhelmed before reopening a closed establishment. Experienced restaurateurs advise:

• Prepare for Equipment Issues: Have HVAC and refrigeration contacts ready.
• Soft Opening: Use friends and family nights to ease into operations and identify issues.
• Licensing Checks: Ensure all local permits are in order to avoid legal complications.
• Staffing: Consider hiring additional help as business grows to avoid burnout.

Fun Ideas for Restaurant Management

Managers share creative ways to boost staff morale and keep work enjoyable:

• Daily Highlights: Asking employees about the best part of their day fosters positivity.
• Engaging Contests: Implement sales competitions and themed activities like Server Bingo or karaoke nights.
• Positive Atmosphere: Encouraging laughter and playful interactions contributes to a healthier work environment.

Sources: Reddit (/r/restaurantowners, /r/Restaurant_Managers)

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!