January 14th QSR Roundup: Shake Shack's 1500 Unit Goal, Honest Greens' European Expansion, and the Rise of Unique Dining Experiences

Interviewy Team

Interviewy Team

— 8 min read
January 14th QSR Roundup: Shake Shack's 1500 Unit Goal, Honest Greens' European Expansion, and the Rise of Unique Dining Experiences
QSR news for Jan 14th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 16 articles to bring you the latest. Estimated reading time saved (at 200wpm): 355 minutes. It'll take you only 10 minutes to catch up.

Shake Shack's Ambitious Expansion Plans 🚀

Shake Shack is set to embark on a monumental expansion, aiming to more than quadruple its domestic unit count from 329 to 1,500 locations. This aggressive growth strategy signifies a bold shift from their original target of 450 units set in 2015.

  • Financial Highlights:
    • Q4 same-store sales increased by 4.3%, with restaurant-level margins reaching 22.7%, the highest since 2017.
    • Overall revenue for the quarter soared to $329 million, a 15% growth year-over-year.

The company plans to open 80-85 new restaurants in the upcoming year, focusing significantly on expanding into suburban areas. A key component of this strategy is enhancing drive-thru efficiency, aiming to reduce wait times to around 3 minutes.

However, one of the challenges they face is the need to hire approximately 330 general managers to maintain operational efficiency during this rapid expansion.

Shake Shack is also committed to revamping its menu and technological infrastructure to boost customer engagement and satisfaction. The brand projects consistent revenue growth in the low teens over the next three years.

Sources: Restaurant Business, QSR Web, Restaurant Dive

Leadership Shifts and Franchisor Strategies 🎯

KFC's New CEO Announcement

Yum Brands has appointed Scott Mezvinsky as the new CEO of the KFC Division, effective March 1. Mezvinsky, previously the president of Taco Bell North America, brings over 20 years of experience with Yum Brands. He aims to drive global growth for KFC across its 30,000 restaurants in 150 countries.

La Madeleine Welcomes John Dillon

La Madeleine announced John Dillon as its new president. Dillon brings extensive experience from HMS Growth Partners, Denny's, and Yum Brands. CEO Lionel Ladouceur praised Dillon's transformative leadership, marking a new phase for La Madeleine's growth and expansion plans.

Leadership Changes at Hershey

The Hershey Company has appointed new presidents for its Confection and Salty Snacks units. Andrew Archambault will lead US Confection, while Veronica Villasenor, a 22-year company veteran, steps up for Salty Snacks. These changes come as Hershey continues to evolve its strategies in the snack industry.

Sources: Restaurant Dive, Networld Media Group, Food Business News

Technological Innovations in the Restaurant Industry 🤖

AI Enhancements at Portillo's

Portillo’s is leveraging computer vision AI to enhance drive-thru efficiency, aiming to cut average wait times by an additional 45 seconds, targeting a total of 5 minutes. Recent tech upgrades include deploying kiosks across over 90 locations and launching a rewards program, Portillo’s Perks, by the end of Q1.

The AI system aids managers by providing real-time data, simplifying monitoring during peak hours. It helps identify delays, notifying staff if cars are waiting too long, thus enabling better labor management.

Chowly's All-in-One Platform

Chowly has evolved from a third-party order aggregator into a comprehensive solution for independent restaurants. The newly launched Chowly Platform integrates tools like online ordering, digital marketing, and website creation into a single system. Co-founder Sterling Douglass emphasizes the benefits of integrated systems to simplify tech stacks and reduce costs.

AI Answering Phone Calls

A local BBQ store showcased its use of AI technology to answer phone calls, sparking mixed reactions. While some praised its potential, others criticized the robotic sound and slow responses. The consensus is that AI can assist in phone interactions but requires refinement to improve quality and effectiveness.

Sources: Restaurant Dive, Restaurant Franchising & Innovation Summit, Reddit

Taco Bell's New Steak Garlic Nacho Fries

Taco Bell has launched its new Steak Garlic Nacho Fries, delighting fans nationwide. Available starting January 16, 2025, this offering adds a garlicky twist to the beloved nacho fries, showcasing Taco Bell's commitment to menu innovation.

Pickle Sandwich Craze

Dill pickle sandwiches are the latest food trend, gaining popularity as a gluten-free option. By replacing bread with lengthwise sliced pickles, these sandwiches offer a tangy twist. Key tips for crafting the perfect pickle sandwich include hollowing out the pickles for more filling space and balancing the pickle's saltiness with complementary proteins.

Trending Bowl Menus

Bowls are dominating restaurant menus, offering diverse ingredients and flavors. Highlights include:

  • Cava's Mediterranean bowls co-created with Gabby Thomas.
  • Rubio’s introduces the vibrant Rainbow Bowl packed with protein and veggies.
  • KFC targets budget-conscious diners with five $5 bowls, like the Nashville Hot Loaded Fries Bowl.

Baking with Nondairy Milk

With growing dietary preferences, soy milk stands out as the best choice for baking, offering a creamy consistency similar to dairy milk. It's ideal for recipes requiring richness, such as breads and cakes.

Sources: Reddit, Restaurant Business, Food & Wine

Expansions and Rebrands 🚧

Call Your Mother's Strategic Investment

'Jew-ish' deli Call Your Mother has secured significant investment from global firm Artal. Co-founders Andrew Dana and chef Daniela Moreira have expanded the brand to 15 locations in D.C. and Denver, with plans for six more outlets by 2025. They aim to enter new markets like Nashville, Austin, Raleigh-Durham, and Miami.

Honest Greens' European Expansion

Ron Shaich's Act III Holdings invests in Honest Greens, a health-focused fast-casual brand in Spain and Portugal. Known for organic, unprocessed, and vegetable-rich offerings without artificial additives, Honest Greens aims for European expansion. Founders see this investment as a milestone for operational growth and wider impact.

Barrio Burrito Bar Rebrand

Canadian burrito chain BurritoBar USA Inc. has rebranded to Barrio Burrito Bar, opening a new location in Murfreesboro, Tennessee. This change aims to enhance the customer dining experience, with positive feedback reported. The chain plans major growth in the U.S. with over 900 franchises planned.

Sources: Restaurant Business, Fast Casual

Labor and Workforce Challenges 💼

Hourly Workforce Strategies Lacking

Most food and beverage companies struggle with hourly workforce strategies, often neglecting this crucial segment due to misconceptions about their value. The labor shortage is severe, with over a third of firms cutting production and 40% offering overtime. High turnover is primarily caused by pay, environment, and supervision issues.

Key strategies to improve this include:

  • Recognizing competition with local businesses for talent.
  • Offering flexible and tailored pay and benefits packages.
  • Providing accurate job previews to manage expectations.

Restaurant Manager Pay Insights

A new operations manager shares frustrations over long hours and low pay, realizing their $58k salary equates to about $17/hour due to lack of overtime. Commenters indicate this is common in restaurant management, advising to use the position for experience and resume building but expressing concerns over burnout and compensation.

Advice for New Hostess

A new hostess seeks advice on managing the demands of standing for entire shifts. Tips include:

  • Investing in comfortable insoles.
  • Managing guest interactions professionally.
  • Utilizing subtle techniques to alleviate fatigue, such as mastering the "art of the lean."

Sources: Food Industry Executive, Reddit

Sustainability and Vegan Options 🌱

Luxury Valentine's Day Chocolates

Valentine’s Day offers the perfect opportunity to indulge in exquisite chocolates. Notable chocolatiers providing unique vegan options include:

  • Stick With Me Sweets in NYC with creative bonbon flavors.
  • Vesta Chocolate offering bean-to-bonbon confections in surprise flavors.
  • Exquisito Chocolates in Miami featuring ethically sourced chocolates.

Rise of Vegan Dairy Alternatives

The demand for vegan dairy alternatives is surging as more people adopt vegan diets. Innovations include:

  • Plant-Based Milks: Almond, coconut, oat, and soy milk providing unique flavors and nutritional benefits.
  • Vegan Cheeses: Made from nuts like cashews, offering spreadable and hard cheese options.
  • Frozen Delights: Vegan ice cream made from coconut and almond milk delighting dessert lovers.

Vegan Recipes Without Dairy

Restaurants and manufacturers are catering to dairy-free demands with vegan alternatives enhancing flavors in dishes. Popular vegan recipes include:

  • Breakfast Options: Vegan pancakes with almond milk, chia seed pudding with fruits.
  • Main Dishes: Creamy vegan pasta, chickpea curry with coconut milk.

Sources: Eater, BlueCart

Grocery and Food Industry Updates 🛒

Odwalla's New Beverages

Odwalla is launching a fresh range of juices and smoothies, including:

  • Smoothie flavors: Mango, Strawberry-Banana, and Berries.
  • Juice blends: Orange, guava, and ginger, and a green juice with pineapple, apple, and nopal.

Nescafe's Liquid Espresso Launch

Nescafe is introducing a new line of liquid espresso concentrate in two flavors: Black and Sweet Vanilla. Aimed at meeting the demands of younger consumers, each 300-ml bottle is made from Arabica beans, offering cafe-style beverages at home without extra equipment.

H-E-B Tops Grocery Rankings

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 2024. Key factors for success include price, promotions, rewards, quality, and digital performance. H-E-B's emotional connection with customers significantly affects performance, solidifying its position.

Sources: Food Business News

Farewell to Culinary Pioneer Nathalie Dupree 🥀

Renowned chef and author Nathalie Dupree passed away at 85 in Raleigh, North Carolina. Known for her influential cookbook "New Southern Cooking", she authored 15 cookbooks, with three winning James Beard Awards. Dupree was instrumental in founding chapters of Les Dames d’Escoffier to uplift women in the culinary field.

Highlights of her legacy include:

  • Authored "Mastering the Art of Southern Cooking," winning prestigious awards.
  • Featured in over 300 TV episodes on major networks.
  • Advocate for women's empowerment in the culinary industry.

Donations in her memory can support the careers of young women chefs through the Atlanta Chapter of Les Dames d’Escoffier's Scholarship Fund.

Sources: Eater Atlanta, Food & Wine

Issues in the Restaurant Industry ⚠️

Laundry Service Frustrations

Restaurant owners express frustration over expensive and unreliable laundry services. Common issues include overcharging, missed deliveries, and punitive contracts. Some owners suggest:

  • Exploring local alternatives.
  • Purchasing linens instead of renting.
  • Maintaining control over inventories and deliveries.

Managing Food Recall Crises

Food recalls are at a five-year high, emphasizing the need for strategic communication plans. Key strategies include:

  • Transparent communication to prevent health risks.
  • Having a crisis communication plan before issues arise.
  • Engaging with media and the public proactively.

Insurance Premium Increases

Bar owners report significant increases in insurance premiums, often due to audits showing increased gross sales despite fewer units sold. Suggestions to mitigate costs include:

  • Finding an independent insurance agent.
  • Shopping around for better rates.
  • Considering collective bargaining for better terms.

Sources: Reddit, Modern Restaurant Management

Rise of Non-Alcoholic Options and Decline of Alcohol Sales 🍹

Restaurant owners note a decline in alcohol sales among younger generations, who show less interest in drinking. To adapt, many are:

  • Introducing mocktails and non-alcoholic beverages.
  • Hosting events that don't center around alcohol.
  • Focusing on high-quality food offerings to attract patrons.

There's a consensus on the importance of flexibility and innovation to maintain profitability in this shifting landscape.

Sources: Reddit

The Return of the Fern Bar 🌿

Fern Bars Make a Stylish Comeback

Originally popular in the late 1970s, fern bars catered to single women and introduced sweet cocktails, leading to concepts like 'ladies' night'. They faded over time but are now experiencing a resurgence. Modern establishments are recreating the laid-back, greenery-filled ambiance, merging quality drinks with a casual, fun atmosphere.

This revival taps into nostalgia while appealing to contemporary tastes, offering:

  • A welcoming environment for socializing.
  • An emphasis on aesthetic decor with abundant plants.
  • A menu featuring both classic and innovative cocktails.

Source: Food & Wine

Boosting Customer Loyalty with Data 📊

Restaurants are focusing on retaining customers through effective data utilization. Strategies include:

  • Personalized experiences: Tailoring promotions and rewards based on customer data.
  • Enhanced interactions: Addressing customer pain points and preferences.
  • Building connections: Using data-driven marketing to foster genuine relationships.

Upcoming Industry Summit

A panel at the Restaurant Franchising & Innovation Summit will explore how data can enhance customer interactions and loyalty, featuring industry experts like Alicia DiStefano from InMarket and Ivy Hanks from Bad Ass Coffee.

Sources: Restaurant Franchising & Innovation Summit, Networld Media Group

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