January 16th QSR Roundup: Papa John's Marketing Revamp, Influencer Strategies, and Sustainability Innovations

QSR news for Jan 16th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 92 articles to bring you the latest. Estimated reading time saved (at 200wpm): 240 minutes. It'll take you only 11 minutes to catch up.

Papa John's Shifts Back to Local Marketing

Papa John's is pivoting back to local marketing after national strategies failed to boost sales. CEO Todd Penegor admitted that eliminating local franchise co-ops was a significant mistake, noting that it was detrimental to franchise operations.

• Sales Decline: North America same-store sales dropped 4% in Q4 2024.
• Operational Simplification: The company aims to streamline operations by removing low-demand menu items and improving core products like cheese and dough.
• Franchisee Engagement: Penegor is re-engaging with franchisees to rebuild trust and collaborate on local marketing initiatives.
• Technology Investment: Significant investment in digital tools and CRM to leverage customer data more effectively.

Sources: QSR Magazine, Restaurant Business, Nation's Restaurant News

Influencer Marketing Revolutionizes Restaurants

Integrating influencer marketing is vital for restaurants looking to enhance brand exposure and engagement.

• Influence is Powerful: 1 in 4 adults over 30 get news from influencers.
• Micro-Influencers Unite: Preferred by 40% of consumers and effective for localized marketing.
• Proven Success Stories: Brands like Taco Bell, Chipotle, and Dunkin’ leverage influencers for product launches effectively.
• Authentic Collaborations: Authenticity is crucial; selecting partners who share your brand's values can amplify trust.

Sources: QSR Magazine

Chipotle Invests in Sustainable Cattle Feed

Chipotle's Cultivate Next fund is investing in innovative solutions to combat climate change by reducing methane emissions from cattle.

Key Investments:

• CH4 Global: Promoting Asparagopsis seaweed as cow feed, potentially reducing methane emissions by up to 90%.
• Plantible: Using duckweed to create plant-based proteins that mimic animal protein while conserving resources.

Impact: Aligns with Chipotle's commitment to sustainability and positions the company as a leader in climate-focused food innovation.

Sources: Restaurant Business, Restaurant Dive, Food Business News

Portillo's Loyalty Program Innovation

Portillo's is redefining guest loyalty with a new app-less program and ordering kiosks.

• Text-Based Offers: The program uses text messages and smartphone digital wallets, making access simpler.
• Membership Goals: Aiming for 1.5 to 1.7 million members by midsummer.
• Gamification: Customers can earn badges for visits, enhancing engagement and loyalty.

Sources: QSR Magazine

McDonald's Economic Impact

McDonald's significantly contributes to the U.S. economy with an annual contribution of $76 billion and supporting 1.1 million jobs.

Highlights:

• Generated $21.5 billion in taxes in 2023.
• Provided $25.2 million in tuition assistance for 12,000 employees.
• Raised $57.4 million for Ronald McDonald House Charities.
• 1 in 8 Americans has worked at McDonald's, showcasing its role as a major employer.

Sources: Restaurant Business

Restaurant Price Stability Amid Inflation

Restaurant menu prices rose 0.3% last month, maintaining stability for a year.

• Inflation Gap Narrowing: The difference between restaurant and grocery store inflation narrowed to 180 basis points, the lowest since April 2023.
• Consumer Behavior: Diners notice price hikes and are cutting back on eating out, leading to overall traffic decline, especially at fast-food chains.

Sources: Restaurant Business

Impact of Weight Loss Drugs on Restaurants

GLP-1 drugs like Ozempic and Wegovy are becoming popular for weight loss, potentially affecting the restaurant industry.

• Consumer Shift: Nearly half of Americans are classified as overweight or obese; these drugs may change dining habits.
• Industry Impact: Restaurants may see a significant effect on sales due to changing consumer behaviors.
• Adaptation Needed: Businesses need to adjust strategies to remain competitive in light of these trends.

Sources: Restaurant Business

El Pollo Loco Tests New Chicken Sandwich

El Pollo Loco is testing a chicken sandwich for the first time in years, responding to customer demand.

• Brand Modernization: CEO Liz Williams aims to introduce new offerings in 2025 as part of a three-year turnaround plan.
• Innovation Focus: Includes new flavors like Mango Habanero bone-in chicken and Fresca Wraps with citrus marinade.
• Pricing Strategy: Targeting new products priced between $7 to $9, emphasizing value.

Sources: Restaurant Business

Panera Bread Revamps Leadership

Panera Bread has revamped its culinary and marketing teams.

• Culinary Leadership: Scott Uehlein joins as vice president of culinary from Papa Johns, bringing experience from MOD Pizza and Sonic.
• Marketing Expertise: Robin Seward becomes the new senior vice president of brand and integrated marketing, joining from Subway.
• Creative Partnership: Enlisted the agency 72andSunny to enhance its marketing strategy.

Sources: Restaurant Business, Food Business News

Fat Brands Opens Tri-Branded Restaurant

Fat Brands opened its first tri-branded restaurant featuring Great American Cookies, Marble Slab Creamery, and Pretzelmaker in Roanoke, Texas.

• Expansion Focus: Plans to grow nontraditional dining options with over 1,100 locations targeted.
• Hybrid Concept Success: Co-branding strategy enhances menu variety and drives revenue.
• Sales Impact: Co-branding can increase sales by 10% to 20%, enhancing profitability.

Sources: Restaurant Dive, Networld Media Group, Fast Casual

Krispy Krunchy Chicken Appoints New CFO

Krispy Krunchy Chicken appoints Jim Zielke as the new CFO, succeeding Brian Judge.

• Experience: Zielke brings extensive restaurant industry experience from Viva Chicken, Good Times Restaurants, and Fox and Hound Restaurant Group.
• Growth Plans: The company is expanding its footprint, including Walmart locations, and plans to hire more corporate staff for faster growth.

Sources: Restaurant Dive

Black Rock Coffee Bar Celebrates 150th Store

Black Rock Coffee Bar opens its 150th location in Caldwell, Idaho.

• Expansion Achievement: Seventh store in the Boise Metro Area.
• Customer Appreciation: CEO Mark Davis highlights the dedication of customers and staff.
• Rewards Program: Relaunched Black Rock Rewards program for quicker rewards through the mobile app.

Sources: Fast Casual

Vegan Dairy Market Booming

The vegan dairy industry is thriving, currently valued at approximately $30 billion with expected annual growth of 12%.

• Plant-Based Milks: Options like coconut, almond, and soy lead the market.
• Product Innovations: New ingredients like banana and potato milk are emerging.
• Global Trends: The Asia-Pacific region leads in market share due to lactose intolerance, followed by North America.

Health Benefits: Vegan dairy provides nutrients without lactose or allergens, meeting consumer demand for sustainable and humane production practices.

Sources: BlueCart

FDA Bans Red No. 3 Food Dye

The FDA is banning the use of Red No. 3, a synthetic food dye, in food and ingested drugs due to cancer concerns.

• Manufacturer Deadline: Two to three years to reformulate products.
• Regulatory Action: Addresses long-standing gaps; Red 3 was banned in topical drugs since 1990.
• Imported Foods: Must meet U.S. standards, regardless of allowance in other countries.

Sources: Food Business News, Salon

Key Themes from ICR Conference

The annual ICR conference revealed significant insights for the restaurant industry.

• Consumer Confidence Rising: Increased visits from middle-income groups indicating positive financial sentiment.
• Loyalty Programs Are Key: Companies like Papa John's and Red Robin are revamping loyalty initiatives.
• Growing Sports Interest: Sports bars are seeing increased patronage year-round.

Sources: Restaurant Business

Starbucks Modifies Open-Door Policy

Starbucks changes its policy to enhance sales and improve worker relations.

• Restroom Access: Now limited to paying customers.
• Behavior Standards: New rules target panhandling and disruptive behavior.
• In-Store Consumption: Promoting by offering free refills to all customers.

Worker Safety Concerns: Criticized for requiring LA-area baristas to work during wildfires impacting air quality.

Company Response: Claims partner safety is a priority and provides catastrophe pay for displaced employees.

Sources: Salon, Food & Wine

Reddit Discussions: Restaurant Management Challenges

Employees Clocking In for Each Other

• Issue: A shift lead and employee were clocking in for each other.
• Community Consensus: Behavior is considered theft; immediate termination recommended to maintain integrity.

Managing Stress as a Restaurant Manager

• Advice Sought: Manager seeking ways to manage stress during peak times.
• Recommendations:
  • Stay focused and prioritize tasks.
  • Develop calming techniques.
  • Be approachable and support the team.

Dine-In Percentage for Fast Food

• Trend: Decline in dine-in customers; drive-thru and delivery are dominating sales.
• Statistics: Some fast food locations report less than 15% dine-in business.

Sources: /r/Restaurant_Managers, /r/restaurant

Innovative Strategies in Dining

A panel of restaurant leaders shared transformative strategies.

• AI Anticipates Orders: Church's Chicken uses AI to predict orders and create tailored suggestions.
• Compact Design Success: Walk-On's Bistreaux challenges size norms with a 5,300 sq ft design achieving $4.5 million AUV.
• Dual-Brand Locations: Dine Brands merges IHOP and Applebee's, doubling sales at dual-brand locations.

Emphasis: Listening to staff, exploring synergies, and addressing operational inefficiencies are key to growth.

Sources: RestaurantSpaces

Most Ordered Dishes for Lunar New Year

Ahead of Lunar New Year, the top ordered Chinese dishes were analyzed.

• Top 5 Dishes:
  1. Egg Roll (18.23%)
  2. General Tso's Chicken (14.8%, up 6.17% from 2023)
  3. Crab Rangoon (10.9%)
  4. Sweet and Sour Chicken (10%)
  5. Sesame Chicken (8.6%, up 7.32% year over year)

Trends:

• Rising popularity of chicken-based meals.
• Growing demand for lighter options like plant-based proteins and steamed dishes.

Sources: Nation's Restaurant News

Subway's New Meal Deals and Promotions

Subway launches new promotions to offer value to customers.

• Meal of the Day: Popular subs available at $6.99 for six-inch or $9.99 for footlong, including chips or cookies and a drink.
• Daily Specials: Features fan favorites like the Cold Cut Combo and Baja Chipotle Chicken.
• Baja Bliss Collection: New subs with Baja Chipotle sauce and special potato chips for a limited time.

Customer Value: Emphasizes quality and variety without compromising on value.

Sources: Nation's Restaurant News, /r/fastfood

2025 Food & Beverage Industry Outlook

The industry is on the brink of major changes.

• M&A Boom: Surge in mergers and acquisitions as companies refine portfolios.
• Regulatory Challenges: New FSMA 204 regulations require heightened transparency and investment in compliance technologies.
• AI in Supply Chain: Increased utilization for optimization, requiring strategic planning and workforce training.

Strategic Focus: Emphasis on consumer engagement, portfolio optimization, and workforce investment.

Sources: Food Industry Executive

Father Joe's Villages Uses Food as Hope

Father Joe's Villages in San Diego supports over 2,000 individuals nightly.

• Culinary Arts Program: 14-week course equipping students with essential cooking skills, safety, and hygiene practices.
• Community Impact: Students prepare meals for clients, enhancing connection to the community.
• Graduate Success: Students find inspiration and joy in cooking for others.

Sources: Food & Wine

Food Prices Rise Again

Food prices increased by 0.3% in December, concluding 2024 with a 2.5% overall gain.

• Grocery Store Dynamics: Food at home index increased by 0.3% in December.
• Notable Increases:
  • Cereals and bakery products up 1.2%.
  • Egg prices surged 3.2% for the month.
• Annual Trends: Food at home rose 1.8% overall in 2024.

Dining Out Costs: Food away from home prices increased by 0.3% in December and 3.6% over the past year.

Sources: Food Industry Executive

Surge in U.S. Soybean Oil Demand

The U.S. soybean oil market sees a dramatic turnaround due to unexpected demand.

• Export Forecast: Reached 1,600 million lbs, a 323% increase from 2022-23.
• Production Boost: Soybean oil production increased to 28,680 million lbs.
• Market Shift: Buyers switch from palm oil to U.S. soybean oil due to competitive pricing.

Price Comparison: U.S. soybean oil prices are about 24% lower than last year.

Sources: Food Business News

Battling Fatigue with Nutrition

Feeling drained? Key nutrients can help combat fatigue.

• Vitamin D: Over 40% of adults are deficient; found in fatty fish and fortified dairy.
• Vitamin B12: About 20% of Americans are low; found in meat, fish, and eggs.
• Omega-3 Fatty Acids: 87% of adults aged 40-59 lack sufficient amounts; found in fatty fish, flaxseed, and walnuts.

Lifestyle Factors: Sunlight, exercise, sleep, and stress management are vital for boosting energy.

Sources: Salon

Papa John's Strategic Shift

CEO Todd Penegor addresses declining sales and focuses on core offerings.

• Sales Decline: Same-store sales dropped 4% in Q4 2024.
• Local Marketing Reintroduction: Re-engaging franchisees and rebuilding local co-ops.
• Operational Excellence: Streamlining operations and focusing on pizza quality.
• Technology Enhancement: Investing in digital tools and customer data leveraging.

Sources: Nation's Restaurant News

Seafood Expo Keynote Speaker Announced

Dr. Nomi Prins will deliver the keynote at the Seafood Expo North America.

• Expertise: Macro-economist and financial expert.
• Speech Focus: Navigating economic, energy, and trade policies impacting the seafood industry in 2025.
• Event Significance: Platform for seafood professionals to discuss industry challenges and advancements.

Sources: Food Industry Executive

Restaurants Address Sustainability in Food Delivery

In 2023, consumers favor delivery services focusing on carbon-neutral processes.

• Route Optimization: Reduces emissions through efficient navigation.
• Eco-Friendly Packaging: Prevents food waste; over 63% of U.S. municipal waste is from food packaging.
• Electric and Hybrid Vehicles: Adoption incentivized; Uber offers a $210 bonus after 200 rides.

Goals: Embracing these strategies positions businesses favorably in a market driven by sustainability.

Sources: Modern Restaurant Management

Coca-Cola's Gift to Trump Sparks Criticism

Coca-Cola CEO gifted President-elect Donald Trump a personalized Diet Coke bottle.

• Significance: First-ever Presidential Commemorative bottle.
• Criticism: Seen as 'peak spineless groveling' by some.
• Tradition: Commemorative bottles began in 2005.

Sources: Salon

Labor Issues in Restaurants

Handling Domestic Violence Incidents

• A bartender reports a violent altercation involving regular patrons.
• Advice: Majority suggest banning the male patron to protect the bar's reputation and avoid liability.

Music Licensing in Bars

• Discussion: Bar owners share how they source music after paying PRO fees.
• Solutions: Platforms like 'Mood', Pandora for business, and Touch Tunes are popular choices.

Sources: /r/BarOwners

Most Ordered Dishes for Lunar New Year

Chinese Menu Online analyzed over 7 million orders from 3,000+ restaurants.

• Top Ordered Items:
  • Egg Roll: 18.23%
  • General Tso's Chicken: 14.8%
  • Crab Rangoon: 10.9%

Trends: Rising popularity of chicken-based meals and growing demand for lighter options.

Sources: Nation's Restaurant News

New Product Launches in Food Industry

Kelchner's New Sauces

• Yum Yum Dipping Sauce and Seafood Boil Marinade and Sauce introduced.
• Availability: Stores like Giant Food and Shaw’s, and online at Instacart.

Mother’s Cookies Dynamite Dinosaurs

• First new product in four years.
• Chocolate cookies inspired by Jurassic World.
• Shapes: Dinosaurs like Tyrannosaurus rex and Triceratops.

Dave's Killer Bread Snack Bites

• Organic snack bites in six flavors.
• Retail Price: $6.99.
• Availability: Major retailers like Walmart and Amazon.

Sources: Food Business News

Subway's Baja Bliss Collection

Subway introduces new Baja Chipotle Chicken and Baja Chipotle Turkey subs.

• Features: Baja Chipotle sauce with bold flavors.
• Customer Response: Mixed reactions; some praise, others dissatisfied with bread choice.

Sources: /r/fastfood

Chester's Chicken Launches $5 Meal Deal

Chester's Chicken introduces the 5 Buk Box, offering a $5 meal deal.

• Options Include:
  • Leg, Thigh, and Biscuit
  • Leg, Wing, and Biscuit
  • Five Chicken Bites and Biscuit

Goal: Provide value without compromising taste or affordability.

Sources: QSR Web

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