January 17th QSR Roundup: Expansion, Sustainability, and Innovations Fueling the 2025 Restaurant Revolution

QSR news for Jan 17th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 104 articles to bring you the latest. Estimated reading time saved (at 200wpm): 300 minutes. It'll take you only 11 minutes to catch up.

Cilantro Taco Grill's Ambitious Journey

Cilantro Taco Grill, founded in 2013 by Temoc Morfin, aims to bring authentic Mexican cuisine to Chicago by blending traditional taqueria flavors with a modern twist. Inspired by his upbringing in Jalisco, Mexico, Morfin started the restaurant to create opportunities for his siblings and now dreams of expanding to 1,000 units worldwide in the next 10 years.

• National Franchising Launched: In August 2023, backed by investors like Pitbull and Fransmart.
• Empowering Latino Families: Advocates for generational wealth through franchise opportunities.
• Leadership with Empathy: Treats employees as family, resulting in 60% employee retention over five years.
• Community Involvement: Active charity work through the Don Javier Morfin Non-Profit Foundation.

Morfin credits his father and Ronald Reagan as inspirations, emphasizing the importance of immigrant contributions to the economy.

Source: QSR Magazine

Atomic Wings Soars with Expansion and Innovation

Atomic Wings, famed for its authentic New York-style Buffalo wings, has achieved remarkable growth in 2024 and plans even more expansion through 2025.

• New Locations: Opened in Texas, Minnesota, and Illinois.
• Ambitious Goals: Aiming for 30-34 units nationwide by 2025.
• Top Recognition: Voted top spot for traditional Buffalo wings by Tasting Table.
• Menu Innovations: Introduced Nashville Hot Chicken items to rave reviews.
• Future Plans: Expanding offerings with new sauces and a catering program.

Atomic Wings is set to spice up the fast-food scene with its ambitious expansion and innovative menu additions.

Source: QSR Magazine

Salata Salad Kitchen's Texas Expansion

Salata Salad Kitchen is bringing fresh, customizable salads and wraps to Laredo and McAllen, Texas.

• Local Entrepreneurs: Mother-daughter duo Patricia and Barbara Pequeño lead the expansion.
• Health and Wellness: Emphasize promoting a healthier lifestyle in the community.
• Grand Opening: First restaurant set to open in early 2025.
• Fresh Offerings: Over 50 fresh toppings for salads and wraps.
• Nationwide Growth: Part of Salata's expansion to more than 100 restaurants.

Their commitment to accessible, healthy meal options is driving growth in the Lone Star State.

Source: QSR Magazine

Pepper Lunch Sizzles into Oregon

Pepper Lunch, a Japanese dining concept known for its interactive experience, is expanding into Oregon with five new locations.

• Local Developer: Peter T. Ng spearheads the expansion.
• Unique Dining: Guests cook meals on heated iron plates.
• Quick Service: Dine in under 20 minutes for less than $20.
• Global Presence: Over 500 locations in 17 countries.
• Mission Alignment: CEO Troy Hooper praises the partnership aligning with their mission to bring joy through dining.

Pepper Lunch brings a sizzling new experience to Oregon's vibrant culinary scene.

Source: QSR Magazine, Fast Casual

Lead Smarter, Not Harder: Empowering Restaurant Managers

Managers often rush through tasks, neglecting leadership responsibilities. The experience of employee Peyton, who felt unsupported, highlights how lack of feedback impacts morale and leads to turnover.

• Investing in Leadership: Enhances employee engagement and reduces mistakes.
• Prioritizing Support: Effective managers conduct small check-ins and cultural initiatives.
• Strategies for Success:
  • Delegation: Allows focus on leadership.
  • Micro-Check-Ins: Builds rapport without adding tasks.
• Maximizing Moments: Leadership is about quality interactions, not quantity.

Focusing on people and leading with intention creates motivated teams and boosts profitability.

Source: QSR Magazine

Papa John's Simplifies for Growth Strategy

Papa John's is streamlining operations to boost success, recognizing that complicated practices hinder performance.

• Franchise Listening Tour: CEO Todd Penegor found optimism among franchisees.
• Sales Decline: North America same-store sales dropped 4% in Q4.
• Operational Changes:
  • Simplifying menu to improve processes.
  • Pushing for innovative core offerings.
• Loyalty Program Reset: Earn $2 in Papa Dough with $15 spent.
• Building Trust: Addressing franchisee concerns and enhancing brand perception.

By simplifying operations, Papa John's aims to enhance trust and drive growth.

Source: QSR Magazine

Influencer Marketing: A Key Ingredient for Restaurants

Integrating influencer marketing enhances brand exposure and engagement.

• Influence is Powerful: 1 in 4 adults over 30 get news from influencers.
• Micro-Influencers Shine: Preferred by 40% of consumers for localized marketing.
• Success Stories: Brands like Taco Bell, Chipotle, and Dunkin’ leverage influencers effectively.
• Strategic Selection:
  • Align with clear objectives.
  • Match audience demographics.
  • Evaluate engagement metrics.
• Authentic Collaborations: Partner with influencers who share your brand's values.

Underestimating micro-influencers could mean missing out on high engagement opportunities.

Estimated Reading Time: 5 minutes

Source: QSR Magazine

City BBQ's Hearty Winter Menu

City BBQ launches a bold, BBQ-inspired limited-time menu from January 15 to March 4, 2025, featuring warm and hearty comfort foods.

• Brisket Chili: Made with award-winning brisket and five chili varieties.
• Spicy Smokestack Sandwich: Jalapeño cheddar sausage, hand-pulled pork, Carolina Gold sauce.
• Jalapeño Cheddar Sausage: Available on Texas toast or as bulk meat.

These dishes promise smoky flavors to satisfy winter cravings.

Source: QSR Magazine

Cheba Hut's SmokeOut Injustice Day

Cheba Hut collaborates with the Last Prisoner Project (LPP) for SmokeOut Injustice Day to support cannabis criminal justice reform.

• Fundraising Success: Raised $133,872 last year for LPP.
• Community Impact: Aiding individuals like Elliston Callwood, now running a successful dispensary.
• Event Details:
  • Date: January 22.
  • $2 from each entree sold goes to LPP.
• Advocacy: Highlights ongoing issues despite decriminalization in some states.

Cheba Hut emphasizes the importance of supporting affected individuals and advocating for change.

Source: QSR Magazine

Burger King's Whopping New Year Deals

Burger King launches exciting promotions as part of their New Year celebrations.

• $5 Duo & $7 Trio: Mix and match popular items like Whopper Junior and Bacon Cheeseburger.
• $1 Cheeseburger Week: Jan. 27 – Feb. 2, Royal Perks members get a cheeseburger for $1 via the BK App.
• National Croissant Day Special: On Jan. 30, a 1 cent Croissan’wich with any $1 purchase for Royal Perks members.

These deals offer value and celebrate with customers into spring.

Estimated Reading Time: 1 minute

Source: QSR Magazine

Steak 'n Shake's Beef Tallow Revolution

Steak 'n Shake is upgrading its fries, opting for 100% all-natural beef tallow for frying.

• Return to Tradition: Enhances flavor and quality of their signature fries.
• Completion by February 2025: All locations will have made the switch.
• Company Commitment: Executives emphasize providing the best for consumers.

This change promises a tastier experience, honoring classic cooking methods.

Source: QSR Magazine, Restaurant Business

UDON Noodles Expands in the U.S.

UDON, Spain’s leading Asian restaurant chain, opens a new location in Aventura Mall on January 21.

• Second U.S. Location: Following a debut in Wynwood.
• Grand Opening Offer: First 50 guests daily receive a free Corral Chicken Yakisoba.
• Menu Highlights: Traditional Asian noodles like udon and ramen.
• Sustainability Focus:
  • Uses local suppliers.
  • Eco-friendly packaging.
• Unique Atmosphere: Combines natural materials with vibrant graffiti art.

With over 74 restaurants globally, UDON continues its U.S. expansion, promoting health-conscious Asian cuisine.

Estimated Reading Time: 3 minutes

Sources: QSR Magazine, Fast Casual

Pop's Beef: Growth and Community Engagement

Pop’s Beef concludes 2024 with strong growth, gearing up for its 45th anniversary in March 2025.

• Expansion: New location in Portage, Indiana.
• Community Initiatives:
  • National Italian Beef Day celebrations.
  • Record-setting Toys for Tots drive.
  • Blood drive with American Red Cross.
• Franchise Growth: Operating 16 locations across Illinois and Indiana.

Exciting plans for further growth and innovative menu items are set for 2025.

Source: QSR Magazine

Chipotle Invests in Sustainable Proteins

Chipotle Mexican Grill invests in Plantible and CH4 Global to enhance sustainability.

• Plantible: Develops Rubi Protein™ from lemna, a natural alternative to animal proteins.
• CH4 Global: Uses Asparagopsis seaweed in Methane Tamer™ to reduce cattle methane emissions by up to 90%.
• Strategic Alignment: Supports Chipotle's goal to operate 7,000 restaurants in North America.
• Cultivate Next Fund: Continues to invest in innovative food companies.

These investments reflect Chipotle's commitment to a sustainable future.

Estimated Reading Time: 4 minutes

Sources: QSR Magazine, Nation's Restaurant News

Slim Chickens Expands in Michigan

Slim Chickens opens a new location in Ann Arbor, marking its third restaurant by multi-unit operator Slims Great Lakes.

• Signature Offerings: Hand-breaded tenders and 14 house-made dipping sauces.
• Global Presence: Nearly 300 locations in 23 states and the UK.
• Growth Strategy: Over 1,200 locations in development.

The brand focuses on quality food and Southern hospitality, expanding into new markets.

Source: QSR Magazine

Jack in the Box Fan Art Calendar

Jack in the Box releases the 2025 Fan Art Calendar, celebrating fans' creativity and the brand's quirky charm.

• Artist Contributions: Features various styles, from superhero to anime.
• Available at: shopjackinthebox.com.
• Special Offer: Calendar purchasers get a 20% discount on Jack app orders.
• Community Engagement: Acknowledges fan-driven milestones and showcases the brand's fun personality.

This limited-edition calendar connects with fans through art and exclusive deals.

Source: QSR Magazine

Restaurant Franchising Simplified with RFO

QSR launches RFO Restaurant Franchising Opportunities, a platform for aspiring and current restaurant owners.

• Comprehensive Directory: Access to numerous restaurant franchises with detailed information.
• User-Friendly Search: Filters by location and budget.
• Supportive Resources: Leverages QSR and FSR's franchising market knowledge.
• Industry Growth: Meets rising demand for transparent franchise information.

RFO simplifies the process of finding the ideal franchise opportunity.

Source: QSR Magazine

Management Turnover Issues in the Industry

Excessive management turnover causes various issues in companies as new executives seek to make an impact.

• Industry Examples: Restaurant industry showcases pitfalls of frequent leadership changes.
• Operational Challenges: New strategies may lead to instability.
• Trust and Consistency: Constant change can erode trust among employees and stakeholders.

Stability in leadership is crucial for sustainable success.

Source: Restaurant Business

Captain D's Goes International

Captain D's expands to the UK with its first franchise agreement for 20 locations, starting in London.

• Global Expansion: Marks the brand's move into international markets.
• Unique Offerings: Brings its seafood and chicken menu to British customers.
• Cultural Adaptations: Some menu items might be new to the UK market, like hushpuppies.

CEO Phil Greifeld emphasizes the brand's commitment to international growth.

Sources: Restaurant Business, Fast Casual

Panera Bread's Turbulent Transformation

Panera Bread faces significant challenges during its leadership transition.

• CEO Search: New leadership needed to address operational issues.
• Customer Experience: Enhancing satisfaction after service and quality declines.
• Menu Innovations: Refreshing to adapt to food trends while retaining brand essence.
• Financial Performance: Strong digital sales highlight the potential for growth.
• Competitive Landscape: Intensifying fast-casual sector requires strategic innovation.

Panera's future hinges on addressing operational strains and leveraging digital strengths.

Source: Restaurant Business

Optimism in Restaurant Industry

Operators express optimism at the ICR conference due to:

• Consumer Confidence Upswing: Positive economic indicators.
• Challenges Remain: Traffic continues to be a significant issue.
• Complex Recovery: Navigating the balance between optimism and operational hurdles.

The industry remains cautiously hopeful for 2025.

Source: Restaurant Business

Restaurant Sales Decline in December

• Sales Drop: Restaurants and bars saw a 0.3% decline in December.
• Year-Over-Year Growth: Sales up 2.4%, not matching 3.6% menu price inflation.
• Consumer Shift: More consumers opting for supermarkets, which saw 3.1% sales increase.
• Economic Strains: Lower-income diners affected, leading to value deals from major chains.
• Industry Impact: Highest bankruptcy rate since 2010, with notable closures.

Despite challenges, overall restaurant sales for the year reached $1.1 trillion.

Source: Restaurant Business

Steak 'n Shake's Flavorful Change

Steak 'n Shake switches from vegetable oil to 100% beef tallow for frying its signature fries.

• Enhanced Flavor: Aims for better taste and quality.
• Health Considerations: Responds to consumer concerns over seed oils.
• Nationwide Implementation: All 436 U.S. locations to adopt by end of February.

Chris Ward emphasizes the importance of authentic cooking methods.

Sources: Restaurant Business, Nation's Restaurant News

P.F. Chang's Fast-Casual Venture

P.F. Chang’s expands into fast-casual with Pagoda Asian Grill.

• Current Locations: Four across New York, Texas, and Florida.
• Menu: Customizable bowls and wraps inspired by various Asian cuisines.
• Price Range: $11 to $15.
• Growth Potential: CEO Eduardo Luz predicts up to 2,000 Pagoda locations.
• Market Demand: Meeting consumer desire for healthier, flavorful, and convenient options.

This move places P.F. Chang's alongside other brands exploring limited-service models.

Source: Restaurant Business

Virtual Dining Innovations with Man Vs Fries

Virtual Dining Concepts capitalizes on consumer demand with Man Vs Fries.

• Revenue Generation: Over $1,500 per week per store, some up to $6,000.
• Expansion: Now in 300 locations, aiming for thousands more this year.
• Growth Potential: Offers 4% to 10% revenue growth for restaurant partners.
• Origins: Started as a pop-up in 2018, gaining popularity.

VDC aims to re-energize virtual dining concepts, providing new revenue streams.

Source: Restaurant Business

Mellody Hobson Retires from Starbucks Board

Mellody Hobson retires after 20 years on Starbucks' board.

• Significant Contributions:
  • Played a pivotal role during leadership changes and pandemic recovery.
  • Helped recruit new CEO Brian Niccol.
• CEO's Praise: Niccol highlights her impact on culture and values.
• Legacy: Respected leader and mentor within the company.

Her departure marks the end of a notable tenure at Starbucks.

Sources: Restaurant Business, Nation's Restaurant News

Operators Discuss Delivery Strategies

Restaurateurs debate employing own drivers versus third-party services.

• Third-Party Dependence: Some report 40% of take-out orders from third-party platforms.
• Control and Safety: Others prefer in-house drivers for better control and customer satisfaction.
• Regional Variations: Availability of services like Uber Eats varies by location.
• Customer Recommendations: Encouraging direct orders to support local businesses.

The consensus highlights a mix of strategies depending on individual business needs.

Source: Reddit - /r/restaurateur

Strategies for Boosting Restaurant Sales

A General Manager seeks advice on increasing sales after a 35% drop.

• Promotional Ideas:
  • Kids-eat-free nights.
  • Improving social media engagement.
• Community Engagement: Hosting local events and school fundraisers.
• Menu Adaptation: Tailoring offerings based on data and customer feedback.
• Caution on Discounts: Avoiding excessive discounts that hurt profit margins.

Adapting to market changes and focusing on customer needs are key strategies.

Source: Reddit - /r/Restaurant_Managers

Investing in Staff Happiness

Productivity in restaurants is boosted by prioritizing staff well-being.

• Fair Compensation: Paying well encourages loyalty and performance.
• Reasonable Policies: Accommodating time-off requests and being flexible.
• Positive Reinforcement: Recognizing and appreciating staff efforts.
• Effective Tools: Utilizing apps like Asana for task management.

Happy employees lead to a successful and efficient business.

Source: Reddit - /r/restaurantowners

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