January 18th QSR Roundup: Starbucks Restructures, Fast-Casual Dining Expands, and Innovative Restaurant Management

QSR news for Jan 18th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 81 articles to bring you the latest. Estimated reading time saved (at 200wpm): 300 minutes. It'll take you only 11 minutes to catch up.

Starbucks Restructures and Layoffs: A New Strategy for 2025

Starbucks is undergoing significant changes to enhance efficiency and improve the in-store experience.

• CEO Brian Niccol announced plans for layoffs and restructuring of support teams globally.
• The focus is on giving employees clear responsibilities and accountability, reducing complexity in operations.
• New policies include a code of conduct requiring customers to make a purchase to use facilities.
• Starbucks is increasing parental leave for employees.
• Challenges faced include declining sales and union disputes.
• The goal is to revitalize the coffeehouse atmosphere and streamline decision-making.

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

Fast-Casual Dining Expansion: Aubergine Kitchen and Beyond

Aubergine Kitchen's Healthy Growth

Aubergine Kitchen plans to open five new locations in 2025, including Las Vegas and Salt Lake City International Airport.

• Focus on nourishing, whole foods free from added sugars and seed oils.
• CEO Elcio Zanatta is excited to bring their healing food philosophy to new communities.
• Menu features fresh, flavorful dishes inspired by global cuisine, promoting health and sustainability.

Founded in 2014, Aubergine Kitchen has grown from one location in Utah to a beloved regional name with a loyal customer base.

Source: QSR Magazine

Big Chicken's New Leadership and Global Expansion

Bobby Shaw Joins as VP of Operations

• Brings over 40 years of experience in restaurant franchising.
• Former roles include significant positions at McDonald's and Chipotle, overseeing 228 stores.
• Aims to optimize operations and enhance franchisee collaboration.

Global Expansion Plans

• Big Chicken is expanding globally with recent entries into the UK.
• Plans for growth in North America, Europe, Asia, and the Middle East.
• Founder Shaquille O'Neal supports the brand's goal for hall-of-fame recognition in the industry.

Source: QSR Magazine

Mountain Mike's Pizza Surpasses 300 Locations

Mountain Mike's Pizza celebrates rapid growth:

• Opened 21 new restaurants in 2024, marking its highest growth year ever.
• Surpassed 300 locations, with plans to exceed 400 by the end of 2026.
• Achieved over $300 million in sales in 2024.
• Introduced innovative menu items like the All-American Cheeseburger Pizza and Jalapeño Not-Knots.
• Enhanced fan engagement with promotions tied to sports partnerships.

Anticipate more growth in 2025 as the brand pushes into new markets!

Source: QSR Magazine

Cicis Pizza's Spaghetti and Meatballs Pizza

Cicis Pizza celebrates its 40th birthday with a unique offering:

• Introducing the limited-time Spaghetti and Meatballs Pizza from January 20 to March 16.
• Combines spaghetti noodles, savory meatballs, marinara sauce, and melted cheese on a signature crust.
• Offered at affordable prices: medium ($8.99), large ($10.99), and giant ($13.99).
• President Jeff Hetsel emphasizes the nostalgic experience this pizza brings.

This launch is just the beginning of Cicis' birthday festivities, with more special menu items inspired by the 1980s on the way!

Source: QSR Magazine

P.F. Chang’s Ventures into Fast-Casual

P.F. Chang’s introduces Pagoda Asian Grill:

• Testing locations in New York, Texas, and Florida.
• Features customizable bowls and wraps with Asian flavors like Korean BBQ and teriyaki chicken.
• Prices range from $11 to $15, with an average check of $18.
• Early test results are very strong, with potential for 2,000 locations nationwide.
• CEO Eduardo Luz notes a significant opportunity for an Asian fast-casual model, competing with chains like Panda Express.

Could Pagoda Asian Grill be the next Chipotle of Asian cuisine?

Source: Restaurant Business

Shake Shack Sets Sights on 1,500 Locations

Shake Shack is accelerating expansion plans:

• Targets 1,500 locations, up from an initial 450 goal.
• Currently operates 330 U.S. company-owned units, focusing on suburban expansion with drive-thrus.
• Achieved $4 million average unit volumes among restaurants opened for at least two years.
• Implementing small-format locations to fill market gaps without impacting existing units.
• Fastest-growing kiosk channel yields high profitability and improves customer experience.

A new loyalty program is projected for next year to enhance customer engagement!

Source: Restaurant Dive

Technological Innovations in Restaurants: Generative AI

Restaurants are embracing Generative AI to enhance operations:

• Customer Service Automation: GenAI chatbots improve service efficiency by handling reservations and orders.
• Menu Optimization: Analyzes sales and feedback for menu enhancements.
• Personalized Marketing: Tailored promotional strategies increase customer engagement based on preferences.

Challenges include integration issues, staff training, and data privacy compliance. However, adopting GenAI positions restaurants for innovation and meets modern consumer demands.

Source: Restaurant Operator Daily

Mellody Hobson Retires from Starbucks Board

• Mellody Hobson, Starbucks’ lead independent director and former chair, retires after 20 years.
• Expressed confidence in CEO Brian Niccol's leadership.
• Hobson highlighted the influence of founder Howard Schultz on her journey.
• Niccol praised her leadership in navigating significant challenges.

End of an era at Starbucks!

Source: Nation's Restaurant News

Captain D's Plans 20 Units in the UK

• Captain D's signs agreement to open its first UK location in London.
• Aims for a total of 20 units, marking its second international venture after Canada.
• CEO Phil Greifeld emphasizes global expansion with signature batter-dipped fish and chicken.
• British customers may find menu items like hushpuppies and sweet tea unfamiliar.

Source: Restaurant Business

Restaurants Brace for Food Price Volatility

Operators should prepare for significant shifts due to inflation and potential trade disputes.

• Fresh produce prices likely to remain unstable, impacting affordability for consumers.
• Popularity of GLP-1 drugs like Ozempic changes eating habits, pushing towards smaller portions and functional foods.
• Federal crackdown on food additives will force companies to reformulate products.
• The upcoming Farm Bill negotiations may affect agricultural policies and support for farmers.

Staying ahead of these trends is crucial for restaurant success in 2025.

Source: Modern Restaurant Management

The Rise of Quality Over Price in Dining

Experts predict that the restaurant industry will prioritize quality over just affordability.

• 60% of operators noticed a traffic boost from value menus, but 40% faced margin compression.
• Brands like McDonald's succeed with effective value deals, but others like Subway struggled.
• Survey indicates that 48% of diners are willing to spend more for healthier or unique options.
• Successful operators will leverage creative promotions and loyalty programs, focusing on quality and innovation.

Value now encompasses quality and unique menu offerings!

Source: Restaurant Dive

TikTok's Uncertain Future and Impact on Restaurants

• The Supreme Court upheld a ban on TikTok, challenging the app's sustainability in the U.S.
• Major tech firms must remove TikTok from app stores by January 19, risking functionality issues.
• Potential shutdown could disrupt the food industry, as 58% of users visit restaurants after seeing them on the platform.
• Restaurants face urgent questions about future digital engagement strategies.

Will the food industry find a new platform to connect with younger audiences?

Source: FSR Magazine

GLP-1 Medications Influence on Menus

The rise of GLP-1 medications like Ozempic is changing customer purchasing behavior.

• Users reduce food spending initially but return to normal levels after a year.
• Restaurants can capitalize by creating “GLP-1-friendly” menu items with smaller portions and healthier choices.
• Operators should educate staff on GLP-1 diets and offer clear menu indicators.
• This shift presents a chance for collaboration across various industries to enhance overall health and wellness.

Source: Modern Restaurant Management

Paid Prenatal Leave in New York State

New York mandates employers to offer paid prenatal leave starting January 1, 2025.

• Provides 20 hours of paid leave for prenatal care per pregnancy.
• Leave can be used for related medical appointments but not for postnatal care.
• Employers must frontload the leave and maintain employee wage during leave.
• Protection against retaliation for using the leave is enforced.

Employers should update policies to comply with this new law!

Source: Total Food Service

Implementing Generative AI in Restaurants

The restaurant industry is adapting through Generative AI (GenAI), enhancing operations and customer engagement.

• Customer Service Automation: Chatbots handle reservations and orders, improving efficiency.
• Menu Optimization: Analyzes sales and feedback for menu enhancements.
• Personalized Marketing: Tailored strategies increase customer engagement.

Preparation involves assessing technology, workforce skills, and strategic goals. Challenges include integration, staff training, and data privacy compliance. Success metrics include customer feedback and operational efficiency.

Source: Restaurant Operator Daily

Shake Shack's Growth Strategy and Customer Experience

Shake Shack is implementing strategies to enhance growth:

• Targets 1,500 locations, focusing on suburban expansion and drive-thru optimization.
• Diversified market presence shows strong unit economics across urban and suburban areas.
• Enhanced labor allocation and implementing small-format locations to boost efficiency.
• Fastest-growing kiosk channel improves customer experience by streamlining orders.
• Future loyalty program to enhance customer engagement projected for next year.
• Emphasis on team development, offering competitive salaries and equity to foster leadership.

The brand is optimistic about sustainable growth!

Source: Restaurant Dive

El Pollo Loco's Innovations for 2025

CEO Liz Williams aims to modernize El Pollo Loco:

• New Marketing Calendar: Five product launches planned for 2025.
• Focus on innovation and value to drive transactions.
• Upcoming menu to include mango habanero chicken and potential chicken sandwich.
• 50th Anniversary Celebrations: Year-long events with exclusive deals for Loco Rewards Members.
• A new contemporary restaurant prototype aims to reduce build costs.
• Improved employee training enhances customer experience.

Source: Nation's Restaurant News

Indulgent Protein Shakes by BellRing Brands

BellRing Brands, Inc. launches Premier Protein Indulgence shakes in four flavors:

• Dark Chocolate, Salted Caramel Truffle, Chocolate Covered Strawberry, and White Chocolate Raspberry.
• Each shake contains 30 grams of protein, 3 grams of sugar, and 170 calories.
• Aims to balance indulgence with nutrition, making it easy for fans to treat themselves while maintaining health goals.

Source: Food Business News

Abandoning Alcohol: A Trend for 2025

• 2025 may be transformative as more people consider reducing alcohol consumption.
• 65% of adults aged 18-34 believe alcohol negatively impacts health.
• 45% of Americans view 1-2 daily drinks as unhealthy.
• Major alcohol companies are adapting by launching sophisticated non-alcoholic varieties.
• The non-alcoholic beverage market is projected to reach $2.04 trillion by 2032.

Emergence of thoughtful non-alcoholic drink options is reshaping social settings!

Source: Salon

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