January 21st QSR Roundup: From Krystal's Customer-Centric Transformation to Sustainable Strategies and AI Innovations in the Hospitality Industry

Interviewy Team

Jan 21, 2025 — 8 min read

QSR news for Jan 21st, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 80 articles to bring you the latest. Estimated reading time saved (at 200wpm): 295 minutes. It'll take you only 11 minutes to catch up.

Krystal's Customer-Centric Transformation

Krystal, the iconic fast-food chain, is experiencing a remarkable turnaround with three consecutive quarters of same-store sales gains. Under the leadership of Amanda Hyde, who brings a rich background in hospitality, Krystal is focusing on operational excellence and employee empowerment rather than just tech solutions.

Training Initiatives: New performance-based incentives and training programs have been introduced to elevate staff performance and improve the service culture.
Optimizing Resources: Instead of rushing into tech investments, Krystal is revamping existing operations and emphasizing employee training to ensure any future tech rollouts are effective.
Facility Upgrades: Investing in physical locations with smaller-scale redesigns to attract customers and improve visibility.
Customer Experience: The revival of ‘WOW Hospitality’ aims to enhance dine-in experiences, improving guest interaction and loyalty.
Future Goals: Krystal aims to expand its footprint and strengthen franchise relations while continuously boosting sales and improving restaurant culture.

Source: QSR Magazine

Franchising Success and Expansion

Dr. Valerie Daniels-Carter, founder of V&J Foods, turned a single Burger King franchise into 132 restaurants in just 16 years. Employing over 4,500 people, she blends business success with philanthropy, aiding over 2,700 women and supporting global causes. Her journey emphasizes the importance of resilience and mission-driven teams invested in company success.

Advice for Women in Franchising: Maintain a clear vision and be prepared to seize opportunities. “Keep going,” she encourages, highlighting women's vital role in the industry's future.

Similarly, Smalls Sliders is expanding into Kentucky, partnering with entrepreneur Bradley Scott to open four locations in Lexington. With 29 years of industry experience, Scott aims to create community staples focused on quality food and service.

Source: QSR Magazine

Innovations in Coffee and Breakfast Offerings

Cortadito Coffee House adds a Cuban twist to coffee culture, inspired by Miami’s 1960s ventanitas. Founded in 2020, it combines authentic Cuban dishes with modern elements, emphasizing quality ingredients and an inviting atmosphere. With locations in Miami and Las Vegas, 70% of its sales are in-person, showcasing its community focus.

Fuzzy's Taco Shop is launching exciting limited-time breakfast offerings from January 22 to March 2, catering to both early birds and night owls:

Amigas Taco: Scrambled eggs, chorizo, and fresh avocados.
Big Bacon & Chorizo Taco: A hearty blend wrapped in a tortilla.
Sunrise Mimosa: A refreshing frozen drink mixed with mango puree and sparkling wine.
Enjoy these new items with a $5 Modelo Especial draft!

Patrick Kirk, President and CMO, emphasizes that breakfast is an all-day option at Fuzzy’s.

Sources: QSR Magazine, Fast Casual

2025 Dining Trends and Spicy Winter Menus

The focus for restaurants in the coming years should blend indulgence, convenience, and value.

50% dine out as a treat, seeking gratification.
Fusion cuisine is gaining popularity, reinventing classic dishes.
80% of Gen Z prefer online ordering, showing the importance of convenience.
Highlighting healthy options adds value, as consumers consider health and price together.

Restaurants are also spicing up their winter menus:

Newk's Eatery introduces four spicy limited-time items.
Burgerville offers Spicy Beef Chili and seasonal favorites.
Norm's features hearty breakfast options like Chile Verde Carnitas Omelette.
Peet’s Coffee rolls out protein-packed lattes, promoting wellness.

Overall, dining experiences are shifting towards fulfilling desires while providing practical options.

Sources: QSR Magazine, Restaurant Business

Corporate Strategies and Industry Moves

Starbucks is undergoing a corporate reorganization to improve efficiency, aligning with industry trends.

Strategic Shift: Restructuring to enhance performance amid challenges.
Goals: Optimize operations and support staff effectiveness to better serve customers.
Job Cuts Ahead: CEO Brian Niccol plans to cut jobs in March as part of structural changes, but store-level teams are safe, and hours will increase in over 3,000 stores.

Similarly, McDonald’s has extended its partnership with AI company Cognizant, focusing on labor and operational efficiencies. This is part of their "Digitizing the Arches" initiative to modernize operations and improve customer experiences.

MOD Pizza is raising funds across California to support wildfire relief efforts from the Los Angeles fires, demonstrating corporate social responsibility by donating $1 for every entrée sold.

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

Sustainable Strategies and Innovation

Restaurants are embracing sustainability and innovation:

HERO Model reshapes restaurant service by promoting team collaboration over individual competition, reducing turnover rates of 144% for hourly employees and enhancing guest satisfaction.
Reusable Coffee Cup Programs are gaining traction as cafes aim to lessen ecological footprints while reducing costs and enhancing brand loyalty.
Coffee Shop Supply Insights: With the boom in coffee enthusiasm, shops focus on reliable suppliers and adopt modern sales strategies to boost profits.

Mushroom Innovation is expanding:

Mushrooms are being used as meat substitutes and health-boosting ingredients.
Varieties like lion's mane are linked to cognitive support and stress relief.
Searches for mushroom beverages surged over 500% in 2024.

Sources: FSR Magazine, BlueCart, Food Business News

Challenges and Changes in the Industry

Restaurants are navigating various challenges:

Tariff Strategies Unfold: President Trump threatens new tariffs on Canada and Mexico by February 1, causing uncertainty in the industry. Analysts suggest significant authority might be utilized under the International Emergency Powers Act (IEPA).
Immigration Uncertainty in Chicago: Potential deportation raids threaten the immigrant community, crucial to restaurant staffing. Over 150,000 people remain evacuated due to wildfires, and restaurants unite to support those affected.
Navigating Fluctuating Food Costs: Managing fluctuating costs, especially with volatile ingredients like eggs (which have risen 30% in the past year), requires proactive strategies such as regular price monitoring and innovative menu solutions.

Sources: Food Business News, Salon, Restaurant Business

Staffing and Operational Insights

Discussions among restaurant owners highlight key issues:

Going Tipless: Implementing a tipless model in restaurants brings challenges like staffing, pricing, and customer behavior. High-quality servers may be deterred as they can make more in tipped environments. Raising menu prices by 15-20% might be necessary but could drive customers away.
Kitchen Hood Problems: Owners face issues with inadequate hood systems causing extreme cold in kitchens. Solutions include ensuring a properly balanced Make-Up Air (MUA) system with heating components, such as installing an electric duct heater.
Dealing with Difficult Business Partners: The importance of solid exit agreements and prioritizing mental health when facing challenging partnerships is emphasized.

Source: /r/restaurantowners subreddit

Customer Experience and Engagement

Creating memorable customer experiences is vital:

Table Touches in Restaurants:

Managers making genuine, non-intrusive visits can enhance the dining experience.
Forced or mandatory table visits can feel intrusive and unwelcome to guests.
Effective managers observe service and interact when it's natural, improving customer loyalty.

Wi-Fi Password Humor:

Restaurants use clever Wi-Fi passwords to create a fun experience for guests, like "iwillberightback".
This practice adds a touch of humor and can enhance the overall dining experience.

Unique Menu Items:

Cicis Pizza introduces a Spaghetti and Meatballs Pizza, available until March 16, 2025.
Steak 'n Shake plans to cook fries in 100% beef tallow, exciting customers seeking authentic flavors.

Sources: /r/restaurant, /r/fastfood

Expansion and Leadership Changes

Several brands are expanding and updating leadership:

Buona is bringing Chicago's culinary delights to Milwaukee, including iconic Italian beef sandwiches and the renowned Rainbow Cone ice cream.
Riko's Pizza appointed Carl Bachmann as president and COO to steer growth. Bachmann brings over 30 years of hospitality experience, previously serving as CEO of BurgerFi.
Ziggi's Coffee enhances leadership by appointing Stacey Kane as fractional CMO and Tom Seeker as fractional CTO to drive brand growth and technology efficiency.
Captain D's signs a 20-unit franchise agreement for the United Kingdom, marking its first venture into Europe, with the first restaurant set to open in London this year.

Sources: Fast Casual, Nation's Restaurant News, QSR Web

Health, Wellness, and Consumer Preferences

New trends and studies reveal consumer preferences:

Tap Water vs. Bottled Water: Studies reveal that tap water could be healthier and more environmentally friendly than bottled water. Tap water is regulated by the EPA, while bottled water is overseen by the FDA.
Alcohol’s Impact on Sleep: While alcohol may help you fall asleep faster, it often leads to poorer overall sleep quality, reducing REM sleep, which is crucial for memory and emotion regulation.
Air Fryers and Indoor Pollution: Air fryers emit significantly less indoor air pollution compared to other cooking methods like pan-frying or deep-frying, making them a healthier option for indoor cooking.

Sources: Salon

Community and Industry Support

The restaurant community rallies to support various causes:

Restaurant Community in LA: Restaurants in Los Angeles unite to support firefighters and victims affected by recent wildfires, with initiatives like free meals for first responders and displaced individuals.
MOD Pizza's Fundraising Efforts: MOD Pizza raises funds to support wildfire relief efforts, donating $1 for every entrée sold and contributing pizzas to local shelters and responders.

Sources: Restaurant Business, QSR Magazine

Product Innovations and Launches

Exciting new products are hitting the market:

Ferrero Mochi Bomboloncini: Pastry chef Clarice Lam creates a unique dessert by incorporating Ferrero Rocher chocolates into deep-fried mochi, blending flavors of nostalgia and celebration for the Lunar New Year.
Heart-Shaped Pancakes for Valentine's Day: Belgian Boys introduces limited-time Love Bites and Spring Bites Heart-Shaped Pancakes, ready in just one minute, adding joy to meals for every occasion.
Fermented Pasta Revolution: Pinsa Love launches Fermentelli Pasta, using a 72-hour cold fermentation process to enhance digestibility and flavor, aiming to offer consumers a healthier option with “more pasta, less blah.”

Sources: Eater, Food Business News

Tributes and Farewells

Tribute to Chef Charles Phan:

Chef Charles Phan, renowned for his modern Vietnamese cuisine and founder of the Slanted Door, passed away suddenly at 62 due to cardiac arrest. He elevated Vietnamese food nationally with dishes like crab cellophane noodles and authored two cookbooks. His legacy continues with plans for a revival of the restaurant in 2025.

Source: Eater SF

Embracing Technology and AI

McDonald’s Extends AI Partnership:

McDonald’s has extended its partnership with AI company Cognizant, enhancing labor and operational efficiencies. The collaboration focuses on:

Global Finance Systems: Streamlining financial operations.
Payroll and Franchisee Management: Improving efficiency across the board.
Data Management: Utilizing products like Cognizant’s Skygrade and Neuro IT to support cloud transitions and automate IT functions.

This is part of McDonald's "Digitizing the Arches" initiative to unify and streamline technology platforms across its restaurants.

Source: Nation's Restaurant News

Maximizing Profits and Navigating Costs

Maximizing Restaurant Profits:

Negotiating with Vendors: Effective vendor negotiation is crucial for profitability, as vendors like Sysco have thick profit margins.
Leveraging Purchasing Power: By obtaining a Descending Dollar Usage Report, operators can demand better deals.
Engaging Manufacturers Directly: Securing stable prices and ensuring vendors constantly re-earn loyalty.

Navigating Fluctuating Food Costs:

Regular Price Monitoring: Staying aware of market changes allows for timely adjustments.
Innovative Menu Solutions: Highlighting dishes with stable ingredients and optimizing usage of volatile items like eggs.
Collaborating with Suppliers: Locking in prices to protect businesses from cost spikes.

Sources: Modern Restaurant Management

Consumer Insights and Preferences

Unique McDonald's Dishes Around the World:

McDonald's offers 17 unique menu items from different countries, showcasing culinary diversity.
Absent from the list are Dutch specialties like the McKroket and McFlurry Stroopwafel, reflecting the vast array of international offerings.

Applebee's Cheap Drinks Explained:

Customers are surprised by Applebee’s low drink prices for high-quality liquor.
Explanation includes bulk purchasing and lower alcohol content in drinks, serving as loss leaders to attract customers.

Sources: /r/fastfood, /r/restaurantowners

Community Discussions and Trends

Busy January Trends:

Restaurant owners report unexpected busyness in January, with some experiencing a 44.4% year-over-year increase in cover counts.
Discussions highlight varied experiences, with extreme weather affecting some regions.

Catering Pricing Strategies:

Importance of transparent pricing in catering.
Including all costs in the initial price to avoid hidden fees that frustrate clients.
Pricing per head with minimums ensures profitability and customer satisfaction.

Sources: /r/restaurantowners

Miscellaneous Insights

Dining at Ex-Workplace:

A former employee considers dining at their ex-workplace, with commenters advising that staff turnover likely means they won't be remembered.

Solar Panels for Bars:

Bar owners discuss the benefits and considerations of installing solar panels.
Factors include location, electricity billing structures, and the condition of the building.

Italian Pizza Experience:

A customer shares their experience with an authentic Italian pizza, finding it thin and less filling than expected.
Discussion revolves around regional differences in pizza styles and pricing.

Sources: /r/restaurant, /r/BarOwners

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!