January 23rd QSR Roundup: Dutch Bros Plans 160 New Stores and How Restaurants are Tackling Rising Costs and Egg Prices

QSR news for Jan 23nd, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 110 articles to bring you the latest. Estimated reading time saved (at 200wpm): 325 minutes. It'll take you only 8 minutes to catch up.

Restaurant Expansions and Openings

Blaze Pizza has spiced up its menu with the new Spicy Hot Chicken Pickle Pizza and Green Goddess Chop Salad. The pizza boasts white sauce, mozzarella, chicken, pickles, and a drizzle of spicy chili oil. For those seeking fresh flavors, the salad offers crispy romaine, tomatoes, red onions, olives, and a green goddess dressing. With over 45 customizable toppings, Blaze continues to emphasize high-quality, bold ingredients.

Dutch Bros is strategically expanding, planning to open at least 160 new stores in 2025, with their 1,000th location soon to open in Orlando. CEO Christine Barone focuses on enhancing existing strategies, including a shift to build-to-suit leases and a successful mobile ordering program that boosted customer frequency by 5%.

Smalls Sliders is entering Kentucky with four new units led by entrepreneur Bradley Scott. Known for their high-quality sliders and strong community ties, Smalls Sliders aims to establish a significant presence across the state.

Sources: QSR Magazine, Fast Casual

Innovations in Menu and Promotions

Baskin-Robbins is celebrating Valentine's Day by bringing back the beloved Love Potion #31 flavor and introducing the Crazy for You Cake, a customizable heart-shaped dessert. Rewards members can enjoy special offers, including $3 off cake orders over $20.

Portillo's is also embracing the season of love with their Heart Shaped Cake, available for pre-order, and the Chocolate Strawberry Shake, a fan favorite blending chocolate frosting and strawberry flavors.

Oreo has teamed up with Post Malone to launch a new cookie flavor featuring swirled salted caramel and shortbread cremes, turning cookies into collectibles.

Sources: QSR Magazine, Eater

Industry Trends and Challenges

Egg prices have surged over 100% due to the devastating effects of avian influenza, with over 20 million chickens culled last quarter. This has not only led to egg shortages but also significant price increases in related products, affecting both restaurants and consumers.

The closure of 79 Wahlburgers locations in Hy-Vee supermarkets underscores the challenges of integrating fast-casual concepts within retail environments. Hy-Vee is transitioning to its revamped Market Grille concept, emphasizing a need for adaptability in the industry.

Meanwhile, restaurants are exploring ways to tackle rising costs and changing consumer behaviors. For instance, some are adopting AI technologies to improve kitchen efficiency and reduce waste, addressing major concerns about food and labor costs.

Sources: Restaurant Business, Food Business News, Fast Casual

Embracing Technology and Innovation

Chipotle is set to overhaul its kitchens for the first time in decades, aiming for greater efficiency by 2025. The introduction of new equipment is expected to improve workflow and enhance the team member experience, ultimately impacting service quality and customer satisfaction.

Yogurtland has seen remarkable digital growth under Brittany Knollmiller’s leadership, implementing online ordering, a revamped loyalty program, and a new app. Despite closing nearly 60 locations, revenue grew 22% to $12 million in 2022, with plans to open 25 to 30 new stores in 2023.

honeygrow, a fast-casual chain, is boosting kitchen efficiency using AI technology like PreciTaste's Prep Assistant, reducing prep time by 4-5 hours daily and significantly reducing food waste.

Sources: Restaurant Dive, Fast Casual, QSR Web

Notable Partnerships and Collaborations

Hardee's has formed a yearlong partnership with country artist Thomas Rhett, focusing on community values like giving back and supporting first responders. They previously collaborated on a tailgate event for hurricane relief.

Legal Sea Foods teamed up with NHL legend Ray Bourque and Jack’s Abby Craft Lagers to create 'Bourque’s Brew', a Helles-style lager whose proceeds support the Bourque Family Foundation.

Conagra Brands is expanding its partnership with Dolly Parton, releasing new dessert and breakfast products, including cake mixes and frostings in various flavors, available nationwide.

Sources: QSR Magazine, FSR Magazine, Food Business News

Employee Benefits and Workforce Initiatives

Ike's Love & Sandwiches has enhanced employee benefits by partnering with DailyPay, allowing employees to access their wages as they earn them. Founder Ike Shehadeh believes that supporting employees leads to a happier workplace and better customer experiences.

The Women's Foodservice Forum (WFF) announced its 2025 Board of Directors, led by Kate Jaspon of Inspire Brands, focusing on promoting gender equity and empowering women in the industry.

Sources: QSR Magazine, Nation's Restaurant News

Market Trends and Consumer Behavior

Restaurants are adapting to changing consumer preferences, with an emphasis on sustainability and health. There is a rise in plant-based options, as seen with Meati's new breakfast patties offering 8 grams of protein and 4 grams of fiber.

Consumers are increasingly seeking ethically sourced products, with companies like Ritter Sport investing in sustainable cocoa farming to meet this demand.

However, the industry faces challenges like the soaring price of eggs due to bird flu, and the potential impact of new Trump tariffs on imported foods, which could raise consumer prices even further.

Sources: Food Business News, Eater, Salon

Industry Recognitions and Awards

The James Beard Foundation has unveiled its 2025 semifinalists, introducing new categories focused on beverage service, such as Best New Bar and Outstanding Professional in Cocktail Service. These additions aim to embrace diversity and recognize talent across various regions and specialties.

Sources: Eater

Culinary Adventures and Trends

Home cooks are exploring new culinary techniques, such as making biang biang noodles at home. The simple ingredients and engaging preparation method make it an accessible and satisfying dish, especially during celebrations like the Lunar New Year.

Soup manufacturers are innovating with international flavors and protein-rich formulations. Brands like Amy's Kitchen and Campbell’s are introducing soups like dal makhani and sirloin burger, catering to the demand for convenient yet wholesome meals.

Sources: Eater, Food Business News

Challenges in the Food Industry

The U.S. is struggling to meet its 2030 goal of halving food waste, with no state currently on track. Experts advocate for a shift in consumer mindset towards prevention and better waste management practices.

Processed meat consumption is linked to a 16% higher risk of dementia, emphasizing the need for dietary balance and healthier choices to reduce such risks.

Sources: Grist, Salon

Redefining Restaurant Operations

Restaurants are investing in sustainable Standard Operating Procedures (SOPs) to increase efficiency and consistency. Strategies include encouraging breaks, promoting time management, and adopting tech solutions to minimize workload and stress.

The use of 3D modeling and design technology is revolutionizing restaurant renovations, helping to visualize changes, avoid costly mistakes, and enhance customer satisfaction by optimizing space.

Sources: Modern Restaurant Management

Food Manufacturing and Market Updates

Misha’s Inc. is expanding by acquiring Vertage, another plant-based cheese maker, to innovate its product offerings and cater to consumer needs for dairy alternatives.

The cocoa market faces challenges with a 2.7% drop in sales volume for Barry Callebaut due to market volatility and delays in orders. Despite this, revenue increased by 63% owing to rising cocoa bean prices.

Sources: Food Business News

Consumer Insights and Shopping Tips

With grocery costs rising, consumers are seeking ways to shop smarter. Tips include budgeting with health objectives in mind, eliminating convenience foods, and being cautious of marketing terms like "regenerative" without USDA definitions.

Understanding portion sizes, reducing shopping trips to minimize impulse buys, and considering whole foods over processed options can lead to significant savings and healthier choices.

Sources: Salon

Miscellaneous Updates

Ikea is being touted as the perfect second date spot, offering affordable meals and a fun shopping experience that can deepen connections without the pressure of traditional outings.

The rising credit card fees are becoming a significant burden for restaurants, being the third largest expense after labor and food costs, prompting some establishments to raise prices or find innovative ways to mitigate these fees.

Sources: Food & Wine

Online Discussions and Industry Concerns

Restaurant owners are voicing frustrations over rising operational costs and public resentment towards increased menu prices. Many highlight the unseen expenses such as labor, maintenance, and supply costs, which contribute to price hikes.

There are also discussions about the challenges of repairing restaurant furniture, managing music licensing issues with organizations like SESAC, and finding simple, cost-effective POS systems.

Sources: Reddit (/r/restaurantowners, /r/Restaurant_Managers)

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