January 28th QSR Roundup: Starbucks Restructures, McDonald’s Shifts Marketing Leadership, and Duck Donuts Faces Turmoil Amid Layoffs

Interviewy Team

Interviewy Team

— 6 min read
January 28th QSR Roundup: Starbucks Restructures, McDonald’s Shifts Marketing Leadership, and Duck Donuts Faces Turmoil Amid Layoffs
QSR news for Jan 28th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 105 articles to bring you the latest. Estimated reading time saved (at 200wpm): 300 minutes. It'll take you only 9 minutes to catch up.

Leadership Changes Shake Up the Industry 🚀

In recent weeks, several major restaurant chains have announced significant leadership changes, setting the stage for strategic shifts ahead.

Starbucks Restructures Leadership Team

  • CEO Brian Niccol announced the departures of Sara Trilling and Arthur Valdez.
  • Mike Grams and Meredith Sandland, both veterans from Taco Bell, are stepping into executive roles.
  • Starbucks aims to enhance store performance and customer experience amidst declining sales and a shift towards value-focused offerings.

McDonald's Marketing Chief Steps Down

  • Tariq Hassan, U.S. Chief Marketing Officer, resigns after 3.5 years to focus on family.
  • Alyssa Buetikofer, current CMO of McDonald's Canada, will succeed him starting February 15.
  • Hassan was instrumental in connecting with customers through data-driven campaigns like the adult Happy Meals and the viral Grimace Shake.

Duck Donuts CEO Resigns Amid Layoffs

  • CEO Betsy Hamm resigns amid layoffs and store closures.
  • The company faces turbulence with several executives leaving and locations closing across the U.S.
  • Lawsuits allege fraud and financial losses for franchisees.

Key Takeaway: Leadership changes at Starbucks, McDonald's, and Duck Donuts signal strategic shifts as these companies adapt to market challenges and look to invigorate growth.

Sources:

  • QSR Magazine
  • Restaurant Business
  • Restaurant Dive
  • Nation's Restaurant News

Strategic Comebacks and Growth Plans 📈

Tijuana Flats' Authentic Revival

Tijuana Flats is making a strong comeback under CEO Jim Greco, known for turning around struggling brands like Sbarro and Bruegger’s Bagels. The focus is on authenticity and quality.

  • Partnered with a family-owned Mexican food company to introduce authentic Mexican dishes like Street Tacos and Street Corn.
  • Modernized restaurant designs while keeping unique elements like customizable ceiling tiles and a hot sauce bar.
  • Plans to expand with new franchise and corporate units in 2024 and 2025.

Papa John's Refranchising Strategy

  • Aiming to evolve its operator base by refranchising select markets.
  • Potential to generate hundreds of millions from selling corporate-owned restaurants.
  • Emphasizing investment in technology and enhancing loyalty programs.

Red Robin's Turnaround

  • Implemented a five-point plan under CEO G.J. Hart.
  • Upgraded burger ingredients and cooking methods.
  • Reintroduced staff positions like bussers and bartenders.
  • Launched the Red Robin Royalty Loyalty Program, enrolling 1.5 million members and increasing customer visits by 12%.

Key Takeaway: Brands are focusing on authenticity, operational efficiency, and customer loyalty programs to drive growth and stage successful comebacks.

Sources:

  • QSR Magazine
  • Restaurant Business
  • FSR Magazine

Guava Takes the Spotlight

  • Guava is becoming a popular flavor in the U.S., featured in beverages and dishes.
  • Native Grill & Wings introduced a Spicy Guava Rita.
  • KFC launched a Passionfruit + Orange + Guava Refresher.
  • Guava's vibrant flavor and high vitamin content make it appealing to consumers.

Super Bowl Specials and New Menus

  • Popeyes launches Louisiana Garlic Wings for Super Bowl season.
  • Cici’s Pizza offers a nostalgic Spaghetti and Meatballs Pizza.
  • Applebee’s provides 20 free Boneless Wings with any $40 purchase for Super Bowl LIX.
  • Chipotle offers free guac and Queso Blanco on 'Extra Sunday'.

Innovative Desserts

  • Graeter's Ice Cream collaborates with Skyline Chili to create a unique Graeter's Skyline Spice Ice Cream.
  • Kellanova introduces ice cream inspired by Eggo and Rice Krispies Treats.

Breakfast Innovations

  • Dutch Bros is trialing a larger food menu, focusing on breakfast items to encourage pre-work stops.
  • Juice It Up adds new protein-packed smoothies and a Build-Your-Own Waffle option.

Key Takeaway: Restaurants are introducing innovative menu items, leveraging seasonal events and emerging flavor trends to attract customers.

Sources:

  • QSR Magazine
  • Restaurant Business
  • FSR Magazine
  • Food Business News
  • Nation's Restaurant News
  • Fast Casual

Industry Challenges and Economic Impacts 💼

Egg Price Crisis

Egg prices in the U.S. have soared due to:

  • Avian Flu: Leading to the culling of millions of hens, reducing supply.
  • Increased Production Costs: Higher prices for chicken feed, energy costs, and new regulations.

Impact on Consumers and Restaurants:

  • Grocery stores imposing purchasing limits.
  • Restaurants adjusting menu pricing.
  • Rising food insecurity among vulnerable populations.

Immigration Raids Affecting Workforce

  • ICE raids aim to send a strong message regarding immigration enforcement.
  • Hospitality industry is vulnerable due to reliance on immigrant labor.
  • Employers are advised to:
    • Ensure I-9 documentation is accurate.
    • Use tools like E-Verify.
    • Maintain communication with legal counsel.

Key Takeaway: The industry faces significant challenges from rising costs and regulatory enforcement, affecting both operations and the workforce.

Sources:

  • QSR Magazine
  • Restaurant Business
  • Civil Eats

Expansion and Acquisitions Fuel Growth 🏗️

Uncle Julio's Joins Sun Holdings

  • Sun Holdings acquires Uncle Julio's, adding 39 casual dining locations.
  • Enhances their Mexican dining offerings and operational efficiencies.
  • Sun Holdings operates over 1,800 locations across various brands.

Swig Reaches 100 Locations

  • Celebrates opening its 100th store by offering $1 drinks on February 1.
  • CEO Alex Dunn emphasizes creating a new beverage category and leading the 'Dirty Soda' movement.
  • Now with locations in 14 states.

Salata Salad Kitchen Expands to South Carolina

  • Partners with franchisees Brian and Keri Leachman to open three locations in Myrtle Beach and Greenville.
  • Meeting the growing demand for healthier dining options.

Wing It On Expands in Illinois

  • Two new franchise agreements to open locations in Springfield and Carol Stream in 2025.
  • Offers over 20 wing sauces and rubs to satisfy wing lovers.

CC's Coffee House Goes Franchising

  • Launching a franchise program to expand in the Southeast and Texas.
  • Introducing a new drive-thru prototype for convenience-seeking customers.

Key Takeaway: Through strategic acquisitions and franchising, brands are expanding their footprints, entering new markets, and meeting consumer demands.

Sources:

  • Restaurant Business
  • FSR Magazine
  • Fast Casual
  • Food Business News

Promotions and Marketing Efforts Boost Engagement 📣

Chipotle's Super Bowl Promotions

  • Offers free guac and Queso Blanco on 'Extra Sunday'.
  • Giving away up to 50,000 free entrées during the Super Bowl through a text-to-claim system.

Applebee’s Super Bowl Offer

  • Providing 20 free Boneless Wings with any $40 purchase made online or via their app on February 9.
  • Offering the chance to win 6 free wings if a Pick Six occurs during the Super Bowl.

White Castle's Valentine's Day Dinners

  • Transforming into Love Castles on February 14.
  • Offering a Love Kit priced at $99, including Sliders and desserts.

Great American Cookies and Marble Slab Creamery Collaborate with Snickers

  • Launching Turtle Cookies and Snickers ice cream, available until April 27.
  • Incorporates Snickers pieces into new dessert offerings.

Key Takeaway: Restaurants are leveraging holidays and major events to engage customers with special promotions and limited-time offers, enhancing brand loyalty and driving sales.

Sources:

  • QSR Magazine
  • Nation's Restaurant News
  • Networld Media Group
  • Food & Beverage

Flippy the Robot Gets an Upgrade

  • The new version of Flippy is half the size, runs twice as fast, and installs in 75% less time.
  • Can cook 100 fryer baskets per hour, boosting service and saving costs.
  • Tested at White Castle, expanding to more stores in 2025.
  • Renting Flippy costs $5,400/month, potentially saving up to $20,000 monthly in labor costs and waste reduction.

Designing Engaging Digital Menu Boards

  • Digital boards must convey information quickly and beautifully.
  • Key design tips include:
    • High-quality food images to make a great first impression.
    • Simple color palettes with attention to contrast.
    • Incorporating animations for extra engagement.
  • Helps create an eye-catching and functional digital menu board.

Key Takeaway: The restaurant industry is adopting technological solutions to improve efficiency, customer experience, and adapt to modern consumer expectations.

Sources:

  • Restaurant Business
  • QSR Magazine

Frozen Food Trends in 2025

  • Frozen food market reaches $91.3 billion with a 54% increase in spending.
  • Trends include:
    • Healthy formulations focusing on portion control and gut health.
    • Global flavors with Italian, Chinese, and Mexican cuisines leading.
    • Air fryer-friendly frozen foods, contributing to a $6.1 billion segment.
    • Spicy frozen foods bringing in $2 billion in sales, especially among younger consumers.

Premium Private Labels Shine

  • Premium foods thrive as affordable luxuries.
  • Private label brands gain traction over national brands.
  • Consumers seek indulgence with products like Buji Brown Butter.

Key Takeaway: Shifting consumer preferences towards health, convenience, and premium experiences are shaping food industry trends.

Sources:

  • Food Business News

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