January 30th QSR Roundup: Chipotle's Investment in Brassica, Rethinking Restaurant Loyalty, and Chili's Remarkable Comeback

QSR news for Jan 30th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 115 articles to bring you the latest. Estimated reading time saved (at 200wpm): 330 minutes. It'll take you only 13 minutes to catch up.

🍴 Chipotle Partners with Brassica to Elevate Culinary Concepts

Chipotle has invested in Brassica, a Mediterranean fast-casual concept founded by Kevin Malhame, a former Chipotle GM during its McDonald's ownership era. This partnership reflects a shift towards exceptional culinary concepts in the restaurant industry.

• Brassica's Growth Without Marketing: Despite no marketing efforts, Brassica has seen steady growth, emphasizing quality over promotion.
• Culinary Inspiration: Malhame’s Lebanese heritage influences Brassica’s fresh, high-quality Mediterranean cuisine, offering customizable meals in a fine dining ambiance.
• Investment Dynamics: Chipotle, as a minority partner, enhances Brassica's ability to expand without capital concerns, planning cautious future openings.

Source: QSR Magazine

🔄 Rethinking Restaurant Loyalty: Beyond Food Quality

In order to cultivate customer loyalty, restaurants must evolve beyond just food quality, embracing a 360-degree experience that encompasses ambiance, service, and personalization.

Edurne Uranga from Circana emphasizes that today's diners expect a complete sensory experience, and over 44% of European consumers show greater loyalty to sustainable practices.

• AI and Personalization: AI technology is transforming operations by improving efficiency and enabling hyper-personalization.
• Customer Engagement: Maximiliano Zucchi from La Romana highlights the significance of genuine customer interaction.
• Sustainability Focus: Designing attractive, functional recycled products can enhance sustainability as a core value.

Source: QSR Magazine

📱 Starbucks Revamps Mobile Ordering to Enhance Experience

Starbucks is addressing service inefficiencies related to mobile ordering to enhance customer experience and restore its premium brand positioning.

Sales Growth and Operational Changes

• Improved Sales: Same-store sales improved post-decline with fewer discount offers, indicating better customer willingness to pay for premium products.
• Operational Efficiency: Aiming for a four-minute order completion goal through better staffing and sequencing, reducing congestion at counters.
• Tech Upgrades: Testing algorithms to optimize order processing, reducing stress for staff and improving customer interactions.
• Customer Experience Enhancements: Initiatives like ‘for here’ cups and coffee condiment bars aim to create a warm ambiance and renewed customer engagement.

Source: QSR Magazine

🏗️ Twin Peaks Goes Public with Ambitious Expansion Plans

Twin Peaks, known for its lodge atmosphere and sports-bar vibe, has officially gone public as a spinoff from owner Fat Brands. Shares opened at $17.45 on the Nasdaq under the symbol TWNP.

• Growth Strategy: Aims to open 16 new locations by 2025 and envisions a total of 650 in the U.S. and 250 internationally.
• Financial Goals: The chain targets $1 billion in annual revenue, building on 11% sales growth from the previous year.
• Customer Experience: Nearly 48% of sales are from alcohol, with up to 80 TV screens per location, making live sports a crucial attraction.

Source: Restaurant Business

🍪 Subway Introduces Oreo Footlong Cookie

Subway unveils the Oreo Footlong Cookie, a 12-inch treat combining chocolate cookie dough and Oreo pieces, topped with vanilla cream, priced around $5. This marks Subway's first collaboration with a packaged cookie brand.

• Sales Milestone: Since its launch, over 13 million Footlong Cookies have been sold.
• Future Menu Expansion: The popularity reflects growing demand for snacks, leading to the introduction of more menu items in the future.

Source: Restaurant Business

🚀 Chili's Record-Breaking Comeback

Chili’s has achieved over 31% same-store sales growth, the best quarter since the pandemic, fueled by a blend of social media buzz, value-based ads, and enhancements in restaurant operations.

• Viral Success: The Triple Dipper appetizer went viral on TikTok, now representing 14% of sales.
• Operational Improvements: Streamlining operations by removing less successful menu items and modernizing cooking technology.
• Financial Highlights: Average unit volumes reached $4.2 million, with profits rising and margin settling around 19.1%.

Source: Restaurant Business

🌮 Tijuana Flats Shifts to Authentic Mexican Offerings

After emerging from bankruptcy, Tijuana Flats is moving towards a more authentic Mexican menu with new collaborations and offerings. CEO James Greco emphasizes flavorful dishes unlike any in the U.S.

• Menu Innovations: Introduced popular Street Tacos and plans to launch Mexican Street Corn.
• Competitive Landscape: Acknowledges fierce competition from Chipotle and others in the fast-casual space.
• Growth Focus: Working to improve sales and store designs post-acquisition, with an emphasis on enhancing product quality and franchise growth.

Source: Restaurant Business

🏮 Panda Express Celebrates Lunar New Year with Heartfelt Campaign

Panda Express embraces its role in celebrating Lunar New Year, focusing on outreach and cultural authenticity.

• Cultural Responsibility: As the largest Asian dining chain in the U.S., they see it as their duty to authentically celebrate the Lunar New Year.
• Campus Outreach: Targeting homesick college students with special events called “Lunarsgiving” at locations near three major universities.
• Educational Impact: Expanded their "Let’s Explore!: Lunar New Year" curriculum, with nearly 1 million students participating this year.
• Heartwarming Film: The new short film “The Invitation” highlights Lunar New Year traditions and has gained 7.7 million views on YouTube.

Source: Restaurant Business

💡 Insights on Restaurant Investments

Andrew Smith, co-founder of Savory Fund, shares investment strategies in the restaurant industry. Savory Fund targets emerging chains like Swig and Mo’ Bettahs.

• Identifying Winners: Highlights indicators of potential winning brands.
• Optimal Timing: Discusses the best timing for investments and exits.
• Challenging Periods: Notes that challenging times can present valuable investment opportunities.

Source: Restaurant Business

✅ Importance of Restaurant System Checklists

Operational systems are key to restaurant success, and effective use of checklists can lead to higher profits.

• Empower Managers: Utilizing daily checklists empowers managers to fulfill expectations without missing tasks.
• Accountability: Owners must hold managers accountable to ensure all tasks are completed, preventing financial control issues.
• Expert Advice: David Scott Peters highlights the importance of structured systems in achieving financial freedom for restaurant operators.

Source: FSR Magazine

🌅 Urban Egg Expands to Texas

Urban Egg is set to open its first location in Texas, debuting in Fort Worth in summer 2025, marking the brand's 11th restaurant.

• Local Sourcing: Emphasizes the importance of local sourcing and strong community ties.
• Innovative Menu: Features award-winning dishes, aiming to provide exceptional dining experiences.
• Job Creation: Poised to create job opportunities for over 40 team members.

Source: FSR Magazine

🍽️ Donna Mare Italian Chophouse Opens in Miami Beach

Donna Mare Italian Chophouse opens at Cadillac Hotel, offering Italian cuisine with a focus on artisanal pastas made by sfoglina Elena Montanari.

• Open Kitchen Concept: Features a wood-fired pizza oven and dedicated pasta workshop.
• Signature Dishes: Includes Donna Mare Chicken Parm, 36oz Dry-Aged Tomahawk Ribeye, and Mortadella Pizza.
• Chic Ambiance: Designed to blend Old World charm with modern sophistication, featuring a central olive tree.

Source: FSR Magazine

💖 February Deals at California Pizza Kitchen

California Pizza Kitchen (CPK) introduces exciting offers for February’s major events like the Big Game and Valentine’s Day.

• Big Game Specials: 2 for $25 or 4 for $40 deals on Take & Bake pizzas from February 7-9.
• Valentine’s Day Offer: A $55 prix fixe menu featuring heart-shaped pizzas, a starter, dessert, plus a bounce-back card for future savings.
• Mediterranean Menu Launch: Limited-time dishes like Salmon Baked in Parchment and Mediterranean Pizza, available until March 25.

Source: FSR Magazine

🏆 Chili's Dominates Casual Dining with Unprecedented Growth

Chili's shows remarkable growth with a 31.4% same-store sales increase in Q2 and a 19.9% traffic rise.

• Triple Dipper Success: The appetizer went viral, representing 14% of sales.
• Menu and Operational Upgrades: Removed 13 menu items and introduced kitchen display systems.
• Financial Performance: Reported $1.21 billion in revenue for Q2, with operating margins climbing to 18.7%.

Source: FSR Magazine

🌟 The HERO Model Enhances Hospitality Experience

Technology enhances dining by merging efficiency with personal connection, fostering lasting guest loyalty.

• Guest Expectations: Visitors today expect a blend of tech convenience and genuine human interaction.
• Industry Response: 60% of operators are boosting tech budgets to improve service quality.
• HERO Model's Strength: Emphasizes enhancing human interaction through smart tech, improving both staff morale and guest satisfaction.

Source: FSR Magazine

📈 Starbucks Embarks on Growth Strategy and Menu Simplification

Starbucks revitalizes the coffeehouse experience with ceramic mugs and free refills, aiming to boost customer satisfaction.

• Expansion Plans: CEO Brian Niccol envisions doubling U.S. store count by adding approximately 10,000 locations.
• Sequencing Algorithm: Implemented for mobile orders, helping prioritize drink preparation and reduce congestion.
• Menu Reduction: A planned 30% reduction in SKUs by 2025 to streamline offerings.

Source: Restaurant Dive

🔥 Chili's Record Sales Growth Continues

Chili’s posts an impressive 31% increase in comparable sales for fiscal Q2 2025, setting a new record.

• Value-Focused Advertising: Heavy investments attracted guests.
• Menu Enhancements: Upgraded quality of ingredients, like higher-quality chicken breast and in-house guacamole.
• Operational Upgrades: New kitchen display system reduced prep time and enhanced efficiency.

Source: Restaurant Dive

📊 Twin Peaks Sets Ambitious Expansion Goals

Twin Peaks has become an independent public company after a spin-off from Fat Brands, aiming to enhance its growth trajectory.

• Sales Targets: Plans to reach $1 billion in sales within the next 3-5 years.
• Significant Growth: Expanded from 80 to 115 locations since 2021.
• High Customer Retention: Holds a 95% intent-to-return rate among patrons.

Source: Restaurant Dive

🛍️ Shifts in Ordering Preferences Favor Restaurants' Direct Channels

A recent survey reveals significant shifts in customer ordering preferences, favoring direct channels.

• Customer Preferences: 58% prefer ordering delivery directly from a restaurant’s app or website.
• Motivations: Convenience (65%), ease of customization (50%), and loyalty points (36%) are key motivators.
• Industry Response: Restaurants are focusing on online ordering due to profitability and data concerns associated with third-party services.

Source: Restaurant Dive

🔄 Starbucks Adjusts Strategy Amid Traffic Declines

Starbucks reported an 8% drop in North American traffic, leading to strategic adjustments.

• Brand Identity Focus: Emphasizing coffee-forward marketing, with coffee and espresso sales outperforming expectations.
• No Price Increases: Removed extra charges for non-dairy milk to enhance customer value.
• Menu Simplification: Aiming for a 30% reduction in menu items by fiscal year 2025.

Source: Restaurant Dive

🎥 Hellmann's Nostalgia Ad Reunites Meg Ryan and Billy Crystal

Meg Ryan and Billy Crystal reunite in an advertisement for Hellmann's mayonnaise, referencing their iconic scene from "When Harry Met Sally."

• Ad Concept: Reimagines the famous fake orgasm scene with a focus on the mayo's flavor.
• Cultural Impact: While cute, the ad raises concerns about the commercialization of beloved pop culture moments.
• Promotion: Filmed at Katz’s deli, coinciding with a special sandwich package promotion.

Source: Eater

🥣 Super Bowl Dip Delights: Elevate Your Party Spread

Dips take center stage during winter gatherings and events like the Super Bowl, providing comfort and flavor. Notable dips include:

• Crab Rangoon Dip: A creation that allows customization with imitation or real crab, served with crispy wontons.
• Fried Onion-Chile Crisp Dip: A blend of sour cream and chile crisp, best paired with salty chips.
• Hot Spinach & Artichoke Dip: Combines simple ingredients for creamy goodness served with various dippers.

Source: Eater

🍲 Comforting Tortellini Delight for Cozy Nights

A well-stocked pantry is key for home cooking, merging fridge and freezer supplies.

• Simple Recipe: Combines onion, pancetta, water, bouillon, tortellini, and spinach, ready in just 3 minutes.
• Key Ingredients: Frozen tortellini, Better Than Bouillon, and pancetta for added depth.
• End Result: A comforting bowl of broth and pasta, reminiscent of tortellini en brodo.

Source: Eater

🍦 Skyline Chili Ice Cream Surprises Skeptics

Graeter's creates a limited-time ice cream inspired by Cincinnati's Skyline chili, enticing skeptics with a unique flavor profile.

• Flavor Profile: Features warm spices like allspice, nutmeg, and cinnamon blended in a creamy base.
• Unique Addition: Includes whole oyster crackers for a salty crunch.
• Popularity: Pints sold out quickly in multiple states.

Source: Eater

🍛 Pepper Lunch Expands to Orange County

Orange County will welcome a second Pepper Lunch location on February 7 at the Irvine Spectrum Center.

• Japanese-Inspired Concept: Aims to attract local patrons and first-time diners, fostering brand loyalty.
• Steady Growth: Founded in 1994, Pepper Lunch is steadily growing its presence across the U.S.

Source: Fast Casual

🥤 Shake Shack Appoints New Leadership

Shake Shack has appointed new executives to bolster its growth strategy.

• Steph So: Hired as Chief Growth Officer to lead digital marketing, consumer analytics, and culinary innovation.
• Luke DeRouen: Joins as Chief Communications Officer, overseeing brand strategy and communications.
• Nancy Combs: Appointed as SVP of Culinary and Calendar Innovation under Steph So.

Source: Fast Casual

🍹 Smoothie King Welcomes New CMO

Smoothie King has appointed Claudia Schaefer as its new Chief Marketing Officer (CMO) to enhance brand positioning and drive sales by leveraging consumer insights.

• Strategic Focus: Aims to leverage her marketing and innovation expertise for significant growth in 2025.
• Previous Roles: Led Caliber and held CMO roles at Jamba and Cheddar's Scratch Kitchen.
• Growth Milestone: In 2024, Smoothie King opened 84 stores, reaching 1,200 domestic locations.

Source: Fast Casual

🥤 Ziggi's Coffee Launches Dirty Soda Menu

Ziggi's Coffee from Colorado is testing a new Dirty Soda menu, which will expand to 13 pilot locations in February.

• Unique Offerings: Contains popular sodas like Coke and Sprite, combined with bold flavors, fruit purees, and candy toppings.
• Creative Names: Drinks named "Sunset Blvd." and "Cherry Bomb" aim to provide a fun experience.
• Customer Feedback: Initial reactions have been promising, prompting refinement of the offerings.

Source: Fast Casual

🐔 Huey Magoo's Introduces Loyalty Program

Florida-based Huey Magoo's has launched a loyalty program called "Magoo's Rewards," giving members points for every dollar spent.

• Rewards Redemption: Points can be redeemed for free food and drinks.
• Sign-Up Incentive: Users who sign up will get a free 3-piece tender meal with a beverage purchase.
• Expansion: Huey Magoo's has locations throughout the United States.

Source: Fast Casual

🤖 AI Innovations in Foodservice

Fast-casual chain Just Salad introduces Salad AI, a mobile app feature that personalizes order recommendations based on user preferences.

• Industry Trends: Fitch Ratings predicts a moderate increase in restaurant spending for 2025.
• Global Expansions: PizzaExpress plans U.S. expansion with 1,000 global locations by 2030.
• Retirements: Hudson Riehle of the National Restaurant Association announces retirement after 38 years.

Source: Foodservice Equipment & Supplies

🥤 Trends in Disposable Cups

Disposable cups are integral in the food and beverage sector, especially for coffee and cold drinks.

• Eco-Friendly Demand: Bioplastics and compostable materials gaining popularity.
• Innovations: Specialized cups like deli containers and edible cups serve niche markets.
• Recycling Challenges: Many disposable cups remain difficult to recycle due to their materials.

Source: BlueCart

📈 Evolution of Food Marketing

Marketing in the food industry has shifted dramatically over the past 20 years.

• Digital Dominance: Shift from traditional media to platforms like Instagram and TikTok.
• Consumer Values Matter: Transparency, sustainability, and authenticity are now key factors influencing consumers' food choices.
• AI's Role: Future marketing trends will leverage AI for personalized content creation and real-time consumer analysis.

Source: Modern Restaurant Management

🥚 Egg Industry Crisis

The U.S. egg industry is facing a significant crisis, with prices soaring due to multiple factors.

• HPAI Outbreak: Over 20 million hens culled due to Highly Pathogenic Avian Influenza.
• Price Increase: Eggs projected to rise by 20% in 2025, potentially reaching $5 per dozen.
• Compounding Factors: Rising production costs, regulatory changes, and supply-demand imbalance.

Source: Modern Restaurant Management

💸 Tipping Culture Uncovered

The history of tipping in the United States shows complex social dynamics influencing current practices.

• Tipping Origin: Developed in the late 19th century, initially adopted by the upper class.
• Current Landscape: Labeled as 'compulsory' by some, leading to frustration among patrons and service workers.
• Diverse Opinions: Mixed feelings highlight both the need for fair compensation and frustration over obligatory tipping.

Source: Modern Restaurant Management

🌱 Sustainable Farming Legacy

Increased federal funding for Black farmers will bolster U.S. agriculture’s resilience to climate change.

• Historical Practices: Black farmers in Kansas have long utilized summer fallow to maintain healthy soil.
• Crucial Support: The 2501 grant has empowered the Kansas Black Farmers Association to provide vital resources.
• Resilient Future: Emphasizes the role of traditional practices in creating a more resilient agricultural future.

Source: Civil Eats

🧑‍⚖️ Lee Zeldin Confirmed as EPA Head

The Senate has confirmed Lee Zeldin as the new administrator of the EPA.

• Vote Tally: Confirmed with a vote of 56 to 42.
• Political Lines: All Republican senators supported, while the majority of Democrats opposed.

Source: Civil Eats

🍎 Kennedy Advocates Food Industry Overhaul

Robert F. Kennedy Jr. emphasizes the need to scrutinize the U.S. food supply amidst rising chronic diseases.

• Alarming Statistics: Obesity in America has soared from 3% to 74% since his uncle’s presidency.
• Food Additives Concern: Calls for critical look at the 10,000 ingredients in American foods compared to fewer in Europe.
• Agricultural Practices: Supports shifting federal funding away from processed foods and promoting regenerative agriculture.

Source: Food Business News

👩‍💼 ADM Appoints New Chief Accounting Officer

Carrie Nichol has been appointed as ADM's vice president and chief accounting officer, effective March 1.

• Responsibilities: Managing external and management accounting, internal controls, and insurance/risk management.
• Experience: Over 20 years in finance and accounting, previously serving at Cargill.

Source: Food Business News

🥖 Crown Bakeries Leadership Changes

Yianny Caparos has been appointed CEO of Crown Bakeries, succeeding founder Cordia Harrington, who transitions to co-chairperson.

• Leadership Team: Doug Bame becomes president, and Scott Shelley is promoted to COO.
• Growth Focus: Aims to drive growth through innovative baked goods that meet customer expectations.

Source: Food Business News

📉 Starbucks Menu Streamlining and Sales Decline

Starbucks Corp. is slashing its food and beverage menu by 30% to simplify operations and enhance customer experience.

• Order Wait Time Goal: Aiming for a 4-minute order wait time.
• Financial Performance: Despite a 24% drop in net income to $780 million, shifts towards coffee sales show promise.
• Expansion Efforts: Ongoing brand revitalization with new store openings.

Source: Food Business News

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