January 3rd QSR Roundup: Fast Food Resilience Amid Economic Changes

Interviewy Team

Interviewy Team

— 6 min read
January 3rd QSR Roundup: Fast Food Resilience Amid Economic Changes
QSR news for Jan 3rd, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 112 articles to bring you the latest. Estimated reading time saved (at 200wpm): 410 minutes. It'll take you only 8 minutes to catch up.

Freddy's Rapid Transformation Under CEO Chris Dull

Freddy’s Frozen Custard & Steakburgers has seen remarkable growth since Chris Dull became CEO in May 2021. Founded in 2002 by Randy and Bill Simon and Scott Redler, the brand now boasts about 400 stores.

Highlights:

  • Record-breaking sales, with franchises like Ron Oberg's Iowa location earning $175,000 in its opening week.
  • Emphasis on nostalgic service and premium quality food inspired by founder Freddy Simon.
  • A franchise-friendly culture that enhances relationships and operational excellence.

Source: QSR Magazine

MOOYAH's Innovative Growth Strategy

  • Planning 15 new locations for 2025 featuring MOOYAH's innovative design.
  • VP of Operations, Beth Stockmoe, focuses on efficiency without compromising food quality.
  • Implementing new technology and kitchen prototypes to reduce service time to under 2 minutes.
  • All new processes tested at a Frisco location before franchise-wide rollout.
  • Expansion includes smaller 1,400 sq ft stores and drive-thru operations.

Source: QSR Magazine

Fast Food Chains Spice Up Menus to Attract Gen Z

Church's Chicken, Firehouse Subs, and WaBa Grill are introducing new spicy sauces to meet consumer demand for heat:

  • Church's Chicken: Habanero hot sauce with garlic and spices.
  • Firehouse Subs: Revived Hot Sauce Bar with 13 unique sauces scaled from 1 to 10.
  • WaBa Grill: Introduced WaBlaze Sauce, combining spicy peppers and soy, sold out in under a month.

These bold flavors are a creative response to America's hot sauce obsession and the increasing spice tolerance among diverse demographics.

Source: QSR Magazine

Mastering Communication with the BIFF Response

Effective communication is crucial in the restaurant industry. The BIFF Response method helps handle challenging communications by being:

  • Brief: Keep messages short and to the point.
  • Informative: Stick to the facts without unnecessary details.
  • Friendly: Maintain a respectful and positive tone.
  • Firm: Clearly state your position without inviting further debate.

Key Tips:

  • Pause before responding to avoid emotional reactions.
  • Practice the method in low-stakes situations.
  • Seek feedback to improve.

Using BIFF can foster a positive workplace culture and effective conflict resolution.

Source: QSR Magazine

Noodles & Company Faces Nasdaq Delisting Warning

Noodles & Company received a delisting notice from Nasdaq after its share price fell below $1, currently at 58 cents.

  • The company has 180 days to regain compliance.
  • Reported a 1.9% drop in same-store sales.
  • New CEO Drew Madsen aims to revitalize the brand with operational improvements and new menu items like the Crispy Chicken Bacon Alfredo.
  • Ongoing challenges in the post-COVID market with fluctuating systemwide comps.

Sources: QSR Magazine, Restaurant Dive

TGI Fridays Sells Corporate Locations Amid Changes

  • Sold nine corporate locations to airport operator Mera Corp for $34.5 million.
  • Mera Corp operates 185 units across 53 brands.
  • Former CEO Ray Blanchette will oversee nearly 400 global franchises.
  • The chain filed for Chapter 11 bankruptcy due to $37 million debt and operational struggles.
  • U.S. locations have dropped from 384 to fewer than 150 since 2020, with a 12.5% decline in sales in 2023.

Sources: Restaurant Business, FSR Magazine

Shifts in Food Spending Due to Weight-Loss Drugs

The rise of weight-loss drugs like Ozempic is changing food spending patterns:

  • 6% reduction in grocery spending within six months for households using GLP-1 drugs.
  • Fast-food spending decreases, especially at breakfast and dinner.
  • Long-term spending cuts estimated at $416 annually per household.
  • Users avoid high-calorie, high-sugar, and high-fat foods, reducing such purchases by up to 11%.
  • Restaurants like Smoothie King adapt menus with GLP-1 support options.

Sources: Restaurant Business, Food Business News

Restaurant Industry Poised for Economic Upswing

Despite challenges, the industry shows signs of growth:

  • Economic Resilience: U.S. economy predicted to grow at 2.5% with only a 14% chance of recession.
  • Sales Surge: Restaurants generated $953 billion in sales in the first 10 months of 2024.
  • Food Spending Shift: Restaurants now account for 54% of consumer food spending.
  • Improving Traffic: Quick-service restaurants experienced a 1.3% increase in November traffic.
  • Investor Sentiment: Positive recovery in restaurant sector stocks post-election.

Source: Restaurant Business

BJ's Restaurants Partners with Act III Holdings

BJ's Restaurants collaborates with Ron Shaich's Act III Holdings for strategic guidance:

  • Act III Holdings invested $70 million in 2020 and holds options to buy more shares.
  • New leadership focuses on revitalizing the brand by simplifying the menu and enhancing its brewery identity.
  • Aims to address sluggish sales and optimize operations.

Source: Restaurant Business

Emerging Restaurant Concepts to Watch in 2025

A wave of innovative eateries is set to shape dining trends:

  • Ggiata: Revamping fast-casual sandwiches with items like the Perfect Chicken Caesar Wrap.
  • PopUp Bagels: Introducing a new bagel trend backed by $8 million in investment.
  • Potadoh: Specializing in overstuffed baked potatoes with diverse toppings.
  • Angie’s Lobster: Affordable seafood in a drive-thru format with rapid expansion.
  • Joyland: Chef Sean Brock's reinvention of fast food with indulgent items.
  • Brassica: Mediterranean concept gaining recognition with growth plans backed by Chipotle’s investment.
  • Dillas: Focused on creative quesadilla options.

These brands are setting the stage for what's hot in 2025.

Source: Restaurant Business

Chipotle Relaunches Fitness Challenge with Strava

Chipotle teams up with Strava to relaunch its fitness challenge, now expanding internationally:

  • Participants can win free Chipotle Lifestyle Bowls by logging their runs, walks, or wheelchair activities.
  • Local Legend Status awarded to individuals completing segments most frequently, earning free bowls for a year.
  • Cities with the highest mileage earn a buy-one, get-one deal for in-store entrées.
  • Last year, participants logged over 9.25 million miles, circling the globe 370 times!

Sources: Restaurant Business, Fast Casual

PAR Technology Acquires Delaget for $132 Million

  • PAR Technology Corporation acquires Delaget, enhancing its tech offerings for restaurants.
  • Delaget serves over 30,000 locations with operational data and loss prevention tools.
  • CEO Savneet Singh emphasizes improved decision-making and cost reduction for operators.
  • Aims to provide better back-office processing, delivery service, and data analytics capabilities.

Sources: Restaurant Business, Restaurant Dive

Dunkin' Collaborates with Sabrina Carpenter

Dunkin' partners with pop star Sabrina Carpenter to launch the Brown Sugar Shakin’ Espresso:

  • The iced drink features espresso, brown sugar, and oat milk.
  • The ad campaign, titled “Shake That Ess’,” includes humorous elements and reflects Carpenter's hit song.
  • Dunkin’ uses celebrity partnerships to boost brand image, previously collaborating with Ben Affleck and Matt Damon.

Sources: Restaurant Dive, Salon

Fast Food Promotions and New Offerings

Del Taco introduces two new burritos:

  • Bean, Rice and Cheese Burrito for $2.49.
  • Chipotle Chicken Burrito for $2.99.
  • Value bundles priced at $10, $15, and $20.

White Castle brings back the French Toast Slider through April 20.

Baskin-Robbins launches Cinnamon Roll Ice Cream, exciting dessert fans.

Sources: Restaurant Dive, QSR Web, /r/fastfood

Key trends shaping the industry:

  • Technology Integration: Automation and AI are enhancing operations and customer experiences.
  • Shrinking Kitchens: Optimizing space to reduce costs and improve efficiency.
  • Labor Focus: Quality over quantity, with emphasis on training and cultural alignment.
  • Sustainability: Environmental practices and regulations driving change.
  • Off-Premises Dining: Delivery and pickup are more popular, affecting packaging needs.
  • Menu Strategies: Simplification and premium add-ons cater to diverse customer segments.

Sources: Foodservice Equipment & Supplies, Modern Restaurant Management

Evolving Nonalcoholic Beverage Market

Nonalcoholic drinks are gaining popularity:

  • Sophisticated sodas with unique flavors like rose and cardamom.
  • Nonalcoholic beers from brands like Athletic Brewing and Guinness 0.
  • Consumers seek health-oriented options without sacrificing taste.

Sources: Eater, Food & Wine

Debunking Organic Food Myths

Common myths and facts:

  • Myth: Organic uses as many pesticides as conventional farming.
    • Fact: Organic allows limited natural pesticides; conventional uses more synthetic pesticides.
  • Myth: Organic offers no health benefits.
    • Fact: Organic reduces pesticide residues and protects farmworkers.

Understanding the true benefits of organic agriculture is crucial.

Source: Salon.com

The rise of GLP-1 hormone mimicking medications:

  • Consumers eat 20-30% fewer calories.
  • Food industry adjusts with nutrient-dense, higher-protein products.
  • AOMs market projected to reach $100 billion by 2030.

Source: Food Business News

Wheel of Fortune Mishap Entertains Viewers

  • Contestant Gaelyn Nease mistakenly guesses "New York Cheesesteak" instead of "New York Cheesecake".
  • Fans react humorously on social media.

Source: Salon

Mastering KPIs for Restaurant Success

Key Performance Indicators (KPIs) are essential:

  • Categories include Brand-Level, Direct Supervisor, and Store-Level KPIs.
  • Visibility: Use scoreboards and gamify progress.
  • Training: Educate new hires on KPIs during orientation.
  • Trends Over Perfection: Focus on continuous improvement.

Source: FSR Magazine

Strengthening Communities Through Partnerships

Restaurants partnering with local farms:

  • Provides fresh ingredients and supports the local economy.
  • Enhances sustainability practices.
  • Creates unique menu offerings with seasonal produce.

Source: FSR Magazine

Transforming Restaurant Technology

  • Automation and AI address labor shortages.
  • Sweetgreen's Infinite Kitchen improves order accuracy.
  • 60% of restaurants plan tech investments to enhance customer experience.
  • AI voice ordering gains traction in drive-thrus.

Source: Foodservice Equipment & Supplies

AI's Role in Foodservice and Hospitality

Artificial Intelligence enhances:

  • Operational Efficiency: Streamlines tasks and analyzes data.
  • Inventory Management: Real-time monitoring reduces waste.
  • Employee Training: Improves comprehension with tailored materials.

Implementing AI responsibly is key to success.

Source: Total Food Service

Challenges and Solutions in Restaurant Ownership

Reddit users discuss:

  • Wage considerations for closing shifts: Debating higher pay for additional responsibilities.
  • Reducing burger order modifications: Streamlining orders to improve service speed.
  • Spam calls: Dealing with scam calls posing as delivery services.
  • Fair discounts for staff: Balancing benefits for employees and business costs.

Source: /r/restaurantowners

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