January 7th QSR Roundup: Panera's Leadership Shakeup Sparks Menu Revamp as Fast Casual Brands Expand Nationwide

QSR news for Jan 7th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 106 articles to bring you the latest. Estimated reading time saved (at 200wpm): 295 minutes. It'll take you only 12 minutes to catch up.

Leadership Changes and Company Strategies

Panera Brands CEO Steps Down

Panera Brands is experiencing significant leadership changes as CEO José Alberto Dueñas resigns amidst preparations for a potential IPO. Dueñas, who led a successful menu transformation and improved margins, will remain as a special advisor until the end of March. CFO Paul Carbone has been appointed interim CEO while the board searches for a permanent leader, considering both internal and external candidates.

Recent developments include:

• Potential Sale: Panera may sell Caribou Coffee and Einstein Bros. Bagels, seeking a valuation of 10 times EBITDA.
• Corporate Restructuring: A reduction of 17% in corporate staff (about 300 employees) to streamline operations.
• IPO Delays: Plans for a public offering appear stalled despite previous preparation.

These changes reflect Panera's strategy to refocus and strengthen its core brand in a competitive market.

Sources: QSR Magazine, Restaurant Business, Restaurant Dive

White Castle Names New President

In a historic move, White Castle appoints Anthony Joseph as its new president, marking the first time a non-family member has held the role in the company's 104-year history. Joseph, who has been with White Castle since 2016 as Chief Administrative Officer and General Counsel, will now oversee retail and manufacturing divisions.

Highlights:

• Joseph aims to continue expanding the brand, with recent openings in Phoenix and Orlando.
• Under his tenure, the company sold its 6 billionth Slider and initiated a significant expansion in Ohio.
• CEO Lisa Ingram praises Joseph's strategic planning and leadership skills.

This leadership change signifies White Castle's commitment to growth while preserving its rich legacy.

Sources: QSR Magazine, Fast Casual

McDonald's Adjusts DEI Strategy

McDonald's is scaling back its diversity, equity, and inclusion (DEI) efforts by discontinuing aspirational representation goals and mutual commitments with suppliers. CEO Chris Kempczinski announced a shift towards a 'global inclusion team' and a focus on daily inclusion practices over numerical targets.

Key Points:

• The company will continue to report demographic data in its annual Purpose and Impact report.
• Civil rights organizations warn that abandoning DEI efforts may harm business success and shareholder value.
• McDonald's introduces a 'golden rule' emphasizing treating everyone with dignity and respect.

This move reflects a strategic repositioning in McDonald's approach to inclusivity and diversity.

Sources: Restaurant Business, Restaurant Dive, Nation's Restaurant News

Presto Automation Enters New Chapter

Presto Automation has been sold to a consortium of investors, including previous backers, with a capital infusion of $18 million to accelerate growth. The company, now under the name Presto Phoenix, focuses on its innovative AI voice systems for drive-thrus.

• CEO Gee Lefevre plans to be aggressive in growing sales over the next few months.
• Presto aims to become the largest drive-thru voice AI company in the U.S.
• The acquisition allows for a fresh strategy after pivoting from their tabletop tablet business.

Presto's pivot signifies a commitment to technological innovation in the quick-service restaurant industry.

Sources: Restaurant Business, Nation's Restaurant News

Restaurant Expansions and Openings

Krak Boba's Nationwide Expansion

Krak Boba, known for its bold flavors and customizable drinks, expanded nationally in 2024 by opening 14 new locations, including its first stores in Florida, Texas, Indiana, and Colorado. CEO Tin Do highlights this milestone as a sign of growing excitement for the brand, which now totals 23 locations nationwide.

• The menu features classics like milk teas and fruit teas with various toppings.
• Emphasis on quality ingredients and customer experience.
• Aims to create vibrant spaces for boba lovers and connect with communities.

Krak Boba's expansion reflects the rising popularity of bubble tea across the U.S.

Source: QSR Magazine

Paris Baguette Expands to Phoenix

Paris Baguette continues its rapid growth in North America, opening a new café in Phoenix on January 11, marking over 200 locations nationwide. Franchisees Sam Yoon and Thomas Park lead the expansion, with plans for more locations in Arizona.

• Yoon, with five locations in California, aims to open a Chandler location by Summer 2025.
• The brand aims for 1,000 U.S. locations by 2030, partnering with local entrepreneurs.
• CEO Darren Tipton emphasizes revitalizing the neighborhood bakery café.

Paris Baguette's expansion signifies its commitment to bringing quality baked goods and coffee to communities across the country.

Source: QSR Magazine

Madras Dosa Co. Launches in NYC

Madras Dosa Co. is set to open its first New York City location in Times Square, introducing customizable South Indian cuisine. Founded in Boston in 2021, the restaurant specializes in:

• Dosas: Customers can create their own with various fillings and toppings.
• Rice Pilaf, Canteen Sandwiches, and Chaat.
• Features floral designs and a mural by local artists.

CEO Koushik Koganti aims to showcase the diversity of Indian food, with plans to open three more locations in Manhattan by the end of the year.

Source: Fast Casual

Domino's Expands in China

Domino's Pizza China has entered 13 new cities with 14 new stores, significantly expanding its footprint.

• Now operates in 46 cities across China.
• Focused on local demand and market potential.
• Plans to open 300 to 350 new stores in 2025 and 2026.

CEO Aileen Wang emphasizes a consumer-centric approach, aiming for top-notch quality and service.

Source: Pizza Marketplace

New Menu Items and Promotions

KFC Unveils Flavor-Packed $5 Bowls

KFC launches five new flavor-packed bowls for just $5 each, including:

• Nashville Hot Loaded Fries Bowl
• Classic Famous Bowl
• Mac & Cheese Bowl

The Nashville Hot Sauce returns for a limited time, along with new digital exclusive bowls like the Korean BBQ Mac & Cheese. KFC also celebrates Quitter’s Day with a special deal for rewards members.

Highlights:

• Offers hearty meals at an affordable price.
• Emphasizes KFC's commitment to flavorful and innovative menu items.
• Rewards members receive exclusive promotions.

Sources: QSR Magazine, /r/fastfood

Krispy Kreme's "Crazy Good" Collaboration with Pop-Tarts

Krispy Kreme teams up with Kellanova to unveil the Crazy Good donut collection inspired by Pop-Tarts flavors. The collection includes:

• Frosted Strawberry
• Frosted Chocolatey Fudge
• Frosted Brown Sugar Cinnamon

Dave Skena, Krispy Kreme's Chief Brand Officer, emphasizes the excitement of this unique collaboration, offering fans a delightful fusion of two beloved treats. The limited-time offering is available in-store, pickup, or delivery, and select retailers sell them in six-pack boxes.

Sources: Food Business News, Nation's Restaurant News

Whataburger Celebrates 75th Anniversary

Whataburger marks its 75th anniversary by reintroducing fan-favorite menu items for a limited time:

• Monterey Melt
• Chicken Fajita Taco
• New beverages: Mexican Hot Chocolate Coffee and Shake

Newly appointed CEO Debbie Stroud emphasizes celebrating loyal fans while keeping the menu fresh. The chain operates 1,070 restaurants across 16 states.

Sources: Fast Casual, QSR Web

Sustainability and Innovation

Inline Plastics Wins Sustainable Packaging Award

Inline Plastics receives Progressive Grocer's 2024 Impact Award for its groundbreaking sustainable packaging initiatives.

Key Achievements:

• 'Reborn' Program: Utilizes patented low carbon footprint material (DPET) with 10% post-consumer PET content (rDPET).
• Third-party Verification: Pre-qualified with How2Recycle for recycling labels.
• Industry Impact: Sets standards in sustainable food packaging, focusing on resource conservation.

Senior Brand Manager Carrie Cline emphasizes building trust through transparent and innovative packaging solutions.

Source: QSR Magazine

Need Technologies Launches with a Client-First Ethos

Need Technologies, founded by industry veteran Charles Freedman, launches to provide AV integration and telecom solutions.

Highlights:

• Mission: “We listen to what you want, and guide you to what you need.”
• Offers consulting, system design, installations, and service contracts.
• Specializes in ProAV, security technology, and Unified Communications.
• Multilingual website in English and French, reflecting inclusive values.
• Commitment to honesty, transparency, and trust.

Freedman expresses excitement about creating functional and enjoyable spaces for clients.

Source: QSR Magazine

Energy Savings Opportunities for Restaurants

Connecticut restaurants can significantly reduce costs and promote sustainability through the Commercial Foodservice Equipment Rebate Program offered by local utilities.

Key Benefits:

• Rebates Up to $1,500 for installing energy-efficient equipment.
• LED Lighting Solutions to reduce energy waste.
• Ventless Electric Cooking technology offers flexibility without costly ventilation.
• Community Impact: Sustainable practices enhance customer loyalty.
• Expert Guidance is available to navigate the rebate process.

Participating in these upgrades promotes both economic savings and environmental stewardship.

Source: Total Food Service

Industry Recognition and Awards

José Andrés Receives Presidential Medal of Freedom

Renowned chef and humanitarian José Andrés is awarded the U.S. Presidential Medal of Freedom, honoring his work with World Central Kitchen (WCK).

• WCK has provided over 450 million meals in crisis situations globally.
• Andrés is known for popularizing tapas in the U.S. and operates a collection of restaurants in D.C.
• The award acknowledges his contributions to American values and global peace.

This prestigious honor reflects Andrés' significant impact on humanitarian efforts through food.

Sources: Restaurant Business, Nation's Restaurant News

Top 100 Pizza Movers & Shakers Nomination Extended

The deadline for Pizza Marketplace's Top 100 Movers & Shakers nominations has been extended to Jan. 24, inviting pizzeria brands to showcase their achievements.

• The annual list highlights growth, sales, and innovation within the industry.
• Features 75 brands and 25 top executives.
• Winners will attend an exclusive gala at the International Pizza Expo in March.

This is a fantastic opportunity for brand recognition and networking within the pizza industry.

Source: Pizza Marketplace

Challenges in the Industry

Fast-Food Value Wars Intensify

McDonald's launches a permanent McValue menu featuring promotions with John Cena, competing with Subway's new $6.99 'Meal of the Day' and KFC's revived $5 Bowls.

• January is a common period for value promotions as sales typically dip.
• Rising costs and profitability concerns loom over franchisees amidst a consumer spending pullback.
• McDonald's offers include discounts that can earn customers free services from brands like YouTube TV and American Airlines.

These aggressive value offerings reflect the competitive landscape of the fast-food industry.

Source: Restaurant Business

Food Service Industry Faces 2025 Challenges

The food industry anticipates significant hurdles in 2025 related to inflation, labor costs, and regulatory changes.

Key Challenges:

• Inflationary Pressures: High raw ingredient prices due to ongoing inflation and shifting weather patterns.
• Labor Shortages: Strikes and a tightening labor market make finding qualified workers difficult.
• Regulatory Impacts: New compliance measures could stifle innovation, leading to higher consumer prices.
• Pending Federal Funding: Delays in $120 billion federal funding aimed at food insecurity programs.

The industry is bracing for a complex year with multiple interlinked challenges.

Source: Modern Restaurant Management

Cultural and Culinary Trends

Exploring Unique Travel Destinations for Culinary Adventures

In 2025, travelers are encouraged to explore less crowded destinations, emphasizing unique culinary experiences over typical tourist hotspots.

• Novelty Seekers: Frustrated by overcrowded spots, seeking authenticity.
• Recommended destinations include Messenia's olive groves and Mérida’s Yucateco cuisine.
• 18 unique locations feature local chefs and vendors showcasing their rich food cultures.

These spots promise a true escape with authentic tastes and cultural experiences.

Source: Eater

King Cake Traditions Around the World

The King Cake is a celebratory pastry associated with Epiphany and Mardi Gras, featuring a hidden trinket symbolizing good luck.

• Global Variations: France's Galette des Rois, Spain's Rosca de Reyes, Portugal's Bolo Rei.
• Originated in Old World France and Spain, evolving in the New World with Catholic traditions.
• Nationwide shipping options are available for king cakes, including unique flavors from New Orleans bakeries.

The King Cake embodies a rich cultural heritage shared across different countries.

Source: Eater

Technology and Innovation in Restaurants

Bojangles Expands Kiosk Use

Bojangles partners with Grubbrr to roll out kiosks across its 800 locations to improve customer experience.

• Chief of Staff Richard Del Valle highlights the need to cater to diverse guest preferences.
• Kiosks enhance order accuracy and reduce staff stress.
• Implementation includes clear metrics to maintain brand values.

This move reflects the growing trend of technology integration to enhance restaurant operations.

Source: Fast Casual

McDonald's Launches McValue Menu with John Cena

McDonald's introduces the McValue menu with savings available all day, every day, partnering with actor John Cena.

• Offers include Buy One, Add One for $1, and the signature $5 Meal Deal.
• McDonald's invests $3 million in advertising for this campaign.
• John Cena praises the menu for allowing fans to mix and match their favorite items.

This initiative aims to provide value to customers amid a competitive fast-food market.

Sources: Fast Casual, Restaurant Business

Mergers and Acquisitions

Midas Foods Acquires J.M. Exotic Foods

Midas Foods International acquires J.M. Exotic Foods, a spice, sauce, and seasoning manufacturer based in Alabama.

• Enhances innovation in dry-blend sauces and gravies.
• Expands into retail packaging and shaker bottles.
• Aims to broaden market reach with significant investment.

This acquisition allows Midas to leverage advanced food technology and expand product innovation.

Source: Food Business News

Advent Acquires Sauer Brands

Private equity firm Advent International acquires Sauer Brands Inc., owner of popular condiment brands like Duke’s Mayo.

• Advent plans to expand Sauer's reach and strengthen its portfolio.
• The acquisition reflects growth opportunities in the condiments and seasonings market.
• Sauer has over 135 years of industry experience.

Source: Food Business News

Legislation and Regulatory Changes

California Targets Ultra-Processed Foods

California Governor Gavin Newsom signs an executive order to reduce risks associated with ultra-processed foods.

Key Actions:

• Warning Labels: Products will bear labels in California.
• Investigating Ingredients: Ongoing investigations into synthetic food dyes and harmful additives.
• Healthy School Meals: Recommendations for higher standards by October 2024.
• Previous efforts include banning substances like Red No. 3.

This initiative aims to improve public health by promoting better food choices.

Source: Food Business News

Challenges Ahead for WIC Program

The WIC program, serving 6.7 million low-income mothers and children, faces potential funding cuts.

• Participation increased by 5.3% recently due to pandemic innovations.
• Advocates warn of a $1 billion shortfall with the upcoming administration.
• Remote and online access improvements may expire, creating barriers.
• Concerns over political challenges in Congress affecting future funding.

The future of WIC hangs in the balance amidst budget cuts and policy changes.

Source: Civil Eats

Interesting Tidbits

Dunkin' Launches Body Care Line

Dunkin' partners with Native to launch a limited-edition body care collection exclusively at Walmart.

• Features scents inspired by Dunkin's donuts, like Strawberry Frosted and Vanilla Sprinkle.
• Includes deodorant, body wash, shampoo, and lotion.
• Enhances routines with playful aromas.

This unique collaboration blends fun with personal care, expanding Dunkin's brand presence.

Source: Networld Media Group

Spam Musubi Memories

A nostalgic journey of discovering Spam musubi, a beloved Hawaiian treat.

• Author shares a formative middle school experience leading to a lifelong love for Spam musubi.
• Challenges in finding it after moving from Los Angeles to New York.
• Purchase of a musubi press to recreate the snack at home with various toppings.

The story highlights the cultural impact of food and personal connections.

Source: Eater

Akabanga Chile Oil Craze

The Rwandan favorite Akabanga chile oil brings intense heat and flavor to dishes.

• Created by Sina Gerard in the 1980s.
• Celebrated by chefs and food lovers for its unique taste.
• Evolved from homemade staples to iconic bottles found across Africa and beyond.

Akabanga's rise reflects the global appreciation for bold, authentic flavors.

Source: Eater

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