January 9th QSR Roundup: Exploring Growth Through Acquisitions, Empowering Leaders, and Transforming the Restaurant Landscape

QSR news for Jan 9th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 83 articles to bring you the latest. Estimated reading time saved (at 200wpm): 255 minutes. It'll take you only 8 minutes to catch up.

Growth Through Acquisitions

Rita's Italian Ice Acquired by Maple Park Capital Partners

Private equity firm Maple Park Capital Partners has acquired a majority stake in Rita's Italian Ice, the largest Italian ice concept globally with over 575 locations. This partnership is set to accelerate Rita's expansion, building on its 40-year legacy. CEO Linda Chadwick emphasized the potential for growth, stating that the firm’s investment will drive the brand forward.

Kelly's Roast Beef Joins Forces with AAM15 Management

AAM15 Management has acquired Kelly's Roast Beef, a 74-year-old sandwich chain famous for its North Shore roast beef sandwich. The deal includes the brand's four flagship locations in Massachusetts. Plans are underway to open three new locations in 2023 and six more in 2024. CEO David Masse aims to honor Kelly's legacy while expanding its reach and enhancing franchise opportunities.

Sources: QSR Magazine, Restaurant Business

Empowering Young Leaders at Jeremiah's Italian Ice

• Rapid Growth: Jeremiah's Italian Ice began franchising in 2019 and has grown to 165 locations.
• Career Climb: Julianna Voyles, who started as a teen employee, has risen to Senior Director of Franchise Operations.
• Promoting from Within: The company focuses on internal promotions and training young leaders, vital for its expansion into new markets.
• Strategic Expansion: Targeting family-friendly suburban areas across the southeastern U.S.
• Youthful Leadership: Emphasizes a younger executive team to bring fresh ideas and relatable leadership styles.
• Innovation Ahead: Upcoming to-go program marks a new growth chapter for the brand.

Voyles highlights the brand's role as a stepping stone for many, especially first-generation college students, showcasing its commitment to employee development.

Source: QSR Magazine

Athletes Turned Franchisees: Football Stars in the Restaurant Business

Professional football players are transitioning into restaurant franchising, leveraging skills from their sporting careers.

• Cam Jordan, eight-time Pro Bowler, opened eight Little Caesars locations in Indianapolis, emphasizing teamwork and trust with franchisee Andrew Feghali.
• Vernon Davis, retired NFL player, operates multiple Jamba franchises and has expanded into other restaurants, crediting his success to a strong ownership team and leadership skills from football.
• Anthony Cioffi joined his family’s Salad House franchise, applying time management skills from college football.

These athletes underline the importance of teamwork, skills transfer, and strong support in their business ventures.

Source: QSR Magazine

Yum! Brands Cuts Ties with Turkish Franchisee

Yum! Brands has terminated its partnership with Turkish franchisee IS Gida, affecting 537 restaurants: 283 KFC and 254 Pizza Hut locations.

• Reason for Termination: IS Gida failed to meet brand standards and reported significantly lower sales than global averages.
• Financial Impact: Yum! anticipates a $60 million fourth-quarter cost due to the termination and recent acquisition of its German operations.
• Future Plans: Despite closures, Yum! plans to re-enter the Turkish market, emphasizing the importance of capable franchisees to ensure high-quality experiences for customers.

Sources: QSR Magazine, Restaurant Business

Qdoba's Ambitious Expansion Plans

Qdoba has signed 10 franchising agreements for 77 new restaurants, building on strong sales momentum with 16 consecutive quarters of growth.

• Growth Strategy: Aims to open 1,000 cafes in the U.S. by 2030.
• Incentives for Franchisees: Offering a $100,000 incentive for franchisees to open more units by September 2026.
• Non-Traditional Locations: Expansions include agreements with military restaurants, airports, and universities.
• Franchise Commitment: Existing franchisees are expanding, demonstrating confidence in the brand.

Jeremy Vitaro, Chief Development Officer, emphasizes that "Qdoba's growth has never been stronger."

Sources: Restaurant Dive, Networld Media Group

Gen Z Food Trends Shaping Menus in 2025

Gen Z is redefining flavor profiles with distinctive trends influencing fast-casual menus:

• Swicy (Sweet and Spicy): Conversations increased by 27.82%; Taco Cabana's Tajin Mango Fried Pie showcases this trend.
• Swalty (Sweet and Salty): Cravings rose by 5%, expected to grow by 32% over the next three years; brands like Crumbl Cookies are tapping into this.
• Newstalgia: Reimagining comfort foods; Taco Cabana’s enhanced queso nachos exemplify this shift.
• Asian Influence and Mash-ups: Bold flavors like Korean and Vietnamese are gaining popularity; Shake Shack's Thai Iced Tea Shake and Bonchon’s MoPo Corn Dog are notable examples.

These trends reflect Gen Z's craving for innovative and adventurous dining experiences.

Sources: Fast Casual, Networld Media Group

Krispy Kreme's Leadership Changes and Exciting Collaborations

Leadership Promotions:

• Nicola Steele promoted to Chief Operating Officer, focusing on global operations and efficiency.
• Dave Skena takes on Chief Growth Officer, pushing omnichannel and digital sales.
• Raphael Duvivier leads as President of International, guiding market development.
• Alison Holder elevated to Chief Product Officer, enhancing global product quality and sourcing.

Collaborations:

• Krispy Kreme & Pop-Tarts Unite: Launched a new doughnut collection featuring flavors like Frosted Strawberry and Frosted Brown Sugar Cinnamon.
  • Dave Skena, Chief Growth Officer, emphasizes the excitement of this first-time alliance.
• Aim: To delight fans with a blend of two iconic brands, offering unique and nostalgic flavors.

Sources: Restaurant Dive, QSR Web

Uber and Delta Partnership Enhances Rewards Program

Uber and Delta Air Lines have partnered to allow customers to earn Delta SkyMiles through Uber Eats and Uber rides.

• Earning Opportunities:
  • Spend $40 or more on Uber Eats: 1 mile per dollar.
  • UberX rides: 1 mile per dollar.
  • Premium rides: 2 miles per dollar.
  • Scheduled rides: 3 miles per dollar.
• Benefit: Incentivizes Uber and Uber Eats usage among Delta’s 120 million SkyMiles members.

This collaboration is part of a trend among delivery apps to enhance offerings through strategic partnerships.

Source: Restaurant Business

Devastating Fires Impact Los Angeles Restaurants

Wind-driven wildfires have caused widespread destruction in Los Angeles.

• Extent of Damage:
  • Approximately 1,000 structures destroyed, including homes and businesses.
  • At least two fatalities reported.
• Affected Areas: Pacific Palisades, Santa Monica, Malibu, and Pasadena.
• Evacuations: Tens of thousands evacuated, with many fleeing in panic.
• Restaurant Losses:
  • Popular spots like Duke’s Malibu and The Reel Inn suffered severe damage or destruction.
  • Others like Sweetgreen and Everytable pledged support to victims and first responders.

Community support efforts are ramping up amidst the crisis.

Sources: Restaurant Business, Eater LA

Winter Patios Revamped with Electric Heating Solutions

Restaurants are transforming outdoor spaces for winter profitability.

• Electric Heating: Enhances comfort, extends seating capacity, and maintains atmosphere.
• Cost-Effective:
  • Average electricity cost of 16 cents per kWh.
  • Potential government incentives for upgrades.
• Infrared Heaters: Provide instant warmth without environmental emissions.
• Benefits:
  • Improved customer comfort.
  • Longer stays and higher spending.
  • Boosts revenue during colder months.

Investing in efficient heating systems ensures consistent outdoor service and enhances guest experiences.

Source: Modern Restaurant Management

Leadership Change at Bloomin' Brands

Pat Hafner promoted to EVP and President of Outback Steakhouse.

• Career Journey: Started as a server at Outback, climbing to regional VP and president of Carrabba's.
• Challenges:
  • Outback faces declining same-store sales, down 1.3% in Q3.
  • Focus on value-driven promotions to increase traffic.
• Strategic Direction: Aims to bolster team capabilities to reverse sales declines and enhance customer experiences.

This change follows significant leadership updates, including a new CEO at Bloomin' Brands.

Source: Restaurant Dive

Innovative Collaborations: Philz Coffee and Simon Sinek

Philz Coffee teams up with author Simon Sinek to launch a limited-time Optimism Coffee and Cup of Optimism mug.

• Product Details:
  • Optimism Coffee blend features hints of hazelnut, caramel, and toasted pecan.
  • Pricing: $25 each; coffee and mug bundle for $45.
• Purpose: Aims to inspire consumers to start the year on a positive note, delivering optimism with every sip.

Sinek expresses enthusiasm, stating he enjoys Philz coffee daily, aligning their missions to spread positivity.

Source: Fast Casual

Gen Z's Influence on Fast-Casual Menus

Gen Z is driving new trends in flavor profiles, reshaping fast-casual offerings.

• Swicy Flavors: Blend of sweet and spicy; conversations increased by 27.82%.
• Swalty Flavors: Combination of sweet and salty; cravings up by 5%.
• Newstalgia: Reimagined comfort foods; appeals to Gen Z's desire for nostalgic yet innovative dishes.
• Asian Influences: Growing popularity of bold flavors from Korean and Vietnamese cuisines.
• Mash-ups: Creative combinations like Bonchon’s MoPo Corn Dog, tapping into multiple trends.

These trends showcase Gen Z's craving for unique and adventurous dining experiences.

Sources: Fast Casual, Networld Media Group

Krispy Kreme's Expansion and Product Innovation

Krispy Kreme reports a 1.9% sales increase to $1.23 billion in Q3 2024.

• Expansion: Growth driven by expansion in Target and Walmart locations.
• Goal: Aiming for 15,000 US locations by 2026.
• Product Innovation: Launching collaborations like the Pop-Tarts doughnut collection.
• Leadership: CEO Josh Charlesworth emphasizes the team's commitment to operational excellence and brand passion.

Sources: Food Business News

Restaurants Embrace New Year Realism with Limited-Time Offers

As January progresses, restaurants launch health-focused limited-time offers.

• Sweetgreen: Promotes a protein-packed, seed oil-free menu.
• Chipotle: Collaborates with Strava to motivate users.
• Arby’s: Introduces a ‘New Year, Same You’ menu with healthier twists on classics.
• Scooter's Coffee: Offers half-priced cinnamon rolls on ‘Quitter's Day’, promoting a Protein Cold Foam.
• Smoothie King: Launches a Resolution Menu targeting weight-loss drug users.

These offers reflect a shift towards health-conscious options as New Year's resolutions fade.

Source: Restaurant Business

Positive Developments Amidst Industry Challenges

Despite obstacles, the restaurant industry shows resilience through:

• Collaboration and Innovation:
  • Partnerships like Uber and Delta enhance rewards programs.
  • Creative alliances like Philz Coffee and Simon Sinek inspire consumers.
• Adaptation:
  • Restaurants revamping menus to cater to changing consumer preferences, especially among Gen Z.
• Expansion Plans:
  • Brands like Qdoba and Paris Baguette are aggressively expanding, signaling confidence in future growth.

The industry continues to evolve, focusing on customer experiences and innovative offerings.

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