March 13th QSR Roundup: Tariff-Driven Equipment Price Increase and Other Restaurant News

Interviewy Team

Interviewy Team

— 12 min read
March 13th QSR Roundup: Tariff-Driven Equipment Price Increase and Other Restaurant News
QSR news for Mar 13th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 82 articles to bring you the latest. Estimated reading time saved (at 200wpm): 270 minutes. It'll take you only 13 minutes to catch up.

Olo's $29 Billion Digital Sales Surge and Data-Driven Strategy

Olo, a leading digital ordering platform, reported a staggering $29 billion in sales from restaurants using its solutions last year. Yet, digital orders represent just 18% of total restaurant sales, unveiling a massive $160 billion opportunity in nondigital orders.

CEO Noah Glass emphasizes the urgency for restaurants to harness guest data to create personalized experiences. By integrating with payment platforms like FreedomPay, Olo now supports card-present transactions, allowing restaurants to capture valuable insights from in-store customers.

  • Pilot brands have seen:
    • Faster transaction processing
    • Improved sales tracking through new payment methods

A standout success story is California Fish Grill, which achieved a 41% increase in known guests and generated $7 million in digital order revenue without relying on discounts, instead using targeted marketing.

Glass cautions against depending solely on price cuts to drive sales, advocating for a deeper understanding of customer preferences to attract profitable traffic.

Source: QSR Magazine

El Pollo Loco's Flavorful Turnaround and Expansion Plans

El Pollo Loco's CEO Liz Williams believes in the power of their existing menu, highlighting the quality of their signature fire-grilled chicken and handmade salsa. The introduction of the Mango Habanero flavor spiced up sales and customer excitement, all while being easy for staff to execute.

Future innovations include:

  • Fresco Wraps and Hearty Quesadillas targeting on-the-go consumers
  • A 2024 remodel program starting with 52 restaurants, planning 60-80 more this year to refresh the brand's image

Financial highlights:

  • 0.6% increase in systemwide sales early 2024
  • 9% increase in average check despite fewer transactions
  • Plans to open 10 new locations in 2025 outside California

Franchise partners are showing growing excitement, marking the first year of a three-year expansion plan focused on quality, branding, and improving contribution margins by 190 basis points.

Source: QSR Magazine

Franchisors are under pressure to meticulously update their Franchise Disclosure Documents (FDDs) to adhere to federal regulations by the first quarter of 2025. The FDD, organized into 23 distinct topics, details crucial franchise information like initial fees, investment estimates, and performance data.

Failure to comply can result in severe legal consequences, making it imperative for franchisors to pay close attention to both federal and state franchise laws.

Source: QSR Magazine

Noodles & Company's Menu Revamp: 18 Months in the Making

After 18 months of research and testing, Noodles & Company unveiled a revamped menu designed to attract new customers while retaining loyal patrons.

New offerings include:

  • Buffalo Chicken Ranch Mac & Cheese
  • Cajun Shrimp Fettuccine
  • Upgraded classics like Creamy Cheddar Mac & Cheese, now with more cheese and improved ingredients

The goal was to close menu gaps and enhance flavor profiles, guided by extensive customer feedback. The positive reception is reflected in 3% growth in same-store sales in Q1.

Additional highlights:

  • New branding focuses on expertise in noodles rather than lifestyle marketing
  • Upcoming menu items set to launch in May, reinforcing a commitment to quality and innovation

Sources: QSR Magazine, Restaurant Business

Whataburger's Immersive Art Exhibit Celebrates 75 Years

Whataburger marked its 75th anniversary by launching an immersive art gallery featuring fan-made installations: acrylic nails, crocheted meals, oil paintings, and more.

Highlights:

  • Featured artist Khia Ancalade presented “Convos & Comfort Food,” emphasizing the communal aspect of dining
  • The exhibit originated from the Whataburger Museum of Art, co-created in 2020, which pivoted to Instagram during the pandemic and amassed 22,600 followers
  • The gallery opening coincided with the return of popular menu items and celebrates the brand's legacy and community connection
  • Planning is underway to bring the exhibit to additional locations nationwide, showcasing appreciation for fans and their creativity

Source: QSR Magazine

Starbucks Rethinks Store Design to Reignite the 'Third Place' Experience

Under CEO Brian Niccol, Starbucks is reimagining its coffee shop experience to create more welcoming spaces for in-store customers while balancing mobile and takeout orders.

Key changes being tested include:

  • New store designs: Comfortable settings with expanded seating, power outlets, and dedicated mobile order pickups
  • Return to roots: Baristas writing names on cups, focusing on creating a warm coffeehouse feel
  • Despite recent sales drops, average U.S. unit volumes surged by 35% from 2018 to 2023, though the shift to drive-thrus and mobile orders may have diluted the brand’s essence
  • Niccol emphasizes the importance of coffee shops as gathering places, stating, “That third place is probably more necessary than it ever has been.”

Sources: Restaurant Business, Restaurant Dive

Junior Bridgeman's Inspiring Transition from NBA to Franchise Mogul

Former basketball star Junior Bridgeman capitalized on his sports career by successfully operating Wendy's and Chili's franchises.

Key points:

  • Bridgeman's story serves as an inspiration for athletes on financial preservation
  • His business model showcases how sports figures can wisely navigate finances for future stability and growth
  • Demonstrates the potential for entrepreneurial success beyond athletic careers

Source: Restaurant Business

Wonder Acquires Tastemade to Build a Food Media Empire

Wonder, a company specializing in food hall delivery and meal kits, has acquired Tastemade, a producer of cooking shows and food content.

Implications:

  • This merger enables Wonder to create a media network that combines Tastemade's content with Wonder's restaurant brands
  • Enhances advertising opportunities by showcasing Wonder meals within Tastemade's content
  • Aligns with Wonder’s goal to become a 'super app for mealtime,' supported by their ever-growing business operations and a significant $1.6 billion in funding

Sources: Restaurant Business, Nation's Restaurant News

Craveworthy's Ambitious Goals and Acquisition of Kinnamōns

Investor Ndamukong Suh, a former NFL player, joins Craveworthy Brands to boost its growth, including acquiring Kinnamōns, a cinnamon roll business.

Highlights:

  • Co-founder Suh and CEO Gregg Majewski aim for $1 billion in sales within five years
  • Plan strategic franchising of restaurant brands after ensuring operational efficiency
  • Kinnamōns is known for fresh, locally sourced ingredients and flavors like caramel apple pie and maple bacon
  • Craveworthy operates 16 brands, including Dirty Dough Cookies and Shaquille O’Neal’s Big Chicken

Sources: Restaurant Business, Food Business News

McDonald's Strategic Shift Amid Fast-Food Competition

McDonald's is adjusting its strategies to compete in a diversified fast-food landscape with more focused concepts.

Key strategies:

  • Committed to innovation while staying true to its core offerings
  • Focusing on enhancing chicken offerings to gain an additional 1% market share
  • Creating three new teams for beef, chicken, and beverages/desserts
  • Aiming to balance digital convenience with in-store experiences

Facing tough competition as consumers seek specialized menus and experiences, McDonald's recognizes the importance of evolving with customer preferences as they navigate the changing culinary scene.

Sources: Restaurant Business, Nation's Restaurant News

Nuclear Verdicts on the Rise: A Threat to Restaurants

Nuclear verdicts, where juries award over $10 million, have surged, totaling over $14.5 billion in 2023 alone—a 15-year high.

Statistics:

  • States like California, Georgia, and Florida account for 61% of such high awards

Implications:

  • These verdicts threaten the viability of restaurants by potentially raising insurance costs and operational expenses
  • Restaurant owners are urged to enhance safety protocols and proper staff training
  • Despite challenges, the restaurant industry is booming, with 2024 projected to surpass $1 trillion in sales and adding 200,000 jobs

Source: Modern Restaurant Management

Move over, seafood towers—the hot dog tower is the new star in the restaurant scene.

Notable examples:

  • Trina’s Starlite Lounge offers a tower with five hot dogs, fries, and sauce for $35, selling 40 towers nightly
  • Highroller Lobster Co. combines six hot dogs and six corn dogs for $75
  • Sir Wieners in Charleston sparked a social media hit with its three-tiered wiener tower, accruing 8 million views on Instagram

Why the buzz?

  • Priced between $35 and $60, hot dog towers offer both affordability and fun, appealing to diners seeking comfort food with a playful twist
  • Emphasizes playfulness in dining, serving hot dogs with flair, sparklers, and a VIP experience, making it an enjoyable centerpiece for gatherings

Source: Eater

Tariff Troubles: Equipment Price Hike Looms for Restaurants

A commercial equipment dealer in the Midwest warns that tariffs will cause a 5-10% price increase on new restaurant equipment starting June 1st.

Reactions:

  • Commenters express concern about the rising costs, noting significant increases in equipment prices since 2022
  • Some note their fryer prices have increased by 50% since last year
  • Consensus among commenters that these increases are significant and could lead to a challenging environment for many businesses
  • Increased financial strain may cause some to sell off equipment

Source: /r/restaurantowners subreddit

A fine dining restaurant is urgently revamping its problematic tip system, primarily affecting the Front of House (FoH) staff.

Key issues:

  • Previous system included Back of House (BoH) tip-outs, now deemed legally unsustainable due to lack of transparency and fairness
  • The General Manager confirmed that BoH tip-outs will no longer be permitted, leading to fears of backlash from kitchen staff
  • Commenters express concerns about potential fallout and legal implications, with advice on structuring tip distribution fairly and warnings of possible lawsuits over past practices

The consensus highlights the necessity for a fair and legally compliant system while acknowledging that the change may lead to conflict among staff, especially those in the BoH.

Source: /r/restaurantowners subreddit

Starbucks Workers Push Back Amid CEO's Transformation Plans

Starbucks CEO Brian Niccol outlined plans to transform the brand with more comfortable and user-friendly coffeehouse experiences.

Employee perspective:

  • Worker Jasmine Leli pointed out ongoing operational issues, like staffing shortages, that still need urgent attention
  • CEO’s $97.8 million compensation contrasts starkly with the median barista wage of $14,674, raising concerns among union members about fair pay and slow progress in contract negotiations
  • Actions, including strikes by Starbucks Workers United, are increasing pressure on the company to invest more in its workforce
  • Unintended consequences from menu changes have also frustrated employees, as customers seek elaborate customizations

Source: Restaurant Dive

Tony Roma's Embraces Technology with AI and Robotics

Mohaimina Haque, CEO of Tony Roma's, envisions a tech-driven future for the restaurant, integrating AI and robotics into operations.

Key initiatives include:

  • AI and Robotics: Planning to enhance customer experience and streamline inventory management; predicting a significant rise in tech reliance across the industry within 2-5 years
  • Expansion Strategy: Aiming to revive Tony Roma's presence with a focus on smaller locations (3,000 sq ft); targeting cities like NYC and Orlando for corporate growth
  • Diverse Revenue Streams: Emphasizing delivery options as game changers to capture more customers without needing large spaces
  • Future Outlook: Haque believes technology will support employees rather than replace them, making operations more efficient and informed

Sources: Restaurant Dive, Retail Customer Experience

Navigating Casual Dining Bankruptcy Trends Post-Pandemic

The casual dining sector faced upheaval during and post-pandemic, leading to major bankruptcies and significant shifts in operation.

Notable cases:

  • CEC Entertainment: Emerged from Chapter 11 in 2020, remodeled 500 units, and launched a family-targeted subscription program
  • California Pizza Kitchen: Now aggressive in franchising and set for a 40th-anniversary expansion
  • Ruby Tuesday: Leveraging off-premise options with their virtual brand, focusing on value deals post-bankruptcy
  • Red Lobster: Declared bankruptcy in 2024, looking to revitalize with a new CEO and menu items
  • TGI Fridays: Declared bankruptcy in November 2024, currently restructuring by selling owned units

With the adaptability showcased by some chains, the future may hold promise for those that embrace change amid challenges.

Source: Restaurant Dive

Jollibee's Ambitious North American Expansion Plans

Jollibee aims to expand to 350 units in North America within a few years, driven by a growing franchising model.

Highlights:

  • Maribeth dela Cruz, who began as a shift manager in the Philippines, now leads its U.S. operations
  • Focus on cities with large Filipino communities and beyond
  • 76 stores in the U.S. and 28 in Canada, with ambitions to reach the top five global restaurant companies
  • Known for unique menu items like Chickenjoy fried chicken, spaghetti with sweet sauce, and Adobo rice
  • Targeting an average unit volume of $4 million
  • Strong demand bolstered by viral social media content

Sources: Networld Media Group, QSR Web

Combating Restaurant Reservation Scalping in Illinois

Illinois State Rep. Margaret Croke is advocating for the Restaurant Reservation Anti-Piracy Act to combat the illegal resale of restaurant reservations.

Key points:

  • $240 for a reservation at Monteverde highlights the outrageous cost of scalped reservations
  • $1,000 fines proposed for violating the new ordinance against unauthorized reservation sales
  • Lawmakers are following New York's lead to regulate scalpers who use bots to secure reservations, leading to no-shows and lost revenue for restaurants
  • Platforms like Resy and Tock support the measures due to the impact on small businesses and consumer relationships
  • Appointment Trader's founder argues his platform increases options for consumers and has measures to prevent bulk reservation purchases by bots
  • Croke emphasizes that the ordinance is consumer-first, aimed at protecting restaurant interests during tough economic times

Source: Eater

Feed Durham's Impact: A Community Feeding Thousands

Feed Durham is a mutual aid collective that has served over 180,000 people since its inception in 2020.

Key initiatives:

  • Supports 1,500 to 2,000 individuals per cookout using large-scale cooking equipment
  • Operates primarily through produce giveaways, distributing 20,000 pounds of food monthly from donations
  • Services cater to vulnerable groups including homeless individuals, elders, and underserved families—all at no charge
  • Focused on community empowerment, aiming to grow food sustainably and develop tech solutions for better food distribution
  • Hosts events like Repair Clinics and crafts Love Notes to accompany meals, promoting positivity and connection
  • Shifted strategies to adapt to the decline in volunteers post-vaccination, ensuring continued support for the community

Source: Civil Eats

Monk Fruit Sweetener: A Rising Star in Natural Alternatives

Demand for low-calorie sweeteners, particularly monk fruit extract, is rising among health-conscious consumers, especially those with dietary restrictions.

Benefits:

  • Derived from the Siraitia grosvenorii plant
  • 100-300 times sweeter than sugar
  • Zero calories and carbohydrates, making it ideal for diabetics
  • Offers antioxidant and anti-inflammatory benefits

Challenges:

  • Higher cost limits widespread use compared to alternatives like stevia
  • Potential side effects include mild bloating or allergic reactions

The increasing shift towards natural sweeteners suggests a promising future for monk fruit in the food industry.

Source: BlueCart

ICE Celebrates 50 Years of Culinary Education Evolution

The Institute of Culinary Education (ICE) celebrates 50 years of transforming culinary education through innovation and adaptability.

Highlights:

  • Founded in 1975 by Peter Kump, expanded from a small cooking school to bi-coastal campuses offering diverse programs
  • Rick Smilow, President and CEO, emphasizes evolving curricula to match industry demands, including sustainability and plant-based cuisine
  • ICE's offerings include specialized programs in restaurant management, food technology, and online education, making culinary training accessible to more students
  • Notable alumni include award-winning chefs like Mashama Bailey and Missy Robbins
  • Hosts events bridging education and industry insights, enhancing student experiences with professional knowledge
  • Plans to emphasize sustainability and technology in future programs, aiming to lead educational evolution for the next 50 years

Sources: Total Food Service, Modern Restaurant Management

EPA's Deregulatory Actions Raise Environmental Concerns

  • Over 30 deregulatory actions announced by EPA Administrator Lee Zeldin aim to roll back greenhouse gas emission rules and environmental justice efforts
  • Climate scientists warn that climate change is worsening farming conditions with challenges like extreme heat and drought; immediate action is crucial
  • Zeldin's review of the "endangerment finding" could undermine key climate regulations, potentially impacting public health
  • The controversial Waters of the U.S. (WOTUS) rule will be re-evaluated amid ongoing legal disputes
  • The end of the EPA's environmental justice initiatives raises concerns for vulnerable communities disproportionately affected by pollution
  • House Agriculture Committee Chair G.T. Thompson supports the changes as a relief for farmers, highlighting ongoing political tensions over environmental regulation

Critics see this as a significant setback for public health and environmental protection.

Source: Civil Eats

Women’s Health and Wellness: A Growing Market Opportunity

More than half of women are dissatisfied with their health and wellness options, indicating a significant market opportunity as they control 75% of discretionary spending.

Key insights:

  • Focus is shifting from 'diet' solutions to holistic health benefits, including better sleep and muscle maintenance
  • 68% of women seek better sleep solutions, but 72% are unhappy with current offerings
  • Innovative products like Protein Pop and Refrezz aim to address these needs
  • Enhancements in bone health, protein intake, and skin health are also in demand as women desire nutritious and effective options for an active lifestyle

Source: Food Business News

Graeter's Early Summer Flavor and Cicis Pizza's Pi Day Discount

Graeter's Ice Cream is introducing its Banana Chocolate Chip flavor earlier than usual, available in all scoop shops and online shipping.

  • This beloved flavor resembles a chocolate-dipped banana and has been in high demand for year-round availability
  • Previously a summer-only offering, it was released on March 10

Cicis Pizza celebrated Pi Day with a fantastic offer on March 14:

  • Customers who purchase one Medium or Large 1-Topping Pizza with Cicis' original round crust can snag a second pizza of the same size for only $3.14
  • Jeff Hetsel, president of Cicis Pizza, emphasized the brand's commitment to providing great value
  • Deal can be redeemed both in-store and online using the code PIDAY

Sources: QSR Web

Tariff-Driven Equipment Price Increase Alerts Restaurant Owners

Starting June 1st, tariffs will cause a 5-10% price increase on new restaurant equipment.

Community reactions:

  • Restaurant owners express concern over rising costs
  • Noting that equipment prices have already increased significantly, with some items up by ~50% since last year
  • Urged to act soon on upgrades or repairs to avoid higher costs
  • There’s a consensus that upcoming price hikes necessitate urgent decision-making on equipment purchases or repairs

Source: /r/restaurantowners subreddit

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