March 14th QSR Roundup: Psychology Behind QSR Customers, Boosting QSR Sales Through POP Marketing, and more.

QSR news for Mar 14th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 102 articles to bring you the latest. Estimated reading time saved (at 200wpm): 345 minutes. It'll take you only 13 minutes to catch up.

Understanding the Psychology Behind QSR Customers

Creating memorable experiences is key in the QSR industry. Brands like Dutch Bros excel by tapping into sensory exploration, tailoring offerings that resonate with customers' core motivations.

• Four Key Drivers Influencing Choices:
  1. Rational: Customers feel knowledgeable and like experts about their food choices.
  2. Sensory Exploration: Curiosity is piqued through limited-time offers and unique flavors, boosting brand loyalty.
  3. Wisdom of the Tribe: Social dynamics and community engagement influence decisions, as seen with Chick-fil-A's loyal following.
  4. Instinct and Impulse: Immediate gratification through appealing visuals and emotional messaging, like Taco Bell's strategies.

Understanding these motivations allows marketers to leverage psychological principles to enhance engagement and optimize offerings.

Source: QSR Magazine

Tariff Turmoil and Its Impact on Restaurants

Restaurants are bracing for significant cost increases due to looming tariffs amidst U.S.-EU trade tensions.

• Key Points:
  • A proposed 200% tariff on EU alcohol threatens to escalate expenses.
  • Existing tariffs since February include 10% on Chinese goods and 25% on Mexican and Canadian products.
  • Potential 25% tariff on food and beverage imports could lead to a $12.1 billion loss for U.S. restaurants.
  • Popular ingredients like avocados, beef, and alcohol may see price hikes.
  • Labor costs have risen 36%, and food costs by 35% over the past four years.
  • Passing costs to consumers is challenging due to tight pre-tax margins of 3-5%.
  • Strong supply chain strategies may offer resilience, but unpredictability remains.

Operators are advised to focus on controllable factors and prepare for cost implications while navigating uncertainty.

Source: QSR Magazine

Starbucks' Quest to Revive Café Culture

Amid rising digital sales, Starbucks aims to reclaim its identity as a welcoming coffee house.

Initiatives Include:

• Testing new store designs with expanded seating and more power outlets.
• Introducing dedicated areas for mobile pickup, improved food displays, and a theatrical espresso bar.
• Simplifying the menu to reduce wait times to four minutes.
• Enhancing employee benefits, like doubling parental leave and promoting internal growth.

Despite a 4% decline in same-store sales, there's optimism with a recovery in coffee sales. CEO Brian Niccol focuses on core values and strengthening customer connections.

Source: QSR Magazine

Olo's Data-Driven Strategy for Restaurants

Digital ordering platform Olo emphasizes the importance of leveraging guest data for personalized experiences.

• Highlights:
  • Processed $29 billion in sales last year for partner restaurants.
  • Only 18% of restaurant sales are digital; a $160 billion opportunity exists in nondigital orders.
  • Olo's payment platform now supports card-present transactions, capturing more customer data.
  • Partnerships with FreedomPay enhance deployment across various POS systems.
  • Brands like California Fish Grill saw a 41% increase in known guests and $7 million in digital order revenue without discounts.

CEO Noah Glass warns against relying solely on price cuts, advocating for understanding customer preferences to drive profitable traffic.

Source: QSR Magazine

Boosting QSR Sales Through POP Marketing

Point of Purchase (POP) marketing effectively taps into spontaneous buying behaviors in QSRs.

Strategies Include:

• Digital Menu Boards: Dynamic displays highlighting current offers and new products.
• Countertop Displays: Showcasing limited-time offerings at the point of sale.
• Promotional Signage: Eye-catching posters with clear messaging on deals.
• Interactive Kiosks: Self-service terminals with suggestive selling features.

Key Considerations:

• Visibility: Place displays near ordering areas.
• Direct Influence: Highlight deals satisfying appetite and budget.
• Impulse Buying: Leverage the fast-paced environment to upsell.

Aligning strategies with brand identity and strategic placement maximizes customer reach before decision points.

Source: QSR Magazine

Innovative Healthcare Models for Restaurants

Affordable health benefits are crucial for retaining young workers in the restaurant industry.

• Challenges:
  • Traditional group health plans see low enrollment, pushing costs higher.
  • Leblon Franchising Holdings faced a 50% price hike in their health plan.
• Solution:
  • Adopted the Individual Coverage Health Reimbursement Arrangement (ICHRA).
  • Allows employees to choose insurance that fits their budget.
  • Reduces HR workload and boosts employee retention.

Benefits:

• Lowers turnover costs, which can average $36,295 annually for restaurants.
• Promotes happier, healthier staff.
• Enables stable budgeting for owners.

Source: QSR Magazine

AI: A Game Changer Amid Rising Food Costs

With rising food prices and potential tariffs, AI emerges as a critical tool for restaurants.

Challenges:

• Food prices threaten to cost the industry over $12 billion.
• Potential 25% tariff on Mexican goods could drastically hike prices of key ingredients.

AI Solutions:

• 89% of operators are optimistic about AI implementation.
• AI helps in:
  • Managing inventory.
  • Forecasting demand.
  • Optimizing prep to reduce waste.

Impact:

• Automated prep tools can reduce projected food cost increases from 8% to 3%.
• Real-time inventory tracking and menu optimization based on preferences.
• 65% of restaurants can improve profitability with AI.

Source: QSR Magazine

El Pollo Loco's Strategic Turnaround Efforts

El Pollo Loco focuses on enhancing customer experience without overhauling its menu.

Key Initiatives:

• No major menu changes: Confidence in existing recipes like the signature fire-grilled chicken.
• Introduced Mango Habanero flavor, boosting sales and excitement.
• Future offerings include fresco wraps and hearty quesadillas for on-the-go consumers.
• 2024 Remodel Program:
  • Began with 52 restaurants.
  • Planning 60-80 more this year to refresh the brand's image.

Financial Highlights:

• Systemwide sales up 0.6% early 2024.
• 9% increase in average check despite fewer transactions.
• Plan to open 10 new locations in 2025 outside California.

Source: QSR Magazine

Franchise Compliance Essentials for Success

Franchisors must diligently update their Franchise Disclosure Documents (FDDs) to meet federal regulations.

Key Points:

• The FDD covers crucial details like:
  • Initial fees.
  • Investment estimates.
  • Performance data.
• Organized into 23 distinct topics.
• Compliance failures can lead to severe legal repercussions.
• Attention to both federal and state laws is essential.

Source: QSR Magazine

Dine Brands' Expansion of Co-Branded Locations

Dine Brands is significantly increasing its co-branded Applebee's-IHOP locations.

Expansion Details:

• Plans to open 23 international and 12-14 in the U.S. this year.
• Nearly tripling the number from 19 to 56.
• The hybrid restaurants offer menus from both brands.
• Expected to generate 1.5 to 2 times higher revenues than standalone locations.
• Cater to four different meal periods.

New Markets:

• Expanding into Costa Rica.
• Focused on recovering from the loss of 83 restaurants last year.
• Aiming for net unit growth.

Source: Restaurant Business

The Rise of Solo Dining Post-Pandemic

A significant trend has emerged: increased solo dining.

Insights:

• Solo dining has surged as lifestyles adapt post-pandemic.
• Off-premises sales are booming as people choose to eat alone.
• Diners prefer quick meals by themselves, reshaping social eating habits.
• Restaurants face the challenge to adapt offerings for solo diners seeking quality on-the-go experiences.

Implications:

• Potential menu redesigns focusing on individual portions.
• Marketing strategies aiming at the individual eating experience.

Source: Restaurant Business

Starbucks Redesigns Cafés for Enhanced Customer Experience

Starbucks is testing new café designs to improve customer experience.

New Features:

• Improved seating, including booths and couches.
• Dedicated mobile order areas.
• An engaging espresso-making “theater” vibe.

Industry Responses:

• McDonald's launches specialized teams focusing on beef, chicken, and beverages.
• Noodles & Company is revamping its menu.

Discussions:

• The evolving restaurant landscape post-COVID-19.
• Shifts driven by technology and changing consumer behaviors.

Source: Restaurant Business

Decline in Fast-Food Traffic

Fast-food restaurants experienced a 2.8% decrease in traffic during February.

Details:

• The lowest since September.
• Caused by a combination of weather and reduced consumer spending.
• Despite a 0.4% rise in net sales due to a 3% price increase.
• Breakfast traffic dropped 12.6%, indicating it's the first area consumers cut back on.
• Lunch traffic declined by 3.6%.
• Dinner traffic had a slight 0.5% increase.
• Low-income group visits dropped significantly.

Source: Restaurant Business

Post-Pandemic Evolution of Restaurants

The restaurant industry has undergone substantial changes five years after COVID-19.

Key Changes:

• Industry Size: Equal to pre-pandemic levels, supported by government aid and consumer base.
• Sales Recovery: From a 54% loss in April 2020 to exceeding previous figures by May 2021.
• Consumer Spending Shift:
  • Spending 53% of food budgets on restaurants, up from 50% in 2019.
  • Menu prices up 30% since January 2020.
• Dine-In Dynamics: Significant shift towards takeout and delivery.
  • Delivery transactions increased from 4% in 2019 to 9% last year.
• Workplace Changes: Rise in remote work affects lunch trends and urban foot traffic.
• Supply Chain Adaptation: Emphasis on nimble supply chains and technology adoption.
• Consumer Preferences: Desire for experiences leads to resurgence in full-service restaurants.
• Market Challenges: Full-service brands face financial strains, highlighting the need for adaptability.

Conclusion: Despite challenges, consumer love for restaurants remains strong, showcasing industry resilience.

Source: Restaurant Business

Executive Changes in the Restaurant Sector

Recent appointments highlight industry shifts and strategies.

Notable Appointments:

• Amanda Potts joins A&W Restaurants as Vice President of Marketing and Innovation.
  • Brings experience from Valvoline and Fazoli’s.
• Tom Leeper becomes Senior VP of Operations at Slice House by Tony Gemignani.
  • Formerly with Dunkin’ and Starbucks, overseeing over 500 restaurants.
• Fred Frey appointed VP of Franchise Development at 16 Handles.
  • Recognized for securing 117 franchising agreements last year at Shipley Do-Nuts.

Source: Restaurant Business

Steakcuterie Boards: Innovating Dining Experiences

Restaurants are introducing Steakcuterie Boards to create interactive dining experiences.

Key Examples:

• FoxFire's K.C. Gulbro offers boards featuring prime cuts like ribeye and filet mignon.
  • Priced at $156, serves 4-8 people.
  • Includes toppings and sides for communal dining.
• Rare Society also offers unique steak boards.
• Taps into popular charcuterie trends on social media.
• Enhances dining engagement and attracts attention.

Source: Restaurant Business

TGI Fridays Celebrates 60 Years

TGI Fridays marks its 60th anniversary, emphasizing cultural significance and inclusive spirit.

Celebration Highlights:

• Continuous celebrations across global locations on March 15.
• $19.65 meal deal honoring the founding year.
• Reintroduced Long Island Iced Tea in collectible cups.
• #ShareYourFlair social media challenge.
• Continues legacy as a pioneer in casual dining with nearly 400 locations worldwide.

Source: FSR Magazine

Golden Corral Hosts First Responders Night

Golden Corral in California shows appreciation for first responders.

Event Details:

• Complimentary buffet on March 18, from 4 p.m. to close.
• A thank-you for service amid devastating wildfires.
• Responders present a uniform or valid ID to qualify.
• Continues tradition of community events like Military Appreciation Night.
• Buffet features over 150 items, including USDA steaks and seafood.

Source: FSR Magazine

Home Run Inn Pizza Expands to O'Hare Airport

Home Run Inn Pizza brings Chicago staples to travelers.

Expansion Details:

• Opened new location in O'Hare International Airport, Terminal 1’s C Concourse.
• Offers classic pizzas like cheese and sausage.
• Part of a larger expansion with three locations at O'Hare.
• Showcases Chicago's culinary scene to travelers.
• Airport officials highlight O’Hare as a gateway to the city's best.

Source: FSR Magazine

Tony Roma's Embraces Tech Transformation

CEO Mohaimina Haque envisions a tech-driven future for Tony Roma's.

Key Initiatives:

• AI and Robotics:
  • Enhance customer experience.
  • Streamline inventory management.
  • Predict significant rise in tech reliance within 2-5 years.
• Expansion Strategy:
  • Focus on smaller locations (~3,000 sq ft).
  • Target cities like NYC and Orlando for corporate growth.
• Diverse Revenue Streams:
  • Emphasize delivery options to capture more customers.
  • Reduce reliance on large physical spaces.
• Future Outlook:
  • Technology will support, not replace, employees.
  • Aim for more efficient operations and informed decision-making.

Source: Restaurant Dive

Nathan's Famous Launches Modern Standalone Location

Nathan's Famous opens a new restaurant in Rock Hill, South Carolina.

Features:

• Modern design with a double drive-thru.
• Updated point-of-sale system.
• Menu includes specialty ripper dogs.
• Design merges New York loft style with local preferences.
• Aims to reverse decline in domestic store count.
• Virtual kitchen program adjusted due to sector challenges.

Source: Restaurant Dive

Qdoba Plans Aggressive Expansion

Qdoba secures commitments for 33 new locations.

Expansion Goals:

• Development pipeline over 500 units.
• Aim to reach 1,500 restaurants by 2033.
• Currently has 800 units operational.
• Targets 100 net openings annually.
• Exploring non-traditional venues like airports and universities.
• Attracting multi-unit franchisees with cash incentives and innovative formats.
• Improved sales by 7.7% last year and 6.1% in 2023.

Source: Restaurant Dive

Casey's General Stores Sees Growth through Food Innovation

Casey's reports a 3.7% increase in same-store sales.

Drivers of Growth:

• Introduction of Darn Good Coffee.
• Testing chicken wings in select markets.
• Hot sandwich sales surged over 50%.
• Bakery items grew nearly 10%.
• Focus on innovation in fresh food over promotions.
• Customer shift towards specialty pizzas and affordable desserts.

Future Plans:

• Evaluating further expansion of chicken wings.
• Positive customer satisfaction scores.

Source: Restaurant Dive

Starbucks' Ongoing Transformation Efforts

Starbucks CEO Brian Niccol outlines transformation plans, focusing on enhancing the coffeehouse experience.

Key Points:

• Plans for more comfortable and user-friendly spaces.
• Operational issues like staffing shortages need urgent attention.
• CEO’s compensation contrasts sharply with median barista wage.
• Union members raise concerns about fair pay and slow contract negotiations.
• Workers United responds with strikes over unmet demands.
• Unintended consequences from menu changes frustrate employees.

Source: Restaurant Dive

Post-Pandemic Staffing Challenges in Restaurants

Restaurants continue to face significant staffing shortages due to:

Factors:

• Labor Shortage: Many workers left the industry during the pandemic.
• Hiring Difficulties: Drop in applications despite higher wages.
• Talent Drain: Loss of experienced professionals.
• Changing Expectations: New hires often lack necessary skills.
• Industry Adjustments:
  • Investing more in training.
  • Exploring intern programs.
  • Offering comprehensive benefits.
  • Emphasizing better treatment and pay for staff.

Source: Eater

Top Chef Canada Premiere Amid Tense Relations

Top Chef launches its 22nd season in Canada.

Context:

• First time outside the U.S. amidst U.S.-Canada tensions.
• Potential tariffs and strained ties backdrop the show.
• Canadian chefs showcase regional ingredients.
• Emphasizes the significance of Canadian agriculture to the U.S.
• Collaborates with Destination Canada to promote tourism.

Source: Eater

Laurie Woolever's Memoir: A Candid Look into Culinary World

Laurie Woolever's memoir, Care and Feeding, offers:

Insights:

• Humorous and candid account of life in NYC.
• Explores themes of addiction.
• Reflections on working with Mario Batali and Anthony Bourdain.
• Shares the cathartic yet challenging process of writing.
• Emphasizes the importance of sharing her story to resonate with others.

Source: Eater

Fast-Food Chains Cater to Lenten Season with Seafood

Fast-food chains launch seafood offerings aligning with Lent.

Highlights:

• Wendy’s offers the Crispy Panko Fish Sandwich until April 20.
• Del Taco, Arby’s, and Popeyes enhance Lenten menus.
• McDonald's sells 75 million Filet-O-Fish sandwiches during Lent.
• Reflects the cultural impact of Lent, observed by 16% of Americans.
• Fast-food seafood specials attract both devout and nostalgic consumers.
• Highlights a shift towards broader inclusion of cultural observances.

Source: Eater

Making Corned Beef from Scratch: Easier Than You Think

Chef Stephen Rodriguez shares tips on homemade corned beef.

Key Points:

• Cooking Time: About a week for brining, 3.5 hours for cooking.
• Brine Ingredients:
  • Pink curing salt.
  • Sugar.
  • Garlic.
  • Preferred spices (mustard seeds, bay leaves).
• Recommended Cut: Flat cut brisket for easy slicing.
• Process:
  • Turn brining bag every few days.
  • Cooked brisket turns delightful pink.
  • Serve with braised cabbage and potatoes.
• Adjustments:
  • Modify salt levels for personal taste.
  • Emphasizes the rewarding experience of crafting food from scratch.

Source: Eater

Tariff Troubles Affect Fly By Jing's Cost Structure

Fly By Jing, founded by Jing Gao, faces challenges due to tariffs.

Impacts:

• Recent U.S. tariffs on imports reached 20%.
• Significantly increased costs and budgeting uncertainties.
• Authentic ingredients are sourced from Chengdu, China.
• Potential increase in product prices as a last resort.

Adaptations:

• Innovating lower-cost products, like noodles priced at $3 to $4.
• Commitment to authentic flavors amid economic shifts.

Source: Eater

Reimagining Breakfast in Light of Egg Shortages

With an ongoing egg shortage, consumers are rethinking breakfast options.

Shift in Mindset:

• Realizing there's no rule restricting breakfast to traditional foods.
• Exploring diverse options like pho, teriyaki chicken, or mac and cheese.
• Signaling a move towards personalized and varied morning meals.

Source: Eater

AI and Leadership Drive Franchise Success

Key Insights:

• AI is crucial for expansion and enhancing guest experiences.
• Mina Haque, CEO of Tony Roma's, emphasizes emotional intelligence in leadership.
• Jim Bitticks of Dave's Hot Chicken grew from 4 to 274 locations in five years using AI.
• Improved performance ratings from 3.8 to 4.7.
• James O'Reilly of Ascent Hospitality stresses brand consistency and knowing customers.
• Regular communication with franchisees enhances relationships and performance.

Source: Retail Customer Experience

Captain D's Expands into the UK

Captain D's signs a 20-unit franchise agreement in the UK.

Expansion Details:

• First location in Kent, opening in August.
• Plans for additional locations in Sussex and Hampshire.
• Operations director Naveed Chattha sees a market gap for their concept.
• Aims to combine discipline, standards, and quality in fish and chips.
• Part of broader international expansion with 530+ restaurants in the US.

Source: Fast Casual

Tech24 Appoints New CEO Cary Reed

Cary Reed becomes CEO of Tech24.

Background:

• Succeeds Dan Rodstrom.
• Over 25 years of experience in foodservice and HVAC.
• Tech24 is rapidly expanding, acquiring Varitech Commercial Services and ProCold in 2024.

Source: Foodservice Equipment & Supplies

Innovations Honored at NRA Show 2025 Kitchen Innovations Awards

The National Restaurant Association Show recognized 24 innovative kitchen products.

Notable Winners:

• Alto-Shaam's Origin Convection Ovens.
• American Metalcraft's BuffetBoost Warming Block.

Highlights:

• Solutions enable industry to achieve more with less.
• Advancements include AI-driven monitoring and robotics.
• Products to be showcased from May 17–20, 2025, in Chicago.

Source: Foodservice Equipment & Supplies

Stay tuned for more concise news updates delivered right to your fingertips, saving you valuable time. As industry professionals and restaurant operators, your time is precious—spent on running your businesses, innovating menus, and enhancing customer experiences. Let us keep you informed with quick, comprehensive summaries so you can focus on what you do best. Subscribe now and join us again for the latest insights in the restaurant industry!