March 3rd QSR Roundup: Portillo's Proxy Battle Heats Up, Starbucks Introduces Spring Menu, and New Innovation

QSR news for Mar 3rd, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 51 articles to bring you the latest. Estimated reading time saved (at 200wpm): 160 minutes. It'll take you only 11 minutes to catch up.

Portillo's Proxy Fight Sparks Boardroom Changes

Engaged Capital LLC is gearing up for a proxy battle with Portillo's after acquiring nearly 10% stake in the company. They've nominated industry veterans Charlie Morrison and Nicole Portwood for board positions:

• Charlie Morrison: Former CEO of Wingstop, credited with delivering 760% shareholder returns.
• Nicole Portwood: Brings experience from significant brands, poised to contribute fresh perspectives.

Despite Portillo's impressive average unit volume of $8.7 million, challenges include:

• Outdated operations and systems.
• Declining transactions, down 3.2% in fiscal 2024.
• Need for modernization like self-service kiosks and enhanced loyalty programs.

Engaged Capital emphasizes the urgency for operational improvements and effective marketing to drive growth.

Source: Restaurant Business

Authentic Restaurant Brands Expands Portfolio with Tavern in the Square Acquisition

Authentic Restaurant Brands (ARB) continues its aggressive growth strategy by acquiring Tavern in the Square, marking its fifth acquisition in five years.

• 17-unit chain: Strengthening ARB's presence in New England.
• Revenue milestones: Now exceeding $1 billion annually with more than $150 million in EBITDA.
• Leadership appointments:
  • Alex Macedo as CEO, former president of Tim Hortons and Burger King.
  • Jon Howie as CFO, bringing financial expertise.
• Innovative offerings: Known for unique dishes like Cornflake Fried Chicken Tenders.

ARB aims to enhance Tavern in the Square with advanced technology and operational support while preserving its local charm.

Source: FSR Magazine

Starbucks Unveils a Colorful Spring Menu

Starbucks is delighting customers with a new spring beverage lineup filled with vibrant flavors:

• Iced Cherry Chai: Spiced chai topped with cherry cream cold foam.
• Iced Ube Coconut Latte: Introducing the trendy ube flavor blended with coconut milk.
• Sunsera Blend: A light blonde roast coffee for those who prefer milder brews.
• Jalapeño Chicken Pocket: New permanent addition to the food menu.

At Reserve locations, special treats like Rose Pistachio Cornetto and floral-inspired cocktails are available. Starbucks continues to innovate its menu, tapping into global trends and seasonal tastes.

Source: Restaurant Business

Topgolf Restructuring Amid Spinoff Preparation

Topgolf is undergoing significant restructuring, including layoffs at the home office, as it prepares for a spinoff slated for late 2025.

• CEO Artie Starrs announces reorganization to better support venues.
• Decline in sales with both same-store and overall sales dropping sharply in 2024.
• Focus on implementing faster changes and offering exciting new experiences.
• Addressing macroeconomic challenges affecting the eatertainment sector.

Topgolf aims to streamline operations and adapt to changing market conditions to rejuvenate the brand.

Source: Restaurant Business

Perkins' Transformation and New Flagship Restaurant

Perkins American Food Co. is ushering in a new era with the opening of its flagship restaurant in Orlando on March 19. Key features include:

• A 3,500-square-foot venue with a contemporary design.
• Retention of nostalgic elements honoring its 66-year history.
• A revamped menu introducing:
  • Shareable appetizers.
  • Lighter meal options.
  • An upgraded beverage program.
• Celebratory opening honoring loyal patrons, including twins who've dined there for 30 years.

This flagship location represents Perkins' blend of tradition and innovation.

Source: FSR Magazine

Revolutionizing Order Management with Flybuy's Smart Fire

Flybuy introduces Smart Fire, an AI-powered technology designed to automate and optimize the order firing process in restaurants.

• Streamlines workflows and enhances kitchen efficiency.
• Minimizes wait times by adjusting pickup times based on kitchen capacity and customer location.
• Real-time updates lead to fresher food and increased customer satisfaction.
• Industry leaders, like Christophe Poirier of Saucy by KFC, praise its positive impact.

Flybuy's innovation represents a significant advancement in restaurant technology, aiming to elevate the customer experience.

Source: FSR Magazine

Tom's Watch Bar Plans Major Expansion

Tom’s Watch Bar is set to double its locations from 13 to 33 within the next 24 months.

• 25% revenue growth in 2024.
• 34% increase in alcohol sales.
• Unique positioning near stadiums enhances traffic and profitability.
• Expanding customer base with 50% female clientele.
• Operational efficiency boosted by tech innovations like handheld tablets.
• Plans include opening 7-8 new units this year and targeting 15 new openings annually post-2026.

Tom's Watch Bar focuses on premium sports-viewing experiences and aims for potential international expansion.

Source: Restaurant Dive

50 Best Launches North America's 50 Best Restaurants List

The prestigious 50 Best organization is debuting the North America's 50 Best Restaurants list, celebrating culinary excellence across the U.S., Canada, and the Caribbean.

• Sponsored by S.Pellegrino and Acqua Panna.
• First exclusive North American list reflecting industry-focused changes.
• Voting by 300 experts with no entry fee to ensure diverse representation.
• Anticipation builds to see which restaurants will top the inaugural list.

This initiative highlights the vibrant and diverse culinary landscape of North America.

Source: Eater

Iconic Original Pantry Cafe Closes After 101 Years

In a surprising turn, The Original Pantry Cafe in Downtown LA closed on March 2, 2025.

• Operated 24/7 for most of its century-long existence.
• Closure followed a union dispute and protests involving the Riordan family trust.
• Known for classic dishes like ham steak and pancakes, serving a diverse clientele.
• The closure adds to challenges facing Downtown LA in the post-pandemic era.

The end of this historic establishment marks the close of a significant chapter in LA's dining history.

Source: Eater LA

Pita Pit Expands to Montana

Pita Pit USA is bringing its healthy dining options to Belgrade, Montana, with franchisee Bruce Foreman leading the new location.

• Foreman is a fourth-generation Montanan fulfilling his dream of running a QSR.
• Aims to offer employment opportunities and fresh, healthy food to the growing community.
• Pita Pit has nearly 70 locations nationwide, emphasizing customizable, health-conscious meals.

This expansion reflects Pita Pit's commitment to broadening its footprint and catering to health-aware consumers.

Source: Fast Casual

HTeaO Appoints Jodie Chau as VP of Supply Chain

HTeaO strengthens its leadership team by appointing Jodie Chau as Vice President of Supply Chain.

• Chau brings experience from roles at Dickey’s Barbecue, Chipotle Mexican Grill, and H-E-B.
• Focus on streamlining processes and reducing costs.
• Aims to support HTeaO's growth and operational efficiency.

This strategic hire underscores HTeaO's commitment to quality and scalability.

Source: Foodservice Equipment & Supplies

Restaurateurs Tackle Rising Costs and Operational Challenges

Remodeling Kitchen Equipment

Evaluating kitchen equipment during remodels is crucial:

• Weighing the cost of new items versus repairing existing ones.
• Considering wear and tear, especially in high-abuse areas like cook lines.
• Ensuring utilities meet new equipment standards to avoid operational issues.

Source: Foodservice Equipment & Supplies

Building Memorable Restaurant Brands

Key strategies for strong branding:

• Emotional connections: Creating experiences that resonate with guests.
• The Plaid Penguin's 3-step process:
  • Understanding the restaurateur's vision.
  • Developing a cohesive brand identity.
  • Executing a solid launch strategy.
• Digital presence: First impressions often happen online.
• Community engagement: Authenticity and transparency are paramount.

Source: Modern Restaurant Management

Navigating Credit Card Fees

Restaurant owners discuss strategies:

• Integrate fees into menu prices to cover processing costs without deterring customers.
• Avoid minimum charges that may drive customers away.
• Negotiate with processors for better rates.

Source: /r/restaurantowners

Managing Long Wait Times

Techniques to improve customer experience:

• Set table time limits during peak hours to improve turnover.
• Maintain reservations for larger parties and encourage planning ahead.
• Enhance waiting experiences with complimentary snacks or drinks.
• Communicate wait times honestly and manage expectations.

Source: /r/restaurateur

Employee Appreciation and Tipping Debates in the Industry

Cultivating Employee Appreciation

Year-round recognition reduces turnover by 31%:

• Implement financial wellness programs for younger staff.
• Offer diverse benefits like pet insurance.
• Provide professional growth opportunities.

Creating a positive company culture requires continual effort and adapting to employees' needs.

Source: Modern Restaurant Management

Tipping Practices for Bussers

Discussions highlight varied practices:

• Some establishments provide bussers with tip-outs in addition to hourly wages.
• Tipping promotes teamwork and boosts morale.
• Practices vary, but there's a trend towards sharing tips among staff.

Source: /r/restaurant

Tipping Concerns Explained

John Oliver examines tipping complexities:

• Customer frustration over obligatory tipping for adequate service.
• Exploration of alternatives like no-tipping policies and higher base wages.
• Historical context of tipping rooted in post-Civil War America.

Viewer reactions are mixed, reflecting diverse opinions on the future of tipping.

Source: Modern Restaurant Management

Innovative Food Products and Company Initiatives

Wildgrain's Online Bakery Success

Wildgrain revolutionizes baked goods with a subscription model:

• Offers clean ingredient frozen products delivered monthly.
• 80,000 active subscribers enjoy artisan bread and pasta.
• Each box ranges from $69 to $189.
• Donates four meals to The Greater Boston Food Bank per membership.
• Achieved $31 million in sales in 2023, marking its first profitable year.

Source: Food Business News

Ingredion's $50 Million Upgrade

Ingredion Inc. invests in its Cedar Rapids, Iowa facility:

• $50 million investment to upgrade industrial starch production.
• Targets the packaging and papermaking industries.
• Responds to demand for biodegradable and recyclable packaging solutions.
• Follows a previous $100 million upgrade in Indianapolis.

This positions Ingredion to capitalize on the growing market for sustainable packaging materials.

Source: Food Business News

Heinz Launches Global Flavor Sauces

Kraft Heinz Co. introduces globally inspired sauces:

• Mexican Street Corn: With chipotle, lime, and corn.
• Korean Sweet and Tangy BBQ: Featuring gochujang, doenjang, and soy sauce.
• Thai Sweet Chili: Crafted with ginger, sriracha, and sesame oil.

Responding to consumer demand for unique flavors at an affordable price point.

Source: Food Business News

Health and Dietary Trends

Navigating Diet Trends

Experts address the confusion around ultra-processed foods (UPFs):

• 70% of the U.S. food supply consists of UPFs.
• Redefining classifications to clarify dietary guidelines.
• Emphasis on plant-rich diets over excessive meat consumption.
• Caution against superficial adoption of international diets without cultural context.

Dietary advice often overlooks structural factors influencing eating practices.

Source: Salon

Seed Oils Debate

Robert F. Kennedy Jr.'s MAHA campaign targets seed oils:

• Claims they contribute to health issues like inflammation and chronic diseases.
• Experts advise moderation, noting omega-six fatty acids are necessary in balance.
• The health impact is often linked to ultraprocessed foods containing these oils.
• Public concern reflects broader issues about food production and safety.

Consuming seed oils isn't inherently harmful, but choosing healthier options is recommended.

Source: Salon

Dunkin' Drops Nondairy Surcharge

Dunkin' eliminates extra charges for nondairy milks starting March 5:

• Follows a similar policy change by Starbucks.
• Responds to consumer demand for customizable beverages.
• Aims to improve customer satisfaction and address concerns over discriminatory practices.

Reflects a broader trend among coffee shops enhancing customer experience.

Source: Salon

Technology and Innovation in Food Industry

Launching Ignite20 Ventures

Ignite20 Ventures introduces a $7 million venture fund and accelerator:

• Aims to empower innovative CPG startups.
• Annually, 20 companies will receive $50,000 in funding.
• Provides personal mentorship and training to enhance market presence.
• Applications open until May 4, 2025, with the program starting in June 2025.

Operates from Bentonville, Arkansas, and Miami, Florida, facilitating access to retail buyers.

Source: Food Industry Executive

Innovative Circular Catch Basin by GDT

Global Drain Technologies (GDT) introduces the Circular Catch Basin:

• Designed for the 10,000 Series FoodSafe Slot Drain.
• Made from durable T304 or T316 stainless steel.
• Circular design improves cleaning efficiency and water flow.
• Suitable for industries requiring high hygiene standards like bakeries and breweries.

GDT emphasizes quality and innovation in drainage solutions.

Source: Food Industry Executive

Eagle's Enhanced Pipeline X-Ray System

Eagle Product Inspection launches a redesigned Pipeline X-Ray system:

• Utilizes advanced PXT™ technology.
• Improves detection of bone and foreign metal in meat and poultry.
• Features a built-in flow meter and test ball insertion port.
• Ensures optimal safety and compliance in processing environments.

Aligns with hygiene guidelines and offers versatile detection options.

Source: Food Industry Executive

Domino's Introduces Parmesan Stuffed Crust Nationwide

Domino's is launching its first-ever Parmesan Stuffed Crust pizza across the U.S.

• Made with premium, buttery dough and 100% real mozzarella.
• Features garlic seasoning and topped with real Parmesan.
• Kicking off a Cheat Receipts sweepstakes:
  • Offering free stuffed crust pizzas to customers who upload receipts from competitors' stuffed crust purchases.
  • Weekly winners announced starting from March 10, 2025.

Domino's aims to entice customers with this new offering, entering the stuffed crust market boldly.

Source: QSR Web

Reddit Discussions Reflect Industry Challenges

Credit Card Fee Dilemma

Restaurant owners navigate credit card fees on low-cost items:

• Integrating fees into menu prices instead of imposing minimum charges.
• Maintaining customer satisfaction while covering costs.
• Negotiating with processors for lower fees.

Consensus leans toward raising prices to keep customers returning.

Source: /r/restaurantowners

Hiring Challenges in Fast Casual Restaurants

High turnover and retention issues prompt discussions:

• Improving hiring processes and training.
• Offering competitive wages to attract quality candidates.
• Collaboration between HR and management is key.

Emphasizes the importance of evaluating working conditions and employee feedback.

Source: /r/Restaurant_Managers

Manager Meals Expectations

Consensus among restaurant professionals:

• Managers should receive meals during their shifts.
• Seen as essential for maintaining energy and morale.
• Reflects a supportive workplace culture.

Not providing meals is viewed negatively regarding employee respect.

Source: /r/Restaurant_Managers

Unique Industry Insights and Experiences

Sauce on the Side Preferences

Customers prefer sauces on the side for:

• Control over quantity and flavor intensity.
• Avoiding sogginess and maintaining food texture.
• Sampling sauces before applying them to dishes.

Enhances the dining experience by catering to individual preferences.

Source: /r/restaurant

Bleach Usage Concerns

Discussions on proper sanitation practices:

• Caution advised when using bleach in restaurants.
• Importance of correct dilution ratios to avoid residue and taste issues.
• Emphasis on food safety and compliance with regulations.

Highlights the potential hazards if not used correctly.

Source: /r/restaurant

Creative Weetabix Ideas

A hotel restaurant seeks ways to utilize over 5 kilos of Weetabix:

• Suggestions include making overnight Weetabix cups.
• Incorporating Weetabix into recipes like cookies or crusts.
• Considering donation if surplus remains.

Showcases creative problem-solving in kitchen management.

Source: /r/restaurant

Industry Movements and Closures

Grupo Bimbo's Fiscal Results

Grupo Bimbo reports financial outcomes:

• Record sales of 408.34 billion pesos ($19.95 billion) in fiscal 2024.
• 19% decline in net majority income to 12.55 billion pesos ($612.8 million).
• North American sales fell by 1.7%.
• Investments focus on future growth despite current challenges.

Completed five acquisitions, expanding presence in 35 countries.

Source: Food Business News

Kroger CEO Resignation

Rodney McMullen steps down amid an investigation:

• Involved personal conduct violating the company's ethics policy.
• Ronald Sargent appointed as interim CEO.
• Kroger anticipates strong sales and earnings for fiscal 2024.

The company focuses on maintaining performance during the leadership transition.

Source: Food Business News

Recent Restaurant Closures

Developments affecting major chains:

• Del Taco closes all but one Colorado location due to franchisee bankruptcy.
• Twin Peaks to close nine Smokey Bones locations, transitioning others to their brand.
• Grubhub cuts approximately 500 jobs, 23% of its workforce, after acquisition by Wonder.

Reflects ongoing adjustments in the restaurant industry landscape.

Source: Nation's Restaurant News

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!