March 4th QSR Roundup: Taco Bell's Ambitious Growth Plans, Portillo's Boardroom Shake-Up, and Krispy Kreme's Sweet Strategy Shift

QSR news for Mar 4th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 96 articles to bring you the latest. Estimated reading time saved (at 200wpm): 355 minutes. It'll take you only 11 minutes to catch up.
Taco Bell's Bold Expansion and Digital Transformation
Taco Bell is embarking on an ambitious growth strategy to significantly increase revenue and market presence by 2030.
- Aggressive Menu Innovation: Plans to launch twice as many menu innovations in 2025 compared to 2024, aiming to enhance customer engagement and drive sales.
- Profit and Revenue Goals: Targeting an increase in average unit volume (AUV) from $2.2 million to $3 million, with a goal to double profits from $1 billion to $2 billion.
- Expansion Plans: Intending to open over 10,000 locations in the U.S., having already added more than 2,300 new units in the last decade.
- Digital Transformation: Aiming for 100% digital transactions, with plans to boost digital sales from 35% to over 60% by 2030.
- Customer Loyalty Focus: Recognizing that loyal customers visit about 76% more frequently, significantly contributing to sales increases.
- International Growth: Planning to expand to 9 new countries by 2025, including France and Greece, targeting 3,000 international outlets in five years.
Source: QSR Magazine, Restaurant Business
Portillo's Proxy Battle and Leadership Changes
Portillo's is facing a proxy fight initiated by Engaged Capital, a hedge fund owning 8.6% of the company's shares.
Engaged Capital highlights Portillo's strong average unit volume (AUV) of $8.7 million but criticizes outdated operations and marketing strategies.
They have nominated Charlie Morrison, former CEO of Wingstop, and Nicole Portwood, former CMO of Tito's Vodka, for board positions.
Portillo's strategies to address challenges include:
- Implementing AI for operational efficiency.
- Downsizing restaurant prototypes to lower costs.
- Expanding loyalty programs and introducing self-service kiosks.
Despite a 1.8% rise in same-store sales, the chain experienced a 3.2% decline in transactions, indicating the need for urgent executive action for growth.
Source: QSR Magazine, Restaurant Business, Nation's Restaurant News
Krispy Kreme's Focus on the Original Glazed Doughnut
Krispy Kreme is emphasizing its signature Original Glazed Doughnut to attract budget-conscious customers.
- Sales Strategy: This doughnut represents over 50% of sales and is a high-margin item.
- Bulk Purchases: Encouraging customers to buy in bulk, which is more economical and boosts sales.
- National Doughnut Day Promotion: Offering significant discounts to drive larger purchases.
- Challenges: Faced weather-related disruptions and a cyber-attack costing $11 million.
- Expansion: Continuing partnerships with retailers like Kroger and McDonald's, though sales at McDonald's are below expectations.
- Growth Plans: Leveraging existing production to expand without significant new investments.
Source: QSR Magazine
Leadership Shake-ups in the Coffee Industry
Caribou Coffee CEO Resignation
- John Butcher, CEO of Caribou Coffee, is stepping down effective March 14, with CFO Scott Kennedy stepping in as interim CEO.
- Butcher will assist during the transition until the end of May.
- The board is searching for a permanent replacement, considering both internal and external candidates.
- This change is part of a broader management shakeup at Panera Brands, which owns Caribou, Panera Bread, and Einstein Bros. Bagels.
A&W Restaurants Appoint New CEO
- Betsy Schmandt has been appointed CEO and President of A&W Restaurants, succeeding Kevin Bazner, who becomes Chairman.
- Schmandt has successfully led daily operations for the past 18 months and brings experience from her time at Mrs. Fields and TCBY.
- A&W aims to enhance its brand with Schmandt’s strategic vision and dedication.
Sources: Restaurant Business, Restaurant Dive, QSRweb
Sweetgreen's Healthier Take on Fries
Sweetgreen introduces Ripple Fries, a healthier alternative to traditional fries.
- Air-Fried and Freshly Cut: Made from russet potatoes, air-fried with avocado oil.
- Health-Conscious Offering: Aiming to attract non-salad eaters looking for a 'permissible indulgence'.
- Dipping Sauces: Served with Garlic Aioli and Pickle Ketchup.
- Price Point: Priced at $4.95.
- CEO's Insight: Jonathan Neman emphasizes the simplicity of ingredients, contrasting with traditional fries that contain additives.
- Menu Innovation: Part of Sweetgreen's efforts to diversify offerings amid challenges in customer traffic.
Source: Restaurant Business
Strategic Partnerships and Acquisitions in the Fast-Casual Sector
Big Chicken Joins Forces with Craveworthy Brands
- Big Chicken, founded by Shaquille O'Neal, teams up with Craveworthy Brands led by Gregg Majewski.
- NFL star Ndamukong Suh also joins as an investor.
- Big Chicken plans to expand from over 40 locations to an additional 350 units.
- Craveworthy will enhance operations, training, supply chain, and customer service while Big Chicken retains its identity.
Shake Shack Takes to the Skies
- Shake Shack burgers are now available on Delta First Class flights over 900 miles from major cities.
- Partnership includes a promotion with Uber Eats, offering buy one, get one free for SkyMiles members.
- Positive customer feedback has been received since the launch.
Sources: Restaurant Business, Fast Casual
Challenges Facing Legacy Brands
Steak 'n Shake's Struggles
- The burger chain has closed 200 locations since 2018.
- In 2024, the chain experienced net closures across all ownership types.
- A management overhaul occurred without much public announcement.
Source: Restaurant Business
Technological Innovations in Restaurant Loyalty and Payments
Blackbird's Blockchain-Based Loyalty System
- Blackbird launches Flynet, a blockchain transaction network transforming restaurant payments and customer rewards.
- Lower Transaction Fees: Reduces fees to 2%, saving restaurants money.
- Unified Loyalty Points: Users earn $FLY, recognized across all participating restaurants.
- Data Control: Restaurants have direct control over customer data, enabling personalized rewards.
- Growth and Backing: Processed over $242 million in $FLY to 107,000 digital wallets; supported by $24 million from investors like Andreesen Horowitz.
Source: Restaurant Business
Topgolf's Restructuring Ahead of Spinoff
Topgolf is laying off workers as it prepares for a spinoff expected in late 2025.
- CEO's Announcement: Artie Starrs emphasizes a reorganization to better support venues amid declining sales.
- Financial Performance: Experienced a significant drop in both same-store and overall sales in 2024.
- Recent Improvements: Location traffic has increased in recent weeks.
- Future Plans: Implementing faster changes, offering new experiences, and streamlining operations.
Source: Restaurant Business, FSR magazine
Innovation at NAFEM Show: The Rise of Screens
At the NAFEM show, screens on kitchen equipment dominated the spotlight.
- Integration and Data Management: The rise of screens pushes the need for better integration of devices and data management.
- Communication: With omnichannel orders, devices need to communicate effectively.
- Gas vs. Electric Debate: Chefs still prefer gas over electric despite efficiency concerns.
- Tariffs and Costs: Potential increase in equipment costs due to tariffs on imports.
- Food Delivery Logistics: Emphasized the complexity and the need for better tech solutions.
Sources: Restaurant Business, Nation's Restaurant News
Perkins' Modern Transformation
Perkins American Food Co. is set to debut its flagship restaurant in Orlando on March 19, marking a significant transformation.
The 3,500-square-foot venue features a contemporary design while retaining nostalgic elements, representing the company’s evolution over its 66-year history. A revamped menu led by new offerings such as shareable appetizers, lighter options, and an upgraded beverage program including boba drinks and cocktails will accompany the new restaurant.
The opening will celebrate long-time loyal customers, further emphasizing the brand's commitment to its heritage while embracing innovation and modern trends.
Sources: FSR Magazine, Restaurant Dive
Functional Foods and Beverages on the Rise
Incredibrew's Functional Coffee Line
Ex-Bed Bath and Beyond CEO Chandra Holt launches Incredibrew's coffee blends packed with health benefits.
- Product Varieties:
- Coffee + Vitamins: Medium roast with 10 essential vitamins.
- Coffee + Protein: Infused with 10 grams of protein.
- Coffee + Collagen: French roast with bovine collagen.
- Coffee + Melatonin: Decaf with sleep aids.
- Goal: Making wellness a seamless part of everyday routines.
Actual Veggies Raises $7 Million
- Funding Round: Secures $7 million in Series A funding led by Relentless Consumer Partners.
- Product Expansion: Focused on sustainable ingredients, predicting increased demand by 2025.
- Growth Trajectory: 125% year-over-year growth, expanding to over 6,500 retail locations.
Sources: Food Business News
Honey's Sweet Business Opportunities
The honey industry is booming, with the global honey market estimated at $10 billion.
- Diverse Ventures: Opportunities range from beekeeping to honey-based products like snacks and skincare.
- Trends: Rising interest in infused and artisanal honey, supported by eCommerce growth.
- Eco-Friendly Appeal: Consumers seeking natural products, making honey-themed enterprises promising.
Source: BlueCart
Cultivating Memorable Restaurant Brands
Creating a strong restaurant brand goes beyond logos; it's about building emotional connections and experiences.
- The Plaid Penguin's Approach: Combines strategy and creativity, symbolizing structure and adaptability.
- 3-Step Process:
- Understanding the restaurateur's vision.
- Developing a cohesive brand identity.
- Executing a solid launch strategy.
- Digital Presence: Critical as first impressions often happen online.
- Emotional Connections: Authenticity and transparency are key in engaging customers.
Source: Modern Restaurant Management
2025 Restaurant Insights and Consumer Trends
- Top 100 Restaurants: Yelp's list highlights Holbox in LA as the best, known for fresh Mexican seafood.
- Financial Challenges: 93% of restaurant operators are worried about rising interest rates; 66% predict needing extra funding by 2025.
- Operational Improvements: 99% believe strong financial management is essential.
- Consumer Trends:
- Decline in interest in veganism; searches for "vegan recipes" back to 2015 levels.
- Casual dining is growing, with 80 places on Yelp's list under $30 per person.
- Delivery Fraud: Fake accounts make up 57% of driver-side fraud in food delivery.
- Shift in Cooking Oils: 20% of consumers have stopped using seed oils due to health concerns.
Source: Modern Restaurant Management
Restaurant Leadership Changes and Challenges
Starbucks Appoints New CFO
- Cathy Smith joins as CFO from Nordstrom, replacing Rachel Ruggeri.
- Part of executive changes under CEO Brian Niccol.
Leadership Change at Caribou Coffee
- CEO John Butcher steps down; CFO Scott Kennedy becomes interim CEO.
- Caribou expanded rapidly under Butcher, including a $260 million deal with JDE Peet’s.
Portillo's New Loyalty Program
- Introduces Portillo's Perks, a loyalty program using digital wallets instead of apps.
- Aims to enroll 1.5 to 1.7 million customers by midsummer.
- Focuses on reward frequency and personalized offers.
Sources: Restaurant Dive
Domino's and Taco John's Menu Innovations
Domino's Stuffed Crust Pizza
- Launching its first-ever Parmesan Stuffed Crust pizza.
- Features mozzarella stuffing and garlic seasoning with parmesan.
- Aims to combat declining same-store sales and competition.
Taco John's Nacho Taco Bravo
- Introduces the Nacho Taco Bravo LTO, two hearty tacos for $6.
- Each taco includes melted nacho cheese, refried beans, seasoned beef, and cheddar cheese in a fried taco shell.
- Available at nearly 350 locations across 22 states.
Sources: Restaurant Dive, QSR Web
Papa John's "Meet the Makers" Campaign
- Launches campaign highlighting its pizza makers.
- Showcases the craftsmanship behind their quality products.
- Features team members and partners with food influencers.
- Aims to enhance the emotional connection with customers.
Source: QSR Web
Social Media's Impact on Restaurant Success
Restaurant owners share experiences on how featuring themselves and their teams on social media boosts customer engagement.
- Personal Connection: Content showing owners and staff tends to perform better.
- Transparency: Sharing stories about financial struggles and food preparation builds stronger bonds.
- Strategic Approach: Effective social media engagement requires planning and diverse content.
Source: /r/restaurantowners
Challenges with Outside Food in Restaurants
Restaurant owners are frustrated with customers bringing outside food or drinks into their establishments.
- Health Code Concerns: Allowing outside food can violate health codes.
- Policy Enforcement: Importance of enforcing clear policies against outside food.
- Customer Entitlement: Some customers feel entitled to use the space without purchasing.
Community Advice:
- Post clear signage.
- Require purchases or fees for outside food.
- Maintain firm but polite communication.
Source: /r/restaurantowners
Navigating Menu Design and Pricing Strategies
Restaurant owners seek feedback on menu design and pricing.
- Clarity and Organization: Importance of a clean and engaging menu layout.
- Descriptive Language: Using enticing descriptions to encourage orders.
- Pricing Considerations: Adjusting prices and presentation to influence customer perception.
Source: /r/restaurantowners
The Importance of Employee Appreciation in Restaurants
Recognizing and appreciating employees reduces turnover by 31%.
- Year-Round Recognition: Ongoing appreciation is key.
- Financial Wellness Programs: Catering to younger staff's needs.
- Professional Growth Opportunities: Investing in employees' development.
Source: Modern Restaurant Management
Food Safety and Traceability Initiatives
- Traceability Technologies: Enhancing supply chain transparency and compliance.
- Regulatory Compliance: Non-compliance can result in severe penalties.
- AI Tools: Ensuring compliance and optimizing operations.
Source: Food Industry Executive
Lab-Made Milk and Sustainable Food Innovations
UnReal Milk by Brown Foods
- Introduces lab-made whole cow milk alternative.
- Replicates taste and nutritional benefits using mammalian cell culture technology.
- Significantly lower environmental impact with reductions in carbon footprint, water usage, and land usage.
Timeline: Consumer tasting by late 2025.
Source: Food Business News
NOAA Cuts and Impact on Fisheries
Staff cuts at the National Oceanic and Atmospheric Administration (NOAA) raise concerns.
- Impact on Fisheries: Reductions may affect seafood safety and overfishing prevention.
- Lawmakers' Concerns: Expressed by Rep. Seth Magaziner and Rep. Jared Huffman.
- NOAA's Response: Emphasizes commitment to public service despite cuts.
Source: Civil Eats
Shifting Shopper Behavior and Market Trends
- 75% of Consumers plan to change shopping habits due to financial concerns.
- Shift to Store Brands: 46% are moving to store brands; 41% plan to use more coupons.
- Discount Retailers Rise: Walmart and Aldi benefit from the shift.
- Online Shopping Persists: Post-pandemic preference continues.
Implications for Brands:
- Need for innovation and strategic partnerships.
- Traditional grocers may face financial struggles.
Source: Food Business News
Potato Chip Prices Soar Due to Climate Impact
- 30.6% Increase since end of 2020.
- Average cost for a 16-ounce bag expected to reach $6.32 by 2024.
- Climate Disruptions: In key potato states like Idaho and Washington.
- Consumer Shift: Move towards cheaper, generic brands.
Source: Salon
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