March 8th QSR Roundup: Job Cuts and Closures and Industry Insights from the Front Lines

QSR news for Mar 8th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 74 articles to bring you the latest. Estimated reading time saved (at 200wpm): 310 minutes. It'll take you only 8 minutes to catch up.

Inspiring Leadership: Smashburger's CEO Shares Her Journey

Denise Nelsen, CEO of Smashburger, shares her inspiring 25-year journey from barista to executive.

• Her leadership philosophy is built on hard work, humility, and authenticity.
• Recognizes the loneliness of leadership, holding ultimate responsibility.
• Inspired by her grandmother's bold, brave mindset, encouraging confidence.
• Under her guidance, Smashburger is:
  • Refining its brand identity, focusing on menu clarity and quality.
  • Committed to fresh, never frozen beef.
  • Aiming to open 26 new locations this year, balancing growth with quality control.
• Actively engages with customers and employees, focusing on purpose and guest experiences over profits.
• Advises newcomers to believe in themselves and take risks.

Sources: QSR Magazine

Noodles & Company's Major Menu Overhaul

Noodles & Company is embarking on the largest menu transformation in 30 years.

• Launching nine new dishes in March 2025, with plans to revamp two-thirds of the menu by Q2.
• Recent additions like the Buffalo Chicken Ranch Mac & Cheese saw a 40% increase in orders.
• Improved classics, like the Pesto Cavatappi with 60% more pesto, leading to better guest satisfaction.
• Despite challenges, recorded 0.8% same-store sales growth in Q4 2024.
• Future plans include:
  • Enhancing guest experience with refreshed dishes.
  • Drive sales and attract new customers through menu innovations.
  • Expand marketing efforts to boost awareness and engagement.

Highlights:

• The menu overhaul aims to increase the frequency of customer visits and attract new guests.
• Guest responses in test markets show improved satisfaction with taste and value.

Sources: Restaurant Dive, Nation's Restaurant News

Challenges in the Restaurant Sector: Job Cuts and Closures

Job Cuts in Restaurants:

• The restaurant industry cut 27,500 jobs in February, marking the second consecutive month of declines.
• Total restaurant and bar workforce stands at 12.3 million.
• Factors contributing to job losses include:
  • Inflation and a 15-month low in consumer confidence.
  • Weather impacts, such as snowstorms and fires.
  • Economic uncertainty affecting both lower and higher-income customers.

California's Job Decline:

• California's quick-service restaurants lost 16,000 jobs after raising the minimum wage to $20 in April 2024.
• This represents a 2.8% decline in employment from September 2023 to September 2024.
• Menu prices in California surged by 14.5%, outpacing the national average of 8.2%.
• Despite current hardships, a forecasted 12% job growth in California's restaurant sector over the next decade.

Casual Dining Chains Facing Bankruptcy:

• On the Border files for Chapter 11 bankruptcy, the fourth casual-dining chain to do so this year.
• Del Taco closures and Applebee's plans to re-enter restaurant operations highlight industry struggles.

Sources: Restaurant Business, Nation's Restaurant News

Menu Innovations and Seasonal Offerings

Spring Restaurant Menu Trends:

• Chains are introducing seasonal specials as spring approaches.
• Burger King launches the Fiery Big Fish Sandwich and Steakhouse Bacon Whopper.
• Buffalo Wild Wings debuts the Beer Cheese Cheesesteak Sandwich and Chicken Parm Melt.
• Chick-fil-A brings back the Smokehouse BBQ Bacon Sandwich in three variants.
• Denny's offers indulgent Salted Caramel Banana breakfast dishes and new Slammin' Sodas.

Hostess Brands' New Launches:

• Introduced Donettes Apple Cinnamon Fritter Rings with a fun pull-apart design.
• Launched Hostess Cupcakes Minis, bite-sized treats for on-the-go snacking.

Other Notable Launches:

• Nature’s Garden expands its Probiotic Yoggies with a Mango Peach variant.
• Sour Patch Kids introduces Strawberry-Watermelon Glow Ups that glow under blacklight.
• Häagen-Dazs unveils new sorbet flavors: Summer Blueberry & Lemon and Passion Fruit & Sweet Pear.

Highlights:

• Restaurants are focusing on exciting new items and flavors to enhance customer experience.
• Embracing bold flavors and seasonal offerings as warmer weather approaches.

Sources: Restaurant Business, Food Business News, Food Industry Executive

Consumer Behavior: Tipping Fatigue and Trends

• Tipping fatigue is on the rise, with 1 in 3 Americans feeling tipping expectations have gone too far.
• Only 65% of diners tip at sit-down restaurants, down from 77% four years ago.
• Gen Z is rejecting tipping culture, viewing it as a forced surcharge.
• Restaurants face challenges balancing customer satisfaction and fair staff pay amidst inflation and labor shortages.
• Strategies to address tipping fatigue:
  1. Standardized tip-sharing to equalize earnings among staff.
  2. Eliminating tipping in favor of higher wages for clearer pricing.
  3. Utilizing technology to adjust tipping prompts based on customer behavior.

Highlights:

• There's a need for a tipping reformation to make tipping feel rewarding rather than obligatory.

Sources: Modern Restaurant Management

Tech Retreat in the Restaurant Industry

• Despite recognizing the benefits, restaurants are stepping back from tech investments.

Key Points:

• 83% believe tech provides a competitive edge, but only 28% say it boosts profits.
• High-profile rollbacks include:
  • McDonald's ending its voice AI trial.
  • Chipotle pausing its Autocado robot.
• Concerns over losing the personal touch in hospitality.
• Some brands prefer simplicity, focusing on enhancing the customer experience without excessive technology.
• Quality and profitability doubts lead to delays or pivots in tech investments.

Highlights:

• The industry may shift towards simpler, user-friendly tech solutions in the near future.

Sources: Nation's Restaurant News

Leadership Changes and Industry Appointments

New CEO at CKE Restaurants Holdings:

• Joe Guith appointed as the new CEO, previously leading Church's Texas Chicken.
• Brings experience from GoTo Foods, McAlister's Deli, Cinnabon, and Coca-Cola.

General Mills Leadership Changes:

• Jonathan J. Nudi, group president, to retire after 32 years.
• Liz Mascolo promoted to segment president of North America Pet.

Ocean Spray's New COO:

• Monisha Dabek elevated to Chief Operating Officer.
• Will manage US commercial business and global operations.

NCA Announces New Leadership:

• Jerry Hagedorn named Chair of the National Confectioners Association Board.
• Follows Tony Jacobs, bringing over three decades of industry experience.

Highlights:

• Leadership changes reflect a focus on growth, innovation, and strategic direction in the industry.

Sources: Foodservice Equipment & Supplies, Food Business News, Food Industry Executive

Reddit Discussions: Industry Insights from the Front Lines

EZ Cater Frustrations:

• Restaurateurs express frustration over customers ordering through EZ Cater, losing profits due to middle-man fees.
• Customers often prioritize personal rewards from apps over direct savings.

Opening a Sandwich Shop: Is It Worth It?

• Aspiring restaurateur considers opening a sandwich shop with no industry experience.
• Community advises caution, highlighting the high failure rate and importance of industry knowledge.

Catering Advice for Restaurants:

• Importance of defining clear policies for large orders and catering.
• Communication with customers is key to managing expectations and ensuring service quality.

Challenges of Mentoring a Young GM:

• Experienced manager supports an inexperienced young GM, facing stress due to maturity issues.
• Suggestions include providing structured support and clear communication about responsibilities.

Highlights:

• Reddit discussions reveal real-world challenges and peer advice in the restaurant industry.
• Emphasizes the importance of experience, customer relations, and staff development.

Sources: /r/restaurantowners, /r/Restaurant_Managers

Industry Acquisitions and Partnerships

Dutch Gold Honey Acquired by New Water Capital:

• New Water Capital LP acquires Dutch Gold Honey and related companies.
• Strengthens portfolio in the consumer products market.

Colavita Acquires Vitelli Foods:

• Colavita USA expands by acquiring Vitelli Foods, enhancing its position as a major importer of Italian pasta.
• Aims to preserve Vitelli's iconic brand and legacy.

Landmark Water Partnership for Agriculture:

• Collaboration between National Sorghum Producers, Ducks Unlimited, and Dairy Farmers of America.
• Focuses on enhancing water conservation in agriculture.

Highlights:

• These strategic moves reflect industry efforts to grow market presence and promote sustainability.

Sources: Food Business News, Food Industry Executive

Miscellaneous Highlights

McDonald's Loses Fast-Food Crown:

• Mixue Bingcheng, a drinks and ice cream company, surpasses McDonald's as the world's largest fast-food chain.
• Mixue is known for its low prices and focus on drinks and desserts.

Fast Food Fish Sandwich Rankings:

• Discussions on the best fast food fish sandwiches for Lent.
• Top picks include Wendy’s Crispy Panko Fish Sandwich and Popeye’s Flounder Fish Sandwich.

Reservation Cancellation Fees:

• Restaurants are implementing cancellation fees for no-shows, sparking varied opinions.
• Fees are seen as necessary by some to mitigate revenue loss due to last-minute cancellations.

Highlights:

• Consumer trends and industry practices are constantly evolving, impacting both businesses and customers.

Sources: /r/fastfood, /r/restaurant

Potbelly's Menu Innovations and Digital Growth

• Potbelly Corp. filled menu gaps by adding pulled pork and expanding sauce options.
• Introduced signature sandwiches and two new proprietary sauces to meet customer demand for spicy flavors.
• Non-carbonated beverage sales increased, leading to a partnership with Tractor Beverage Co..
• Digital sales now account for over 40% of total shop sales.
• Net income rose to $4.6 million, indicating positive financial growth.

Highlights:

• Focus on menu innovation and digital assets is driving sales and enhancing customer experience.

Sources: Nation's Restaurant News

El Pollo Loco's Brand Turnaround

• El Pollo Loco is in the second year of a three-year brand transformation.
• Emphasizing culinary innovation and enhanced customer experience.
• Introduced new flavor mango habanero, receiving positive feedback.
• Upcoming menu items include fresco wraps and a value-oriented quesadilla combo.
• Plans to open 10 new restaurants outside California by 2025.
• Fourth-quarter earnings show net income increasing to $6 million, with a slight rise in same-store sales.

Highlights:

• Aiming to modernize the brand while maintaining operational consistency.
• Expanding presence in states like Arizona, Colorado, Idaho, New Mexico, Texas, and Washington.

Sources: Nation's Restaurant News

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