November 10th QSR Roundup: Bloomin’ Brands Sells Outback in Brazil, Potbelly’s Franchising Push, and Serve Robotics Revolutionizes Kitchen Automation

QSR news for Nov 10th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 23 articles to bring you the latest. Estimated reading time saved (at 200wpm): 78 minutes. It'll take you only 9 minutes to catch up.

Major Business Moves and Financial Strategies

Bloomin' Brands is shaking up its international operations by selling 67% of its Brazilian Outback Steakhouse locations to Vinci Partners for $243 million. CEO Mike Spanos emphasized the advantage of local expertise in managing restaurant brands. The company retains a 33% stake, allowing them to simplify operations and focus on the domestic market. Despite this move, Bloomin’ Brands reported a net income drop to $6.9 million in Q3, with overall revenues down to $1.039 billion. Same-store sales declined across its restaurants, except for a slight increase at Fleming’s.

Meanwhile, Potbelly is embarking on an ambitious franchise growth plan. CEO Bob Wright aims for the sandwich chain to reach 85% franchised units as part of its expansion strategy. The company sold 33 company units last year to boost franchise growth and secured agreements to add 32 shops across six states. Despite a revenue decline of 4.7% to $115.1 million and a 1.8% drop in same-store sales, Potbelly is introducing new menu items to reverse the trend. They're committed to a target of 2,000 locations, with 86 franchise commitments overall.

Sweetgreen is expanding its menu with new offerings like air-fried Ripple Fries and wrap sandwiches. The company's net loss narrowed to $20.8 million in Q3, with revenues rising 13% to $173.4 million. They're piloting AI-driven scheduling to enhance team member experience and operational efficiency. Focusing on strong dinner sales, Sweetgreen is making adjustments like introducing seasonal maple-glazed brussels sprouts.

Sources: Nation's Restaurant News, Restaurant Business

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Technological Innovations in the Industry

In an exciting development for kitchen automation, Serve Robotics is acquiring Vebu, the maker of the Autocado, a robot that processes avocados for guacamole. Having trialed with Chipotle, the Autocado can halve, skin, and pit up to 25 pounds of avocados in 30 minutes, reducing guacamole prep time by 50% and cutting food waste costs. Vebu's founder, Buck Jordan, will join Serve to lead kitchen automation. Serve Robotics already partners with Shake Shack, 7-Eleven, and Uber Eats, utilizing autonomous delivery technology in urban areas.

Sources: Restaurant Business

C-Suite and Management Changes

October saw significant executive movements in the restaurant industry. Major chains and emerging brands appointed new leadership, reflecting ongoing industry dynamics:

• Domino's reshaped its executive team, promoting marketing roles following an EVP's exit.
• Red Lobster appointed new C-suite members post-bankruptcy.
• Starbucks CEO Brian Niccol hired a Chipotle executive.
• Emerging brands like Clean Eatz and Bluestone Lane named new CEOs.

On a personal note, a 27-year-old general manager at a fine dining Italian restaurant shares her struggles with an overwhelming 85-hour work week for a $120k salary without benefits. She's contemplating a job offer for $55k with better work-life balance and benefits. Commenters largely condemn her current situation, emphasizing the unsustainable hours and poor health effects. Many advise prioritizing happiness and personal well-being over a high salary in a demanding job.

Another operator at a family-owned restaurant grossing $930K annually considers partnering with an investor to create a high-end restaurant. Questions arise about salary expectations, especially given the risks and lack of ownership stake. Commenters stress the importance of securing a fair compensation structure that incentivizes long-term success over bonuses tied to owner discretion.

Sources: Nation's Restaurant News, /r/Restaurant_Managers

Operations and Equipment Challenges

Baking Tips and Tricks

Baking enthusiasts might find these tips handy:

• Underbaked pastry? Pop it back into a low-temperature oven to finish cooking and glaze for a beautiful top.
• Curdled buttercream? Gently heat over a double boiler or add warm milk to smooth it out.
• Cracked tart shells? Chill pastry before baking and use pie weights to stabilize.
• Dry pastries? Add sour cream or yogurt to the dough and steam while baking to retain moisture.
• Dome-shaped cakes? Ensure your oven is calibrated and consider using a cake strip for even baking.
• Chill cookie dough? Yes! It deepens flavors and prevents spreading.
• Flaky pie crust? Use cold butter and the right fat-flour ratio; adding vinegar can enhance tenderness.
• Kneading bread? Aim for a smooth, elastic dough that passes the windowpane test without tearing.

Hot Prep Table Inquiry

A restaurant owner seeks a specific hot prep table used in BBQ restaurants with a built-in warming drawer under the carving station. Commenters suggest it might be a CVap Cook and Hold Steamer or recommend a triple freestanding drawer warmer, providing links to the equipment.

Range Hood Fire Suppression Costs

In NYC, a restaurateur asks about reasonable prices for range hood fire suppression plans. Comments suggest hiring reputable companies like Allied or Master Fire Suppression, emphasizing that quality and safety should not be compromised for cost savings. Pricing is often calculated per linear foot of the hood, and it's crucial to understand specific needs. Users recommend getting quotes from multiple companies covering drawings, permits, and installation.

Sink Drain Issues

A new restaurant owner faces drainage problems with a 3-bay sink during a soft opening. Water backs up into other sinks when the wash tub drains, despite an empty grease trap. Community advice includes:

• Checking for proper venting and drainage design.
• Using baking soda and vinegar to clear possible clogs.
• Inspecting the plumbing configuration for installation errors.
• Contacting a plumber if initial fixes don't work.

Seeking Modern POS Recommendations

A restaurant owner wants a modern and appealing POS system to replace their outdated but reliable Speedline. They consider options like HungerRush and Toast, seeking recommendations for a system that supports high-volume delivery, online ordering, loyalty programs, and looks good to customers. Commenters suggest looking into PDQ, SkyTab, and SpotOn, and advise reaching out to their current merchant service provider for support.

Sources: Salon, /r/restaurantowners

Staffing and Management Challenges

Manager Mismanagement of Shifts

An experienced restaurant worker is frustrated with their manager's inability to schedule shifts according to their updated availability due to returning to school. The establishment hires excessive summer staff but fails to adjust in winter, leading to scheduling conflicts. The manager relies on the worker's partner to cover shifts they cannot work. Commenters suggest the worker might need to look for a new job as the situation seems unlikely to improve, highlighting the impact of schooling on scheduling.

Handling Large Party Reservations

Restaurateurs share experiences managing large party reservations in small restaurants, highlighting challenges and solutions:

• Persistent rudeness from large groups can lead to significant revenue loss during peak hours.
• Enforcing a set menu and defining clear time limits for parties larger than eight can improve turnover rates.
• Implementing a minimum spend requirement or automatic gratuity for larger groups safeguards profitability.
• Maintaining clarity in communication by stating the restaurant isn't equipped for large splits or gatherings.
• Small tables generally yield the best average checks per cover, emphasizing catering to regular-sized parties over large groups.

Sources: /r/restaurant, /r/restaurateur

Customer Relations and Marketing

Building Local Restaurant Relationships

A new restaurant owner seeks advice on connecting with fellow owners in town. Suggestions include:

• Hosting a meet-and-greet to promote community ties.
• Frequenting other restaurants to support neighboring businesses.
• Being a good competitor and fostering friendly relationships.
• Joining local associations and engaging with community events.
• Emphasizing kindness and mutual support in building long-standing relationships within the business community.

Google Review Photo Issue

A restaurant owner faces an issue where a Google reviewer posted photos of a random apartment instead of their restaurant, becoming the first image seen on Google Maps. Despite marking the review as spam, removal is delayed. Fellow owners suggest:

• Reporting the issue widely and adding more diverse images to overshadow the irrelevant photo.
• Flooding the listing with new images to mitigate the impact.
• Expressing frustration with Google's lack of response and ineffective management of reviews.

Taxes and Tipping Practices

Questions arise about why taxes are included in the computation for gratuity at restaurants, impacting tips for servers. Commenters reveal that the approach varies by state and POS system. Some argue including taxes inflates earnings for servers, while others highlight the necessity for clarity in how tips are calculated. Customers have the choice to tip in cash to avoid predefined tip suggestions. Understanding and managing POS settings is key to addressing concerns about gratuity calculations.

Remembering Sun Dried Tomatoes

A user reminisces about a restaurant chain called Sun Dried Tomatoes from the 80s but struggles to convince others of its existence. Commenters suggest they might be thinking of Sweet Tomatoes, a salad buffet chain known for accommodating both health-conscious adults and picky eaters. There's a consensus that the user may be misremembering, with most pointing to Sweet Tomatoes as the restaurant in question.

Sources: /r/restaurantowners, /r/restaurant

Industry Discussions and Advice

Costs of Opening a Food Hall Restaurant

An aspiring restaurateur seeks advice on the costs involved in opening a small restaurant in a food hall after successful sales at farmers markets. Key points from commenters:

• Location greatly influences costs, necessitating specific details about the food hall.
• Assess local markets before transitioning to a permanent location; a food truck might be a more flexible option.
• Most farmers market vendors struggle with brick-and-mortar transitions.
• It's important to contact food hall management for rental costs and understand demographics.
• Having initial working capital of at least $100k is advised to manage unforeseen slow starts.

Zelle or Cashapp Tipping

A bar owner considers using Zelle or Cashapp for tipping bartenders instead of cash to avoid frequent bank runs. Commenters provide mixed opinions:

• Credit card tips often go directly onto checks, which can complicate income reporting.
• Warnings about tax liabilities and the importance of using a qualified accountant.
• Alternatives like Kickfin can alleviate cash handling issues despite costs.
• Caution against using Zelle due to its association with scammers.
• Digital tips may not contribute to bartenders' minimum wage in certain states, a significant consideration.

Union POS Feedback and Experiences

Users share positive experiences using Union POS, highlighting:

• Excellent tech support and user-friendly design.
• Self-ordering capabilities are a great fit for modern establishments.
• Some users reported hardware issues but praised the software interface.
• Potential users express interest in cost and service availability, indicating a desire to switch from older systems.

Sources: /r/restaurant, /r/BarOwners

Customer Preferences and Nostalgia

Discontinued McDonald's Items

Seven discontinued McDonald's items that fans miss spark an engaging discussion:

• Snack Wraps (2006): Top the list, with many expressing a strong desire for their return due to nostalgia and unique flavors.
• Chicken Selects (1998): Lamented by fans who suggest they might be overpriced if reintroduced.
• Mighty Wings and Arch Deluxe: Favorites among many, with memories shared of these items.
• Other missed items include the McSkillet burrito, fried apple pie, and various salads.

There's a blend of nostalgia and demand for discontinued flavors, with users longing for the return of these beloved menu items.

Sources: /r/fastfood

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