November 11th QSR Roundup: Mezcal’s Popularity Soars, Franchise Growth Explodes, and Automation Transforms the Restaurant Landscape

QSR news for Nov 11th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 48 articles to bring you the latest. Estimated reading time saved (at 200wpm): 165 minutes. It'll take you only 9 minutes to catch up.

Beverage Trends: Mezcal's Rising Popularity

Consumers are increasingly drawn to mezcal for its unique smoky flavor and artisanal roots, especially appealing to adventurous and younger drinkers.

• 34% increase in mezcal presence on U.S. menus over the past four years.
• Predicted 35% growth in the next four years, targeting taste-seekers.
• 50% of the population is familiar with mezcal, notably higher among Hispanic communities.
• Mainstream adoption marked by its inclusion on menus like Applebee’s.

Source: Nation's Restaurant News

Franchise Growth and Expansion Strategies

California Pizza Kitchen (CPK) is launching franchising in the U.S. for the first time, aiming to add 75 locations in five years.

• Currently has 131 locations across 27 states.
• Partnering with Sundine LLC to expand in Las Vegas and Utah.
• CEO Michael Beacham emphasizes franchising as essential for reaching diverse markets.
• Plans to open more airport locations and expand frozen pizza offerings.

Qdoba is on a growth trajectory, boasting nearly 800 locations and 14 consecutive quarters of positive same-store sales.

• Signed 22 franchise agreements in 2024.
• Achieved a 7.7% sales increase, up from 6.3% last year.
• Notable agreements include 30 restaurants in Carolina and 15 in Greater Houston.
• Corporate investments of nearly $30 million enhancing capacity and technology.

Playa Bowls continues its expansion surge:

• 195 franchise commitments secured in 2024, with 52 in Q3 alone.
• 11 stores opened in one quarter, marking substantial growth.
• Over 275 locations across 23 states.
• Dallas market entry confirmed with 10 planned locations over 5 years.

Source: Restaurant Business, QSR Web, Fast Casual

Leadership Changes and Strategic Company Moves

Chipotle named Scott Boatwright as the permanent CEO after his interim role since August.

• Served as COO for seven years and has 18 years at Arby’s.
• Aims to enhance employee opportunities and shareholder value.
• Focusing on growth with plans for 7,000 North American locations, expecting an AUV above $4 million.
• Third quarter saw a 13% increase in sales, reaching $2.8 billion.

First Watch breakfast-and-lunch chain is set to acquire 15 franchised restaurants in the Carolinas for $49 million.

• Enhances its footprint with rights to further expand.
• CEO Chris Tomasso emphasizes these acquisitions are vital for long-term growth.

Emmy Squared Pizza has made significant leadership appointments:

• Troy Tracy is now CEO, bringing over 25 years of experience.
• Carrie Hart joins as CFO, enhancing financial processes for growth.
• Sergio Pérez becomes Senior VP of Marketing.
• Eva Love appointed Senior Director of Training.
• Plans to introduce Emmy2 Pizza at Swingers Las Vegas by November 2024.

Source: QSR Magazine, Restaurant Business, FSR Magazine

Technology and Automation Transforming the Industry

Automation is revolutionizing restaurants:

• Chipotle's avocado-peeling robot, Autocado, is now owned by Serve Robotics.
• Robots like Flippy are being tested for kitchen tasks, aiding or replacing chefs in high-volume environments.
• AutoFry is a fully automated, ventless deep fryer enhancing kitchen efficiency and addressing labor shortages.

Concerns and considerations:

• Shift towards automation raises concerns about mass unemployment and the future of human labor.
• Experts warn that reluctance to adapt could lead to obsolescence for businesses that stick to traditional methods.

Source: Nation's Restaurant News, Modern Restaurant Management, Foodservice Equipment & Supplies

Menu Innovations and Restaurant Revamps

Restaurants are innovating to attract customers:

Sweetgreen is diversifying its menu:

• Testing air-fried fries, wrap sandwiches, and dessert options.
• Plans to redesign its loyalty program, launching in early 2025.
• The new program aims for a points-based system with more frequent rewards.

Red Lobster is revamping its menu, bringing back beloved hush puppies:

• New menu is 20% smaller but includes nine new items like bacon-wrapped sea scallops.
• CEO Damola Adamolekun emphasizes making the menu compelling and relevant.
• Aims to simplify operations after a challenging period.

Taco Bell launched the “Bridging the Chicken Divide” campaign:

• Promotes the new Cantina Chicken menu.
• Uses humor to bring families together over dinner debates.

Source: Restaurant Business, Restaurant Dive

Sustainability and the Climate Crisis Impact

Climate change is increasingly threatening the restaurant industry:

• Rising temperatures and extreme weather affect operations and supply chains.
• Independent restaurants are particularly at risk.
• Chefs and operators are exploring solutions like regenerative farming and indigenous food systems.
• Lobbying for legislative changes to support climate-smart agriculture.

Concepta Ingredients focuses on delivering eco-friendly, high-quality ingredients:

• Offers plant-based protein flours that are gluten, dairy, GMO, and soy-free.
• Promotes sustainability and health through the Bio Abundance Program.
• Ensures sustainable sourcing that benefits local communities and protects Brazilian biomes.

Source: Restaurant Business, Total Food Service

Insights from Reddit Discussions

Chef Partnerships and Ownership:

• Achieving partnerships often stems from long-term dedication and mutual success.
• Important to clarify terms between equity and profit shares.
• Building strong networks and reputations is crucial.

Reservations vs. Waitlists Confusion:

• Clear communication regarding seating policies is essential.
• Misunderstandings can lead to guest frustration and operational challenges.
• Some suggest better communication rather than eliminating reservations.

Impact of Abolishing Tipping:

• Servers could see significant income drops without tips.
• Restaurants might struggle to survive, leading to possible closures.
• Menu prices may increase to compensate for higher wages.
• Workplace dynamics could shift, with potential improvements in service environments.

Source: /r/restaurantowners, /r/restaurateur, /r/restaurant

Gift Guides: Delightful Gifts for Food Lovers

Unique Food Gifts Under $25:

Looking for charming and budget-friendly presents for food enthusiasts? Here are some delightful options:

• Olivewood Salad Servers - Versatile and elegant at $25.
• Chicken Slippers - Fun and functional for $18.
• Chocolate Sardines - A quirky treat for $16.
• Tomato Vine Candle - On-trend scent for $15.
• The Pasta Tarot - A queer-themed tarot deck for foodies at $17.
• Pickle Ornament - Classic decor piece for $10.

Affordable Holiday Food Gifts Under $50:

• Bowlcut Masterclass Sauce Set - Savory chile crisp and new sauces for $48.
• Pistakio Spread - Rich, sweet pistachio paste for $30.

These gifts are perfect to bring joy and a chuckle to any food lover's holiday season.

Source: Eater

Restaurant Industry Challenges and Trends

Decline of Chef-Driven Restaurants:

• The pandemic and shifting consumer preferences are impacting chef-driven dining establishments.
• Economic pressures, high operational costs, and changing dining trends are significant factors.
• Some chefs express concerns over social media's influence steering diners away from traditional establishments.

Dealing with Workplace Challenges:

• Employees are advised to prioritize personal well-being over job security in toxic environments.
• Reporting incidents and seeking supportive work cultures is important.

Managing Guest Expectations:

• Clear communication about reservation policies and time limits is essential.
• Negative experiences can arise from misunderstandings about seating durations.

Source: /r/restaurant

Notable Transactions and Partnerships in the Industry

Outback Steakhouse sells a majority stake in its Brazilian operations:

• $243 million deal selling 67% ownership to Vinci Partners.
• Retains 33% ownership, aiming to refocus on domestic markets.
• The deal reflects previous considerations of exiting the Brazilian market amidst challenges.

Craveworthy partners with New Summit Capital Advisors to establish Global Taste Brands:

• Aims to franchise international QSR and fast-casual brands in the U.S. and beyond.
• CEO Gregg Majewski emphasizes enhancing culinary innovation and inclusivity in dining.
• Intends to capture market share with unique international offerings.

Source: FSR Magazine, Fast Casual

Upcoming Events and Success Insights

Masters of Scale podcast launches a live event series:

• Kicking off on November 14 in NYC, hosted by Capital One Business.
• Guest Danny Meyer, renowned restaurateur, to share insights on scaling in the industry.
• Focus on delivering actionable lessons and enhancing guest experiences.
• Plans for more live events across the U.S. in the future.

Source: Restaurant Dive

Chain Restaurants Focusing on Consistency and Return to Basics

Starbucks is undergoing a significant transformation to reclaim its brand's essence:

• CEO Brian Niccol's "Back to Starbucks" plan focuses on empowering baristas and simplifying the menu.
• Aims to create a welcoming environment, reducing wait times by hand-delivering drinks within four minutes.
• Reviving personal touches like writing names on cups and possibly reintroducing ceramic mugs.
• Strategy includes promoting Starbucks' coffee expertise through engaging storytelling in advertising.

Checkers and Rally's expand in Florida:

• Opening four new locations in Walmart stores, starting with Kissimmee and Clermont.
• Managed by experienced franchisee Saleem Valiyani and family.
• Aims to offer bold, flavorful meals and celebrate growth in a strong market.

Source: Salon, QSR Web

Transforming Commercial Kitchens with Automation

• AutoFry is a fully automated, ventless deep fryer enhancing kitchen efficiency.
• Addresses labor shortages and safety concerns, reducing risks like burns and oil spills.
• User-friendly controls require minimal supervision, allowing staff to multitask.
• Reduces overhead costs by eliminating the need for expensive ventilation systems.
• Represents a shift towards efficiency and innovation in the foodservice industry.

Source: Foodservice Equipment & Supplies

Sustainable Food Innovation in Ingredients

Concepta Ingredients champions sustainability:

• Focuses on eco-friendly, high-quality ingredients for the food and beverage industry.
• Offers unique plant-based protein flours that are gluten, dairy, GMO, and soy-free.
• Committed to a zero-waste initiative.
• The Bio Abundance Program ensures sustainable sourcing benefiting local communities and protecting biomes.
• Drives innovation in food service solutions while promoting health and sustainability.

Source: Total Food Service

Restaurant Automation and the Future of Work

The restaurant industry is on the brink of a robotic revolution:

• Robots like Tao, a host that greets guests and remembers preferences, enhance personalized service.
• Tipsy, a robotic bartender, mixes drinks faster than humans.
• Food runner robots like Servi increase efficiency and reduce human error.
• AI-driven robots, such as Flippy, aid kitchen tasks in high-volume environments.

Concerns:

• Automation raises concerns about unemployment and the diminishing role of human labor.
• Industries must adapt, with a focus on preparation and education on automation technologies.
• Businesses sticking to traditional methods risk obsolescence.

Source: Modern Restaurant Management

Bar Owners Share Insights and Ideas

Bar owners on Reddit discuss various topics:

• Theme Nights: Suggestions for slow nights include international community gatherings, drag shows, trivia nights, and professional meetups.
• Emphasize organic development and community interest to avoid alienating regulars.
• Successful thematic events often arise from regular patrons seeking dedicated spaces.

AMA Insights:

• Discussions on airing significant events like sports fights at bars and obtaining the rights.
• Advice on structuring investor payouts and financial management.

Source: /r/BarOwners

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!