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

Interviewy Team

Interviewy Team

— 7 min read
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.

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

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

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

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