November 12th QSR Roundup: The Impact of Trump's Election on Restaurant Stocks and New Menu Trends

QSR news for Nov 12th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 93 articles to bring you the latest. Estimated reading time saved (at 200wpm): 315 minutes. It'll take you only 11 minutes to catch up.

Trump's Re-election Sends Markets Soaring 🏛️📈

Donald Trump's historic victory for a second nonconsecutive term has had significant implications for the restaurant sector and the broader market.

• Market Reaction: The Dow Jones surged 1,300 points, hitting record highs.
• Crypto Boom: Bitcoin jumped to reach $89,000.
• Restaurant Stocks: Mixed results were seen across the industry.
  • Portillo’s reported revenue growth due to new openings but experienced a 0.9% drop in same-store sales.
  • Yum Brands saw strong performance with Taco Bell’s same-store sales up 4% and KFC’s international units growing 9%, bolstered by digital sales exceeding $8 billion.

Insight: The restaurant industry may experience a surge in stock performance post-election but faces challenges like increased labor costs and competition from discounting brands.

Sources:

Nation's Restaurant News, Restaurant Business, Total Food Service

New Menu Innovations Shaking Up the Industry 🍗🍕

P.F. Chang's Introduces Fried Chicken

For the first time in its 31-year history, P.F. Chang’s is adding fried chicken to its menu with the Golden Feast offerings, inspired by South Korea's first snowfall celebrations.

Menu Highlights:

• Korean Fried Chicken: Available in bone-in and boneless options.
• Taiwanese Popcorn Chicken: Lightly battered thigh pieces with special seasonings.
• Sauce Offerings: Sweet Soy Glaze, Dynamite, Hot Honey, and Chili Crisp.

Cultural Inspiration: Reflects South Korean traditions symbolizing renewal and romance.

Available at: 225 U.S. locations, excluding airports and Puerto Rico.

Red Lobster Revamps Its Menu

Red Lobster unveils new dishes and brings back fan favorites:

• New Additions:
  • Lobster Pappardelle Pasta
  • Bacon Wrapped Sea Scallops
  • Lemon Basil Mahi
• Returning Favorites:
  • Hush Puppies
  • Popcorn Shrimp

Applebee's Launches $9.99 Meal Deal

Applebee’s rolls out the Really BIG Meal Deal:

• Options:
  • Big Cluckin’ Chicken Sandwich
  • BIG Classic Bacon Cheeseburger
• Includes: Classic Fries and a fountain drink.
• Aim: To provide unbeatable value amidst a challenging market.

Burger King's Million Dollar Whopper Contest

Burger King invites customers to vote on new Whopper variations for a chance to win $1 million.

• Finalists:
  • Fried Pickle Ranch Whopper
  • Maple Bourbon BBQ Whopper
  • Mexican Street Corn Whopper
• Engagement: Customers can vote after sampling the sandwiches via the BK app.

Sources:

Nation's Restaurant News, QSR Magazine, Restaurant Business

Executive Shake-ups in Major Chains 🏢👨‍💼

Scott Boatwright Named CEO of Chipotle

After serving as interim CEO since August, Scott Boatwright has been officially appointed as CEO of Chipotle Mexican Grill.

• Background:
  • With 7 years as COO at Chipotle.
  • Previously 18 years at Arby’s.
• Goals:
  • Expand to 7,000 North American locations.
  • Increase average unit volume (AUV) to over $4 million.
• Innovations:
  • Implementing technology like AI for scheduling.
  • Introducing automated kitchen equipment to enhance efficiency.

Emmy Squared Announces New Leadership

Emmy Squared appoints Troy Tracy as the new CEO, replacing Howard Greenstone.

• Team Additions:
  • Carrie Hart as CFO.
  • Sergio Perez as SVP of Marketing.
  • Eva Love as Senior Director of Training.
• Aim: To amplify growth and reputation in casual dining.

Sources:

Nation's Restaurant News, QSR Magazine, Restaurant Business

Franchise Expansion and Acquisitions 📈🏪

First Watch's Major Franchise Acquisition

First Watch is set to acquire 16 franchised restaurants and development rights in North and South Carolina for $49 million.

• Strategy:
  • Increase corporate ownership along the East Coast.
  • Completion expected by April 2025.
• Growth:
  • Re-acquired 45 restaurants since May 2023.
  • Focused on lower employee turnover and targeted marketing.

California Pizza Kitchen Launches U.S. Franchising

CPK aims for 75 new locations in five years.

• First Major Deal: Partnership with Sundine LLC for Las Vegas and Utah.
• Current Footprint: 131 locations across 27 states.
• Challenges: Seeking to revitalize brand after a 10% sales drop last year.

Potbelly Expands to Georgia

Potbelly signs a deal to open 15 locations in the Atlanta area starting January 2026.

• Growth Initiative:
  • Part of the Franchise Growth Acceleration Initiative.
  • Aims for 2,000 units in the U.S., with 85% franchised.

Sources:

Restaurant Business, Restaurant Dive, QSR Magazine

Legal Battles in the Fried Chicken Arena 🍗⚖️

KFC Sues Church’s Texas Chicken

KFC filed a lawsuit against Church's Texas Chicken for using the term “Original Recipe”.

• Allegations:
  • Trademark infringement since 1984.
  • Claims Church's use of the phrase is confusing consumers.
• Background:
  • KFC's Colonel Sanders created his original recipe in 1939.
  • Church's first created their original recipe in 1952.

Impact: This legal battle underscores the competitive tensions and the importance of protecting trademarks in the fast-food chicken market.

Sources:

Nation's Restaurant News, Restaurant Business

Industry Events Empowering Women Leaders 👩‍💼🌟

WFF 2025 Leadership Conference

The Women’s Foodservice Forum (WFF) will host its annual Leadership Conference from February 24-26, 2025, in Dallas.

• Theme: "BOLD & LIMITLESS"
• Features:
  • Complimentary one-year WFF membership for attendees.
  • Keynote speakers: Bozoma Saint John, Mika Brzezinski, and Molly Fletcher.
  • Networking opportunities with industry leaders.
• Goal: Empower women in the foodservice industry to enhance their leadership and career development.

Sources:

Nation's Restaurant News

Restaurant Industry Facing Challenges and Shifting Trends 🌐🍽️

Noodles & Company's Sales Decline

Noodles & Company reports a 3.3% drop in same-store sales and a 5.8% decrease in customer traffic in Q3.

• Challenges:
  • Industry volatility.
  • Aggressive discounting by competitors.
• CEO's Task: Navigate a tough consumer landscape during recovery.

Sweetgreen Expands Beyond Salads

Sweetgreen is rebranding to offer heartier, dinner-worthy options.

• New Offerings:
  • Protein Plates: Miso Glazed Salmon, Hot Honey Chicken.
  • Caramelized Garlic Steak: Accounts for nearly 20% of dinner orders.
• Testing: Ripple Fries in LA, with plans for a national launch in 2025.
• Aim: Attract more customers during peak dining times.

Climate Change Threatens Restaurants

Climate change poses an existential threat to the restaurant industry.

• Impacts:
  • Increased energy costs.
  • Ingredient shortages.
  • Food security risks due to staple grain losses.
• Advocacy:
  • Chefs promoting sustainable practices.
  • Organizations pushing for climate-smart agriculture.

Sources:

QSR Magazine, Restaurant Business

Embracing Technology and Innovation 🤖🍳

Dave's Hot Chicken Enhances Customer Experience with Tech Upgrade

Dave's Hot Chicken integrates Qu's unified commerce platform.

• Benefits:
  • Improved data management.
  • Enhanced operational efficiency.
• Growth:
  • Over 1,000 franchise rights sold globally.
  • 70 new locations planned this year.

Chipotle Leverages Technology

Chipotle is implementing technology to improve operations.

• Tools:
  • AI for scheduling.
  • Automated kitchen equipment.
• Outcome:
  • Enhanced labor productivity.
  • Better throughput during peak hours.

Sources:

Fast Casual, Restaurant Dive

Food Safety Takes Center Stage 🛡️🥗

McDonald's E. Coli Response Highlights Industry Risks

An E. coli outbreak linked to slivered onions led McDonald's to remove Quarter Pounders from 3,000 restaurants.

• Actions:
  • Quick management of the situation.
  • Emphasis on supplier relationships.
• Concerns:
  • Need for stronger safety measures in the supply chain.
  • Customer confidence affected.

Importance: Restaurants must integrate rigorous safety protocols with suppliers to prevent future outbreaks.

Sources:

Restaurant Dive, Total Food Service

Culinary Collaborations and Entrepreneurial Support 🤝🍴

Todd Graves Mentors Entrepreneurs on 'Shark Tank'

Todd Graves, founder of Raising Cane’s, invests in and mentors aspiring entrepreneurs.

• Investments:
  • Pitched companies Topsail Steamer and RigStrips secured deals.
• Brand Growth:
  • Raising Cane’s on track to surpass $10 billion in revenue.
  • Over 1,600 locations.

Cookbook Chefs Collaborate for Unique Dining Experiences

Cookbook authors team up with chefs to create collaborative dining events.

• Benefits:
  • Promotes their culinary works.
  • Allows diners to taste dishes from the cookbook.
• Examples:
  • Chef Jeremy Fox and Agi’s Counter collaboration.
  • Events range from themed dinners to cultural mashups.

Sources:

QSR Magazine, Eater

Restaurant Owner Challenges and Community Discussions 💬👥

Balancing Two Jobs

A restaurant owner seeks advice on managing a new restaurant/bar startup while working as a full-time software developer.

• Community Advice:
  • Hire the right team, including a GM and Chef.
  • Prevent burnout by establishing clear work-life balance.
  • Importance of communication with partners.

Separate Checks at Brunch

A diner asks if it's appropriate to request separate checks during a brunch with new friends.

• Consensus:
  • It's common and acceptable to ask for separate checks.
  • Best to inform the server at the beginning.

Navigating Chapter 7 Bankruptcy

An owner considers filing for bankruptcy due to financial challenges.

• Advice:
  • Prioritize tax payments.
  • Consult a bankruptcy attorney.
  • Understand personal liability and impact on business assets.

Sources:

Reddit threads from /r/restaurantowners, /r/BarOwners, /r/restaurant

Unique Marketing Campaigns and Cultural Fusions 🎤🍽️

Michelin-Star Rap Album Bridges Food and Music

Rapper Ben Glover, aka Blvck Svm, merges fine dining with hip-hop in his debut album michelinman.

• Concept:
  • Films music videos in kitchens of esteemed chefs.
  • Lyrics infused with culinary references.
• Goal: Elevate rap's artistic perception alongside fine dining.

Papa John's Launches 'Cini Tini' Cocktail

Papa John's Canada teams up with Aviation American Gin to create the 'Cini Tini', a pepperoncini gin martini.

• Highlight:
  • Showcases the iconic pepperoncini from their pizzas.
• Availability:
  • Recipe provided for customers to make at home.

Sources:

Eater, QSRNext

Impact of Climate and Politics on the Industry 🌍🏛️

Climate Change Poses Threats to Restaurants

• Challenges:
  • Increased natural disasters disrupting operations.
  • Rising energy costs and ingredient shortages.
• Statistics:
  • Natural disasters rose from 4,200 (1980-1999) to 7,348 (2000-2019).
  • Every 1.8°F temperature rise leads to grain losses.
• Response:
  • Chefs promoting sustainable practices.
  • Advocacy for legislative changes supporting climate-smart agriculture.

Impending GOP Impact on Restaurants

• Potential Policies:
  • Aggressive moves that could increase costs.
  • Complicated staffing due to immigration restrictions.
• Concerns:
  • Proposed tariffs and tax changes adding uncertainty.
  • Possible unionization efforts and rising ingredient costs.

Sources:

Restaurant Business, Civil Eats, Modern Restaurant Management

Franchise Growth and Global Expansion 🌐🚀

Blaze Pizza Expands in Southern California

• Five-Unit Deal: With Red Phoenix Group LLC.
• Areas: Ventura, Santa Barbara, Upper San Fernando Valley.
• Growth: Over 300 existing restaurants across multiple states and countries.

Craveworthy and Global Taste Brands Partnership

• Objective: Franchise international QSR and fast-casual brands.
• Focus: Blending global culinary innovation with American dining.
• Brands: Includes BD's Mongolian Grill, Flat Top Grill.

Qdoba's Franchise Expansion

• Growth: Nearly 800 locations, 14 consecutive quarters of positive same-store sales.
• New Agreements:
  • 30 new locations by Thrive Restaurant Group.
  • 15 by Q Eats LLC in Houston.
• International Expansion: New locations in Okinawa and South Korea.

Sources:

Pizza Marketplace, Fast Casual, Restaurant News

Miscellaneous Industry Updates 📝🍴

Grimaldi’s Introduces New Pasta Sauces

• Flavors:
  • Marinara
  • Tomato Basil
  • Arrabbiata
• Features:
  • Gluten-free, dairy-free, non-GMO.
  • Made with authentic Italian ingredients.

Huddle House Launches Maple Butter Chicken & Waffle

• New Items:
  • Maple Butter Chicken & Waffle
  • Maple Butter Chicken & Waffle Taco
• Available: Starting November 13, 2024, for a limited time.

Flight Club's Menu Expansion

• Objective: Attract non-players and lunch patrons.
• Additions:
  • Grilled Chicken Sandwich
  • Caesar Salad
  • Sophisticated cocktails and mocktails

Sources:

FSR Magazine, Restaurant Business

Fast Food Enthusiasts Weigh In 🍔💬

Burger King's $1 Whopper Offer

• Promotion: Offering one million $1 Whoppers through their app starting November 12, 2024.
• Customer Reaction: Enthusiastic responses, with many planning to take advantage of the deal.

Fast Food Mashed Potatoes Ranking

• Top Picks:
  • Boston Market: Praised for the best mashed potatoes.
  • KFC, Popeyes, Jollibee: Also received positive mentions.
• Key Ingredient: Gravy is crucial for overall satisfaction.

Sources:

Reddit threads from /r/fastfood

Community Discussions on Industry Practices 🗣️📝

Are Chef-Driven Restaurants Dying?

• Observation: Decline of chef-driven restaurants post-pandemic.
• Factors:
  • High costs of ingredients and rent.
  • Influence of social media trends favoring aesthetics over quality.

Impact of Abolishing Tipping

• Debate: What would happen if tipping was eliminated in North America.
• Concerns:
  • Potential pay cuts for servers.
  • Increased menu prices or service charges.
• Consensus: Significant disruptions in service and employment dynamics.

Navigating Restaurant Ownership

• Challenges:
  • Lack of experience leading to potential failure.
  • Importance of hiring experienced staff and understanding the business.

Sources:

Reddit threads from /r/restaurant, /r/restaurateur

Restaurant Etiquette and Experiences 🍽️😌

Short Reservation Turnaround

• Situation: Diners asked to leave after 75 minutes during an anniversary dinner.
• Community Response:
  • Generally considered poor hospitality practice.
  • Emphasis on clear communication regarding reservation time limits.

Separate Checks at Brunch

• Question: Is it appropriate to request separate checks with new friends?
• Advice:
  • Yes, it's acceptable and common.
  • Best to inform the server at the start.

Sources:

Reddit threads from /r/restaurant

Bar Owners Share Insights and Advice 🍻💡

Auto Gratuity for Large Parties

• Discussion: Implementing a 20% auto gratuity for parties of 8 or more.
• Consensus:
  • Standard industry practice.
  • Helps ensure fair compensation for staff.

Ideas for Bar Theme Nights

• Challenge: Boost attendance during slow days.
• Suggestions:
  • Trivia and karaoke nights.
  • Organic events that develop with regular patrons.
• Advice:
  • Choose themes carefully to not alienate regulars.
  • Consistency can be more manageable than constantly changing themes.

Balancing Two Careers

• Scenario: Managing a bar opening while holding a full-time job.
• Key Points:
  • Time management is crucial.
  • Hire trustworthy staff to delegate responsibilities.
  • Be prepared for late nights and challenges.

Sources:

Reddit threads from /r/BarOwners

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