November 22th QSR Roundup: McDonald's McValue Menu and New Promotions Boosts Sales Amidst Competition

Interviewy Team

Interviewy Team

— 6 min read
November 22th QSR Roundup: McDonald's McValue Menu and New Promotions Boosts Sales Amidst Competition
QSR news for Nov 22th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 80 articles to bring you the latest. Estimated reading time saved (at 200wpm): 235 minutes. It'll take you only 9 minutes to catch up.

McDonald's Launches New McValue Menu

McDonald's is set to launch a new everyday value menu on January 7, 2025, aiming to boost traffic and sales amidst competition and recent challenges.

  • $5 Meal Deal: Includes a choice of McDouble, McChicken, fries, nuggets, and a drink, available through next summer.
  • Buy One, Add One for $1: Offers on breakfast items like Sausage McMuffin and lunch/dinner items like Chicken McNuggets.
  • Collaboration with franchisees allows for local specials and promotions tailored to customer preferences.
  • Aims to attract lower-income guests after seeing success with previous value deals.
  • Recent sales had dipped slightly, but momentum improved towards the end of the quarter.

McDonald's hopes the McValue Menu will redefine value for consumers and improve perceived affordability after sales declines and an E. coli outbreak.

Sources: QSR Magazine, Restaurant Business, Restaurant Dive, QSR Web

Massive Ground Beef Recall Due to E. Coli

Over 167,000 pounds of ground beef have been recalled due to E. coli contamination linked to 15 illnesses in Michigan.

  • The meat may still be in restaurants' freezers, with a 'Use By' date of Nov. 14.
  • This follows a previous E. coli outbreak traced to contaminated onions at McDonald's, resulting in 104 reported illnesses, 34 hospitalizations, and one death.
  • McDonald's is investing $100 million in a marketing campaign to rebuild trust, emphasizing deals on chicken nuggets and returning safe menu items like the Quarter Pounder.
  • The company also supports franchisees with over $60 million in affected states.

Sources: Restaurant Business, Salon

Flynn Restaurant Group Expands Wendy's Presence

Flynn Restaurant Group has acquired 32 more Wendy’s locations in Indianapolis, increasing its U.S. total to over 100 restaurants.

  • Flynn now operates 309 Wendy’s units and plans to expand to Australia by 2025.
  • CEO Greg Flynn highlights this acquisition as part of a historic year for the company.
  • Flynn Group stands as the largest franchisee globally, with 2,900 locations across brands like Applebee’s, Taco Bell, and Panera Bread.
  • The company is preparing for a major renovation cycle in 2025, offering franchisees options ranging from full remodels to "Refresh Lite".

Sources: Restaurant Business, Restaurant Dive

Freddy’s Frozen Custard and Steakburgers Exploring $1 Billion Sale

Freddy’s is reportedly exploring a sale potentially valued at $1 billion as interest in high-growth franchise brands rises.

  • The brand has experienced 14.3% average growth over the last five years.
  • System sales are nearing $1 billion across over 500 locations.
  • Private-equity firm Thompson Street Capital Partners may be looking to exit its investment within four years.
  • Recent similar deals include Blackstone's stake in Jersey Mike’s at $8 billion and Tropical Smoothie at $2 billion.

Source: Restaurant Business

Jersey Mike's Acquired by Blackstone for $8 Billion

Blackstone has acquired Jersey Mike’s Subs for $8 billion, with plans to accelerate the chain's expansion.

  • Jersey Mike’s has over 3,000 locations.
  • Founder Peter Cancro will retain a significant equity stake.
  • The deal is expected to finalize by early 2025, pending regulatory approvals.
  • This follows Roark Capital's purchase of Subway for $9.6 billion, indicating high-value transactions in the sandwich industry.

Sources: Restaurant Business, Food Business News

Cracker Barrel Shareholders Reject Activist Investor's Bid

Cracker Barrel Old Country Store shareholders rejected Sardar Biglari's bid for a board seat for the seventh time.

  • The board welcomed Michael Godwin, originally nominated by Biglari, bringing experience in IT and strategic leadership.
  • Biglari, holding 9.3% of shares, opposed the company's strategic plan worth over $700 million to revitalize the brand.
  • The company focuses on its growth plan, while Biglari advocated for shareholder payouts and selling Maple Street Biscuit Co.

Sources: Restaurant Business, Nation's Restaurant News

Gen Z consumers show distinct preferences in restaurant brands, with McDonald's, Wingstop, Raising Cane's, Chipotle, and Starbucks among their favorites.

  • McDonald's ranks 10th among Gen Z, aided by viral marketing campaigns.
  • Wingstop and Raising Cane’s are gaining popularity due to digital sales and new offerings.
  • Chipotle leverages gaming partnerships and influencer marketing.
  • Gen Z is expected to control $12 trillion in spending by 2030.

Source: Nation's Restaurant News

Jack in the Box Expands Despite Sales Drop

Jack in the Box is opening new locations and refranchising despite a dip in same-store sales.

  • Opened 44 restaurants and refranchised 47 Del Taco locations in fiscal 2024.
  • Plans to enter Chicago and Florida in 2025.
  • Focusing on digital capabilities, aiming for 20% of sales to be digital by 2027.
  • Same-store sales dipped 2.1% in Q4.

Sources: Restaurant Dive, Nation's Restaurant News

Atlas Restaurant Group Boosts Engagement with Loyalty Program

Baltimore's Atlas Restaurant Group developed a mobile loyalty app called Atlas Rewards to enhance guest engagement.

  • Over 50,000 members have joined.
  • Loyalty customers visit more frequently and spend twice as much as non-members.
  • The program offers a points system and personalized promotions.
  • Incentivizes downloads with $5 rewards for new members.

Source: Restaurant Business

Chicago's Proposed Alcohol Tax Increase Faces Backlash

Chicago restaurants oppose Mayor Johnson's plan to increase sales taxes on alcoholic beverages.

  • The tax hike could lead to the nation's second-highest sales tax rates on wine and spirits.
  • Potentially generating $10 million in revenue.
  • Operators fear increased prices will deter customers.
  • A study warns the tax could result in 1,000 job losses and cost Chicago $102 million in economic activity.

Source: Restaurant Business

Eater Under Wraps Holiday Market in Brooklyn

Eater is hosting a festive shopping event called Eater Under Wraps in Williamsburg, Brooklyn.

  • Dates: December 13-14, 2024.
  • Features: Vendors like Fishwife and Maison Balzac, tasting from PopUp Bagels and Fan-Fan Doughnuts.
  • Special Offers: First 250 buyers receive a mini Eater cutting board.
  • Cocktail Lounge: Sample seasonal desserts and exclusive drinks (Cost: $35).
  • Events Schedule: Cookbook signings and gingerbread decorating.

Source: Eater

Pinky Cole's Vegan Restaurant Success

Aisha “Pinky” Cole Hayes is transforming Atlanta's food scene with her vegan brands Slutty Vegan and Bar Vegan.

  • Raised $25 million in funding since 2019.
  • Serves over 14 restaurants with plans for more.
  • Known for innovative plant-based dishes and community impact.
  • Slutty Vegan has a $100 million valuation.

Source: FSR Magazine

GNT Introduces Non-GMO Paprika Emulsion

GNT launched Exberry Shade Vivid Orange, a Non-GMO paprika emulsion.

  • Water-dispersible, can replace traditional paprika oleoresin and Sunset Yellow.
  • Suitable for confectionery, dairy, and plant-based products.
  • Aligns with the demand for bright, cost-effective coloring ingredients.

Source: Food Business News

Nestle Shifts Strategy Amid Economic Challenges

Nestle is evolving its approach to boost growth, focusing on performance improvement and market share recovery.

  • Aims for 4% growth in organic sales.
  • Factors like retailer inventory reductions and market share losses are impacting growth by 1%.
  • Plans a focused strategy for underperforming segments like creamers and pizza.
  • Targets cost savings of $2.8 billion by 2027.

Source: Food Business News

Gen Z consumers are influencing food trends with unique preferences.

  • Ranch Dressing: 21% say it's overrated, but 92% are open to trying new sauce variations.
  • Pickle Sauce: Rising in popularity, with 20% wanting pickles turned into a sauce.
  • 'Swalty' Flavor: The combination of sweet and salty is growing in popularity.

Source: Food Business News

Instacart Launches SNAP Eligibility Tool

Instacart introduced a tool allowing users to quickly check SNAP eligibility, aiming to address food insecurity.

  • Affects more than 1 in 8 people in the U.S.
  • First online grocery platform to offer this resource.
  • In 2023, expanded SNAP acceptance to all 50 states, connecting nearly 98% of SNAP households.

Source: Salon

Optimizing Inventory Management in Food Manufacturing

Manufacturers are prioritizing inventory management to enhance efficiency and competitiveness.

  • Nearly 70% plan to optimize inventory levels within three years.
  • Inventory management software can provide 90% accurate demand forecasting.
  • Reduces inventory costs by up to 10%.

Source: Food Industry Executive

Predicted food trends for 2025 highlight consumers' evolving tastes.

  • Rise in innovative snacking due to lifestyle changes.
  • Growing popularity of South Asian flavors and regional ingredients.
  • Demand for restaurant-quality meals at home.
  • Increased interest in functional foods, such as mushrooms and ashwagandha.
  • Emergence of unique flavors like diverse chilis and adventurous vinegars.

Source: Food Business News

Too Good To Go App Reduces Food Waste

Too Good To Go connects users with restaurants selling leftover food, reducing waste.

  • Generated approximately $162 million in revenue in 2023.
  • Helps restaurants sell surplus food, promoting sustainability.

Source: Modern Restaurant Management

HTeaO Raises Over $100,000 for Breast Cancer Initiative

HTeaO raised $118,879.72 for the Ryan Palmer Foundation's Breast Cancer Initiative.

  • Funds used to provide Hope Kits for over 500 breast cancer patients.
  • Campaign encouraged customers to round up their bills in October.

Source: Fast Casual

Layne's Chicken Fingers Expands in Pittsburgh

Layne's Chicken Fingers is set to open its third location in Pittsburgh by the end of the year.

  • Managed by 3E Franchise.
  • Aligns with the brand's growth strategy; currently operates 20 restaurants.
  • Additional 226 locations are in the pipeline since its founding in 1994.

Source: QSR Web

Roy Rogers Returns to Cherry Hill, New Jersey

Roy Rogers Restaurants will open a new location in Cherry Hill, NJ, in Spring 2025.

  • Marks the brand's return to Southern New Jersey and Philadelphia since the 1980s.
  • The only burger outlet on Haddonfield Road, serving a vibrant retail area.
  • Features classic menu items and modern renovations.

Source: Pizza Marketplace

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