QSR news for Nov 5th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 57 articles to bring you the latest. Estimated reading time saved (at 200wpm): 185 minutes. It'll take you only 9 minutes to catch up.

Restaurant Restructurings

This year, major restaurant chains are undergoing significant financial and strategic shifts:

• TGI Fridays filed for Chapter 11 bankruptcy, dealing with substantial debt and pandemic impacts. They aim to continue operations while exploring restructuring and potential sales.
• Twin Peaks plans a public spin-off, collaborating with FAT Brands to IPO both Twin Peaks and Smokey Bones under the new Twin Hospitality Group.

Leadership Changes:

• Red Lobster appointed Larry Konecny as COO, focusing on rebuilding the executive team post-bankruptcy with CEO Damola Adamolekun.
• Bojangles hired Grant Williams as VP of Digital and Omnichannel Marketing, aiming to enhance customer engagement and marketing strategies.

Source: Nation's Restaurant News

Restaurant Chains' Q3 Highlights

The third quarter presented mixed results for restaurant chains:

• McDonald's boosted sales with its $5 Meal Deal, showing resilience despite an E. coli outbreak.
• Wendy’s is closing 140 underperforming locations, targeting an average unit volume (AUV) of $2 million to maintain high performance.
• Chipotle eyes global expansion into Europe and the Middle East, seeking new growth opportunities.
• Chili’s plans to replicate its success at Maggiano’s, standing out in a competitive landscape.

Source: Nation's Restaurant News

Restaurant Menu Changes and Closures

Menu innovation and operational challenges are prominent:

• Velvet Taco launched the Halloween-themed Haunted Harvest taco, expanding seasonal offerings.
• TGI Fridays closed nearly 50 restaurants, reducing domestic locations significantly post-bankruptcy.
• Applebee’s abruptly closed eight locations around Kansas City after the franchisee's Chapter 11 filing, leaving only two in the area.

The casual dining sector is tightening, with closures and strategic recalibrations across multiple chains.

Source: Nation's Restaurant News

Red Lobster's New COO

• Larry Konecny is Red Lobster's new COO, reporting to CEO Damola Adamolekun.
• Focus areas include enhancing food quality and operational efficiency across 545 locations.
• Konecny brings 17 years of experience from Maggiano’s Little Italy, aiming to drive customer satisfaction and teamwork.
• Part of Red Lobster's strategy to rebuild post-bankruptcy, alongside new CFO and CMO hires.

Source: Nation's Restaurant News

Oath Pizza Declares Bankruptcy

• Oath Pizza filed for Chapter 7 bankruptcy on October 22, 2023.
• Closed seven of its 17 locations, facing debts up to $50 million.
• Allegations against CEO Andrew Kellogg for mismanagement and misappropriation of assets contributed to the downfall.
• Once thrived with growth and partnerships but succumbed to financial struggles.

Source: Nation's Restaurant News

Spirulina's Rising Popularity

• Spirulina, a nutrient-dense algae, is increasingly featured on menus.
• 33% increase in menu presence over four years, with a projected 35% growth in the next four.
• Appeals to vegans and vegetarians due to high protein and antioxidant content.
• Its vibrant color makes dishes more visually appealing for social media, especially smoothies.

Source: Nation's Restaurant News

KFC's Ongoing Struggles

• KFC's U.S. same-store sales declined by 5%, the third consecutive quarterly drop.
• Taco Bell outperformed with a 4% increase, aided by a 30% growth in digital sales and effective value messaging.
• Internationally, KFC saw 9% growth and opened nearly 150 new units, with digital sales over $8 billion.
• Pizza Hut and Habit Burger also saw declines, indicating a competitive market.

Source: Nation's Restaurant News

FAT Brands to Spin Off Twin Peaks

• FAT Brands is spinning off Twin Peaks and Smokey Bones to create Twin Hospitality Group.
• Plans to take the new entity public, distributing 5% of class A common stock to shareholders.
• Co-CEO Ken Kuick believes this will unlock growth opportunities and enhance shareholder value.
• Managing existing debt through a $19.3 million refinancing with Sun Barbecue LLC.

Source: Nation's Restaurant News

Sarah Spiegel Interim CEO at CKE Restaurants

• Sarah Spiegel appointed interim CEO of CKE Restaurants, parent of Carl's Jr. and Hardee's.
• Replaces Max Wetzel, who became CEO at Tropical Smoothie Café.
• Spiegel brings experience from Roark Capital, Coffee & Bagel Brands, and has an MBA from Stanford.
• Aims to steer CKE Restaurants through its next growth phase.

Source: Nation's Restaurant News

Buca di Beppo Sold Post-Bankruptcy

• Main Street Capital to acquire Buca di Beppo for $27 million after bankruptcy court approval.
• Main Street will forgive existing loans and provide $36.3 million in financing for operations.
• This acquisition marks Main Street’s largest restaurant holding, aiming to stabilize and grow the brand.

Source: Restaurant Business

Burger King's Struggles in China

• Burger King terminated its master franchisee in China, impacting growth plans.
• Led to a 100 basis point shortfall in Restaurant Brands International's projected unit growth.
• Despite challenges, RBI plans to invest in future growth in China.
• Globally, Burger King saw a 1.8% increase in same-store sales outside the U.S. and Canada.

Source: Restaurant Business

Election Impact on Restaurants

• Upcoming elections could influence tax policies and employment practices, affecting profitability.
• Experts emphasize the importance of small business engagement in politics.
• Election outcomes may shape the regulatory and economic environment for restaurants.
• Owners are urged to stay informed and involved in political processes.

Source: Restaurant Business

Oath Pizza Files for Bankruptcy

• Oath Pizza's Chapter 7 bankruptcy follows the closure of all corporate locations.
• Faced assets between $100,000 and $500,000 against liabilities up to $50 million.
• Legal challenges against former CEO Drew Kellogg for mismanagement during insolvency.
• Reflects a broader trend of bankruptcies in the fast-casual dining sector.

Source: Restaurant Business

Leadership Changes at Tropical Smoothie Café

• Max Wetzel appointed as new CEO, succeeding Charles Watson.
• Wetzel brings experience from CKE Restaurants and Papa John’s.
• Roland Smith joins the board, adding over 25 years of executive experience.
• Tropical Smoothie Café has opened over 300 new locations in 2023, showing significant growth.

Source: Restaurant Business

Chili's Menu Focus

• Chili's refines its menu to boost profitability and customer appeal.
• Introducing the viral Triple Dipper as a central offering.
• Strategy focuses on streamlining the menu and highlighting high-margin items.

Source: FSR Magazine

Grimaldi’s Holiday Gift Card Promo

• Grimaldi’s Pizzeria offers a holiday gift card promotion until December 31, 2024.
• Spend $50 on gift cards, receive a $10 Bonus Card redeemable in early 2025.
• Encourages repeat business and customer loyalty during the festive season.

Source: FSR Magazine

Free Lunch for Veterans at Ninety Nine Restaurant & Pub

• Offering a complimentary lunch to veterans and active-duty military on Veterans Day until 5 p.m.
• Menu includes favorites like Baked Schrod and All American Burger.
• Veterans also enjoy a 10% discount year-round with military ID.

Source: FSR Magazine

New Hurricane Grill & Wings Location

• Opened at Six Flags Great Escape Lodge, the first theme park location.
• Offers award-winning jumbo wings and a variety of tropical-themed dishes.
• Aims to delight both park visitors and local residents.

Source: FSR Magazine

Taco Bell Triumphs Over KFC

• Taco Bell's same-store sales increased by 4%, while KFC's declined by 5%.
• Success attributed to 30% growth in digital sales and effective value messaging.
• KFC plans to enhance value offerings and introduce new items like original recipe chicken tenders.

Source: Restaurant Dive

Burger King's Summer Struggles

• U.S. comparable sales declined by 0.4% in Q3 2024.
• The Fiery menu underperformed, leading to a 1.5% decline in systemwide sales.
• Some remodels showed mid-teens sales increases.
• The Addams Family meal introduced in October is performing well.

Source: Restaurant Dive

Martha Stewart's Cooking Wisdom

• Martha Stewart blends practicality with elegance in her recipes.
• Staff favorites include:
  • Turkey roasted in parchment paper for juicy meat.
  • Chocolate pecan pie and pear upside-down cake showcasing versatility.
• Her desserts and appetizers transform everyday cooking into art.

Source: Eater

Golden Chick Expands in Texas

• Golden Chick opens second Midland location inside a Walmart.
• First venture within a Walmart, owned by franchisee John Anderson.
• Part of an aggressive growth plan for 2024, leveraging high-traffic environments.

Source: QSR Web

QSR Automations Gains Momentum

• Secured investment from Battery Ventures, appointing Robbie Payne as CEO.
• Aims to enhance product development and expand market reach.
• Positions QSR Automations as a key player in restaurant technology.

Source: QSR Web

Grease Trap Cleaning Insights

• Proper maintenance is crucial to prevent operational disruptions.
• Strategies include:
  • Running hot water daily to prevent buildup.
  • Using mesh drain covers and enzyme treatments.
• Consistent maintenance and experienced technicians are key.

Source: Foodservice Equipment & Supplies

Comfort Foods for Election Anxiety

Soothe election jitters with comforting recipes:

• Stuffed Cabbage Rolls
• Chicken and Noodle Casserole
• Twice-Baked Potatoes
• Cozy Totdish
• Chicken Salisbury “Steak”
• Ricotta Gnudi
• Chicken Pot Pie

Cooking these dishes offers a great distraction and sense of accomplishment.

Source: Salon

Future Diets and Alternative Proteins

• Western consumers need to embrace alternative proteins like lab-grown meat and insects.
• Overcoming barriers requires:
  • Introducing familiar forms to ease transition.
  • Using the "sushi route" to shift cultural perceptions.
• Marketing these proteins as exciting, healthy, and sustainable is key.

Source: Salon

McDonald's Spicy Nuggets Return

• McDonald's reintroduced Spicy Nuggets, exciting fans.
• Availability issues persist, with some locations lacking stock.
• Fans call for a special hot dipping sauce to accompany the nuggets.

Source: /r/fastfood

Tips for Managing Sharpies in Restaurants

• Challenges with Sharpie loss can be managed by:
  • Tying Sharpies to workstations.
  • Implementing personal accountability for returning markers.
  • Using specialty or off-brand markers to reduce loss.

Practical measures help maintain operations despite occasional losses.

Source: /r/restaurant

BeReal-style Restaurant Roulette Idea

• An app idea for weekly restaurant votes among small groups.
• Mixed reactions:
  • Skepticism about viability in a saturated market.
  • Support for fostering community engagement.
• Challenges include competition with established platforms.

Source: /r/Restaurant_Managers

Kiosk Ordering Debate

• Transitioning to self-service kiosks sparks debate.
• Concerns include:
  • Impact on customer experience and brand values.
  • Need for clear communication and maintaining a hybrid model.
• Aligning technology with the restaurant’s identity is crucial.

Source: /r/Restaurant_Managers

Struggles with Restaurant Owners

• A GM faces demanding owners neglecting employee welfare.
• Responsibilities shifted towards maintenance tasks, leading to burnout.
• Advice includes prioritizing self-care, considering new opportunities, and possibly uniting staff to address issues.

Source: /r/Restaurant_Managers

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