November 7th QSR Roundup: The Resilience and Innovations of the Dining Industry

QSR news for Nov 7th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 53 articles to bring you the latest. Estimated reading time saved (at 200wpm): 244 minutes. It'll take you only 7 minutes to catch up.

*️⃣ Loyalty Programs and Customer Engagement

Red Robin is making significant strides in stabilizing traffic despite economic hurdles. Their revamped loyalty program, launched in May, has been a game-changer:

• Sign-ups increased by nearly 150,000 every four weeks
• Transactions from new members surged by 141%
• Over 400,000 lapsed members reengaged, contributing to 20% of loyalty visits
• A strategic shift towards reducing discounting and increasing check averages by 6%

Additionally, Dutch Bros has successfully introduced mobile ordering, now available in 90% of their locations:

• 2.8 million transactions processed so far
• 67% increase in loyalty membership transactions
• 95% accuracy in mobile order fulfillment with higher tip rates

Source: Nation's Restaurant News, QSR Magazine

*️⃣ Franchise Expansions and Legal Battles

Applebee’s is embroiled in a legal spat with its franchisee, Apple Central, over the unauthorized closure of eight locations, seeking damages exceeding $8 million. This comes amid Apple Central’s bankruptcy filing, citing pandemic-induced struggles.

On the expansion front, Krispy Kreme and McDonald's partnership is set to burgeon nationwide by 2026:

• Starting in Northeast Ohio on Nov. 12
• Aiming for 12,000 locations by 2026
• Enhancements in production and logistics to maintain product quality

Checkers and Rally’s are also expanding in Florida with new Walmart-based locations, operated by entrepreneur Saleem Valiyani and family, enhancing accessibility and leveraging high foot traffic from Walmart stores.

Source: Nation's Restaurant News, QSR Magazine

*️⃣ Financial Challenges and Bankruptcies

The restaurant sector continues to face financial turbulence:

• Red Robin reported a net loss of $18.9 million in Q3, up from $8.2 million last year, despite a modest 0.6% increase in same-store sales.
• Dine Brands is grappling with decreased same-store sales at Applebee’s and IHOP, reporting total revenues down to $607.5 million.
• TGI Fridays has filed for Chapter 11 bankruptcy, reducing its restaurant count from 270 to 163, joining other chains like Red Lobster and Buca di Beppo in financial distress.

Source: Nation's Restaurant News, Restaurant Business, Salon

*️⃣ Marketing and Advertising Innovations

Restaurants are reimagining their marketing strategies to stay competitive:

• Teriyaki Madness launched its first national ad campaign, "Crazy Delicious," focusing on humor and creativity to attract customers.
• Rethinking QSR Advertising, brands are shifting from traditional AORs to more agile, specialized agencies for faster turnaround and cost efficiencies.
• JOYUP introduced an AI-powered marketing platform, enabling personalized engagement and data-driven insights to bolster customer loyalty.

Source: QSR Magazine, Restaurant Dive

*️⃣ Menu Innovations and New Offerings

Innovation in menus remains a top priority:

• Salt & Straw introduced a limited-time ice cream collection inspired by the movie Red One, featuring unique flavors like Commander of the E.L.F. PB Chocolate Crinkle and Red’s Cookie Platter with Eggnog Custard.
• Starbucks unveiled its festive holiday menu with new beverages like the Cran-Merry Orange Refresher and seasonal sweets such as Snowman Cake Pops.
• Fleming’s Prime Steakhouse & Wine Bar launched a new lunch menu with a 2-Course Prix Fixe starting at $28, featuring dishes like Steak Frites and Barbecue Salmon Fillet.

Source: QSR Magazine, Restaurant Business, FSR Magazine

*️⃣ Corporate Leadership Changes

Leadership transitions are shaping the future of restaurant brands:

• Red Lobster appointed Larry Konecny as its new COO, bringing 30 years of restaurant operations experience to oversee 545 locations.
• Papa John's welcomed Jenna Bromberg as the new Chief Marketing Officer, aiming to enhance brand development and digital experiences across its 5,900 worldwide restaurants.

Source: Foodservice Equipment & Supplies, QSR Web

*️⃣ Industry Trends and Operational Strategies

Emerging trends and strategic operations are crucial for sustainability:

• Employee Growth Paths: Structured growth paths are gaining importance to reduce turnover and enhance company culture through personal and professional development.
• Smart Supply Chain Solutions: Implementing data, AI, and machine learning to minimize food waste and optimize operational efficiency, with initiatives like GPS tracking and IoT monitoring.
• Farming in the Desert: Innovations in irrigation and precision agriculture are addressing the challenges of sustainable farming in arid regions like the Imperial Valley.

Source: Nation's Restaurant News, FSR Magazine, Modern Restaurant Management, Civil Eats

*️⃣ Promotions and Deals

Attractive promotions continue to draw customers:

• McDonald's is offering a limited-time deal for 10 Chicken McNuggets at $1 through their app until December 2, 2024, sparking excitement and diverse opinions among customers.
• Taco Bell introduced the Luxe Cravings Box featuring 90s-inspired items, receiving mixed reviews with calls for more innovative and nostalgic offerings.

Source: /r/fastfood

*️⃣ Beverage and Food Quality Enhancements

Quality and innovation in beverages and food are paramount:

• Streamlining Beverage Preparation: Restaurants are enhancing beverage programs with products like Red Diamond’s Simple Sweet line, ensuring consistency and efficiency.
• Elevating Food Quality: North Country Smokehouse’s Applewood Smoked Bacon Crumbles® offer high-quality proteins without added labor, maintaining consistent flavor and customer satisfaction.

Source: FSR Magazine, Restaurant Dive

*️⃣ Legal and Regulatory Updates

Navigating legal landscapes remains a critical aspect:

• Grocery Pricing Investigation: Senators Warren and Schiff are urging an FTC investigation into Albertsons and other supermarket chains for alleged predatory pricing and misleading practices.
• Fire Safety Requirements: Discussions around fire suppression systems for equipment like the Blodgett Mini Hoodini highlight varying local regulations and the importance of compliance.

Source: Salon, /r/restaurant

*️⃣ Adaptations Amid Economic Shifts

Restaurants are adapting to changing economic conditions:

• Portillo’s is resisting aggressive discounting, focusing on long-term strategies to expand from 67 to 600 locations over 25 years, while maintaining quality amidst inflation and competition.
• Applebee’s is shifting its strategy to focus on value meals like the Real Big Meal Deal, inspired by competitor successes, aiming to boost traffic and combat declining sales.

Source: QSR Magazine, Restaurant Business

*️⃣ Holiday and Seasonal Offerings

Festive seasons bring unique opportunities:

• Ruby Slipper unveiled a Winter Wonderland Menu with seasonal dishes like the Croque Madame Benedict and festive beverages such as the Spiked Sugar Cookie Cold Brew.
• Michelin Guide is expanding to Texas, promising to highlight meal quality and potentially awarding its first barbecue restaurant star to Franklin Barbecue.

Source: FSR Magazine, Eater

*️⃣ Technology and Innovation in Operations

Embracing technology for better operations:

• JOYUP’s AI Platform empowers restaurants with personalized marketing, optimizing menu offerings, pricing strategies, and social media management for increased efficiency and revenue.
• Smart Supply Chain Solutions are reducing food waste and enhancing sustainability through real-time data and route optimization.

Source: Restaurant Dive, Modern Restaurant Management

*️⃣ Community and Cultural Engagement

Restaurants are strengthening their ties with communities:

• Schnipper’s Quality Soups opens in the original Hale and Hearty location, offering diverse soups catering to modern dietary preferences and fostering community connections.
• Walk-On’s Sports Bistreaux plans to enhance guest experiences with refreshed interiors and tech upgrades in new corporate-owned locations in Atlanta.

Source: Eater NY, Restaurant Dive

*️⃣ Specialized Dining Experiences

Creating unique dining experiences remains a focus:

• Kyuramen is expanding to the West Coast with its first California location, featuring an innovative 2.0 interior design for an immersive Japanese dining experience.
• Chef-Led Trend Innovation by Unilever Food Solutions engages global chefs to deliver innovative culinary solutions, fostering a community that promotes global culinary exchange.

Source: FSR Magazine

*️⃣ Virtual and Specialty Dining Ventures

Exploring new dining models:

• Starting a Virtual Restaurant: Entrepreneurs are entering the food industry without physical spaces, focusing on delivery-friendly dishes, strong branding, and agile marketing strategies.
• Caviar Business Opportunities: The rising popularity of caviar presents lucrative avenues for specialty food entrepreneurs, including sturgeon farming, distribution, and gourmet events.

Source: Total Food Service, BlueCart

*️⃣ Legacy and Tradition in Dining

Honoring tradition while innovating:

• Martha Stewart’s Christmas Legacy showcases her extravagant holiday preparations, emphasizing presentation and culinary perfection, reflecting on the balance between tradition and modern expectations.
• Church's Texas Chicken reinstates its signature original recipe, celebrating its rich history while aiming to satisfy customer cravings with bold flavors and hearty meals.

Source: Eater

*️⃣ Sustainable Practices and Environmental Impact

Focusing on sustainability:

• Smart Supply Chain Solutions reduce food waste and greenhouse gas emissions by implementing GPS tracking, IoT monitoring, and route optimization.
• Farming in the Desert highlights the challenges and innovations in sustainable agriculture in arid regions, advocating for drought-resistant crops and better water management techniques.

Source: Modern Restaurant Management, Civil Eats

*️⃣ Employee Development and Retention

Investing in workforce quality:
Creating structured growth paths for restaurant employees is essential for reducing turnover and enhancing company culture. Opportunities for personal and professional development lead to higher job satisfaction and loyalty, fostering a dedicated workforce.

Source: Nation's Restaurant News

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!