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

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


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