November 8th QSR Roundup: Exploring Expansion, Challenges, and Innovations in the Restaurant Industry

QSR news for Nov 8th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 52 articles to bring you the latest. Estimated reading time saved (at 200wpm): 165 minutes. It'll take you only 12 minutes to catch up.

Krispy Kreme's Sweet Expansion and Q3 Hurdles

Krispy Kreme faced some challenges in Q3, but they're making strategic moves to bounce back.

• Sales Slump: Q3 sales were $379.9 million, a 6.8% decrease from last year.
• Margin Dip: U.S. margins fell to 6.1% due to accident claims and startup costs related to the McDonald's partnership.
• Growth in DFD (Delivered Fresh Daily): Partnerships with McDonald's and retailers led to 3.5% organic revenue growth, with DFD sales jumping 15%.
• McDonald's Expansion: By year's end, nearly 2,000 McDonald's locations will serve Krispy Kreme doughnuts, with a national rollout planned by 2026.
• Positive Feedback: CEO reports enthusiastic consumer response with no negative impact on nearby Krispy Kreme stores.
• Future Goals: Aims to double global access points to around 35,000 in three years.
• Management Restructuring: Following the sale of Insomnia Cookies, restructuring is expected to save $8M-$12M annually starting in 2025.

Sources: Nation's Restaurant News, QSR Magazine

Bankruptcies Shake the Restaurant Industry

Recent filings highlight a troubling trend of financial distress among restaurant operators.

• Ludlow Hospitality LLC: Filed for Chapter 11, citing liabilities between $1 million and $10 million, with $1.1 million owed to the U.S. Small Business Administration.
• Epic Sweets Group: Parent of Five-O Donut Co., owes $508,000 to the SBA, with similar liabilities.
• Growing List: They've joined the likes of Red Lobster, BurgerFi, and TGI Fridays in seeking bankruptcy protection this year.
• Industry Challenges: The restaurant sector faces a record number of bankruptcies, signaling ongoing economic pressures.

Estimated Reading Time: 2 minutes

Source: Nation's Restaurant News

Tacodeli's Authentic Growth Journey

Tacodeli is gearing up for significant expansion in Texas, bringing its authentic flavors to more customers.

• Founded in 1999 by Roberto Espinosa, Tacodeli has built a reputation for quality and genuine Mexican cuisine.
• New Leadership: CEO Peter Gaudreau, known for scaling restaurant brands, will lead the next phase of growth.
• Local Partnerships: Committed to sourcing from Texas vendors and innovating menu offerings.
• Expansion Plans: Set to grow in 2025 and beyond, focusing on the breakfast taco market.

Source: QSR Magazine

Taziki's Tomato Basil Soup Makes a Comeback

Warm up with Taziki's seasonal favorite!

• Soup Revival: The Tomato Basil Soup with feta is back nationwide until January 26, 2025.
• Fresh Ingredients: Made daily with a blend of tomatoes, basil, and spices, topped with feta.
• Pricing: Starts at $5.49, with combo options available.
• CEO's Note: Dan Simpson highlights the soup's appeal during chilly seasons.
• Extended Favorites: Due to popularity, the Street Gyro and Pasta Salad remain on the menu.
• Holiday Promotion: $10 voucher for every $50 spent on gift cards.

Source: QSR Magazine

Bubble Tea's Global Surge with Gong cha

Bubble tea isn't just a trend—it's a booming global market!

• Market Growth: Expected to grow from $2.4 billion in 2019 to $4.3 billion by 2027.
• Gong cha's Reach: Operating 2,200 locations worldwide, aiming for 500+ U.S. stores by 2025.
• Quality Focus: Uses hand-steeping methods for fresh tea, brewing four varieties daily.
• Franchise Support: Provides comprehensive training to ensure operational excellence.
• Technology Integration: Kiosks account for 50% of orders, increasing ticket values.

Source: QSR Magazine

Maximizing Menu Margins with Restaurant365

Unlock your restaurant's profitability through smart menu engineering.

• Challenges: Manual tracking of metrics consumes time and can be inaccurate.
• Solution: Restaurant365 automates data collection, offering real-time insights on ingredient costs and menu performance.
• Key Tools:
  • Menu Analysis: Identify high-selling, profitable items.
  • Recipe Management: Track ingredient usage efficiently.

Source: QSR Magazine

Sweetgreen's Menu Diversification

Sweetgreen is spicing things up to attract more than just salad enthusiasts.

• New Addition: Testing crispy Ripple Fries, air-fried in avocado oil.
• Calorie-Conscious: Fries contain 240 calories, served with pickle ketchup and garlic aioli.
• CEO's Vision: Jonathan Neman aims to disrupt fast food with "permissible indulgences."
• Sales Boost: Same-store sales rose 6%, driven by price increases and new items.
• Future Plans:
  • Bring back wraps and desserts.
  • Launch a new loyalty program.
  • Implement AI-driven labor systems.
  • Expand Infinite Kitchen model.

Source: Restaurant Business

First Watch's Data-Driven Marketing

First Watch leverages consumer data to combat declining breakfast traffic.

• Traffic Decline: Breakfast traffic dropped by 4.4% in Q3 2024.
• Data Utilization: Testing tailored marketing using rich consumer data.
• Results: Slight uptick in per-person spending; improved dining numbers.
• Challenges: Third-party delivery sales lagging; total guest counts fell.
• Operational Improvements:
  • Kitchen Display Systems reduced wait times by 15%.
• Financial Outlook:
  • Slight decline in same-store sales expected.
  • Closed the quarter with 547 locations.
  • Net income of $2.1 million, a 61% decrease, despite a 14.8% revenue increase.

Source: Restaurant Business

Dutch Bros' Brew-tiful Sales Surge

Dutch Bros is brewing up success with innovative strategies.

• Same-Store Sales Boost: Up 2.7%, surpassing expectations due to increased transactions.
• Stock Soars: Shares jumped 28% following positive results.
• Engaging Promotions:
  • Free rubber ducks giveaway on National Coffee Day.
  • Introduction of new drinks like the Cookie Butter Latte.
• Mobile Ordering:
  • Implemented in 90% of locations.
  • 2.8 million transactions processed.
  • 90% user retention rate.
• Loyalty Program:
  • Gained 1 million new members.
  • Accounts for two-thirds of transactions.
• Food Menu Testing:
  • Expanded offerings at six shops.
  • Food sales currently 2% of total revenue.
  • Aims to boost morning traffic with more food options.

Source: Restaurant Business

Red Robin's Return to Discounts

Facing a competitive market, Red Robin brings back discounts to attract cost-conscious diners.

• Discount Strategies:
  • $10 burgers.
  • Half-off kids meals.
• CEO's Vision: G.J. Hart wants to showcase food and service improvements through value offerings.
• Impact on Margins: Discounts have reduced profit margins but are improving traffic.
• Loyalty Program: Boasts 14.5 million members, enhancing customer engagement.
• Operational Challenges:
  • 70 unprofitable locations, resulting in a $6 million loss over the past year.

Source: Restaurant Business

Papa John's Urgent Turnaround Efforts

Papa John's faces declining sales and is taking swift action.

• Sales Decline: 7% drop in same-store sales, third consecutive quarterly decline.
• New Leadership: CEO Todd Penegor stresses the need for urgent action to stabilize the business.
• Challenges:
  • Losses in carryout and self-delivery.
  • Gains from third-party delivery aren't offsetting losses.
• Outlook: The company expects continued challenges into 2025.

Source: Restaurant Business

Applebee's and IHOP Revamp Value Menus

The sibling chains are reimagining value to drive growth.

• New Approaches:
  • Focusing on total meal costs through bundle deals.
• IHOP's $6 Menu: Introduces a $6 House Faves menu with breakfast staples.
• Applebee's Meal Deal: Plans a bundled meal with a new entrée.
• Sales Decline:
  • Both chains reported same-store sales drops in Q3.
• Future Plans:
  • Applebee's may close 25-35 locations in 2024.
  • IHOP expects up to 10 new openings.

Source: FSR Magazine

Famous Dave's Texas-Sized Grand Opening

Barbecue lovers rejoice—Famous Dave's is opening a new location with big celebrations!

• New Location: Modesto, CA, opening on November 14, 2024.
• Free Ribs for a Year: First 100 guests at 4:00 pm receive monthly rib entrées.
• Grand Opening Events:
  • Ribbon-cutting with the Modesto Chamber of Commerce.
  • DJ, giveaways, and rib tastings.
• Community Support:
  • $3 from every All American Feast will benefit Make-A-Wish.
• Atmosphere: Nostalgic design perfect for family gatherings.

Source: FSR Magazine

Denny's Veterans Day Salute

Denny's honors military personnel with a hearty breakfast.

• Free Grand Slam: Available from 5 a.m. to noon on November 11, 2024.
• What's Included:
  • Two buttermilk pancakes.
  • Two strips of applewood smoked bacon.
  • Two sausage links.
  • Two eggs.
• Eligibility: Active and retired military personnel with valid ID.
• CEO's Message: Chris Bode emphasizes the importance of this tradition in honoring veterans.

Source: FSR Magazine

Leadership Insights from Ziosk's CEO Rhonda Levene

Innovating in tough times with a focus on diversity and technology.

• Career Shift: Rhonda Levene transitioned from finance leader to CEO in 2024.
• Technological Advancements:
  • Launched DigiSite with Bluetooth technology for streamlined ordering.
• Major Partnerships:
  • Collaboration with Brinker International to deploy tablets at over 1,100 Chili’s locations.
• Diversity Advocacy:
  • Focus on recruiting and advancing women in technology.
  • Encourages women to lead from every seat.
• Future Goals:
  • Expand beyond casual dining into fast-casual and QSR chains.
  • Leverage AI for enhanced solutions.

Source: FSR Magazine

Pizza Chains Battle for Value Supremacy

Domino's, Papa John's, and Pizza Hut compete fiercely on value offerings.

• Domino's Success:
  • 3% same-store sales growth in Q3.
  • Added 2 million new loyalty members.
  • Emergency Pizza promotion boosts online sales.
• Papa John's Struggles:
  • 6% decline in sales.
  • Plans to revamp rewards for quicker access.
• Value Focus: Strong value propositions are key to attracting customers and driving traffic.

Source: Restaurant Dive

Serve Robotics Acquires Vebu for Kitchen Automation

Advancing restaurant technology to address operational challenges.

• Acquisition Details:
  • Serve Robotics acquires Vebu, known for Autocado, an autonomous avocado processing machine.
• Goals:
  • Tackle labor shortages.
  • Expand automation solutions in the restaurant sector.
• Leadership:
  • Buck Jordan to remain as SVP of Kitchen Automation.
• Industry Impact:
  • Aligns with partnerships with 7-Eleven and Shake Shack.
  • Addresses wage growth challenges with innovative tech.

Source: Restaurant Dive

Papa John's Appoints New CMO

Fresh leadership to steer marketing strategies.

• New CMO: Jenna Bromberg takes the helm.
• Focus Areas:
  • Overseeing marketing strategy and product innovation.
  • Enhancing brand perception.
  • Driving data-driven creative campaigns.
• Background:
  • Former roles at Pizza Hut and Carter’s.
• Transition:
  • Replaces Mark Shambura, who left for Panera Bread.

Source: Restaurant Dive

Starbucks Stirs Up Holiday Cheer with New Menu

Festive flavors return, with exciting new additions!

• New Beverages:
  • Cran-Merry Orange Refresher: Sweet orange, tart cranberry, and warming spices.
  • Gingerbread Cream Cold Foam.
  • Cran-Merry Orange Lemonade Refresher.
  • Cran-Merry Drink with coconut milk.
• New Treats:
  • Turkey Sage Danish.
  • Dark Toffee Bundt.
  • Penguin Cookie.
  • Snowman Cake Pop.
• Returning Favorites:
  • Peppermint Mocha.
  • Caramel Brulée Latte.
  • Sugar Plum Cheese Danish.
• Availability: Starting Nov. 7.

Source: Salon

Elevate Your Menu with Tea: A Profitable Brew

Harness the power of quality tea to enhance dining experiences and profits.

• Customer Delight:
  • Tea can create memorable moments from appetizers to desserts.
• Investment Return:
  • Small investment in premium tea yields significant returns.
• Key Strategies:
  • Proper merchandising.
  • Effective brewing techniques.
  • Staff training for engagement.
• Brand Offerings:
  • Bigelow provides five distinct tea brands tailored to different occasions.
• Future Developments:
  • New state-of-the-art facility in Louisville to enhance quality control.

Source: Total Food Service

Leveraging Video Testimonials in Marketing

Boost customer engagement and loyalty with visual storytelling.

• Impact of Video:
  • Showcases real customer experiences.
  • Improves trust and visibility.
• Storytelling:
  • Successful videos tell a compelling story, highlighting customer details and unique menu items.
• Quality Matters:
  • High-quality filming and editing are crucial.
• Distribution Channels:
  • Share via email and social media to amplify reach.
• User-Generated Content:
  • Encourage customers to create and share their own videos.
• Website Integration:
  • Strategically place testimonials to capture visitor interest.

Source: Modern Restaurant Management

Kimbal Musk's The Kitchen Debuts in Austin

A new culinary destination arrives in the heart of Texas.

• Opening Date: November 14.
• Location: 8,300 square feet space designed by Michael Hsu Office of Architecture.
• Dining Capacity: Seats 211 guests, with a private room for 12.
• Culinary Leadership: Chef Michael Bertozzi.
• Menu Highlights:
  • Global dishes with Texas flavors.
  • Dishes like grilled oysters and Urfa carrots.
• Cocktail Diversity: Inspired by local and international flavors.
• Community Engagement:
  • Hosting soft opening services supporting local charities.

Source: Eater Austin

Atelier Showcases a Rising Star Chef

Experience a Midwest-inspired tasting menu from an award-winning team.

• Chef Spotlight: Bradyn Kawack steps up as executive chef after Michelin Star win.
• Menu Innovation:
  • $170 tasting menu emphasizing local ingredients.
  • Dishes like walleye fish reflecting Minnesota's lakes.
  • Creative takes on classics, such as a unique Thai salad.
• Collaborative Environment:
  • Chef-owner Christian Hunter works closely with Kawack.
• Behind the Scenes: Featured on Mis en Place for a glimpse into their culinary process.

Source: Eater

Artisanal Burgers at Cozy Royale

Indulge in gourmet burgers crafted with care and quality.

• Source of Ingredients: Beef from The Meat Hook, the butcher shop next door.
• Burger Varieties:
  • Tavern Burger: 70:30 lean-to-fat mix, with American cheese and fries.
  • Dry-Aged Burger: Made with aged sirloin, bacon jam, and raclette.
• Exclusivity:
  • Only 10 dry-aged burgers prepared daily.
• Owner's Philosophy:
  • Brent Young emphasizes the iconic nature of burgers and their draw for customers.

Source: Eater

Streamlining Catering with Olo and ezCater

Enhancing restaurant operations through technology integration.

• Partnership Details:
  • Olo Inc. integrates with ezCater for seamless catering menu management.
• Benefits:
  • Automates menu updates.
  • Reduces errors.
  • Saves time for staff and customers.
• Catering Growth:
  • 53% of workplace food buyers plan to increase spending.
• Improved Experience:
  • Consistent menus across platforms.
  • Enhanced guest satisfaction.
• Industry Feedback:
  • Zaxby's CTO praises the partnership for operational efficiency.

Sources: QSR Web, Food Industry Executive

Essential Restaurant Safety Tips

Prioritize safety to ensure a secure and healthy environment.

• Staff Training:
  • Invest in comprehensive training on food safety and emergency protocols.
• Cleanliness Focus:
  • Regularly sanitize all areas.
• Preventing Slips and Falls:
  • Use slip-resistant shoes and mats.
  • Clean spills promptly.
• Avoiding Injuries:
  • Proper handling of knives and hot equipment.
  • Keep a well-stocked first aid kit.
• Equipment Maintenance:
  • Regularly inspect and maintain machinery.
• Food Handling:
  • Correct storage and handling to prevent illness.
• Fire Safety:
  • Equip with fire extinguishers.
  • Conduct regular training and drills.

Source: Total Food Service

Trump Presidency's Impact on Restaurants

Restaurant owners express concerns over potential policy changes.

• Labor Shortages:
  • Fear of immigrant deportations affecting staffing.
• Economic Impact:
  • Possible 10% tariffs could increase food costs.
• Tip Taxation Debate:
  • Discussions around no tax on tips evoke mixed feelings.
• Industry Reliance on Immigrants:
  • Acknowledgment of undocumented workers filling essential roles.
• Uncertainty Prevails:
  • Owners brace for significant changes in operations.

Source: /r/restaurant

Navigating Restaurant Ownership Challenges

Owners share experiences and advice on common industry hurdles.

• Visa Settlement Queries:
  • Mixed opinions on pursuing small settlements.
• Encouraging Reviews:
  • Tactics include NFC cards linking to review pages.
  • Emphasis on genuine customer engagement.
• Staff Motivation:
  • Rewarding staff based on positive reviews.

Source: /r/restaurantowners

Legal and Operational Conundrums in Bars

Bar owners discuss practical solutions to pressing issues.

• Transporting Alcohol:
  • Legal complexities of mobile bartending services in Florida.
  • Importance of seeking legal advice.
• Equipment Emergencies:
  • Handling a broken glasswasher with alternatives like three-compartment sinks or plastic cups.
• Happy Hour Strategies:
  • Tailoring offerings to the bar's niche.
  • Effective timings and promotions.

Source: /r/BarOwners

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