November 9th QSR Roundup: Growth Strategies and Tech Transformations

Interviewy Team

Interviewy Team

— 7 min read
November 9th QSR Roundup: Growth Strategies and Tech Transformations
QSR news for Nov 9th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 23 articles to bring you the latest. Estimated reading time saved (at 200wpm): 85 minutes. It'll take you only 9 minutes to catch up.

Innovations in Restaurant Growth and Expansion

The restaurant industry is buzzing with strategic partnerships and expansion plans, aiming to capture new markets and provide unique dining experiences.

Craveworthy Brands, with a diverse portfolio including BD’s Mongolian Grill and Genghis Grill, has partnered with New Summit Capital Advisors to form Global Taste Brands. The goal is to introduce and franchise international culinary concepts in the U.S., leveraging Craveworthy’s operational strength and New Summit’s expertise in scaling emerging restaurant brands globally. This joint venture promises a dynamic dining experience that reflects cultural diversity, marking an exciting new chapter with potential for significant growth and equity creation.

Similarly, Tacodeli, founded by Roberto Espinosa in 1999, is expanding its authentic Mexican dining experience across Texas under new CEO Peter Gaudreau. Gaudreau brings a strong track record, having previously helped brands like Snooze and Freebirds grow significantly. Tacodeli's strategy focuses on local sourcing, partnering with Texas vendors like Vital Farms and Cuvee Coffee. Future plans include opening new Texas locations, ongoing menu innovation, and developing store teams. Tacodeli is also expanding nationally with its wholesale and CPG product lines available in retailers like Whole Foods and Kroger.

Potbelly, a sandwich chain, is on an ambitious growth path. CEO Bob Wright aims for the brand to be 85% franchised and reach 2,000 units. In the past year, Potbelly sold 33 company units to spark franchise growth. Recent agreements will add 32 shops across six states, including a major expansion in Atlanta. The chain has 86 franchise commitments, with 345 company-owned and 90 franchised locations. Potbelly is focusing on menu innovation, launching new items like the Smokestack Pork and Mac sandwich, and plans to introduce a Cubano and Sweet Heat Barbecue Pork sandwich.

Puttshack, blending mini-golf with elevated dining, celebrates its 20th location milestone. CEO Logan Powell, transitioning from CFO, emphasizes growth, operational excellence, and tech enhancements. The brand plans to open five new venues in 2024, focusing on consistent guest experiences and adventurous food offerings. Puttshack's Challenge Hole offers a unique mini-golf suite experience while dining, positioning the brand for future success in the "eatertainment" sector.

Sources:

  • Nation's Restaurant News
  • QSR Magazine
  • FSR Magazine
  • Restaurant Business
  • FSR Magazine (Puttshack's Game-Changing Growth)

In a competitive market, restaurant chains are adjusting their strategies to boost sales and stay ahead.

Papa Johns faced a significant 6% decline in same-store sales across North America in Q3, with total revenues dropping by 3%. CEO Rob Lynch acknowledges a value gap in the competitive pizza and quick-service market. To address this, the company plans to revamp its rewards program, making it easier for customers to earn points and redeem rewards. Recognizing the importance of value perception, Papa Johns introduced new options like the $10.99 XL New York Style pizza. Other strategies include enhancing marketing initiatives, modernizing technology for better service, and incentivizing franchisees to open more locations, with net openings expected to surpass 100 in North America in 2024. Recent positive trends in carryout transactions suggest potential recovery.

Conversely, Dutch Bros reported a 2.7% increase in same-store sales, prompting a positive outlook for the year. Their performance indicates successful strategies in attracting and retaining customers.

Red Robin has introduced weekday discounts to entice diners, offering half-off kids’ meals and $10 burgers, aiming to increase traffic during slower periods.

First Watch is leveraging customer data to implement one-to-one marketing, aiming for personalized engagement with customers. By understanding individual preferences, they hope to drive sales and enhance customer loyalty.

Sources:

  • Nation's Restaurant News
  • QSR Magazine
  • Nation's Restaurant News (Restaurant Sales Trends)

Culinary Innovations and Seasonal Offerings

The holiday season brings a wave of exciting new flavors and creative menu items.

Starbucks is once again at the forefront of innovation, introducing cranberry-orange as a holiday flavor, adding a fresh twist to their seasonal offerings. Following suit, Peet’s Coffee and Carl’s Jr. are embracing the blood orange trend, infusing their menus with this vibrant flavor.

In New York, Devoción Coffee is blending rosemary and cinnamon with classic coffee, creating unique flavor profiles that captivate customers.

Chains like Dunkin', Shake Shack, and Taco Bell are unveiling new shakes and drinks that reflect seasonal trends. Salt & Straw offers Thanksgiving dinner-inspired ice creams, pushing the boundaries of traditional dessert flavors. Bonefish Grill launches themed cocktails partnered with a theater release.

Unique menu items are popping up across the industry. Hungry Howie’s introduces a creative chicken & waffles pizza, combining savory and sweet elements. Jersey Mike’s Subs brings back their pastrami, delighting fans eager for its return.

Even chef Sujan Sarkar is transforming America's view of Indian food, moving beyond curries to innovative dishes like Samosa Chaat Croissant and Dhokla Aero.

Sources:

  • Nation's Restaurant News
  • /r/fastfood
  • Salon (Reinventing Indian Cuisine)
  • /r/fastfood (Pastrami Returns to Jersey Mike's)

Technology and Automation Transforming the Industry

Restaurants are increasingly leveraging technology and automation to improve efficiency and customer satisfaction.

Serve Robotics is acquiring Vebu, the creator of Autocado, a robot designed to process avocados for guacamole. Tested in Chipotle locations, the Autocado can manage up to 25 pounds of avocados in just 30 minutes, cutting guac prep time in half and potentially saving millions by reducing food waste. This acquisition expands Serve's offerings in the restaurant back-of-house and secures Chipotle as a major customer. Serve Robotics, founded in 2018 by Postmates, utilizes advanced AI rovers with Level 4 autonomy for efficient delivery operations.

The importance of integrating the right technologies is emphasized across the industry. Many restaurants are dissatisfied with tech integration due to fragmented systems. An API-first architecture ensures seamless integration, enhancing scalability and allowing quick adaptation to market changes. Cloud-based platforms reduce costs, provide real-time insights, and improve staff communication, leading to better customer experiences.

Chipotle has responded to significant customer complaints about portion sizes by pledging to serve "consistent and generous portions". Interim CEO Scott Boatwright emphasizes the commitment to training staff to improve bowl and burrito preparation. Despite rising ingredient costs, Chipotle invested $50 million to improve portioning, aiming to enhance customer satisfaction.

Sweetgreen reported a 13% revenue increase for Q3, with same-store sales rising by 6%, reflecting strong menu innovation and operational execution. The restaurant-level profit margin improved to 20%, marking the 7th consecutive quarter of expansion. Digital sales accounted for 55% of total revenue, demonstrating effective use of technology in driving sales.

Sources:

  • Restaurant Business
  • QSR Magazine
  • Salon
  • QSR Web (Sweetgreen's Q3 Performance)

Industry Challenges and Advice from the Community

Beware of Scams: Restaurant owners share experiences with scams involving fake tech support calls, highlighting the need for vigilance, especially during busy times. One owner almost fell victim to a scam from someone posing as Skip The Dishes tech support, underscoring that scammers exploit moments of preoccupation.

Sourcing Chocolate for Desserts: A mobile dessert business owner seeks advice on sourcing and melting chocolate that stays melted for 10 hours using a Bain-Marie. Suggestions include using coupling chocolate like Merckens and considering pre-packaged toppings for stability. Emphasis is placed on establishing a reliable supply chain and developing a repeatable process.

Experiences with Vestis Services: Mixed reviews emerge after Vestis acquired Aramark. While prices remained stable, service levels reportedly dropped. Users mention delivery inconsistencies and frustrating customer service. Many suggest that local or regional services may offer better reliability and service quality.

Starting an Outdoor Bar: Planning to open an outdoor bar, a user considers building a temporary or permanent setup. Commenters advise investing in a permanent outdoor setup with proper plumbing and equipment like dishwashers for long-term success and higher alcohol sales. Regulatory considerations vary, but planning for permanence is generally more cost-effective.

Pastrami Returns to Jersey Mike's: The limited return of pastrami sandwiches at Jersey Mike's excites fans. Some are surprised by the toppings offered, while others express nostalgia. Questions about availability and customization indicate a strong connection to pastrami as a beloved fast-food option.

Sources:

  • /r/restaurantowners
  • /r/Restaurant_Managers
  • /r/BarOwners
  • /r/fastfood

Early Black Friday sales are underway, featuring significant discounts on kitchen essentials—perfect for both restaurant owners and home chefs.

  • All-Clad: Site-wide savings on carving bundles and cookware.
  • Amazon: Early deals starting November 11.
  • Le Creuset: Ongoing discounts on various cookware.
  • KitchenAid: 30% off select appliances.
  • Sur La Table: Up to 60% off in the early sale.
  • Wayfair: Save up to 70% in the Black Friday preview.
  • Williams Sonoma: Up to 75% off clearance.

These deals provide an excellent opportunity to upgrade equipment and refresh kitchens ahead of the holiday season.

Sources:

  • Eater

Noteworthy Industry Updates

Krispy Kreme Expands McDonald's Partnership: Krispy Kreme will sell doughnuts in nearly 2,000 McDonald's locations by the end of this year, aiming for 12,000 locations by 2026. The rollout will include states like Indiana, Ohio, Pennsylvania, and West Virginia, enhancing brand visibility through a comprehensive marketing plan. The rapid expansion poses logistic challenges, prompting considerations for third-party delivery solutions.

Chef Sujan Sarkar Reinvents Indian Cuisine: Chef Sujan Sarkar aims to transform America's view of Indian food, moving beyond stereotypes to innovative dishes like Samosa Chaat Croissant and Dhokla Aero. With over 20 years in the culinary scene, he's changing perceptions and showcasing the versatility of Indian cuisine.

GBBO All-Stars Hinted: The Great British Baking Show's creative director Kieran Smith hinted at a potential all-stars season. Fans and staff proposed favorites who deserve a second chance, like Iain Watters (known for 'bingate') and Nadiya Hussain, a beloved winner. A diverse mix of personalities and baking prowess could make an all-stars season irresistible!

Cheese Sauce Makeover Leads to Retail Line: At Michael’s Grill & Salad Bar, owner Ryan Gamperl addressed quality issues with their cheese fries by developing a new cheese sauce. This innovative change not only improved the dish but also paved the way for a new retail line, demonstrating how addressing customer feedback can lead to new business opportunities.

Sources:

  • Restaurant Dive
  • Salon
  • Eater
  • Restaurant Business (Cheese Sauce Makeover)

Leadership Changes and Appointments

The Bartolotta Restaurants in Greater Milwaukee announced two key appointments.

  • Tracy Spreck as General Manager of Bacchus: Spreck brings extensive experience and is expected to enhance the guest experience with her dedication to hospitality.
  • Carly Goldmann as General Manager of Joey Gerard’s: Goldmann's passion for the industry and commitment to excellence are anticipated to drive the restaurant's success.

CEO Keith Trafton expressed confidence in their abilities to lead and uphold the company's standards of exceptional service.

Sources:

  • FSR Magazine

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