October 14th QSR Roundup: Plant-Based McNuggets, Hurricane Impact, and Changing Dining Trends Shaping the Future of Food
QSR news for Oct 14th, 2024. We reviewed 20 QSR publications, 6 subreddits, and over 34 articles to bring you the latest. Estimated reading time saved (at 200wpm): 74 minutes. It'll take you only 15 minutes to catch up.
Inflation Shifts Dining Habits
Inflation continues to impact consumer behavior, particularly in dining choices.
- September Inflation: Up 0.2%, with food prices driving a 2.4% annual rate.
- Food Prices:
- Food-away-from-home increased 3.9% year-over-year.
- Food-at-home rose only 1.3%.
- Price Gap Narrowing:
- The gap between grocery stores and restaurants has narrowed to 260 basis points favoring groceries.
- Consumer Behavior Changes:
- 86% of meals are now eaten at home.
- Dining out costs four times more than eating at home.
- Lower-income consumers are preferring to cook at home.
- Restaurant Strategies:
- Restaurants face a growing value battle to attract customers.
- Fast-casual establishments gain popularity due to convenience and health priorities.
As the holiday season approaches, restaurants may need to adjust strategies to align with changing consumer spending habits.
Sources: Nation's Restaurant News
McDonald's Launches Plant-Based McNuggets in France
McDonald's is expanding its plant-based offerings with the introduction of Veggie McPlant McNuggets in France, made in collaboration with Beyond Meat.
- Product Details:
- Made with pea and wheat proteins.
- Aimed at diversifying protein options for consumers.
- Partnership Highlights:
- Strategic partnership began in early 2021.
- Beyond Meat is the preferred supplier for McPlant burger patties.
- Market Expansion:
- Successful launches in Europe, including Germany.
- In France, available permanently at 1,560 locations.
- Priced similarly to traditional Chicken McNuggets.
This move reflects McDonald's commitment to offering alternative protein options and responding to growing consumer interest in plant-based diets.
Sources: Nation's Restaurant News
Strategies for Attracting Restaurant Investors
Emerging restaurateurs aiming to attract investors should focus on several key strategies:
- Unique Differentiator: Stand out with a distinctive concept as consumer preferences evolve.
- Financial Understanding: Deep knowledge of the balance sheet and strong four-wall economics is crucial before scaling.
- Relationship Building: Trust, communication, and honesty are foundational for successful partnerships with investors.
- Exploring Options: Engage with various investors and explore all investment avenues.
These insights were shared at the Investment Summit during CREATE: The Event for Emerging Restaurateurs in Nashville, designed to connect emerging brands with potential investors.
Sources: Nation's Restaurant News
MTY Food Group Eyes Acquisitions Amid Challenges
MTY Food Group is considering acquisitions to bolster its portfolio amidst challenges like Papa Murphy's store closures.
- Store Closures:
- 43 net closures of Papa Murphy's locations last year.
- Closures expected to continue into 2024.
- Mixed Brand Performance:
- Overall same-store sales declined 2%.
- Some markets experience higher closure rates.
- Positive Signs:
- Snack brands like Wetzel's Pretzels are thriving.
- Numerous openings and positive sales growth.
- Acquisition Strategy:
- Acquisitions remain core to MTY's growth plans.
- Current market for deals is uncertain with varied profitability.
CEO Eric Lefebvre notes the importance of careful selection in acquisitions to ensure future growth.
Sources: Restaurant Business
KFC's New Advertising Strategy Targets Popeyes
KFC is launching a bold ad campaign promoting its Original Recipe Tenders while directly targeting rival Popeyes.
- Campaign Highlights:
- Emphasizes the unique 11 herbs and spices recipe.
- Offers free tenders in cities near Popeyes locations.
- Market Positioning:
- Once the leader, KFC is now positioned as a challenger brand.
- Has lost top status to Chick-fil-A and recently to Popeyes based on same-store sales.
- Value Offers:
- Launching a $5 Tenders Box.
- Offering a $24.99 family meal deal for online orders.
KFC aims to attract value-conscious customers and regain market share by highlighting its signature recipe and competitive pricing.
Sources: Restaurant Business
Hurricane Milton Causes Temporary Closures at First Watch
Hurricane Milton had a significant impact on First Watch restaurants.
- Temporary Closures:
- 85 restaurants closed from October 8-13, 2024.
- By October 14, 77 restaurants reopened.
- Ongoing Assessments:
- Remaining 8 locations are under evaluation for damage.
- Company Response:
- CEO Chris Tomasso expressed gratitude for team safety.
- Emphasized quick recovery and operations resumption.
- Previous Hurricane Impact:
- Hurricane Helene affected less than 10 restaurants earlier in the year.
- Insurance and Assessment:
- First Watch holds comprehensive insurance.
- Full evaluation of storm impacts may take several weeks.
Sources: FSR Magazine
Darden Restaurants Completes Acquisition of Chuy's
Darden Restaurants has finalized its acquisition of Chuy's, adding to its portfolio of dining brands.
- Acquisition Details:
- Shareholder vote overwhelmingly approved the deal.
- Acquisition financed through $750 million in senior notes.
- Chuy's Performance:
- 101 stores with an average annualized unit volume of $4.5 million.
- Increase in average check size from $19.23 to $19.68 year-over-year.
- Slight fall in same-store sales.
- Strategic Moves:
- Follows Darden's purchase of Ruth's Chris Steakhouse for $715 million in 2023.
- Plans to integrate delivery for Olive Garden via Uber's service.
This strategic acquisition aims to strengthen Darden's market position and expand its brand offerings.
Sources: Restaurant Dive
Pumpkin Spice Fever Continues to Sweep the Nation
The pumpkin spice trend remains strong, with persistent consumer enthusiasm and market growth.
- Overwhelming Love:
- Studies reveal joyous social media interactions.
- Pumpkin spice continues to be a beloved seasonal flavor.
- Retail Success:
- Bath & Body Works reports sustained interest, offering products like Pumpkin Pecan Waffles and White Pumpkin.
- Market Value:
- Projected to reach $1.1 billion in 2023.
- Expected 8.2% growth rate over the next decade.
- Millennial Influence:
- Millennials drive popularity, tying it to nostalgic trends.
- Starbucks' Dominance:
- Owns over 50% of pumpkin spice latte content online.
- Solidifies its role as the frontrunner in the seasonal craze.
Pumpkin spice has become a cultural staple, influencing consumer behaviors and seasonal product offerings.
Sources: Restaurant Dive
Fast Casual Industry Must Evolve to Stay Competitive
The fast casual industry needs to adapt to changing consumer demands and rising costs to continue its growth trajectory.
Key Insights from Jason Rusk:
- Industry Growth:
- Fast casual dining is projected to double in revenue soon.
- Consumer Expectations:
- Desire for convenience, affordability, and quality.
- Impact of Pandemic:
- Accelerated trends like contactless ordering.
- Surge in third-party delivery services.
- Wonder's Innovative Model:
- Produces all major cuisines in one kitchen.
- Allows customized orders from various restaurants.
- Adaptability is Key:
- Restaurants must lead change by prioritizing people over processes.
- Embrace disruption to survive and thrive.
These insights were shared at the Fast Casual Executive Summit in Denver.
Sources: Networld Media Group
Smoothie King Expands Presence in Colorado
Smoothie King is enhancing its footprint in Colorado with recent and upcoming store openings.
- Current Expansion:
- Five locations opened in 2023.
- Two new openings recently.
- Future Commitments:
- Six additional locations expected.
- Health-Focused Markets:
- Emphasizing healthy lifestyles in key markets like Denver.
The brand's expansion aligns with the growing demand for health-conscious options.
Sources: QSR Web
Velvet Taco Goes Global with First International Location
Velvet Taco is set to open its first international location in Soho, London, marking a significant milestone.
- Opening Details:
- Scheduled for Spring 2025.
- Growth Milestone:
- Grown from 4 to 50 U.S. locations under CEO Clay Dover.
- Strategic Location:
- Piccadilly Circus chosen for its vibrant atmosphere and heavy foot traffic.
- Brand Mission:
- Aims to redefine traditional tacos.
- Embraces diverse culinary influences on an international platform.
This expansion represents Velvet Taco's commitment to bringing its unique concept to a global audience.
Sources: QSR Web
Middleby Corporation Acquires Emery Thompson
The Middleby Corporation has acquired Emery Thompson, enhancing its offerings in the frozen dessert equipment market.
- Company Overview:
- Emery Thompson manufactures batch freezers for frozen desserts.
- Generates approximately $10 million in annual revenues.
- Synergies and Growth:
- Potential synergies with Middleby's Taylor Company.
- Opportunity for significant sales growth through Middleby's market channels.
CEO Tim FitzGerald emphasizes the strategic fit and growth potential of the acquisition.
Sources: Foodservice Equipment & Supplies
CFESA Announces New Board Members and Award Winners
The Commercial Food Equipment Service Association (CFESA) has elected new board members for 2024 and recognized industry excellence.
- New Board Members:
- Steve Sliter as President.
- TJ Coker as Vice President.
- Award Recipients:
- Zachery Hampton as Outstanding Technician.
- Clark Service Group for Dedication to Training.
- Industry Impact:
- Leadership from diverse organizations committed to advancing the industry.
The association continues to support and recognize outstanding contributions in the food equipment service sector.
Sources: Foodservice Equipment & Supplies
Texas Dairy Industry Booms with Growing Demand
Texas leads the U.S. in agriculture, particularly in the dairy sector, fueled by numerous farms and a growing population.
- Key Contributing Cities:
- San Antonio, Houston, Dallas-Fort Worth areas.
- Wholesale Distributors:
- Many distributors and broadliners provide diverse dairy products.
- Product Range:
- Milk, cheese, butter, and cream are among the offerings.
The strong dairy industry underscores Texas's significant role in national agriculture.
Sources: BlueCart
Revenue Growth Management (RGM) Enhances Profit Margins
Companies in the CPG and F&B sectors are adopting Revenue Growth Management strategies to combat profit margin strains.
- Definition of RGM:
- Optimizes pricing, distribution, and promotion.
- Aims to maximize revenue and align with consumer demand.
- Benefits of RGM:
- Potential revenue growth of 5-10% annually.
- Improved collaboration across departments.
- Drivers for RGM:
- Inflation, changing consumer behavior, market saturation.
- Implementation Strategies:
- Focus on data-driven decision-making.
- Real-time pricing adjustments.
- Customer-centric approaches.
- Transformational Practices:
- Moving beyond foundational strategies for sustained growth.
Catena Solutions provides expertise in developing RGM strategies for organizations.
Sources: Food Industry Executive
SeaCube Enhances Board with Industry Veterans
SeaCube Container Leasing Ltd. appoints new board members to navigate the evolving container shipping landscape.
- Anthony Chiarello:
- Appointed as Chairman of the Board.
- Brings over 45 years of maritime experience.
- Inna Kuznetsova:
- Joins as board member.
- Expertise in AI-based supply chain solutions.
- Company Focus:
- Specializes in refrigerated container leasing.
- Aims to innovate service reliability and reduce carbon footprints.
CEO Robert Sappio emphasizes the strategic insights the new members bring to the board.
Sources: Food Industry Executive
Jollibee Opens New Location in Alameda, California
Jollibee expands its U.S. presence by opening a new restaurant in Alameda, California.
- Location Milestone:
- 12th restaurant in the San Francisco Bay Area.
- 75th location in the U.S.
- Community Engagement:
- Aims to be a gathering place for families and friends.
- Historical Success:
- First U.S. location opened in Daly City in 1998.
- Bay Area continues to embrace the brand.
Maribeth Dela Cruz expresses excitement about Alameda's cultural diversity and welcoming nature.
Sources: QSR Web, Restaurant Operator Daily
Domino's Pizza China Continues Strong Growth
Domino's Pizza China reports robust growth driven by strategic initiatives and rapid store expansion.
- 4D Strategy:
- Focus on development, value, delivery, and digital.
- Expansion Goals:
- Currently operates 978 stores in 33 cities.
- Aiming for 1,000 stores by Q4 2024.
- Plans to open 300-350 new stores annually in 2025 and 2026.
- Consistent Sales Growth:
- 29th consecutive quarter of same-store sales growth.
- Loyalty Program Success:
- 21.7 million members as of September 2024.
- Menu and Promotions:
- Introduced new items like French-inspired pizzas.
- Launched cheese-filled Volcano Crust.
- Regular value-driven deals to enhance customer savings.
DPC Dash seeks sustainable growth in China's expanding pizza market.
Sources: QSRNext
Church's Texas Chicken Introduces Pumpkin Cheesecake Pie
Church's Texas Chicken offers a new seasonal dessert: the Pumpkin Cheesecake Fried Pie.
- Dessert Highlights:
- Features a crispy flaky crust.
- Filled with spiced pumpkin pie filling, vanilla cheesecake, and graham cracker crumbs.
- Pricing Options:
- Starts at $1.79 for one pie.
- $5.99 for four pies.
- Availability Period:
- Available until December 26.
- Chef's Note:
- Chef Kevin Houston describes it as a delightful blend of creamy, pumpkin spice, and crunchy textures.
The dessert caters to the ongoing popularity of pumpkin-flavored treats during the fall season.
Sources: QSR Web
The Critical Role of Clean Bathrooms in Restaurants
A Reddit discussion emphasizes the importance of maintaining clean bathrooms in the restaurant industry.
- Guest Expectations:
- Cleanliness and adequate supplies are essential.
- Features like hooks and hands-free access are appreciated.
- Impact on Perception:
- A dirty bathroom can imply poor kitchen hygiene.
- Clean restrooms reflect overall management and care.
- Operational Challenges:
- Some staff feel extreme cleanliness expectations can create entitlement issues.
- Busy periods may make constant upkeep challenging.
- Suggestions:
- Implement hands-free door access.
- Regular cleaning protocols and staff training.
While opinions vary, there's a consensus that cleanliness is vital for customer satisfaction and the restaurant's reputation.
Sources: /r/restaurantowners
Recovering After Attempted Armed Robbery at Restaurant
A restaurant owner seeks advice after an attempted armed robbery leaves employees fearful.
- Employee Well-being:
- Staff are scared to return to work.
- Security Enhancements:
- Considering hiring an armed guard.
- Contemplating installing safety barriers.
- Community Feedback:
- Emphasis on potential PTSD and providing support.
- Recommendations:
- Offer counseling services.
- Hire off-duty police officers for security.
- Review and possibly adjust cash handling policies.
Communication and support are crucial to help employees feel safe and to facilitate recovery.
Sources: /r/restaurantowners
Resolving Employee Availability Issues in Scheduling
A manager encounters discrepancies between an employee's claimed availability and what's visible in the scheduling system.
- Issue at Hand:
- Employee insists they updated unavailability, but manager cannot see it.
- Possible Causes:
- System errors or misconfigurations in the scheduling platform (e.g., Sling).
- Visibility settings may not be properly set.
- Suggested Solutions:
- Verify settings and permissions in the scheduling software.
- Contact technical support for assistance.
- Maintain a paper trail of availability updates.
- Establish clear guidelines for submitting unavailability.
Effective communication and proper use of scheduling tools are key to avoiding such conflicts.
Sources: /r/Restaurant_Managers
Applebee's Dollar Zombie Cocktail Makes a Comeback
The Dollar Zombie Cocktail returns to Applebee's, generating varied customer reactions.
- Customer Reactions:
- Some view it as a great deal and are excited.
- Others express dissatisfaction with limits on drink purchases.
- Concerns Raised:
- Instances of being cut off after two drinks.
- Questions about the size and alcohol content of the drinks.
- Marketing Insight:
- Likely used as a loss leader to attract patrons.
Despite the low price point, customer experiences and satisfaction vary, impacting perceptions of value.
Sources: /r/fastfood
Choosing a Name for a Low Country Seafood Restaurant
A restaurant owner seeks advice on naming a new Low Country seafood boil restaurant.
- Name Suggestions:
- 'The Boilin' Point'
- 'Bayou Bites'
- 'Crab Bag'
- Community Input:
- Emphasize the difference between Cajun and Low Country cuisine.
- Encourage names that reflect the Low Country theme.
- Suggestions to incorporate Gullah heritage.
- Considerations:
- Importance of clarity about the restaurant's focus.
- Avoiding names that could be misinterpreted or seem inappropriate.
The consensus is to select a name that accurately represents the cuisine and resonates with the target audience.
Sources: /r/restaurant
Controversy Surrounding Trump Burger in Belleville
A Reddit post discussing Trump Burger in Belleville elicits a range of opinions.
- Community Reactions:
- Some propose creating a competing restaurant.
- Others discourage attacking a family-run business over political ties.
- Popular Comments:
- Advocate for experiencing the restaurant before judging.
- Highlight the potential harm of unnecessary boycotting.
- Humorous Takes:
- Light-hearted comments about the menu and food quality.
The conversation illustrates the complexities when politics intersect with local businesses and consumer choices.
Sources: /r/restaurant
Naming the Bar at The Crab Hub Seafood Restaurant
The owner of The Crab Hub is seeking a suitable name for their bar, which serves only beer and wine.
- Concerns:
- Using the term 'bar' might mislead customers into expecting cocktails.
- Name Ideas:
- "Crabs, Corks, and Cold Ones"
- "Hops and Grapes"
- "Crab Hub & Tavern"
- Advice from Community:
- Keep the name simple and let the reputation build through quality service.
- Accept that some customer confusion is inevitable regardless of naming.
There's agreement that overcomplicating the name isn't necessary and focusing on the overall dining experience is more beneficial.
Sources: /r/restaurant
Concerns Over Ineffective Slip-Resistant Shoes
A dishwasher reports increased slipping at work despite wearing slip-resistant shoes and seeks advice.
- Issue Description:
- New slip-resistant shoes are not effective, causing more slipping.
- Community Recommendations:
- Non-Slip Mats: Ensure mats are placed in wet areas.
- Proper Footwear:
- Brands like Shoes For Crews, Skechers Work Shoes, or Crocs Bistros are suggested.
- Importance of genuine slip-resistant soles with proper tread.
- Additional Tips:
- Keep floors clean and dry.
- Roughen the soles on concrete for better grip.
- Communicate with management about the issue.
Consensus emphasizes the need for appropriate footwear and workplace safety measures.
Sources: /r/restaurant
Relationship Between Google Views and Restaurant Revenue
A question arises about the potential revenue generated from 3 million Google views over two years.
- Community Insights:
- No direct correlation between Google views and actual revenue.
- Views reflect interest but don't necessarily translate to sales.
- Shared Experiences:
- One user mentions 6,110 profile visits leading to 1,563 orders in a month.
There's a general agreement that while online visibility is important, it doesn't directly equate to specific revenue figures.
Sources: /r/restaurant
Dealing with Fruit Flies in a Bar Setting
A bar owner is seeking solutions for a persistent fruit fly problem that hasn't been resolved by cleaning or home remedies.
- Challenges Faced:
- Fruit flies continue to be an issue despite efforts.
- Effective Strategies:
- Use of Fans: Running fans overnight to prevent flies from landing and breeding.
- Cleaning and Maintenance:
- Thorough cleaning of drains, taps, and surfaces.
- Use of bleach and appropriate sprays.
- Preventative Measures:
- Setting up traps with vinegar and dish soap.
- Utilizing UV light traps and No-Pest strips.
- Additional Suggestions:
- Keeping trash tightly sealed.
- Covering taps and wrapping fruit when not in use.
- Checking for potential breeding spots like wood rot.
Consensus suggests a combination of immediate actions and long-term maintenance is necessary to combat fruit fly infestations effectively.
Sources: /r/BarOwners
Bar Owners Share Advice in Weekly Q&A Session
Bar owners engage in a Q&A session, offering insights and advice on various topics.
- Purchasing a Struggling Bar:
- Suggestions on making offers, such as $40k for a small establishment.
- Importance of understanding the financial health of the business.
- Drink Pricing and Costs:
- Emphasis on knowing the cost of drinks like Tito's and soda.
- Recognizing overhead costs and pricing strategies.
There's a consensus on the significance of understanding financial aspects and due diligence before making decisions in the bar industry.
Sources: /r/BarOwners
Sourcing 20oz Nucleated Glassware for Bars
A bar owner is looking for sources to purchase 20oz nucleated glasses without high minimum order requirements.
- Suggestions Provided:
- Libbey for quality glassware.
- Online suppliers like eGrandstand.com and WebstaurantStore.com.
- Local options like Restaurant Depot.
- Considerations:
- Balancing cost with durability.
- Options for both branded and unbranded glassware.
- Community Tips:
- Some source glasses through beer distributors, sometimes at no cost.
- Considering the long-term savings by investing in durable glassware.
The consensus recommends exploring various suppliers and considering the benefits of durable, quality glassware for long-term use.
Sources: /r/BarOwners
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