October 28th QSR Roundup: E. Coli Outbreaks, Franchise Shakeups, and Culinary Innovations Transforming the Restaurant Scene

QSR news for Oct 28th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 39 articles to bring you the latest. Estimated reading time saved (at 200wpm): 111 minutes. It'll take you only 16 minutes to catch up.

E. Coli Outbreak Expands and McDonald's Response

The recent E. coli O157:H7 outbreak linked to McDonald's has significantly expanded, affecting 75 individuals across 13 states, resulting in one death and numerous hospitalizations. This particular strain, known for causing severe illness, has been a longstanding concern since a major outbreak in the early '90s.

Investigations and Actions:

• Slivered Onions Identified: The outbreak is likely connected to slivered onions from Taylor Farms, which have now been removed from all McDonald's locations.
• Beef Patties Cleared: Tests conducted by the Colorado Department of Agriculture confirmed that McDonald's fresh and frozen Quarter Pounder beef patties are not contaminated with E. coli.
• Resuming Sales: McDonald's plans to resume serving Quarter Pounders at approximately 900 restaurants across multiple states, but without the slivered onions.
• Supplier Relations Severed: McDonald's will cease sourcing onions from the implicated Taylor Farms facility indefinitely.

McDonald's Response:

• Apology Issued: Joe Erlinger, President of McDonald’s USA, publicly apologized to customers, emphasizing the company's commitment to food safety and customer well-being.
• Safety Measures: The chain is working closely with health authorities and implementing enhanced safety protocols to prevent future incidents.

Industry Impact:

• Other Chains Affected: Brands like Burger King and Pizza Hut have also stopped using onions from Taylor Farms, showcasing the broader impact on the industry.
• Legal Actions: McDonald's faces lawsuits from affected individuals, prompting a thorough review of its supply chain management.

Health officials anticipate an increase in reported E. coli cases as investigations continue, highlighting the importance of stringent food safety practices.

Source: Nation's Restaurant News, QSR Magazine, Restaurant Business, Restaurant Dive

Texas Roadhouse Thrives Amid Industry Challenges

While some restaurant chains face significant hurdles, Texas Roadhouse is experiencing remarkable growth:

• Impressive Sales Increase: The company reported an 8.5% rise in same-store sales, demonstrating strong customer loyalty and operational excellence.
• Expansion Plans: Texas Roadhouse plans to acquire 13 additional restaurants in 2024, aiming to bolster its sales volume and market presence.
• Strategic Growth: The brand’s focus on delivering quality dining experiences and value has positioned it favorably in a competitive market.

This success contrasts sharply with the struggles of other brands, indicating effective management and a robust business model.

Source: Nation's Restaurant News

TGI Fridays Faces Deepening Troubles and Potential Bankruptcy

TGI Fridays is undergoing a significant downturn:

• Massive Closures: Nearly 50 locations closed in the past week, reducing operational restaurants from 213 to 164. Since 2019, the chain has seen a dramatic reduction from 384 locations.
• Declining Sales: Sales plummeted 18% to $702.2 million in 2023, a sharp decline from $1.1 billion in 2019.
• Leadership Turmoil: The brand experienced three CEO changes in three months last year, indicating instability at the executive level.
• Abandoned Merger Plans: A planned acquisition by Hostmore Plc fell through, with Hostmore filing for bankruptcy and TGI Fridays potentially preparing to do the same.

Attempts at Revival:

• Virtual Brands and Innovations: Initiatives like launching Fridays on the Fly and investing in virtual brands were implemented to rejuvenate sales but have not yielded the desired results.
• No Responses to Inquiries: The company has not addressed recent closures publicly, adding to concerns about its future.

The challenges faced by TGI Fridays highlight the broader issues within the casual dining segment, especially in adapting to post-pandemic consumer behaviors.

Source: Nation's Restaurant News, Restaurant Business, FSR Magazine, Restaurant Dive

Krystal's Festive Menu Brings Holiday Cheer

Krystal is celebrating the holiday season with a mouthwatering array of limited-time menu items starting October 28:

New Patty Melts:

• 🍔 Classic Patty Melt: Juicy beef patties topped with melted American cheese and caramelized onions, sandwiched between two slices of buttery, toasted white bread.
• 🌶️ Cheesy Jalapeño Patty Melt: Adds a spicy twist with jalapeño cheese and a zesty spicy mayo, delivering an extra kick for those who like it hot.

Cheesy Jalapeño Menu:

• 🔥 Spicy Krystal Slider: The iconic slider enhanced with jalapeño cheese, offering a perfect balance of flavor and heat.
• 🐔 Cheesy Jalapeño Chik: Crispy fried chicken topped with jalapeño cheese and spicy mayo on a soft steamy bun.
• 🍟 Loaded Fries: Crinkle-cut fries smothered with cheddar cheese, crispy bacon, fresh jalapeños, and drizzled with spicy mayo.

Breakfast Offerings:

• 🌄 Sausage Gravy Lineup: Warm biscuits and scramblers covered in rich sausage gravy, ideal for chilly mornings.

Seasonal Specials:

• 🎁 Holiday Steamer Boxes: Featuring 24 Krystals in festive packaging, perfect for gatherings and parties.
• 🍴 Krystal Stuffing Recipe: A unique holiday stuffing using their famous sliders, adding a flavorful twist to traditional feasts.

Affordability and Accessibility:

• 💰 Budget-Friendly Options: Menu items start under $3, ensuring something delicious for every budget.
• 📱 Club Krystal Savings: Fans can text PARTY to 94258 for exclusive deals and early access to offers.

With these exciting additions, Krystal aims to become a central part of holiday traditions, offering delicious options for both new and loyal customers.

Source: QSR Magazine

Zaxby's Introduces Zax Packz and Expands Menu Offerings

Zaxby's is enhancing its menu with the launch of Zax Packz, a reimagined family meal option designed for easy group ordering:

Zax Packz Details:

• 🍗 Meal Options: Choose from Chicken Fingerz or Boneless Wings accompanied by crinkle fries and signature sauces.
• 👨‍👩‍👧‍👦 Serves Four or More: Ideal for families and group gatherings.
• 💲 Pricing: Available permanently at all locations for around $34, offering value for money.

Menu Enhancements:

• 🥗 Core Menu Additions: Due to popular demand, limited-time items like the Asian Zensation Zalad, Blue Zalad, Veggie Egg Rolls, and Fried Cheesecake Bites are now permanent fixtures.
• 🌐 Convenient Ordering: Customers can order in-store, online, or via the mobile app, ensuring accessibility.

Company Vision:

• Customer-Centric Approach: By expanding their menu and offering family-friendly options, Zaxby's reinforces its commitment to meeting customer needs and preferences.
• Brand Growth: These strategic additions are expected to strengthen Zaxby's market position and appeal to a broader audience.

Source: Nation's Restaurant News

Rachel's Kitchen Celebrates 18 Years and Eyes Expansion

Rachel's Kitchen, a beloved healthy fast-casual chain in Las Vegas, marks its 18th anniversary with plans for growth:

Brand Background:

• 🍽️ Founder: Debbie Roxarzade started the chain, naming it after her daughter, Rachel.
• 🌿 Cuisine Focus: Offers bistro-inspired fare with an emphasis on fresh, healthy ingredients for breakfast, lunch, and dinner.
• ❤️ Community Engagement: Known for its welcoming atmosphere and strong community ties.

Expansion Plans:

• 📍 Target Markets: Actively seeking opportunities in the Dallas-Fort Worth area and other new regions.
• 🤝 Franchise Partnerships: Looking for partners who are committed to community involvement and charitable contributions.
• 🏆 Brand Appeal: The chain's popularity among health-conscious consumers positions it well for successful expansion.

Founder’s Vision:

• Quality and Consistency: Roxarzade emphasizes maintaining high standards across all locations to ensure the brand's integrity.
• Customer Experience: Aims to create environments where guests feel at home and are encouraged to return frequently.

Source: Nation's Restaurant News

Black Rock Coffee Bar Unveils Winter Drink Lineup and Rewards Program

Black Rock Coffee Bar is embracing the festive season with its Winter Drink Lineup available from November 1 to December 31 at 145 locations nationwide:

Winter Drinks:

• 🍓 Berry Blush Fuel: A vibrant blend of strawberry and raspberry flavors combined with Black Rock’s energy drink and topped with cold foam, offering a fruity and energizing experience.
• 🍬 Peppermint Bark Blondie: A nostalgic holiday treat featuring espresso, white chocolate, and peppermint, capturing the essence of the season.
• 🥨 Chocolate Pretzel Mocha: A decadent mix of espresso, mocha, and salted caramel, evoking the taste of a chocolate-covered pretzel.
• 🔥 Fireside Blend: A smooth coffee with notes of milk chocolate, baking spice, and molasses, perfect for cozy winter moments.

Rewards Program Relaunch:

• 🎁 Black Rock Rewards: The program has been revamped to offer quicker rewards and a free drink for new members upon registration.
• 📱 Enhanced Experience: Aims to increase customer engagement and loyalty through personalized offers and incentives.

Company Highlights:

• 🏢 Founded in 2008: Originated in Portland, Oregon, and has since expanded rapidly.
• 🌟 Community Focus: Recognized for fostering a culture of belonging and connection.
• 🏆 Achievements: Named the Fastest Growing Private Company in Oregon by the Portland Business Journal.

Source: QSR Magazine

Long John Silver's Brings Back Wild-Caught Norway Lobster Bites

Seafood lovers rejoice! Long John Silver's is reintroducing their popular Wild-Caught Norway Lobster Bites starting October 28 for a limited time:

Lobster Bites Highlights:

• 🦞 Premium Quality: Made from wild-caught lobster tail, ensuring tender and flavorful bites.
• 🍞 Signature Breading: Coated in a savory, buttery breading that enhances the natural taste of the lobster.
• 🍽️ Menu Options:
  • Tail Pack: A standalone lobster bites option.
  • Fish Combo and Platter: Combines lobster bites with classic fish offerings.
  • Family Feast: Ideal for sharing with larger groups.

Sweet Treat Addition:

• 🍰 Red Velvet Cheesecake: Indulge in a slice from The Cheesecake Factory Bakery, adding a sweet finale to your meal.

Holiday Offering:

• 🎄 Perfect for Gatherings: The return of Lobster Bites coincides with the holiday season, making it a timely addition for festive meals.

Company Statement:

• Christopher Caudill, Senior VP of Marketing, emphasizes that it's the perfect time to enjoy these fan-favorite bites, providing great value and taste.

Additional Offers:

• 🎁 Gift Cards: Available online and in-store, making for excellent holiday gifts.
• 🌊 Seacret Society Rewards: Join the program for exclusive deals and treats throughout the season.

Source: QSR Magazine

Smalls Sliders Expands Footprint in Georgia

Smalls Sliders, a rapidly growing quick-service concept, is set to open four new locations in South Georgia through a partnership with DPC Smalls Investments, led by Doug Cone:

Expansion Details:

• 📈 Third Deal with DPC: This marks the third collaboration between Smalls Sliders and DPC Smalls Investments, highlighting successful franchise relations.
• 🗺️ Planned Locations: Potential sites include Albany, Valdosta, Tifton, and Brunswick.
• 🕒 Timeline: Four new units ("Cans") will launch over the next five years, with the first expected to open in 2025.

About Smalls Sliders:

• 🍔 Unique Concept: Specializes in slider burgers cooked to perfection, with a focus on simplicity and quality.
• 🏗️ Building Design: Known for their innovative "Cans" – modular structures that streamline construction and operational efficiency.
• 🌟 Community Response: The first location in Ocala has been a huge success, reflecting strong community enthusiasm and support.

Leadership Perspective:

• Doug Cone expresses excitement about the brand's momentum and the opportunity to bring Smalls Sliders to new markets.
• CEO Maria Rivera highlights the impressive growth trajectory and the importance of strategic partnerships in their expansion plans.

Source: QSR Web

Shipley Do-Nuts Celebrates Continuous Growth and New Leadership

Shipley Do-Nuts, the iconic Houston-based chain, continues its upward trajectory:

Company Achievements:

• 📊 15th Consecutive Quarter of Positive Sales: Demonstrates consistent growth and strong market presence.
• 🏪 Expansion: Reached 360 stores, with four new locations opened in Q3.
• 🏗️ Development Pipeline: Over 100 units planned, indicating aggressive expansion strategies.

Leadership Addition:

• 👩‍💼 Laurie Curtiss Appointed as Senior VP of Marketing:
  • Brings over 25 years of experience from notable brands like Denny's, Ruby Tuesday, and TGI Fridays.
  • Will focus on product innovation and digital sales to drive further growth.

Product Highlights:

• 🥐 Egg & Cheese Kolaches: Successful launch shattered previous sales records, showcasing the brand's ability to innovate and meet customer preferences.
• 🍩 Menu Variety: Continues to offer a wide range of donuts and pastries that appeal to a broad customer base.

Corporate Developments:

• 🏢 New Headquarters: Opened a 15,000-square-foot facility in Houston to accommodate the growing corporate team.
• 🤝 Franchise Growth: Strong interest from franchisees is fueling expansion into new markets.

Brand Vision:

• CEO Flynn Decker emphasizes the importance of aligning marketing strategies with the company's growth objectives and enhancing the customer experience through innovation.

Source: QSR Web

Tech Innovations Transforming the Restaurant Industry

The restaurant sector is undergoing a technological revolution aimed at enhancing customer experiences, increasing operational efficiency, and driving profitability:

Key Trends:

• 💻 Digital Solutions Adoption: Restaurants are investing in technologies that offer personalized services and streamline operations.
• 💰 Increased Investment: Approximately 78% of operators plan to boost their tech budgets, recognizing the competitive advantage it provides.
• 📊 Data Analytics: Leveraging customer data to personalize experiences and improve engagement is becoming essential.

Challenges:

• 🏛️ Legacy Systems Integration: Many establishments face difficulties integrating new technologies with existing systems, which can hinder progress.
• 🤔 Balancing Innovation and Practicality: Determining which technologies offer real value versus fleeting trends is a common concern.

Success Stories:

• 🌟 Cousin Subs: Implemented technology that led to significant cost savings and operational improvements.
• 📈 Digital Engagement: Brands that effectively use technology to enhance customer interaction see higher loyalty and repeat business.

Strategic Approach:

• Unified Tech Systems: Adopting flexible platforms that can adapt to evolving needs is crucial for long-term success.
• Employee Adoption: Training staff to utilize new technologies ensures smoother implementation and better customer experiences.

Source: Modern Restaurant Management

Denny's Embraces Digital Strategy and Virtual Brands

Denny's is capitalizing on digital trends to enhance its business model:

Off-Premise Growth:

• 🚗 Off-Premise Sales: Account for 20% of total sales in Q3, a significant increase from pre-pandemic levels.
• 📲 Digital Guests: Customers engaging through digital channels visit more frequently, with efforts to increase their average visits from 2.2 to 2.5 times per year.

Virtual Brands:

• 🌯 Banda Burrito Launch:
  • A virtual brand that contributed to a 70 basis point increase in same-restaurant sales.
  • Targets younger demographics and leverages existing kitchen capacities.
• 🍔 Other Virtual Brands: Contributed $77 million in sales, highlighting the potential of these concepts.

Loyalty Program Revamp:

• 🎉 New Features: Enhancing personalization and engagement for the 5 million active members.
• 🎁 Birthday Rewards and Promotions: Aimed at driving repeat visits and strengthening customer relationships.

Strategic Goals:

• 📊 Unit Volume Growth: Increasing digital guest frequency could add up to $400,000 in unit volume.
• 🤖 Technology Integration: Streamlining operations and ordering processes to improve efficiency.

Source: Restaurant Dive

National vs. Local Food Distributors: Understanding the Differences

The food distribution landscape is critical to the restaurant industry, with both national and local distributors playing vital roles:

National Food Distributors:

• 🌐 Wide Network Coverage: Facilitate the movement of goods across vast geographic regions.
• 🛒 Product Variety: Offer extensive selections, enabling restaurants to source diverse items.
• 💵 Competitive Pricing: Benefit from economies of scale, often providing lower costs.
• 📈 Technological Integration: Advanced systems for ordering and inventory management.

Examples:

• Sysco
• US Foods

Local Food Distributors:

• 🏘️ Community Focused: Operate within specific regions, often building strong relationships with local businesses.
• 🌿 Freshness and Quality: May provide fresher produce and more specialized products.
• 🤝 Personalized Service: Greater flexibility and responsiveness to specific needs.

Considerations for Restaurants:

• Pricing Structures: Weighing cost savings against service quality.
• Product Sourcing: Determining whether local or national distributors better meet menu requirements.
• Technology and Support: Assessing the level of technological support and marketing assistance offered.

Market Statistics:

• 🏪 Over 27,000 Local Suppliers: Reflects the vastness of the distribution market.
• 🛣️ Supply Chain Importance: Ensures that restaurants can meet customer demands consistently.

Source: BlueCart

Ali Wong's Spicy Adventure on "Hot Ones"

Comedian and actress Ali Wong showcased her wit and resilience on the popular show "Hot Ones," where she tackled progressively spicier chicken wings:

Highlights from the Episode:

• 😂 Early Stand-Up Days: Recounted her first performance at the BrainWash Cafe in San Francisco, a unique venue combining a cafe, laundromat, and open mic space, known for its eclectic mix of patrons.
• 🎭 Role in "Beef": Discussed the most cathartic scene in the Netflix series "Beef," particularly enjoying the intensity of pulling a gun on a character who disrespected her home.
• 👗 Smithsonian Honor: Shared her pride in having the dress from her stand-up special "Baby Cobra" displayed at the Smithsonian, a significant achievement celebrating Asian American representation.
• 🎃 Halloween Tradition: Expressed delight that children dress up as her "Baby Cobra" persona for Halloween, turning it into a cherished annual tradition.
• 🌟 Upcoming Projects: Promoted her new stand-up special "Single Lady" and the animated series "Jentry Chau Vs. The Underworld," showcasing her versatile talents.

Takeaways:

• Balancing Comedy and Authenticity: Wong's ability to blend humor with personal stories resonates with audiences.
• Cultural Impact: Her success highlights the growing representation and influence of Asian American artists in mainstream media.

Source: Salon

Email Marketing Strategies for Restaurant Owners

Restaurant owners share insights on effective email marketing practices to engage customers and boost business:

Building an Email List:

• 📧 Email Collection Techniques:
  • Utilize website pop-ups offering incentives like free appetizers or desserts.
  • Collect emails during in-person visits through loyalty programs or sign-up sheets.
• ⏳ Time Investment: Acknowledge that building a substantial email list requires patience and consistent effort.

Communication Strategies:

• 📆 Frequency of Emails:
  • Sending emails bi-weekly strikes a balance between staying connected and avoiding overcommunication.
  • Tailor frequency based on customer engagement levels and feedback.
• 🎯 Content Personalization:
  • Craft messages that offer value, such as exclusive promotions, event announcements, or personalized greetings (e.g., birthday offers).

Redemption Tracking:

• 🔢 Unique Codes: Implement simple tracking methods using unique promo codes to monitor the effectiveness of offers.
• 📊 Analyzing Results: Regularly review redemption rates to refine future campaigns.

Platform Choices:

• 💻 Email Marketing Tools:
  • Mailchimp: Favored for its affordability and user-friendly interface; costs may increase with larger subscriber lists.
  • Toast: Offers integrated marketing solutions with automated campaigns, especially beneficial if already using their POS system.
• 📱 Text Marketing:
  • Higher engagement rates compared to email; consider integrating SMS marketing for time-sensitive promotions.

Best Practices:

• 🚀 Start Simple: Begin with basic campaigns and expand as you gain insights into what resonates with your audience.
• 📈 Monitor Performance: Use analytics to track open rates, click-through rates, and conversions to optimize strategies.

Source: /r/restaurantowners

Overcoming Eczema Challenges in the Kitchen

A pizza shop owner seeks advice after developing severe eczema on their hands due to prolonged exposure to irritants in the kitchen:

Community Advice:

• 🧤 Protective Gear:
  • Switch to powder-free vinyl gloves to avoid potential latex allergies.
  • Wear gloves while handling dough and washing dishes to minimize skin contact with irritants.
• 🧴 Skin Care Regimens:
  • Apply protective creams like Vaseline, coconut oil, or specialized barrier creams before and after shifts.
  • Use gentle, fragrance-free soaps and moisturizers to reduce skin irritation.
• 🍽️ Workplace Adjustments:
  • Consider using gentler dish soaps or installing handwashing stations with skin-friendly products.
  • Limit exposure to allergens like semolina or cornmeal if they contribute to the condition.

Health Recommendations:

• 🩺 Consult a Professional: Seek medical advice from a dermatologist to assess and treat the eczema effectively.
• 🌿 Dietary Changes:
  • Increase intake of vitamins E, A, C, D, and B complex known to support skin health.
  • Stay hydrated and maintain a balanced diet to promote overall wellness.

Allergy Testing:

• 🧪 Identify Triggers: Undergo testing to determine specific allergens or irritants contributing to the eczema.
• 📝 Adjust Practices: Modify work routines based on test results to avoid aggravating the condition.

Community Support:

• 🤗 Shared Experiences: Other professionals share their stories and affirm the importance of taking proactive measures to protect skin health in demanding culinary environments.

Source: /r/restaurantowners

Bartenders Share Strategies to Avoid Political Discussions

Maintaining a welcoming and relaxed atmosphere is crucial in bars. Bartenders discuss how they handle the delicate task of steering conversations away from politics:

Common Approaches:

• 🤐 Policy Enforcement:
  • Some establishments have a strict no-politics policy, making it clear to patrons that such discussions are discouraged.
• 😄 Deflection Techniques:
  • Use humor or light-hearted comments to redirect the conversation.
  • Introduce new topics or engage customers in discussions about sports, entertainment, or personal interests.

Customer Relations:

• 😊 Creating a Neutral Space:
  • Emphasize that the bar is a place to unwind and escape daily stresses, including political debates.
• 🗣️ Active Listening:
  • Acknowledge customers’ comments without engaging deeply, then gently shift the focus.

Benefits:

• ❤️ Enhanced Atmosphere: Keeping the environment apolitical contributes to a more enjoyable experience for all patrons.
• 🤝 Customer Appreciation: Many guests appreciate the effort to maintain a peaceful setting, leading to increased loyalty.

Challenges:

• ⚖️ Balancing Act: Navigating passionate customers requires tact to avoid offending or alienating anyone.
• 🛑 De-escalation Skills: Being prepared to calmly address situations if conversations become heated.

Source: /r/restaurant

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