October 30th QSR Roundup: From Jeni’s Holiday Flavors to McDonald's E. coli Recovery and Chipotle's Global Expansion

QSR news for Oct 30th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 77 articles to bring you the latest. Estimated reading time saved (at 200wpm): 240 minutes. It'll take you only 18 minutes to catch up.

Restaurant Growth and Expansion

Chipotle's Global Ambitions

Chipotle is aggressively expanding its global footprint, seeking international franchise partners to grow the brand worldwide. With over 40 locations in Canada and successful entries into Kuwait and Dubai, Chipotle aims to replicate its North American success globally. Newly appointed managing director Anat Davidzon is leading efforts in Europe, where margins have improved significantly.

• 7,000 restaurants by 2022: Chipotle targets this ambitious number, focusing on becoming an iconic international brand.
• Strong Q3 performance: Same-store sales grew by 6%, with total revenue rising 13% to $2.8 billion.

Chipotle's strategy includes introducing new menu items like the Honey Chicken, improving operational efficiency with technology enhancements such as dual-sided planchas and produce slicers, and focusing on customer experience improvements.

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

Shake Shack's Steady Climb

Shake Shack continues its growth trajectory, celebrating its 15th consecutive quarter of same-store sales growth, with a 4.4% increase and total sales reaching $495.1 million in Q3. CEO Rob Lynch emphasizes a shift towards enhancing guest engagement through a new loyalty program, aligning with founder Danny Meyer's hospitality principles.

• Menu innovations: New BBQ burgers and promotions like Chicken Sundays have boosted sales and increased chicken awareness.
• Expansion plans: Despite closing nine underperforming locations, Shake Shack opened 17 new outlets and plans for 75 openings this year, with 80-85 next year.

Financially, the company reported a net loss of $10.2 million due to closures, but margins improved by 60 basis points, showing operational efficiency.

Source: Nation's Restaurant News; Fast Casual

Voodoo Doughnut Brings Magic to Venice

Voodoo Doughnut has opened a new location in Venice, California, at 66 E Windward Ave, near the iconic Venice sign. Embracing the city's vibrant art and culture scene, the shop offers all the classics like the Bacon Maple Bar and Voodoo Doll, with over 40 handcrafted varieties including vegan options.

• CEO Chris Schultz expresses excitement about the synergy between Voodoo's creative spirit and Venice's artistic community.
• The location is set to be a must-visit spot for both locals and tourists, capturing the energy of Venice Beach.

Source: QSR Magazine

Ziggi's Coffee Hits 100 Stores

Ziggi's Coffee celebrated the opening of its 100th store in Brighton, Colorado, emphasizing community connection alongside quality beverages. Co-founder and CEO Brandon Knudsen highlighted the significance of reaching this milestone in their home state, showcasing the importance of local ties for success.

• The new franchise is led by Jeff Brady, aiming to create a welcoming space for residents.
• Ziggi's plans to continue its growth while maintaining a focus on community engagement.

Source: Fast Casual

Product Launches and Innovations

Jeni’s Splendid Ice Creams Unveils Holiday Flavors

Jeni’s Splendid Ice Creams continues to captivate customers with its creative and seasonal flavor rotations. The 2024 holiday collection features five new flavors, including White Chocolate Peppermint and Boozy Eggnog.

Seasonal innovation is a key marketing tool, with strategic timing in flavor development. Leveraging the emotional connections of food helps attract and retain customers.

Source: Nation's Restaurant News

Charleys' Scorpio Season Specials

Charleys Cheesesteaks & Wings introduces bold menu items to celebrate Scorpio season:

• Scorpion Sting Chicken Wings: A fiery blend of scorpion pepper powder, smoked paprika, garlic, and onion offers an intense heat experience.
• Watermelon Strawberry Lemonade: A sweet cooling contrast combining real watermelon, strawberries, cane sugar, and lemon juice.

Available starting October 29, these items cater to those craving intense flavors.

Source: QSR Magazine

Dunkin's Festive Holiday Menu

Dunkin’ has unveiled a festive holiday menu launching on November 1, featuring:

• Cookie Butter Cold Brew: A returning favorite.
• Peppermint Mocha and Toasted White Chocolate Signature Lattes.
• New Holiday Cookie Signature Latte and White Hazelnut Bark Coffee.
• Almond Croissant and Hash Brown Brisket Scramble Bowl as new food items.
• Free Donut Wednesdays for Rewards members from Nov. 6 to Dec. 25.

These offerings aim to bring holiday cheer and attract customers with seasonal favorites.

Source: Salon

El Pollo Loco's Modern Makeover

Celebrating 50 years, El Pollo Loco has introduced a refreshed restaurant design that pairs modern aesthetics with familiar brand elements.

• Updated design: New color palette and materials while retaining core brand aspects like the fire stack gradient.
• Interior upgrades: Enhanced brightness and airiness with updated furniture and LED lighting.
• Sustainability focus: Energy-efficient hoods and HVAC systems reduce environmental impact.
• Expansion plans: Set to reach its 500th restaurant by the end of 2024.

Chief Development Officer Tim Welsh leads the redesign efforts, bringing his extensive experience in restaurant design.

Source: Fast Casual

Krystal's New Patty Melts and Cheesy Jalapeño Menu

Krystal's has launched two new patty melts along with a limited-time cheesy jalapeño menu, featuring bold flavors to entice customers.

• Mixed reviews from customers, with some concerns about food consistency and quality.
• Some hope the new items will be in Krystal's signature smaller portion size.

The launch aims to rejuvenate interest in the brand through new offerings.

Source: /r/fastfood

Fast Food Industry Challenges

McDonald's E. coli Outbreak and Recovery

McDonald's is navigating the aftermath of an E. coli outbreak linked to slivered onions from supplier Taylor Farms, resulting in 75 reported illnesses and 1 death.

• Traffic decline: Daily sales showed significant year-over-year drops, peaking at 9.5% on October 25, 2024.
• Recovery plans: Introduced the $5 Meal Deal and plans to launch a new value platform in Q1 2025.
• CEO Chris Kempczinski emphasizes the need to rebuild trust and adapt global learnings in value marketing.
• Chicken Big Mac launch contributed to sales growth before the outbreak.
• E. coli source identified: Slivered onions removed; quarter-pound burgers resumed in most states.

McDonald's aims to regain momentum by enhancing value offerings and restoring customer confidence.

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

Starbucks Discontinues Oleato Beverages

Starbucks is phasing out its olive oil-infused Oleato beverage lineup in the U.S. by early November.

• Decision follows mixed customer feedback and gastrointestinal concerns.
• Part of CEO Brian Niccol's initiative for operational simplification.
• The Oleato line, inspired by former CEO Howard Schultz, faced criticism for its unique taste.
• Starbucks faces a 7% global same-store sales decline, prompting menu reevaluation.

This move aligns with efforts to streamline offerings and improve customer experience.

Source: Nation's Restaurant News; Restaurant Business

Casual Dining Struggles Persist

Casual dining chains are facing significant challenges, with closures and financial strains evident across the industry.

• TGI Fridays: Closed around 100 restaurants this year amid bankruptcy speculation.
• Denny’s: Plans to shut 150 low-performing locations by 2025.
• Shari’s Café and Pies: Closed all 42 restaurants in Oregon.
• Inflation impacts: Restaurant prices rose 3.9%, outpacing grocery prices.
• Texas Roadhouse: An exception, boasting an 8.5% sales increase.

These trends highlight the shifting landscape in casual dining, with some chains adapting through innovative strategies.

Source: Foodservice Equipment & Supplies

Fast Food Value Wars

The competition for affordable offerings intensifies as McDonald's plans to introduce a lasting value menu initiative next year.

• Permanent value offer: Aiming to maintain customer loyalty amid price-sensitive markets.
• Other brands are advised to stay cautious rather than engaging in aggressive price competition.
• The shift may lead to new customer expectations regarding value in fast food.

Balancing price and quality becomes crucial for success in this competitive environment.

Source: Restaurant Business

Menu Trends and Consumer Preferences

Demerara Sugar's Rising Popularity

Demerara sugar is gaining traction on restaurant menus for its rich, caramel-like flavor and minimally refined characteristics.

• Considered a premium ingredient, appealing to health-conscious consumers.
• Popular in cocktails and coffee, adding unique sweetness to baked goods.
• 31% increase in menu presence over four years, now in 3.1% of U.S. restaurant offerings.
• Favored by vegetarian, vegan, and Asian diners, mostly in independent and fine-dining establishments.

This trend reflects a growing interest in natural and premium ingredients.

Source: Nation's Restaurant News

Harnessing Menu Trends

Restaurants are focusing on more than just identifying trends; they're strategically capitalizing on them to stand out.

• Clever naming and branding help showcase menu hooks effectively.
• Consumers are drawn to unique and enticing names that reflect health-conscious and sustainable choices.
• Emerging trends include items featuring plant-based ingredients and locally sourced materials.
• Recommendations: Actively analyze consumer preferences and adapt menus to stay relevant.

Understanding and communicating these trends can significantly impact a restaurant's appeal.

Source: Restaurant Business

Inclusive Thanksgiving Menus

Offering vegan, vegetarian, and gluten-free options is crucial for restaurants to cater to diverse dietary needs during Thanksgiving.

• Popular vegan dishes: Stuffed acorn squash, vegan pecan pie bars.
• Vegetarian favorites: Pumpkin cheesecake, vegetarian lasagna.
• Gluten-free options: Flourless chocolate cake, appealing to those avoiding gluten.
• One-third of Americans are cutting gluten, making accommodation important for attracting customers.

Providing varied menus not only attracts a wider customer base but also sets businesses apart during the holiday season.

Source: BlueCart

Chic Metallic Dishware Trend

A shift towards modern, minimalist metallic dishware is gaining popularity in restaurants.

• Influenced by aesthetics, the trend started with shiny coupe glasses.
• High-end products like Aarke’s stainless steel kettle combine functionality with style.
• Reflects a move towards sleek design that enhances the dining experience.

This trend emphasizes the importance of presentation and modern design in dining.

Source: Eater

Technology and AI in Restaurants

Fajita Pete's AI Catering Success

Fajita Pete's has revolutionized catering with AI, achieving impressive results since May 2024.

• 13.85% increase in same-store catering ticket counts.
• 20.79% improvement in completed catering forms.
• 13.03% rise in average retail catering basket size.
• The AI system simplifies orders and automates upselling, boosting profitability.

Fajita Pete's commitment to innovation supports franchise operators and enhances customer experience.

Source: QSR Magazine

Checkmate Secures $10M for AI Innovations

Checkmate has raised $10 million in Series B funding, led by Tiger Global, to enhance its voice AI and kiosk technologies.

• Aims to help restaurants scale operations, boost digital revenue, and improve efficiency.
• Focused on integrating AI solutions for phone ordering and drive-thru systems with POS.
• CEO Vishal Agarwal emphasizes commitment to transforming the restaurant experience with voice AI capabilities.

This investment positions Checkmate as a leader in restaurant technology innovation.

Source: QSR Web

Handheld Devices in Restaurants

Restaurant owners are considering the adoption of handheld devices and kitchen screens to improve operations.

• Benefits: Aiding upselling, improving order flow, faster order entry, enhancing customer service.
• Concerns: Potentially impersonal interaction, risk of mistakes without a paper trail, technical limitations like printing issues.
• Fine dining vs. casual: Handhelds may be more suitable for casual settings; in fine dining, personal engagement is critical.

Balancing technology integration with customer experience is key for successful implementation.

Source: /r/restaurantowners

AI-Powered Roster App Feedback

An upcoming AI-powered roster app for restaurant scheduling seeks user feedback.

• Mixed reactions: Some users are skeptical about the need for AI in scheduling, preferring practical tools.
• Emphasis on simplicity and efficiency, ensuring the app doesn't add to the workload.
• Users express frustration with existing systems and desire for more user-friendly solutions.

Understanding the actual needs of restaurant managers is crucial for developing effective tools.

Source: /r/Restaurant_Managers

Catering and Alternative Revenue Streams

Catering Growth in Restaurants

Catering has become a vital revenue channel for restaurants, reaching new audiences and enhancing profitability.

• The U.S. catering market is projected to grow from $70 billion in 2024 to $124 billion by 2032.
• 56% of consumers are more likely to order catering compared to pre-pandemic times.
• Catering services showcase culinary talents and boost brand loyalty.

Restaurants are capitalizing on catering to attract employees back to the office and increase sales across different meal occasions.

Source: QSR Web

Benares' Inclusive Dining Experience

Benares attracts a diverse range of diners with its inclusive menu, catering to various dietary preferences.

• 75% of revenue comes from catering, handling 200 catering gigs annually.
• Events include weddings hosting up to 800 guests.
• Plans to expand catering facilities while maintaining a strong community focus.

Offering inclusive options increases the likelihood of appealing to mixed groups, enhancing dining experiences.

Source: Total Food Service

Legal and Regulatory Issues

Subway Faces Lawsuit Over Misleading Meat Portions

Subway is facing a class-action lawsuit for allegedly misleading customers about the amount of meat in its Steak & Cheese sandwiches.

• Ads are claimed to show three times more meat than what's actually served.
• The lawsuit highlights ongoing issues with fast-food advertising and consumer rights.
• Seeks damages for affected customers, emphasizing the need for accurate representation.

Similar past lawsuits against other chains have been dismissed, but this case suggests persistent concerns.

Source: Salon

Frisch's Big Boy Closure Crisis

Frisch's Big Boy faces a critical situation with over one-quarter of its locations at risk of eviction due to unpaid rent exceeding $4.5 million.

• Legal actions initiated for at least 20 out of 80 restaurants.
• Crisis follows earlier closures and contradicts management's claims of stability.
• Unpaid rent since February cited as the primary reason for lawsuits.

The situation highlights challenges in operations and finances within the chain.

Source: Nation's Restaurant News

Seafood Mislabeling Crisis

In Calgary, 1 in 5 seafood products tested were mislabeled, including 100% of snapper samples.

• Cheaper fish like tilapia often sold as pricier ones.
• Mislabeling has serious implications for marine conservation and public health.
• Consumers unknowingly consume endangered species like European eels.
• Calls for better traceability and accurate labeling in seafood.

Consumers can combat this by buying whole fish and choosing sustainable options.

Source: Salon

Insurance Risks for Restaurants

Restaurant owners face unique challenges influencing their insurance premiums.

• Weather events: In 2023, the U.S. had 28 weather disasters, each costing over $1 billion.
• Social unrest: Cost insurers $1-2 billion in 2020, indicating potential future risks.
• Rising construction costs due to inflation impact premiums.
• Reinsurance costs have surged, affecting policy rates.

Staying prepared for these unpredictable factors is essential for mitigating risks and costs associated with premiums.

Source: Society Insurance

Management and Employee Challenges

Restaurant Burnout and Motivation

Restaurant owners express feelings of burnout and question their reasons for continuing in the industry.

• Motivations vary: financial goals, personal fulfillment, passion for creating memorable experiences.
• Importance of taking breaks: Time off to recharge is crucial for managing stress.
• Challenges include small profit margins and the current economic climate.
• Community support: Sharing experiences helps owners realize they're not alone.

Finding balance and enjoyment in the work keeps many engaged in the restaurant business.

Source: /r/restaurantowners

Challenges as F&B Manager

An assistant F&B manager struggles due to lack of training, poor communication, and workplace gossip.

• Overwhelmed and underappreciated, especially after manager's unexpected departure.
• Denied time off for a funeral under dubious pretenses.
• Commenters advise prioritizing mental health, reporting harassment, and considering leaving the job.
• Similar experiences highlight toxic work environments in hospitality.

Seeking supportive workplaces is important for well-being and career satisfaction.

Source: /r/Restaurant_Managers

Scams Targeting Catering Businesses

Restaurant managers warn about scams targeting catering services through deceptive emails.

• Common scam involves large to-go orders paid with stolen credit cards.
• Urgent need for caution and awareness among restaurant staff.
• Important tips: Check grammar and relevance in emails, be cautious with phone orders during rush hours.

Staying vigilant helps prevent financial losses and protects the business.

Source: /r/Restaurant_Managers

Unique Stories and Cultural Trends

Pan de Muerto Tradition

Pan de muerto is a key element of Día de Muertos celebrations, honoring deceased loved ones with food and festivities.

• At Panadería Rosetta, chef Elena Reygadas creates this traditional bread with orange blossom water.
• Produces between 160 and 500 breads daily during the holiday, selling out quickly.
• Introduced black pan de muerto made from corn ash in 2019, promoting sustainability.
• Innovation continues with new recipes featuring amaranth and quelites.

The bakery preserves Mexican culinary traditions while introducing creative variations.

Source: Eater

Pepperoni Roll Delight

The pepperoni roll, a staple of West Virginia and western Pennsylvania, combines deli pepperoni with soft Italian bread.

• Originated in coal mining culture as a convenient snack.
• Key spots to try include Country Club Bakery in Fairmont and Rolling Pepperoni in Pittsburgh.
• Unique variations found at other bakeries showcase the versatility of this nostalgic treat.

The pepperoni roll reflects local traditions and continues to delight locals and visitors alike.

Source: Eater

The Art of Glassware

Glassware plays a crucial role in crafting cocktails, influencing aesthetics and experience.

• The right glass can elevate a drink from ordinary to memorable.
• Design impacts flavor and aroma: Narrow rims enhance scents, thick glass retains temperature.
• Visual presentation affects perception and anticipation.
• Glassware reflects culture and artistry, making it an essential component of mixology.

Each glass chosen carries intent and enhances the unique experience of a cocktail.

Source: Total Food Service

Marketing and Community Engagement

Jefferson's Franchise Success

Jefferson's has successfully expanded, nearly doubling its locations over five years while maintaining a local bar-and-grill atmosphere.

• Started in 1991 in Jacksonville, Alabama, now with 37 locations.
• 65% of locations owned by former employees, fostering genuine community connections.
• Plans to reach over 100 locations in the next decade.

The brand emphasizes family-friendly dining and high food quality, with strong community engagement.

Source: FSR Magazine

Politics and Restaurants

Political campaigns strategically select restaurant visits to connect with communities.

• Kamala Harris visited a Philadelphia deli, Donald Trump at a McDonald's.
• These visits aim to reinforce relatability and support local businesses.
• Restaurant owners navigate the complexities of hosting politicians, balancing personal beliefs with community dynamics.

Emphasizing the critical role of small businesses in local economies, these interactions highlight the intersection of politics and hospitality.

Source: Eater

Enhancing Google Business Profiles

Improving Google Business Profiles can significantly attract more diners.

• Key improvements: Add quality images, up-to-date menus, and information about the restaurant's vibe.
• Encourage customer reviews and use the Q&A section to address common inquiries.
• Website inclusion: Adding a link enhances credibility.
• Profile optimization: Accurate operating hours, correct locations, and online ordering options improve appeal.

Engaging with customers online boosts visibility and draws in new patrons.

Source: /r/restaurantowners

Miscellaneous Fast Food Updates

Best Fast Food Menu Picks

Reddit users discuss the best items to order at popular fast-food chains.

• Highlights include:
  • Arby's Smokehouse Brisket
  • Burger King's Fiery Royal Chicken Sandwich
  • Chick-Fil-A's Spicy Deluxe with Cheese
  • Del Taco's chili cheese fries and crispy chicken soft taco
  • Popeye's Ghost Pepper Chicken Sandwich
• Opinions vary, reflecting diverse preferences among fast-food enthusiasts.

The discussion showcases the variety and personal tastes that shape fast-food dining experiences.

Source: /r/fastfood

Chester's Chicken Introduces Kentucky Bourbon Bites

Chester's Chicken launches Kentucky Bourbon Bites, featuring marinated chicken breast chunks tossed in Cattlemen's Kentucky Bourbon BBQ Sauce.

• Bourbon flavor topped consumer tests, leading to nationwide rollout.
• Chester's operates over 1,300 locations in various venues, enhancing accessibility.

The new offering aims to capitalize on popular taste trends and attract customers with bold flavors.

Source: QSR Web

Sonic's New Winter Menu

Sonic unveils its winter menu starting on November 4, featuring:

• Queso Smashers
• Red Velvet Cake Batter Shake
• Sparkling Sugar Cookie Dr Pepper

App-exclusive early access began on October 28, 2024.

• Users express excitement, particularly about the Sparkling Sugar Cookie Dr Pepper.
• Mixed reviews on the Red Velvet Shake, with some finding it not meeting expectations.

These new items aim to entice customers with seasonal flavors and special deals.

Source: /r/fastfood

Consumer Reactions and Ethical Issues

Ramekin Theft Ethics

A diner questions whether taking a ramekin from a restaurant constitutes theft.

• Commenters agree that stealing is wrong, emphasizing the impact on restaurant operations.
• Small thefts can add up to significant losses for owners.
• Integrity in dining involves respecting restaurant property.

The discussion reinforces the importance of ethical dining practices.

Source: /r/restaurant

Handling No-Shows and Reservations

A small family-run restaurant faces challenges with no-shows and fake reservations.

• Considering charging a deposit for larger groups to mitigate losses.
• Suggestions include:
  • Requiring credit card holds.
  • Moving to a first-come, first-served model.
  • Regular reminders and personal confirmation calls.

Balancing customer convenience with business needs is key to managing reservations effectively.

Source: /r/restaurantowners

TGI Fridays Closure Concerns

Reports emerge about several TGI Fridays locations closing amid bankruptcy speculation.

• Commenters share experiences of declining food quality over time.
• Shift from fresh ingredients to frozen alternatives noted.
• Reflects broader challenges facing chain restaurants.

The situation highlights consumer perceptions and the importance of maintaining quality standards.

Source: /r/restaurant

Financial Challenges and Strategies

Coors & Bud Bottle Margins

Bar owners discuss high pour costs for Coors, Miller Lite, and Bud bottles.

• Prices paid exceed $1.20 per bottle, retailing for $4.00.
• Pressure to sell these brands cheaply despite rising supplier costs.
• Suggestions include:
  • Checking ordering options for better pricing.
  • Considering bulk deals or alternate sourcing strategies.
  • Increasing prices in line with competition.

Balancing competitive pricing with profitability is a challenge for bar owners.

Source: /r/BarOwners

Soundproofing Challenges for Bars

A bar owner seeks advice on effective soundproofing methods after facing complaints in a location beneath residential homes.

• Suggestions include:
  • Soundproofing panels and insulation.
  • Professional consultation for tailored solutions.
  • Considering structural changes like double drywall.

Addressing noise issues proactively is crucial for bars in residential areas to maintain good relationships and comply with regulations.

Source: /r/BarOwners

Stay tuned for more concise news updates delivered right to your fingertips, saving you valuable time. As industry professionals and restaurant operators, your time is precious—spent on running your businesses, innovating menus, and enhancing customer experiences. Let us keep you informed with quick, comprehensive summaries so you can focus on what you do best. Subscribe now and join us again for the latest insights in the restaurant industry!