October 31st QSR Roundup: Spooky Treats and Restaurant Strategies

Interviewy Team

Interviewy Team

— 9 min read
October 31st QSR Roundup: Spooky Treats and Restaurant Strategies
QSR news for Oct 31st, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 80 articles to bring you the latest. Estimated reading time saved (at 200wpm): 380 minutes. It'll take you only 11 minutes to catch up.

Spooky Treats and Fall Menu Highlights

Get ready for some hauntingly delicious new menu items this fall! Restaurants are embracing the season with festive offerings that tantalize the taste buds.

Velvet Taco is spicing up Halloween with its Haunted Harvest taco, a special that combines seasonal flavors in a spooky package.

Nothing Bundt Cakes introduces the Oreo Dirt Cake, a delightful treat topped with gummy worms, adding a playful twist to their classic cakes.

For Thanksgiving, Arby’s brings back its hearty turkey sandwiches, perfect for those craving a taste of the holiday. Friendly’s is joining in with the Tom the Turkey sundae, a sweet and festive dessert that captures the essence of the season.

Five Guys launches a refreshing peppermint shake, offering a cool and minty delight as we approach the colder months. Meanwhile, McDonald’s adds a creamy dulce de leche frozen dessert, bringing a taste of Latin sweetness to their menu.

Taco Bell is testing its “decades” menu, exploring nostalgic flavors that span different eras. Hardee’s revives the beloved cinnamon-raisin biscuits after a 20-year hiatus and introduces candied bacon, adding a sweet and savory option for breakfast lovers.

Chicken Salad Chick and Krystal are warming up with new melts, providing comfort food that suits the cooler weather.

Bojangles makes a subtle shift by rebranding its nuggets as bites, perhaps aiming to refresh their image and appeal.

Smoothie King is catering to weight-loss trends by offering new smoothies designed for those using weight-loss drugs, aligning with current health trends.

Baja Fresh unveils crispy chimichangas, adding a crunchy and flavorful option to their menu.

Black Rock Coffee Bar adds indulgent mocha items, perfect for coffee enthusiasts seeking rich and chocolaty flavors.

Potbelly rolls out a delectable pumpkin pie cookie, combining the beloved taste of pumpkin pie in a portable cookie form.

Gott’s Roadside offers a luxurious French Dip sandwich, though it's noted to be on the pricier side, perhaps indicating a premium quality.

First Watch gets creative with layered tacos, showcasing innovation in their menu offerings.

This season is filled with exciting new flavors and festive treats, making it an excellent time to explore what your favorite restaurants have in store.

Source: Nation's Restaurant News

Chipotle's Global Expansion and Menu Strategies

Chipotle is set for a massive expansion under interim CEO Scott Boatwright, who confirmed that the company remains committed to the strategies established by former CEO Brian Niccol. The fast-casual giant reported a 6% rise in same-store sales and a 3% increase in transactions, signaling strong performance in a competitive market.

The brand is eyeing significant growth with plans to open hundreds of international locations and aims for thousands in Western Europe. This ambitious expansion reflects Chipotle's confidence in its global appeal and operational model.

Meanwhile, The Cheesecake Factory is holding steady on its smaller brands despite investor pressure to spin them off. The company believes in the strength of its diverse portfolio and is focusing on long-term growth rather than short-term gains.

Chili’s has experienced a 70% boost in sales of its popular Triple Dipper appetizer, now making up 11% of sales. This surge is partly driven by popularity on TikTok, demonstrating the power of social media in influencing dining trends and customer choices.

Source: Nation's Restaurant News

Applebee's Abrupt Closures Amid Bankruptcy

In a sudden turn of events, eight Applebee's locations near Kansas City have closed abruptly due to the franchisee Apple Central KC LLC filing for Chapter 11 bankruptcy. The remaining two locations operated by the same franchisee are also facing uncertainty.

Financial strains led to these closures, with the franchisee reporting liabilities ranging from $10 million to $50 million against assets of only $1 million to $10 million. This significant disparity highlights the challenges faced by the franchisee in maintaining operations.

Adding to the turmoil, recent controversies have plagued the franchisee, including lawsuits over wrongful closures and a viral email incident regarding employee pay. Earlier this year, another Applebee's franchisee, Louisiana Apple, also filed for bankruptcy, reflecting a troubling trend within the casual dining sector.

Source: Nation's Restaurant News

Chili's Simplification Strategy Leads to Sales Surge

Chili's Grill & Bar has embraced a strategy of simplification, leading to remarkable sales increases despite challenging consumer conditions.

Sales Highlights:

  • Same-store sales surged by 14.1%, with overall growth of 13%.
  • The simplification involved cutting 25% of its menu over 2.5 years.
  • Focused on four core dishes: burgers, crispers, fajitas, and margaritas.
  • These core items now account for 47% of business, up from 30% a few years ago.

Successful Campaigns:

  • The Big Smasher burger is a standout item in the successful 3 for Me campaign.
  • The campaign offers value at multiple price points, with nearly 50% of customers choosing premium tiers priced at $14.99 and $16.99.

Attracting Younger Customers:

  • The introduction of the Triple Dipper appetizer is reaching a younger demographic.
  • The item has seen a 70% boost in sales and now makes up 11% of sales.
  • This success is attributed to its popularity on TikTok, showing the impact of social media on dining trends.

Operational Innovations:

  • The 2030 Heart of the House project aims to test faster, more consistent kitchen equipment.
  • The goal is to improve the guest experience through enhanced food quality and reduced wait times.

Financial Gains:

  • Brinker International, Chili's parent company, reported Q1 net income rising to $38.5 million from $7.2 million a year ago.
  • Revenues climbed to $1.139 billion, up from $955.5 million.

Chili's focus on core items, operational efficiency, and strategic pricing has proven successful in boosting sales and attracting new customers.

Source: Nation's Restaurant News

Starbucks Overhauls Pricing and Customer Experience

Starbucks is undergoing significant changes under the leadership of new CEO Brian Niccol, aiming to enhance customer experience and address declining traffic.

Key Initiatives:

  • Eliminating the non-dairy milk upcharge starting November 7 in the U.S. and Canada. This move could lower prices by 10% for customers who prefer alternative milk options.
  • Focusing on speed: Starbucks aims to prepare coffees in under four minutes by improving mobile order sequencing and optimizing staffing levels.
  • Return of personal touches: Reintroducing Sharpies and condiment bars to enhance barista-customer interaction.
  • Revamping the café experience: Renovations are focusing on creating comfortable seating and a welcoming atmosphere.
  • Simplifying customization pricing: Streamlining drink customization to ensure clarity and consistency.
  • Comprehensive marketing shift: Launching a new campaign that targets all customers, highlighting Starbucks' quality and value.

These initiatives come after Starbucks reported a 10% decline in traffic in the last quarter. By addressing key customer concerns and enhancing the overall experience, Starbucks hopes to restore its brand appeal and profitability.

Sources: QSR Magazine, Restaurant Dive

Wingstop's Remarkable Growth and Expansion Plans

Wingstop continues to soar with impressive growth figures and strategic initiatives that position the brand for future success.

Financial Highlights:

  • Domestic same-store sales surged by 20.9% in Q3, primarily driven by increased transactions.
  • Systemwide sales reached $1.2 billion.
  • Net income rose by 32% to $25.7 million.

Expansion and Franchise Growth:

  • Wingstop forecasts 320 to 330 new restaurants opening this year.
  • A record 106 new locations opened in Q3, bringing the total to 2,458, predominantly franchised.
  • Franchisees report high returns, prompting record growth demand.

Menu and Marketing Innovations:

  • Innovative menu choices like the Hot Honey Rub drove customer interest.
  • New marketing initiatives and a partnership with the NBA are boosting brand awareness.
  • 69% of sales now come from digital channels.

Future Plans:

  • Wingstop aims for 80-85 new openings in 2024.
  • Plans to develop a loyalty program to enhance customer engagement.
  • Aggressive international expansion targeting 4,000+ overseas locations.

Sources: QSR Magazine, Restaurant Business

Restaurant Closures and Industry Challenges

The restaurant industry faces ongoing challenges, with several major chains announcing closures and strategic shifts.

Wendy's Restaurant Closures:

  • Wendy's is closing 140 underperforming restaurants in weaker markets.
  • Targeted locations generate $1.1 million or less in annual revenue.
  • Aiming to enhance the overall health of the company.
  • Plans to offset closures with new unit growth, maintaining flat overall restaurant growth for the year.
  • Executives are confident in future growth, targeting 3% to 4% unit growth by 2025.

Applebee's Franchisee Bankruptcy:

  • Eight Applebee's locations near Kansas City closed due to franchisee bankruptcy.
  • Reflects broader struggles within the casual dining sector.

Cracker Barrel's Board Showdown:

  • Cracker Barrel is defending its $700 million brand overhaul against activist Sardar Biglari.
  • Emphasizing their strategic transformation plan aimed at revitalizing the company post-pandemic.

Sources: Restaurant Business, FSR Magazine, Restaurant Dive

Food Safety and Hygiene Innovations

Recent incidents have underscored the critical importance of food safety and hygiene in the restaurant industry.

Preventing Foodborne Illness:

  • An E. coli outbreak linked to McDonald's Quarter Pounders traced to slivered onions.
  • 90 reported illnesses and 27 hospitalizations prompted McDonald's to remove onions from 900 locations.
  • Annually, foodborne illnesses affect 128,000 Americans and result in 3,000 fatalities.
  • Handwashing and modern detection technologies are essential.
  • Tech solutions like PathSpot's hand monitoring have improved safety measures.

Disney Menu Hacking Incident:

  • Ex-employee Michael Scheuer arrested for hacking restaurant menu software.
  • Made obscene alterations and falsely indicated allergy safety.

Sources: Nation's Restaurant News, Restaurant Business, Restaurant Dive

The restaurant industry is witnessing significant trends and innovations aimed at enhancing customer experience.

Shake Shack's Upcoming Loyalty Program:

  • Plans to launch a loyalty program in 2025.
  • Reported a 4.4% increase in same-store sales.
  • Digital kiosks are now the largest ordering channel for the brand.

DoorDash Expands Benefits with Lyft Partnership:

  • Offering 5% off standard Lyft rides and 10% off airport rides for DashPass members.
  • Aims to boost customer retention by adding value to subscriptions.

Fast Casual Chains Driving Expansion:

  • Chipotle, Wingstop, and Shake Shack plan to open over 700 units in the coming year.
  • Chipotle plans as many as 315 new restaurants, emphasizing Chipotlanes.
  • Wingstop expects 320-330 new locations.

Sources: QSR Magazine, Restaurant Dive

Reviving Traditional Foods and Cultural Movements

Cultural foods and traditions are experiencing a revival, blending innovation with heritage.

Pan Dulce Revival:

  • First-generation Latinx bakers are transforming Mexican pastries like conchas.
  • Pan de la Selva in Seattle combines Salvadoran and Mexican styles.
  • Modern panaderías introduce new flavors and sustainable practices.
  • La Hacienda in Houston reports selling about 1,000 conchas per day.

Candy Corn Appreciation:

  • Candy corn has a rich history, dating back to the 1880s.
  • Evokes unique fall nostalgia despite only 12% calling it their favorite.
  • Offers a rich taste with nuttiness, warm vanilla, and buttery essence.

Source: Eater

Noteworthy Openings and Culinary Highlights

Exciting new restaurants and culinary experiences are emerging.

PostBoy Restaurant Opening:

  • PostBoy opens in New Buffalo, Michigan.
  • Led by Ben Holland and chef James Galbraith.
  • Features creative New American dishes and adventurous cocktails.

Yuan: A New Pan-Chinese Gem:

  • Yuan opens in Jersey City, focusing on sophisticated Sichuan cuisine.
  • Offers dishes like Chicken in Numbing Chili Oil.
  • Designed by architect Ruoyu Wei.

Keke’s Breakfast Cafe Turns 18:

  • Celebrates its 18th birthday on November 7.
  • Unveiling a fresh look and new branding.
  • Plans for further growth into California, Texas, and beyond.

Sources: FSR Magazine

Technological Advancements in Hospitality

Embracing technology is becoming essential for hospitality businesses.

Optimizing Technology in Hospitality:

  • View technology as a team player.
  • Identify friction points and ensure proper training.
  • Assess performance and optimize usage.
  • Prioritize employee experience and balance speed with interaction.

Enhancing Financial Wellness:

  • Around 4.7 million fast-food workers remain financially insecure.
  • 75% of Gen Z employees face financial stress.
  • Employers lose approximately $500 billion annually due to financial distractions.
  • Targeted financial wellness programs can mitigate these issues.

Source: QSR Magazine

Martha Stewart Documentary Insights

The new Netflix documentary provides a candid look into Martha Stewart's life.

Personal Struggles:

  • Opens up about her tumultuous marriage with Andy Stewart.
  • Discusses difficulty with emotions stemming from a cold upbringing.

Legal Battles and Conviction:

  • Portrayed her conviction as unjust, feeling targeted for being successful.
  • Recounts being placed in solitary confinement during her prison term.

Resilience and Comeback:

  • Adapted and redefined her career post-prison.
  • Friendship with Snoop Dogg led to various collaborations.

Documentary Critique:

  • Expresses dissatisfaction with some aspects of the documentary.

Sources: Salon, Eater

Suffrage Through Cooking: Historical Insights

Women suffragists creatively raised funds by publishing community cookbooks.

Fundraising via Cookbooks:

  • Cookbooks served as a means to raise money for the suffrage movement.
  • The first suffrage cookbook published in 1886.

Inspiring Personalities:

  • Contributors like Alice B. Stockham infused recipes with advocacy.

Culinary Reflections:

  • Recipes served as a medium for contemplation about women's rights.
  • Highlighted the connection between domestic activities and political activism.

Source: Eater

Miscellaneous Updates and Industry News

Hardee's Nostalgic Biscuit Return:

  • Cinnamon 'N' Raisin Biscuits are back after 20 years.
  • Cherrywood-smoked Candied Bacon available from Nov. 6 to Jan. 7.

Marco's Pizza Expands in Boise:

  • Opens a new store featuring a modern design with a pick-up window.
  • Reflects ongoing expansion in Boise, Idaho.

Noodles & Company Appoints New Marketing Head:

  • Appoints Stephen Kennedy as EVP of marketing.
  • Brings over 20 years of expertise.

Sources: QSR Web, Fast Casual

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