October 4th QSR Roundup: Record Job Growth, Tech Innovations, and Shifts in Consumer Dining Trends
Now shorter! QSR news for Oct 4th, 2024. We checked 20 QSR publications, 6 subreddits, and over 78 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 210 minutes. It will take you about 14 minutes to catch up.
Restaurant Industry Sees Significant Job Growth
The restaurant sector experienced a notable upswing:
- Added 69,400 jobs in September, the highest monthly increase in over two years.
- Year-to-date growth surpassed pre-pandemic levels by 1.5%.
- 136,800 jobs added during Q3 alone, marking the largest quarterly growth since Q3 2022.
Highlights:
- Full-service segment remains 4% below its peak.
- Snack and non-alcoholic beverage establishments saw a 17% increase.
- Regional Variances: South Dakota leads with a +15% growth compared to pre-pandemic employment levels.
Sources: Nation's Restaurant News, Restaurant Business
Leadership Moves in Major Chains
Whataburger Appoints New Supply Chain Officer
- Todd Huetinck named as Chief Supply Chain Officer.
- Formerly managed supply chain for CKE Restaurants with over 3,000 locations.
- Will oversee Whataburger's supply chain amid ambitious growth plans.
Jack in the Box CFO Resigns
- Brian Scott stepping down; Dawn Hooper named interim CFO.
- The company is seeking a permanent replacement to support brand transformation efforts.
Sources: Nation's Restaurant News, Restaurant Business, Restaurant Dive
Fast Food Innovations and Challenges
McDonald's Introduces Chicken Big Mac
- Launching in the U.S. on October 10 for a limited time.
- Replaces beef patties with tempura battered chicken.
- Aims to tap into the growing chicken market segment.
Subway Faces Product Shortages
- Some Atlanta locations temporarily closed.
- Caused by delivery issues leading to shortages of key products.
Starbucks Under Scrutiny
- Former CEO Howard Schultz questioned by NLRB for alleged employee threats.
- Starbucks faces challenges with affordability perceptions among consumers.
Sources: Nation's Restaurant News, Restaurant Business, Food Business News
Entrepreneurial Success Stories
Amir Mostafavi's Journey with South Block
- Learned entrepreneurship from his immigrant father.
- Opened Campus Fresh at George Washington University in the early 2000s.
- Founded South Block in 2011; now has 17 locations.
- Recently partnered with Savory Fund for East Coast expansion.
Key Takeaways:
- Importance of community involvement and guest engagement.
- Keeping concepts simple and adaptable to trends.
- Continuous improvement of company culture.
Sources: Nation's Restaurant News
Unique Dining Experiences
Rainforest Cafe Pops Up at Empire State Building
- Transforms the 86th floor into a jungle-themed experience.
- Features exclusive merchandise and tropical dining.
- Event runs from October 3-6.
- Guests can meet mascot Cha Cha the frog and enjoy panoramic city views.
Sources: Nation's Restaurant News
Shifts in Consumer Dining Trends
Fast Casual Restaurants Outperform QSRs
- Fast casual visits grew by 3.2%, while QSRs saw a 0.4% increase.
- Weekday visits to fast casuals increased by 2.8%.
- Affluent consumers returning to the office contribute to growth.
- Price Perception Shift: Consumers view QSR prices as less of a value.
- Olive Garden tops value perception charts in casual dining.
Starbucks Faces Affordability Challenges
- Only 51% of customers find Starbucks affordable.
- Competitors like Tim Hortons and Dunkin' rank higher in affordability.
- Introduced a $5 to $7 "Pairings" menu to address pricing concerns.
- Younger consumers prioritizing price may impact sales.
Sources: Nation's Restaurant News, Restaurant Business
Product Enhancements and Menu Changes
Lion's Choice Upgrades Roast Beef Sandwich
- Invested in higher-quality beef.
- Resulted in increased customer traffic and sales.
- Demonstrates the impact of menu innovation.
Red Lobster Plans a Comeback
- Endless Shrimp promotion led to significant losses.
- New CEO Damola Adamolekun identifies underinvestment as a core issue.
- $60 million committed to restaurant revamps and staff wages.
- Focus on promoting affordable dishes and improving execution.
Sources: Restaurant Business
Supply Chain and Labor Updates
Record Job Surge in Restaurants
- Added 69,400 jobs in September, five times the monthly average.
- Total employment in restaurants and bars reached 12.5 million, surpassing pre-pandemic levels.
- National unemployment rate steady at 4.1%.
Dockworkers' Strike Resolved Quickly
- Strike ended after two days with a tentative pay agreement.
- Potential supply chain chaos averted.
- President praised swift resolution.
Sources: Restaurant Business
Marketing and Expansion Initiatives
Cava Launches New Loyalty Program
- Begins on October 7 with personalized rewards.
- Initial testing showed increased frequency and revenue.
- Introduces new menu items: Steak Bowl and Garlic Ranch pita chips.
- Plans to expand rewards catalog in coming months.
Taco Bell Franchisee Pacific Bells Expands
- Actively acquiring and launching new locations in the East.
- Exploring new units in ghost kitchens.
- Adapting to mobile ordering trends.
Sources: Restaurant Business
Supporting Black-Owned Food Businesses
EatOkra App Connects Consumers
- Co-founded by Anthony and Janique Edwards in 2016.
- Lists over 9,500 Black-owned food businesses.
- Raised $27,000 and $200,000 through crowdfunding.
- Plans to expand internationally and add in-app ordering.
- Organizes the Culinary Creatives Conference.
Sources: FSR Magazine
New Restaurant Openings and Designs
El Cielo Rooftop Bar Debuts in Miami
- Offers a luxurious speakeasy rooftop experience.
- Features Argentinian-inspired cuisine and enchanting cocktails.
- Designed to transport guests to a euphoric nightlife atmosphere.
Stage Kitchen & Bar Expands
- Second location opening in Boca Raton in early 2025.
- Designed by Anna Woodman Interior Design.
- Will accommodate 189 guests with indoor and outdoor dining options.
Sources: FSR Magazine
Technological Advancements in Food Delivery
Uber Eats Expands Robot Deliveries
- Partners with Avride to deploy delivery robots.
- Starting in Austin, expanding to Dallas and Jersey City.
- Plans to scale up to hundreds of robots by 2025.
- Aims to reduce labor costs amid rising expenses.
CFO Resignation at Jack in the Box
- Brian Scott resigns; Dawn Hooper takes interim role.
- Company focuses on finding a leader to support brand transformation.
- Introduced new value meal options to combat declining sales.
Sources: Restaurant Dive
Value Meal Strategies
Del Taco Introduces Mucho Meals
- Four new combo meals starting at $4.49.
- Includes items like snack tacos, churros, and drinks.
- Discounts range between 37% and 47%.
- Aims to enhance value for customers amid declining same-store sales.
Sources: Restaurant Dive
Advertising Innovations
DoorDash Launches Ads Manager
- Chipotle, Sweetgreen, and BJ’s are initial users.
- Offers advanced targeting and promoted placements.
- CPG brands can use offsite advertising to reach broader audiences.
- DoorDash's revenue surged 23% to $2.6 billion.
Sources: Restaurant Dive
Cultural and Culinary Narratives
Echoes of Meers Restaurant's Historical Charm
- Known for hearty longhorn beef burgers and nostalgic setting.
- Merges past and present with gold rush memorabilia.
- Visitors contribute to the atmosphere by leaving personal mementos.
- Reflects Oklahoma's history of opportunity and fleeting memories.
Sources: Eater
Supporting Immigrant Communities through Food
Ethnic Grocery Stores Enrich the Midwest
- Immigrants open essential grocery stores, fostering community.
- Highlighted by stories like Fowzia Adde, a Somali refugee turned business owner.
- Immigrants are 80% more likely to start businesses.
- Overcome barriers to provide access to international ingredients.
Sources: Eater
Innovations in Jewish Deli Culture
Modernizing Traditions with Chef Jeremy Umansky
- Utilizes koji-infused rice flour for curing meats.
- Serves at Larder Delicatessen in Cleveland.
- Reinterprets classics like pastrami and gefilte fish.
- Aims to preserve traditions while appealing to modern tastes.
Sources: Eater
Non-Alcoholic Beverage Trends
L’Antidote: The Trendy N/A Wine
- Created by Romain des Grottes in 2010.
- Blends gamay and apple juice with botanicals.
- Production increased from 10,000 bottles in 2020 to 87,000 in 2024.
- Gaining popularity in cities like Paris and London.
Sources: Punch
Exploring Mexico City's Culinary Scene
38 Must-Try Restaurants and Dishes
- Showcases the city's vibrant culinary identity.
- Highlights include spicy churros, refined crab dumplings, and chile en nogada.
- Casual dining spots like Vigneron and Voraz gaining popularity.
- Coffee scene thriving with cafes like El Minutito and Mise en Print.
Sources: Eater
Mezcalerías Rise in the U.S.
- Reflects growing passion for agave spirits.
- Bars focus on educational initiatives and responsible sourcing.
- Establishments like Barcoa and Cosme enhance community knowledge.
- Emphasis on preserving heritage practices and supporting traditional producers.
Sources: Punch
Chef Zubair Mohajir's Coach House in Chicago
- A 22-seat restaurant offering modern South Indian cuisine.
- Merges traditional Chennai flavors with familiar ingredients.
- Signature dishes include soft shell crab chaat and ancient duck recipes.
- Aims to broaden perspectives on Indian food.
Sources: Eater
Automation Transforming the Restaurant Industry
Insights from White Castle's CIO
- Voice automation improves drive-thru efficiency.
- Transitioned to Marigold for enhanced loyalty programs.
- Emphasizes the importance of technology planning and staff adoption.
- AI integration requires managing expectations and focusing on ROI.
Automated Coffee Revolution
- Costa Coffee launches fully automated, AI-powered coffee shops.
- Self-cleaning design operates up to 7 days autonomously.
- Features touchscreen ordering and transparent preparation process.
Sources: ATM Marketplace & Food Truck Operator, Fast Casual
Leadership Changes in Foodservice Industry
John Ebenroth Becomes President of Channel Manufacturing
- Joined the company in 2018, previously served as Executive VP.
- Former President Jordan Klein transitions to CEO.
Brian Simowitz Leads Houston TX Hot Chicken
- Appointed as President, moving from VP of Operations at Slim Chickens.
- Houston TX Hot Chicken has 20 locations across eight states.
- Plans for expansion under new management.
Sources: Foodservice Equipment & Supplies
Denver's Specialty Food Vendors
- Colorado Food Showroom: Offers snacks and beverages.
- Gourmet Foods International: Known for gourmet meats and cheeses.
- Italco Food Products: Provides a wide selection across over thirty categories.
- Altamira Specialty Foods Service: Offers an expansive inventory.
- Coast of Colorado Specialty Foods: Specializes in meat and seafood.
Highlights:
- Denver is recognized for its bison steak, tender and leaner than beef.
- Numerous upscale dining options, including Michelin-starred restaurants.
Sources: BlueCart
Essential Features for Restaurant Websites
- Authentic Storytelling: Share your unique history.
- Showcase Top Dishes: Use visuals to entice visitors.
- Seamless Functionality: Ensure easy navigation.
- Drive Sales: A well-structured site boosts traffic and sales.
- Balance Marketing: Integrate social media and website effectively.
Expert Insight: Matt Plapp, CEO of Restaurant Marketing That Works
Sources: Modern Restaurant Management
Strategies for Restaurant Success
- Location Analysis: Choose high-traffic, accessible spots.
- Training Programs: Invest at least six weeks for employee consistency.
- Grand Opening Planning: Prepare for high demand.
- Employee Motivation: Use incentives to reduce turnover.
- Hands-On Leadership: Owners should lead by example.
- Customer Engagement: Build rapport and listen to feedback.
Key Statistic: Nearly 50% of restaurants fail by their fifth year.
Sources: Modern Restaurant Management
Impact of Music on Customer Experience
- 91% of brand leaders agree music affects customer experience.
- 95% see music as a key brand ambassador.
- 72% struggle with consistent music strategies.
- Only 51% understand music licensing complexities.
Challenges:
- Avoiding playlist fatigue.
- Navigating music rights.
- Maintaining quality within budget.
Sources: Modern Restaurant Management
Innovations in Breakfast Products
Amy’s Kitchen
- Introduces frozen burritos and scrambles with 20+ grams of protein.
- Varieties include California, Mexican, and tofu scrambles.
Nature’s Path
- Launches Regenerative Organic Certified oatmeal.
- Flavors like berries and cream aim to reverse negative environmental impacts.
Hormel Foods
- Unveils oven-ready thick-cut bacon with a mess-free cooking tray.
- Ensures perfectly cooked slices every time.
Sources: Food Business News
Corporate Developments
Dawn Foods Appoints New COO
- John Schmitz becomes Chief Operating Officer for the Americas.
- Aims to enhance collaboration between North and Latin America.
- Focused on delivering greater customer value.
Kellanova Invests in Cereal Plant Expansion
- Investing £75 million ($98.3 million) in Wrexham, North Wales.
- Will double output to 1.5 million boxes daily.
- Introduces AI technology to reduce CO2 emissions by 11% annually.
Sources: Food Business News
Financial Reports and Challenges
Conagra's Q1 Performance
- Net income rose 46% to $466.8 million.
- Sales impacted by manufacturing pause at Hebrew National plant.
- Gained market share in frozen foods and snacks.
McCormick's Growth Amid Challenges
- 31% increase in net income, reaching $223 million.
- Sales dipped slightly, but volume grew by 1%.
- Noted increase in home cooking among Gen Z consumers.
Sources: Food Business News
Food Industry Innovations
Bobo's Launches Fig Bars
- New line available in Original and Blueberry flavors.
- Sold in Whole Foods starting in November.
- Retail Price: $5.99 for five-packs.
Simply Asia Expands Seasonings
- Introduces Umami Ramen seasoning, Furikake seasoning, and Chili Crunch Sauce.
- Aims to enhance Asian cuisine at home.
- Available at major retailers like Amazon and Walmart.
Sources: Food Business News
Language and Culture
New Words Added to Merriam-Webster
- Over 200 new words introduced.
- Food terms like burrata, street corn, and capicola gain definitions.
- Reflects evolving American culinary landscape.
Sources: Salon
October 2024 Food Product Launches
- Babylife Organics: First Regenerative Organic Certified® baby food.
- Post Consumer Brands: Seasonal cereals like Halloween Fruity PEBBLES.
- Flavia Lavazza: Barista-quality lattes for workplaces.
- Bobo’s Fig Bars: 100% whole grains, new "Fig-Tastic" flavors.
- Del Monte: Dessert Pudding Cups with real fruit and gourmet toppings.
- Little Leaf Farms: Adds a Sesame Ginger Salad Kit.
- Pitaya Foods: Introduces Smoothie Pops with no added sugars.
- Simply Asia: New seasonings like Umami Ramen and Chili Crunch Sauce.
Sources: Food Industry Executive
Consumer Behavior Insights
Frustration Over Rising Grocery Prices
- 86% of consumers frustrated by soaring prices.
- 49% cutting back on dining out to focus on groceries.
- Strategies include stocking up during sales (41%) and switching to private labels (35%).
- Fair pricing is crucial for 58% of shoppers.
- 57% prioritize saving money over brand loyalty.
Sources: Food Industry Executive
Company Appointments and Initiatives
Chomps Appoints New CFO
- Tim Bosslet joins as Chief Financial Officer.
- Aims to drive continued expansion in the snack market.
- Chomps experienced a 206% sales growth.
Global Food System Challenge Returns
- Offers USD $1 million for innovative food solutions.
- Applications open on November 1, 2024, close on January 6, 2025.
- Introduces an Innovation Library to connect innovators globally.
Sources: Food Industry Executive
Sustainable Packaging and Campaigns
TekniPlex Expands Fiber Production
- Opens 200,000 sq ft molded fiber facility in Ohio on October 15.
- Enhances capacity for sustainable packaging solutions.
- Focuses on high-performance egg cartons using recyclable materials.
Popeyes Launches Football Wing Campaign
- Introduces Sweet 'N Smokey Chipotle Wings.
- Partners with DoorDash for a Wing Truck contest.
- Wing Truck will visit multiple universities to enhance game day experiences.
Sources: Food Industry Executive, QSR Web
Miscellaneous Food Insights
Watercress Named Healthiest Vegetable
- Scores 100 out of 100 in nutrient density by the CDC.
- Versatile in salads, omelets, and stir-fries.
- Store upright in cold water for freshness.
California Winemaking Legacy
- Ridge Vineyards celebrates over 60 years.
- Focuses on organic viticulture and "preindustrial winemaking".
- Notable wines include Geyserville red and Monte Bello Cabernet.
Sources: Food & Wine
Culinary Trends and Customer Experiences
Seafood Towers vs. Platters
- Shift towards single-level seafood trays for practicality.
- Chefs emphasize ease of serving and enjoying compared to elaborate towers.
Rise of Long Drinks
- Popularity of drinks like Aperol Spritz and Ranch Water.
- Reflects a move towards moderation and extended enjoyment.
Sources: Food & Wine
Restaurant Owner Discussions
Setting Up Third-Party Delivery Services
- Quick setup process, especially with POS systems like Toast.
- Importance of raising menu prices to offset fees.
- Success seen in increased sales through delivery platforms.
BOH Tip Pooling in Colorado
- Debate over legality and fairness of sharing tips with BOH staff.
- Some argue for transparency and improved labor reforms.
Water Pricing Policies
- Varied practices on charging for water and ice.
- Some offer it for free, others charge to cover costs.
- Highlights differing views on customer expectations and resource management.
Sources: /r/restaurantowners, /r/restaurateur, /r/Restaurant_Managers
Industry Challenges and Anecdotes
Understanding Restaurant ROI
- Mid-scale restaurants see annual growth rates of 3%-5%.
- Importance of repeat customers and efficient operations.
- Food kiosks may offer better ROI with significant volume.
Pizza Shop Marketing Strategy
- Plans include loyalty programs, social media ads, and community events.
- Suggestions to leverage TikTok, local influencers, and signature pizzas.
Sources: /r/restaurantowners
Operational Policies and Concerns
Attendance Policy Insights
- Implementing formal policies to address employee reliability.
- Emphasis on finding coverage and accountability.
Assessing Café Shop Space
- Importance of existing food service infrastructure to reduce costs.
- Engaging with local health departments for compliance guidance.
Sources: /r/restaurantowners, /r/restaurateur
Miscellaneous Discussions
Shrimp Tail Dilemma
- Debate over leaving tails on shrimp in dishes.
- Some appreciate the aesthetic and flavor; others find it inconvenient.
Dealing with Glove Sweat Smell
- Issues with odor from powdered vinyl gloves.
- Suggestions include switching to nitrile gloves and changing gloves frequently.
Sources: /r/restaurant
Bar Ownership Insights
Cups for Social Districts
- Exploring cup options for social districts events.
- Suggestions to involve local governments and consider disposable cups.
Funding a Bar Startup
- Advice includes creating a detailed business plan.
- Exploring investment options and leveraging personal assets.
Sources: /r/BarOwners
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