By Interviewy Team — Oct 8, 2024

October 8th QSR Roundup: Empowering Women, Innovative Concepts, and Cultural Celebrations

QSR news for Oct 8th, 2024. We reviewed 20 QSR publications, 6 subreddits, and over 89 articles to bring you the latest. Estimated reading time saved (at 200wpm): 249 minutes. It'll take you about 15 minutes to catch up.

Empowering Women in the Culinary World

The culinary industry is undergoing a significant transformation as women break barriers and ascend to leadership roles. Les Dames d'Escoffier International (LDEI) is at the forefront of this movement, dedicated to supporting and promoting female chefs through scholarships, mentorships, and networking initiatives.

Despite women constituting a large percentage of entry and mid-level positions, only 38% advance to executive roles.
LDEI aims to address this disparity by providing resources and opportunities for women to thrive.
The organization envisions an inclusive future where women flourish across all industries.

By celebrating female achievements and advocating for equality, LDEI is paving the way for a more diverse and dynamic culinary landscape.

Source: Nation's Restaurant News

Restaurant Industry Updates and Innovations

The restaurant scene is buzzing with significant changes as major chains adapt to evolving market demands and legal challenges.

Perkins Introduces Griddle & Go

Perkins American Food Company is reinventing itself with the launch of Griddle & Go, a new fast-casual concept designed to enhance customer convenience and accessibility.

Modern Rebranding: Now known as Perkins American Food Company, reflecting a fresh brand identity.
Compact Design: Offers an elevated café experience in a 1,500 sq ft space with seating for 65 guests, compared to traditional larger venues.
Technological Advancements: Features digital menus and self-checkout kiosks to boost speed and convenience.
Innovative Menu: Includes breakfast, lunch, and dinner options with signature dishes and new items like customizable breakfast sandwiches.
Strategic Growth: Plans to expand into diverse locations such as colleges, airports, and convenience stores.

Perkins' shift towards a fast-casual model underscores the industry's move to meet modern consumer preferences for quick and quality dining.

McDonald's Sues Beef Suppliers

McDonald's is taking legal action against major beef suppliers, including Cargill and Tyson Foods, alleging price-fixing practices since 2015.

Market Dominance: Defendants control about 80% of the U.S. beef supply market.
Alleged Collusion: Suppliers are accused of collaborating to inflate beef prices, affecting McDonald's costs.
Legal Proceedings: The U.S. Department of Justice and Department of Agriculture are investigating the claims.
Seeking Justice: McDonald's aims for monetary damages and to halt these practices.

This lawsuit highlights the complexities of supply chain management and the importance of fair competition in the industry.

Sources: Nation's Restaurant News, Restaurant Business

Restaurants are enticing customers with exciting new offerings and promotions.

Domino's Emergency Pizza Promo

Domino's brings back its popular Emergency Pizza promotion, offering a free medium two-topping pizza after an online order until January 19, 2025.

Innovative Partnerships: Collaborating with Amazon and Twitch for a Fortnite in-game integration.
Merchandising Fun: Partnered with Olive & June for themed nail polish merchandise.
Record Performance: Previous promotion boosted orders and attracted new loyalty members.
Gamified Experience: In Fortnite, players can use Emergency Pizza to regain in-game health.

Chipotle's Boorito Returns

Chipotle revives its Halloween Boorito promotion:

$6 Entrée Deal: Guests wearing costumes get a discounted entrée on October 31 from 3 p.m. to close.
Global Expansion: For the first time, extends to Europe, with deals in the U.K., France, and Canada.
Late-Night Celebrations: 53 college-town locations will stay open until midnight.
Exclusive Costumes: Launches unique costume collection with Spirit Halloween, inspired by popular memes.

Popeyes Launches Ghost Pepper Chicken Sandwich

Popeyes introduces a fiery Ghost Pepper Chicken Sandwich, available until October 31:

Spicy Twist: Crispy chicken coated with chili-infused ghost pepper sauce.
Affordable Options: Starts at $4.99, with a bacon and cheese variant at $6.49.
Seasonal Treats: Includes a free chocolate chip biscuit with purchases over $5 through the "Chick or Treat" offer.
Refreshing Beverage: Offers apple-cranberry tea combined with lemonade.

Sources: Nation's Restaurant News, QSR Magazine, /r/fastfood

Restaurant Sector Growth and Transformations

Restaurants are evolving to meet new consumer demands, focusing on growth and innovation.

GoTo Foods: A Transformational Shift

GoTo Foods, led by CEO Jim Holthouser, is unifying its brands—including McAlister’s, Moe’s, and Cinnabon—to maximize potential through shared resources and collaboration.

Global Presence: Operates over 6,700 locations across 50 states and 60 countries.
Operational Synergy: Aims for 4x impact by sharing resources and integrating operations.
Data-Driven Decisions: Uses centralized technology for precise customer insights.
Catering Expansion: Tapping into an industry with 88 orders per year per manager.
Consumer Products: Enjoys $1.5 billion annual revenue from products like Carvel cakes.
Gift Card Reach: Soon available across 65,000 locations, enhancing customer flexibility.

This transformation positions GoTo Foods for robust growth, better franchisee support, and increased brand visibility.

Big Burger Chains Innovate to Attract Customers

The major burger chains—McDonald's, Wendy's, and Burger King—are launching unique menu items and promotions to entice customers beyond budget offerings.

Competitive Edge: Introducing new products to stand out in the crowded fast-food market.
Customer Loyalty: Aiming to bolster customer retention with innovative options.

Sources: QSR Magazine, Restaurant Business

Technological Advancements in Restaurants

Leveraging technology, restaurants enhance customer engagement and streamline operations.

Toast Enhances Restaurant Tools

Toast introduces new features to empower restaurants:

Branded Mobile Apps: Allows creation of personalized apps, fully integrated with online ordering, POS, and loyalty systems.
- Increased Loyalty: Customers using these apps are 4 times more likely to become repeat customers.
SMS Marketing: Enables real-time promotions with templates, generating an average of $34 per text sent.
AI-Powered Suggestions: Improves marketing efficiency with AI-generated content.
Accessible Pricing: Mobile app service at $299/month; SMS marketing at $185/month.

These tools help restaurants engage customers effectively, driving sales and enhancing the dining experience.

Streamlining Financial Operations

Restaurants adopt integrated financial solutions like Restaurant365 to boost efficiency.

Eliminating Errors: Replaces manual processes, reducing inaccuracies.
Real-Time Data: Provides daily access to updated financial information for informed decision-making.
Detailed Insights: Offers drill-down capabilities in reports for granular analysis.
Automated Integration: Seamlessly connects with vendors to automate data input.

By streamlining financial operations, restaurants can better manage complex processes and improve profitability.

Sources: Restaurant Dive, QSR Magazine

Global Expansion of Food Chains

Popular brands are expanding their reach, bringing unique culinary experiences to new markets.

Fluffy Fluffy's Global Expansion

Fluffy Fluffy, renowned for its soufflé pancakes, is expanding internationally in 2024, focusing on quality and customer delight.

New U.S. Locations: Opening in Tustin, Buford, Miami, and Pickering, solidifying North American presence.
Future Plans: Eyes on New York and New Jersey due to high customer demand for fusion cuisine.
Viral Sensation: A TikTok video showcasing their pancakes amassed 20 million views.
Enhanced Experience: Launching new ordering apps—Fuwa Fuwa in Canada and Fluffy Fluffy in the U.S.—with loyalty rewards.
Global Footprint: Nearly 40 locations worldwide and 30 more in development.

JINYA Ramen Bar Opens in Carrollton

JINYA Ramen Bar launches a new location in Carrollton, Texas, inviting guests to savor authentic ramen.

Grand Opening: First 100 patrons receive a free ramen bowl.
Signature Dishes: Ramen simmered for 20 hours to enrich flavors.
Community Focus: CEO Tomo Takahashi emphasizes love and support as expansion drivers.
Expansive Reach: 14th location in Texas and 66th globally.

These expansions reflect a commitment to sharing cultural culinary delights with a broader audience.

Sources: FSR Magazine

Consumer Trends and Dining Preferences

Understanding consumer behavior helps restaurants tailor experiences to customer preferences.

Dining Trends in 2024

Preference for Dining Out: 55% of consumers choose restaurants over takeout, up from 43% in 2023.
Increased Spending: Average monthly expenditure rose to $191, influenced by inflation and menu price hikes.
Shift in Demographics: Women now spend 33% more on dining than men, reversing previous trends.
Casual Dining Popularity: Preference increased to 69%, highlighting a desire for relaxed dining experiences.
Menu Preferences: A significant 90% of diners favor print menus over QR codes, even among Gen Z.

Decline of Cash Payments

Reduced Cash Usage: Cash payments dropped from 26% in 2019 to 16% in 2023.
Rise of Credit Cards: Usage increased from 24% to 32%, indicating a shift towards digital transactions.
In-Person Payments Decline: Fell from 87% to 78%, reflecting growing online and mobile ordering.
Demographic Variations:
- Higher-Income Households: Prefer credit cards.
- Lower-Income Groups: Lean towards debit or cash.
- Older Consumers: Those over 55 still make 22% of payments in cash.

Understanding these trends helps restaurants adapt to changing payment preferences and enhance customer satisfaction.

Sources: Restaurant Business

Events and Festivities Inspire Culinary Creations

Celebrations and cultural events spark innovative menu items that delight customers.

Krabby Patty Doughnut Launch

Pinkbox Doughnuts celebrates SpongeBob SquarePants’ 25th anniversary with a special Krabby Patty doughnut:

Limited-Time Offer: Available from October 10 to October 27.
Creative Design: Features a glazed raised base with sesame seeds, chocolate cake patty, and piped icing toppings.
Exclusive Packaging: Comes in a SpongeBob-themed box.
Availability: Daily at select Las Vegas locations and weekends at Siegel’s Bagelmania kiosk.

SpongeBob-Inspired Dumplings

Brooklyn Dumpling Shop offers exclusive items inspired by the iconic Krabby Patty:

Bacon Cheeseburger Dumpling Meal: Priced at $14, includes a side and a "Diet Dr. Kelp" drink.
Promotional Period: Available from October 8 to October 27.
Convenience: Offered for in-store and delivery orders at select locations.

These creative offerings tap into nostalgia and popular culture, drawing in fans with unique and playful menu items.

Sources: QSR Magazine

Employee Hiring and Management Challenges

Managing staff effectively is crucial for restaurant operations.

Manager Dilemma with Pregnant Server

A restaurant manager is facing challenges with a long-term server who recently became pregnant:

Communication Issues: The server reduced her availability and blocked tables without proper notice.
Operational Impact: Led to emergency hiring and scheduling issues.
Professional Approach: Manager seeks advice on handling the situation while respecting legal considerations related to pregnancy.
Key Takeaways:
- Set Clear Boundaries: Importance of establishing expectations and policies.
- Maintain Professionalism: Addressing issues directly and respectfully.
- Legal Awareness: Understanding rights and obligations to avoid discrimination.

Balancing empathy with business needs is essential in navigating such sensitive situations.

Source: /r/Restaurant_Managers

Restaurant Owners Seek Advice on Operations

Restaurant owners and managers share insights on effective strategies.

Effective Restaurant Marketing

Operators discuss successful marketing approaches beyond basic social media posts.

Word of Mouth: Highlighted as the most powerful marketing tool.
Social Media and SEO: Engaging content and managing online reviews boost visibility.
- Instagram Reels: Creating dynamic videos to attract attention.
- Google My Business: Enhancing profiles for local search optimization.
Loyalty Programs: Encouraging repeat visits through rewards.
Targeted Marketing: Using geofencing technology to track ROI.
Special Events: Hosting trivia, karaoke nights, or other interactive events.
Caution with Discounts: Avoid excessive discounts that may undermine perceived value.

The consensus emphasizes leveraging low-cost, organic strategies and fostering a strong online presence to attract and retain customers.

Payroll Tax Confusion

A restaurant owner is puzzled by high payroll tax deductions amounting to 31%, seeking clarity on actual employer contributions.

Clarification:
- Deductions include both employer and employee contributions.
- Employer tax liability typically averages 10-12%.
Impact of Tips:
- Taxes on tips can significantly increase perceived payroll costs.
Advice:
- Hire a professional accountant for accurate understanding.
- Implement proper accounting practices to prevent misunderstandings.

Understanding payroll structures is crucial for financial management and compliance.

Sources: /r/restaurant, /r/restaurantowners

New Culinary Offerings and Consumer Reviews

Restaurants introduce new menu items, receiving varied feedback from customers.

Toppers Pizza's New Pan Pizza

Toppers Pizza unveils a bold new Pan Pizza featuring a crunchy edge covered in caramelized Wisconsin cheese.

Culinary Innovation: Extensive testing to achieve perfect texture and flavor.
Customer Involvement: Feedback played a key role in development.
Pricing:
- $9.99 for a medium one-topping.
- $12.99 for a medium three-topping or House Pan Pizza.
Limited Availability: Offered for a limited time, carryout only.
Chef's Note: Emphasizes it's "unapologetically delicious and different."

Jimmy John's New Sandwich Review

Jimmy John's introduces the Smoked Cheddar Bourbon Club, featuring creamy Sriracha bourbon sauce.

Mixed Reviews:
- Some customers enjoy the new flavors and appreciate the smoked cheddar.
- Others find the sauce too sweet, affecting the overall taste.
Cheese Variety: Introduction of smoked cheddar offers a change from the usual provolone.
Customer Suggestions: Desire for balance between sweetness and savoriness.

Feedback highlights the importance of meeting customer expectations while experimenting with new flavors.

Sources: Food & Beverage, /r/fastfood

Food Industry Innovations and Acquisitions

Advancements and strategic moves are shaping the food industry landscape.

CAI Acquires Parsable

CAI Software acquires Parsable, a leader in cloud-native connected worker platforms.

Enhanced Solutions: Integrates Parsable's platform to improve ERP and manufacturing offerings.
Digital Transformation: Brings AI-powered analytics to boost productivity and safety in operations.
Notable Clients: Companies like Grupo Bimbo and Reyes Coca-Cola utilize Parsable's technology.
Future Goals: Aims to innovate manufacturing operations and set new productivity standards.

Innovative Drainage Solutions Unveiled

Global Drain Technologies showcases advanced FoodSafe drainage solutions at Pack Expo International 2024 in Chicago.

Product Highlights:
- 10,000 Series FoodSafe Slot Drain.
- Round Bottom Trench Drain.
- Round Area Drain with a tamper-proof magnetic strainer.
Material Excellence: Made from T304 or T316 stainless steel for high corrosion resistance.
Hygiene Focus: Designed to enhance facility safety and meet regulatory compliance.
Educational Insight: VP Viking Kristjansson presents best practices for drainage systems in food processing.

These innovations underscore the industry's commitment to efficiency, safety, and sustainability.

Sources: Food Industry Executive

Advancements in Sustainability and Packaging

Businesses are embracing sustainable practices to meet consumer demands and environmental responsibilities.

Sustainable Packaging Innovation

Palouse Fiber Packaging (PFP) launches a partnership program to create customized wheat-based sustainable packaging solutions.

Consumer Concern: 80% of consumers worry about environmental impacts, seeking sustainable options.
Barriers Addressed:
- Cost and Customization: PFP utilizes advanced technology for quick prototyping and cost-effectiveness.
Program Features:
- Custom forms, colors, labeling, and water resistance.
- Targets industries like food, tech, and apparel.
Adaptive Solutions: Helps businesses navigate supply chain changes and regulatory needs.
Resilience Building: Encourages diverse supplier channels to prevent future disruptions.

PFP aims to lead in alternative packaging, contributing to a sustainable environmental legacy.

Source: Food Industry Executive

Employee Recognitions and Company Milestones

Celebrating achievements and longevity in the industry.

Rising Star in Supply Chain

Jenna Ponshock, Director of Product Management at Nelson-Jameson, receives the Women in Supply Chain Rising Stars award.

Significant Impact: Recognized for contributions shaping the supply chain network.
Industry Recognition: Follows the footsteps of other executives honored for innovation and dedication.
Diverse Perspectives: Highlights the importance of women's roles in advancing the industry.

Morgan Foods' 125 Years

Morgan Foods Inc. (MFI) celebrates its 125th anniversary with a community cookout in Austin, Indiana.

Historical Roots: Founded in 1899 by Joseph Steely Morgan with new canning technology.
Industry Leader: The largest private-label soup and bean manufacturer in the U.S.
Community Commitment: Employs approximately 1,000 people, emphasizing local engagement.
Future Vision: CEO Louis Gottsponer focuses on innovation and continued growth.

These milestones reflect the enduring success and evolving nature of the food industry.

Sources: Food Industry Executive

Food Chains Expand to New Locations

Brands continue to grow, reaching new communities and markets.

Paris Baguette Expands to Brooklyn

Paris Baguette plans to open a café in Brooklyn in early 2025 under franchisees Susana and Donna Wu.

New York Presence: Increases total locations in New York to 37.
Community Focus: Aims to introduce the creative Korean bakery concept to a diverse neighborhood.
Company Vision: CEO Darren Tipton emphasizes establishing the café as a community hub with a welcoming atmosphere.

Toastique Expands to California

Toastique, a gourmet toast and juice café, opens its first Northern California location in Danville.

Entrepreneurial Spirit: Run by longtime friends Linh Jee and Sophia Cheng, both Bay Area natives.
Inviting Space: The 1,600 sq ft café offers indoor and outdoor seating.
Business Journey: The duo, with backgrounds in fashion merchandising, chose Toastique for its simple menu and aesthetic appeal.

These expansions signify the growth of niche culinary concepts and the entrepreneurial drive within the industry.

Sources: Franchising, Fast Casual

Financial Challenges and Legal Issues in the Industry

Companies navigate operational hurdles and legal disputes.

TGI Fridays UK Franchise Shakeup

TGI Fridays’ U.K. franchisee undergoes significant operational changes due to financial distress.

Restaurant Closures: Shuttered 36 restaurants and sold 51 locations to private-equity firms.
Job Losses: Over 1,000 jobs affected.
Administration Process: Led by Teneo Financial Advisory to resolve creditor outcomes.
CEO's Outlook: Julie McEwan expresses optimism for a positive future despite challenges.
Historical Struggles: Faced a failed $220 million acquisition and management shifts.

These actions reflect the difficulties faced by restaurant chains in maintaining profitability amidst economic pressures.

Biglari Targets Cracker Barrel Board

Sardar Biglari shifts focus from criticizing Cracker Barrel's CEO to targeting the board for control.

Strategic Move: Aiming for board influence to enact changes.
Ongoing Tensions: Highlights power struggles and stakeholder dynamics within the company.
Investor Interest: Draws attention from analysts and shareholders monitoring the impact.

Navigating corporate governance challenges is critical for companies to maintain stability and investor confidence.

Sources: Restaurant Business, FSR Magazine

Climate Change Impact on the Food Industry

Environmental factors affect operations and livelihoods.

Farmers Face Election Uncertainty

Contract farmers like Minh and Nhu-Hai Ngo are concerned about their futures amid corporate consolidation in poultry farming.

Tyson's Withdrawal: Left their Georgia farm nearly worthless.
Industry Concentration: Top four companies control 60% of the market, up from 41% in 1992.
Regulatory Efforts: Biden administration aims to promote competition and fair treatment for farmers.
Need for Reform: Highlights precarious nature of contract farming and calls for addressing monopolies.

Battling Kitchen Heat

Restaurant workers face dangerous conditions due to escalating temperatures from climate change.

Worker Advocacy: Employees like Mad Austin demand safer environments amidst high heat.
Health Risks: Over 2,300 deaths attributed to excessive heat in the U.S.
Regulatory Gaps: Lack of federal protections prompts calls for new safety standards.
Grassroots Movements: Organizations push for comprehensive measures to prevent heat-related illnesses.

These issues emphasize the urgent need for industry adaptations to protect workers and sustain operations.

Sources: Civil Eats

Health Concerns and Food Studies

Studies reveal the impact of food choices on health.

Ultra-Processed Foods and Diabetes Risk

A new study shows a significant link between ultra-processed foods (UPFs) and an increased risk of Type 2 diabetes.

Key Findings:
- Each 10% increase in UPF intake raises diabetes risk by 17%.
- Over 14,000 diabetes cases identified among 300,000 participants over a decade.
Harmful Categories:
- Savory snacks, ultra-processed meats, ready-to-eat meals, and sweetened drinks.
Health Implications:
- Foods high in unhealthy fats, salt, and refined carbs contribute to health issues.
Study Nature:
- Observational, highlighting correlation but not definitive causation.

The research underscores the importance of dietary choices and the need for awareness of processed food consumption.

Source: Salon

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