October 9th QSR Roundup: How AI Tacos and Fast-Casual Concepts are Revolutionizing the Restaurant Industry
QSR news for Oct 9th, 2024. We reviewed 21 QSR publications, 6 subreddits, and over 67 articles to bring you the latest. Estimated reading time saved (at 200wpm): 178 minutes. It'll take you about 15 minutes to catch up.
Restaurant Industry Innovations
Embracing Change and Technology
The restaurant industry is witnessing a wave of innovations as professionals gather to share insights and introduce new concepts.
- CREATE Event in Nashville: Restaurateurs met at the Omni Hotel to discuss emerging trends and strategies.
- Value Proposition Report: Houlihan Lokey's report highlights that chains with clear value propositions are outperforming competitors.
- Perkins' New Concept - Griddle & Go: Launching a fast-casual model featuring a unique cafe experience in a compact 1,500 square-foot space with seating for 65.
- True Food Kitchen's Market: Debuted True Food Market in Scottsdale, Arizona, focusing on to-go customers and promoting real, healthy food.
Source(s): Nation's Restaurant News
Red Robin CTO Resigns Amid Strategic Overhaul
Jyoti Lynch, the Chief Technology Officer at Red Robin, has announced her resignation effective October 24 to explore new opportunities. Lynch, who joined in June 2023, will assist with the transition, while CFO Todd Wilson temporarily oversees the technology division.
- Strategic Overhaul: Her resignation comes during a company-wide transformation led by new CEO G.J. Hart.
- Financial Update: Red Robin reported a $1.5 million increase in revenue, totaling $300.2 million, despite a slight same-store sales decline of 0.8%.
Source(s): Nation's Restaurant News
TGI Fridays UK Restructures Amid Closures
The UK branch of TGI Fridays is undergoing significant restructuring to avert a deeper financial crisis.
- Acquisition: Breal Capital and Calveton U.K. acquired 51 out of 87 stores.
- Immediate Closures: 36 stores closed immediately, resulting in 1,012 job losses, with employees left uninformed.
- Leadership's Stance: CEO Julie McEwan expressed commitment to supporting affected staff and retaining current teams.
- Operational Challenges: The failed merger with Hostmore PLC led to administration filing, complicating the brand's future.
- Management Turmoil: Faced instability with three CEOs in three months and previously closed 36 struggling units last year.
Source(s): Nation's Restaurant News
Buffalo Wild Wings Introduces Pick 6 Meal Deal
Buffalo Wild Wings has launched the Pick 6 meal deal for $19.99 during football season, aiming to enhance the in-restaurant dining experience.
- Meal Details: Includes two entrées, two sides, and two drinks. Options feature wings, chicken tenders, cheeseburgers, and more.
- Competitive Offerings: Applebee’s introduced a similar Pick 6 deal, offering free wings on select days.
- Brand Presence: Operates over 1,300 locations worldwide, emphasizing sports-themed dining.
Source(s): Nation's Restaurant News
Panera Bread Settles Lawsuit Over Charged Lemonade
Panera Bread has settled a wrongful death lawsuit with the family of Sarah Katz, a 21-year-old who died after consuming a caffeinated Charged Lemonade.
- Incident Details: Katz had a pre-existing heart condition and suffered cardiac arrest after drinking a beverage containing 390 mg of caffeine.
- Company Response: Panera denied wrongdoing but increased warning labels and discontinued the Charged Lemonade line, introducing lower-caffeine options.
- Legal Proceedings: Settlement details were not disclosed; three related lawsuits against Panera are still pending.
Source(s): Nation's Restaurant News
Moby Dick House of Kabob: A Family Legacy Expands
Moby Dick House of Kabob, a cherished Persian restaurant chain from Maryland, continues its growth and innovation.
- Humble Beginnings: Started as Moby’s Luncheonette in 1987.
- Expansion: Grew from 6 to 30 locations under COO Alex Momeni since 2009.
- Cuisine Excellence: Offers affordable, high-quality Persian cuisine with made-to-order meals and proprietary ingredients.
- Franchising Plans: Aims to enhance franchising opportunities by offering proprietary ingredients and expanding online sales.
- Customer Loyalty: Focuses on a welcoming environment, catering to families who pass down their love for its signature dishes.
- Strategic Growth: CEO Ned Daryoush seeks strategic expansion along the East Coast.
Source(s): QSR Magazine
Smoothie King's Rapid Expansion in Colorado
Smoothie King is aggressively expanding its presence in Colorado.
- New Openings: Two new stores, with six more committed locations.
- Growth: Increasing from 14 to 22 stores, nearly a 60% expansion.
- Recent Locations: Opened in Longmont; upcoming opening in Glendale on October 14.
- Health Commitment: Emphasizes the Clean Blends Promise, offering smoothies without artificial ingredients.
- Franchise Opportunities: Seeking franchisees, with 64 trade areas available to tap into Colorado's active lifestyle.
Source(s): QSR Magazine
Newk's Eatery Enhances Menu with New Wraps
This fall, Newk’s Eatery introduces four new wraps for $9.99, aiming to provide convenient, flavorful options for on-the-go dining.
- Wrap Options:
- Newk's “Q” Wrap: Grilled chicken, bacon, Swiss cheese, and white BBQ sauce.
- Chicken Salad Wrap: Homemade chicken salad with grapes and pecans.
- Club Wrap: Ham, turkey, bacon, and cheeses.
- Chicken Caesar Wrap: Grilled chicken with Caesar dressing and Parmesan cheese.
- Sides and Seasonal Favorites:
- Each wrap comes with a choice of sides.
- Reintroducing Chicken & Sausage Gumbo and Pumpkin Spice Cake for the season.
Source(s): QSR Magazine
Mountain Mike's Pizza Opens Fourth Bakersfield Location
Mountain Mike's Pizza expands with its fourth location in Bakersfield, California.
- Family-Friendly Atmosphere: Offers big-screen TVs, an all-you-can-eat buffet, and a kids' arcade.
- Quality Offerings: Serves fresh, high-quality pizzas with the finest ingredients.
- Convenience: Options for dine-in, takeout, and delivery services.
Source(s): QSR Magazine
Yum! Brands Achieves Growth and Diversity Goals
Yum! Brands is making significant strides in expansion, job growth, and diversity initiatives.
- Job Growth: U.S. saw an addition of 254,000 jobs in September; restaurants added 69,400 jobs.
- Rapid Expansion: Opened over 4,700 new outlets in fiscal 2023, aiming for 30,000 KFC and 20,000 Pizza Hut locations by 2024.
- Brand Performance:
- KFC: U.S. sales reached $5.2 billion, average unit volume of $1.386 million.
- Taco Bell: Reported $15 billion in sales, averaging $2.1 million per unit.
- Pizza Hut: Achieved $5.6 billion in sales.
- Gender Parity Initiatives:
- 44% of corporate leadership roles held by women, up from 33% in 2018.
- Targeting 50% by 2030.
- Leadership Training: Trained over 900 individuals in franchise operations through the Yum! Center for Global Franchise Excellence.
- Investment in Equity: Committed $100 million to enhance equity and inclusion; $71 million already utilized.
- Employee Engagement: 92% of corporate employees reported satisfaction.
- Sustainability Efforts: Over 70% of suppliers received Global Food Safety Initiative certification; goals for cage-free eggs and emissions reductions on track for 2030.
Source(s): QSR Magazine
Velvet Taco Innovates with AI-Generated Tacos
Velvet Taco embraces artificial intelligence in menu creation, bringing unique and globally inspired offerings.
- AI-Powered Menus: Launched the ChatGPTaco in July 2023, leading to ChatGPTaco 2.0 due to high demand.
- Chef Collaboration: Chef Venecia Willis integrates AI to craft innovative tacos, pushing creative boundaries.
- WTF Fridays: Weekly features drive increased sales and social media engagement, with AI-related posts surpassing 400,000 impressions.
- Global Flavors: AI blends diverse cuisines without compromising culinary control.
- Future Expansion: New locations planned in Phoenix and Miami; AI assists in forecasting culinary trends.
Source(s): QSR Magazine
Food Courts Revamped with Technology
Food courts are undergoing a tech-driven transformation, enhancing customer experiences through AI and automation.
- Hybrid Checkout Systems: Flexibility with self-service and cashier options streamlines ordering.
- AI Personalization:
- Recommends items based on time, weather, and customer history.
- Sonic Drive-In saw a 30% reduction in average transaction time.
- Automation Enhancements:
- Secure food lockers for contactless pickups in venues like airports.
- Stadiums utilize mobile ordering and robotics to minimize wait times.
- Balancing Tech and Human Interaction: Maintaining the social aspect of dining remains crucial.
Source(s): QSR Magazine
Strategies for Attracting Multi-Unit Operators (MUMBOs)
QSR franchisors aim to attract multi-unit, multi-brand operators due to their growth potential.
- Strong Company Culture:
- Fostering franchisee engagement is critical.
- Example: Marco's Pizza established the Marco’s Independent Franchisee Association (MIFA).
- Comprehensive Support System: Providing tools for scaling, leadership support, and operational resources.
- Consistency Across Locations: Standardized training and unified marketing efforts enhance brand reliability.
- Operational Efficiency: Maximizing efficiency through data analytics.
- Innovation and Adaptability: Staying on top of industry trends is crucial for relevance.
Source(s): QSR Magazine
McDonald’s Sues Major Beef Suppliers Over Alleged Price-Fixing
McDonald’s has filed a federal lawsuit against the largest beef suppliers, alleging a conspiracy to inflate beef prices.
- Defendants: Cargill, JBS, Tyson Foods, and National Beef.
- Allegations:
- Restricting beef supply and manipulating production since 2015.
- Artificially raising prices while cattle costs fell, doubling the price gap.
- Legal Action: Seeks compensation for inflated prices and aims to prevent future antitrust violations.
Source(s): QSR Magazine
Noodles & Company's Flavor Evolution
Noodles & Company is refreshing its menu to cater to evolving guest preferences, focusing on bold flavors.
- Leadership: Led by Chief Concept Officer Scott Davis.
- New Offerings:
- Chipotle Chicken Cavatappi
- Lemon Garlic Shrimp Scampi
- Crispy Chicken Bacon Alfredo
- Enhancing Classics: Elevating traditional favorites with fresh ingredients.
- Visual Appeal: Creating share-worthy, visually appealing dishes.
- Commitment to Quality: Ongoing innovation with high-quality ingredients.
- Streamlining Menu: Temporarily removing lesser-performing items; introducing new products regularly.
Source(s): Restaurant Business
Marriott Faces $12.5 Million Setback Over Labor Law Violations
Marriott in Anaheim must pay $12.5 million to 28 former employees due to violations of labor laws on seniority-based rehiring post-pandemic.
- Violation Details: Opted for new hires through an outside agency instead of rehiring long-serving staff, some with over 40 years of service.
- Legal Implications: Not rehiring loyal employees breaches trust; investigation prompted by Unite Here Local 11.
- Labor Agreements: New agreements increase pay by $10 per hour over four years.
Source(s): Restaurant Business
True Food Kitchen Launches True Food Market
True Food Kitchen has unveiled a new fast-casual concept called True Food Market in Scottsdale, Arizona.
- Concept Details:
- Combines a restaurant with a grab-and-go market in a 2,800 square-foot space.
- Offers made-to-order meals and premade snacks.
- Focus on Accessibility: Provides healthy, locally sourced food for busy customers.
- Menu Features: Air-fried chicken tenders, salads, flatbreads, breakfast options, and retail products.
- Industry Trend: Aligns with full-service restaurants creating to-go alternatives, competing with grocery retailers.
Source(s): Restaurant Business
Toast Enables Custom Mobile Apps for Restaurants
Toast offers restaurants the ability to create custom mobile apps, fostering direct customer relationships.
- Integrated Systems: Apps integrate with ordering and loyalty programs.
- Enhanced Engagement:
- Push notifications and personalized suggestions.
- Customers using branded apps are 4 times more likely to reorder.
- Success Stories:
- Slim & Husky’s praises convenience and customer engagement.
- Dog & Bull Taphouse uses SMS marketing effectively, generating $34 per text.
- Cost: Service starts at $299 per month.
Source(s): Restaurant Business
Brands with Clear Value Propositions Outperform Competitors
A report from Houlihan Lokey reveals brands with clear value propositions thrive in the current market.
- Defined Value Matters: Successful brands articulate and deliver their value effectively.
- Sector Variability: Interpretation of value varies across sectors.
- Consumer Expectations: Meeting consumer perceptions is crucial for success.
- Strategic Alignment: Companies should align strategies with consumer-defined value.
Source(s): Restaurant Business
Applebee’s Franchisee Faces Bankruptcy Due to Lender Action
Louisiana Apple, a Michigan-based Applebee's franchisee, is pushed into Chapter 11 bankruptcy by lender City National Bank of Florida.
- Background:
- Previously operated 14 restaurants; Applebee’s terminated the franchise agreement.
- The franchisee faces over $8.3 million in debt.
- Industry Context: More bankruptcies as businesses struggle post-pandemic; Applebee's same-store sales dropped 1.8% recently.
Source(s): Restaurant Business
Shift from Cash to Card Payments Accelerated by Pandemic
The pandemic has accelerated the decline in cash usage among Americans.
- Decrease in Cash Use:
- From 26% in 2019 to 16% in 2023.
- Increase in Card Payments:
- Credit card use from 24% to 32%; debit cards account for 62% combined.
- Fast-Food Transactions: Cash transactions fell from 2 per month to under 1.5.
- Online Payments Rise: In-person payments decreased; online payments more than doubled to 22%.
- Demographic Preferences:
- Wealthier consumers prefer credit cards.
- Over 32% earning below $25,000 still use cash.
- Cash on Hand: Consumers hold an average of $74 in cash.
Source(s): Restaurant Business
Raising Cane’s Empowers Employees with Home Buyer Program
Raising Cane’s invests in staff with benefits focused on home ownership and career advancement.
- Home Buyer Assistance:
- 54 Restaurant Leaders received $10,000 each for first-time home purchases.
- Expanded to include Restaurant Support Office teams.
- Employee Recognition:
- Gala event in Cancun celebrated 3,000 crew members.
- Financial Growth:
- Same-store sales increased 17.5%; sales surged 33% to $2.3 billion.
- Expansion Goals:
- Aiming for 875 locations and $5 billion in sales by year-end.
- Career Development:
- 4,500 staff promoted to leader positions.
- Offering $100,000+ salaries for top-performing partners.
Source(s): Restaurant Business
Yoshinoya America Welcomes New CEO Glenn Lunde
Glenn Lunde, former CEO of Togo’s Eateries, joins Yoshinoya America as CEO.
- Leadership Experience: Extensive experience from Panda Express and Taco Bell.
- About Yoshinoya:
- Established in 1899; known for Gyudon Beef Bowls.
- Over 2,000 restaurants globally, including 100 in California.
Source(s): Restaurant Business
Perkins Launches Griddle & Go Fast-Casual Concept
Perkins introduces Griddle & Go, integrating classic dishes with quicker service.
- Concept Details:
- Compact 1,500 sq ft space with 65 seats.
- Features self-order kiosks and digital menus.
- Target Locations: Suitable for campuses, airports, hospitals.
- Customer Focus: Aims to attract 'Love to Eat Lee' and 'Mom on the Move'.
- Industry Context: Competitors like IHOP have attempted similar concepts.
Source(s): Restaurant Business
Shift in Dining Preferences: Dining Out Over Takeout
Consumers are favoring dining out over takeout.
- Increase in Dining Out: 55% choose restaurants in 2024, up from 43%.
- Spending Surge: Monthly dining expenses average $191.
- Demographic Shifts: Women outspend men by 33%.
- Casual Dining Popularity: Captures 69% of preferences.
- Menu Preferences: 90% prefer print menus over QR codes.
Source(s): Restaurant Business
Emerging Food Trends and Culinary Highlights
- CREATE Event in Nashville: Industry professionals discuss emerging trends.
- Chef Rob Levitt: Head butcher at Publican Quality Meats; featured in Hulu's ‘The Bear’.
- McDonald's Chicken Big Mac Launch: Debuts on October 10; replaces beef with fried chicken.
- Broadway Dining: Affordable pre-theater meals in NYC under $55.
Source(s): Restaurant Business
Chipotle's Halloween Boorito Promotion Expands Globally
Chipotle enhances its Boorito promotion with new costume options and international expansion.
- Costume Perks: Dress as Chipotle-themed items for a $6 entrée starting at 3 p.m. on Halloween.
- Extended Hours: 53 locations in college towns open until midnight.
- First European Roll-Out: Offered in the UK and France.
- Costume Collection Launch: Collaborated with Spirit Halloween for themed costumes.
Source(s): Restaurant Business
Biglari Targets Cracker Barrel's Board
Sardar Biglari shifts focus toward Cracker Barrel's board to gain influence.
- Strategic Move: Aims to assert his vision by challenging the board rather than the CEO.
Source(s): Restaurant Business
Crafting the Gourmet Burger: Elevating a Classic
Craft burger concepts redefine gourmet burgers with premium ingredients and global inspirations.
- Historical Evolution: Burgers evolved from cheap fast food to gourmet options costing $20+.
- Black Tap's Innovation:
- Griddle-cooked signature burgers.
- Offers the Wagyu Steakhouse Burger.
- Flavor Fusion: Chefs blend Latin and Asian cuisines; Korean Smash Burger by Eileen Andrade.
- Quality Focus: Chains like Dog Haus use 100% Black Angus beef.
- Consumer Trends: Growing interest in experimental flavors pushes gourmet burgers mainstream.
Source(s): FSR Magazine
Lazy Dog's Fall Menu Introduces Seasonal Delights
Lazy Dog unveils a fall menu with 10 dishes and 2 cocktails, embracing seasonal flavors.
- New Appetizers: Pie Tin Nachos in various toppings.
- Soups and Starters: Tomato Soup and Loaded Chili Cheese Tots.
- Main Courses:
- Slow-Cooked Poblano Pork
- Braised Beef Birria Noodles
- Cocktails: Hibiscus Margarita and Tequila Old Fashioned.
- Lunch Combos Under $13: Customized choices for value-conscious diners.
Source(s): FSR Magazine
Union Square Hospitality Group to Relaunch The View
Danny Meyer’s USHG and New York Marriott Marquis set to renovate and relaunch The View.
- Redesign and Inspiration: Overhaul by Rockwell Group; inspired by classic supper clubs.
- Dining Experience:
- 48th-floor bar and lounge with raw bar.
- 47th-floor restaurant with American classics and desserts.
- Historic Charm: Blends hospitality and culinary excellence.
- Opening: Scheduled for this winter.
Source(s): FSR Magazine, Eater NY
The Ritz-Carlton Dallas Appoints New Executive Chef Gilles Schreiber
Gilles Schreiber joins as the new executive chef at The Ritz-Carlton Dallas.
- Culinary Expertise: Nearly two decades of experience.
- Responsibilities: Oversees six dining venues.
- Background: Worked under Gordon Ramsay and Eric Ripert; member of Maître Cuisinier de France.
Source(s): FSR Magazine
Darden Restaurants Focuses on Speeding Up Service
Darden prioritizes faster meal service in response to customer expectations.
- Operational Improvements: Speeding up service without making guests feel rushed.
- Technology Integration: Prefers operational enhancements over tech upgrades.
- Consumer Preferences: Recognizes guests value their time more post-pandemic.
- Financial Performance:
- Olive Garden and fine-dining faced sales declines.
- LongHorn Steakhouse reported 3.7% growth.
Source(s): FSR Magazine
Noodles & Company Menu Refresh Continues
Noodles & Company introduced three new dishes with plans for further updates.
- New Dishes:
- Lemon Garlic Shrimp Scampi
- Chipotle Chicken Cavatappi
- Crispy Chicken Bacon Alfredo
- Positive Reception:
- Sold 50% more than predecessors.
- High satisfaction ratings.
- Future Plans: Additional updates scheduled for early 2024.
Source(s): Restaurant Dive
The Challenge and Reward of Making Stinky Tofu at Home
Stinky tofu, known for its pungent aroma, can be made at home for a unique experience.
- Recipe Accessibility: Clarissa Wei's Made in Taiwan provides recipes.
- Preparation Tips: Use amaranth for lacto-fermentation; control odors during fermentation.
- Cooking Method: Deep-frying enhances flavor and texture.
- Taste Experience: Surprises skeptics with its complexity and rich taste.
Source(s): Eater
Wisconsin's Cheddar Cheese Color Secret
The color difference in cheddar cheese is linked to Wisconsin's use of annatto.
- Historical Context: Annatto used to differentiate from New York's white varieties over a century ago.
- Dairy Powerhouse: Wisconsin ranks as the third-largest dairy producer globally.
- Cheese Production:
- Hooks Cheese uses local milk.
- Requires 10 pounds of milk for every pound of cheese.
Source(s): Eater
Fluffy Fluffy Expands with New Locations in New York and New Jersey
Fluffy Fluffy, known for Japanese-style souffle pancakes, is opening more brunch cafes.
- Expansion: Increasing U.S. locations to nine.
- Social Media Buzz: Viral TikToks attracted 20 million views.
- Cuisine Trend: Embraces the popularity of fusion cuisine.
- Customer Experience: Offers an app for rewards and enhanced experience.
Source(s): QSR Web
Domino's Brings Back Emergency Pizza Program
Domino's revives its Emergency Pizza program until January 19, 2025.
- Promotion Details: Earn a free pizza by placing an online order of $7.99 or more.
- Company Aim: Provide a solution for unexpected situations; additional partnerships planned.
Source(s): QSR Web
Costco Introduces New Meatball Sandwich
Costco offers a new sandwich with beef and pork meatballs, cheeses, and marinara sauce on artisan bread.
- Pricing: $5.99 per pound.
- Customer Reactions: Described as 'ginormous'; mixed reviews on taste.
Source(s): Salon
Owen Han Releases Sandwich Cookbook 'Stacked'
Owen Han, TikTok's 'Sandwich King,' launches 'Stacked: The Art of the Perfect Sandwich'.
- Influence and Style: Millions of followers; recipes inspired by Italian and Chinese heritage.
- Unique Recipes: Twists on classics with diverse flavors.
- Sustainability Focus: Emphasizes minimizing food waste.
- Future Plans: Longer YouTube series and potential TV projects.
Source(s): Salon
FEMA Relief Checks Lead to Staff Shortages in Restaurants
Restaurant owners experience staff shortages as employees take FEMA relief checks and go on vacations.
- Staff Behavior: Many kitchen staff temporarily absent after receiving payouts.
- Operational Impact: Owners filling in to cover gaps.
- Community Observations: Similar patterns seen during tax return times.
Source(s): /r/restaurantowners
Debate Over Who Should Absorb Credit Card Fees on Tips
Restaurant owners face complex issues regarding credit card transaction fees for tips.
- Legal Landscape:
- Employers may deduct fees but can't reduce pay below minimum wage.
- State laws vary; some prohibit the practice entirely.
- Risks: Legal risks from inconsistent fee deductions; lawsuits involving third-party services.
- Recommendations: Consult legal counsel to ensure compliance.
Source(s): Total Food Service
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