September 18th QSR Roundup: Expansion, Menu Innovations, and Consumer-Driven Trends Shaping the Food Scene
QSR news for Sep 18, 2024. We checked 6 QSR publications and over 20 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 60 minutes.
Freddy’s Opens New Training and Innovation Center to Support Accelerated Growth
Freddy’s Frozen Custard & Steakburgers has opened a 23,000-square-foot Training & Innovation Center in Wichita, Kansas, to support its rapid expansion plans of reaching over 800 units by the end of 2026 and 3,000 in the long term. The center allows the chain to test new menu items, equipment, technology, and processes in a simulated environment without disrupting actual restaurant operations. CEO Chris Dull believes this investment will help maintain operational excellence and attract franchisees by providing advanced training and fostering trust in the brand.
Source: National Restaurant News
Savory Fund’s Andrew Smith Shares Tips for Emerging Chain Founders Looking to Raise Capital
Andrew Smith, co-founder and managing partner of Savory Fund, advises emerging restaurant chain founders on raising capital amid economic challenges like inflation and high interest rates. Key tips include being agile in tough times, engaging with multiple investors ("date around"), not trying to time the market, ensuring a strong foundational business before seeking funds, and removing any obstacles that could hinder growth. Smith will share more insights at the upcoming Investment Summit in Nashville on Oct. 8-9, hosted by Nation’s Restaurant News.
Source: National Restaurant News
McDonald’s Teams Up with Crocs Again for Happy Meal Promotion
McDonald’s has launched a new Happy Meal promotion in partnership with Crocs, featuring eight exclusive Crocs clips packaged in individual shoeboxes with Jibbitz sticker sheets for customization. Customers can scan a QR code to access a digital experience for designing personalized shoes. This marks the second collaboration between McDonald’s and Crocs; the first was in November 2023 with a line of footwear and accessories featuring McDonald's characters. Other fast-food brands like Taco Bell and KFC have also collaborated with Crocs, which has seen a resurgence in popularity among Gen Z and is ranked No. 5 among teenagers' favorite footwear brands.
Source: National Restaurant News
Chill-N Nitrogen Ice Cream Introduces New Flavors in Honor of Hispanic Heritage Month
Chill-N Nitrogen Ice Cream is celebrating Hispanic Heritage Month (September 15 - October 15, 2024) by introducing two limited-edition flavors: Arroz Con Leche and Flan. These offerings pay tribute to Latin American desserts and are available at all Chill-N locations during the celebration period.
Source: QSR magazine
Big Dave’s Cheesesteaks Signs Multi-Year Partnership with NBA’s Orlando Magic
Big Dave's Cheesesteaks has signed a multiyear partnership with the Orlando Magic, placing its first Orlando location inside the team's home arena, Kia Center. The deal includes in-arena signage during all Magic home games and plans to open 10 Central Florida locations, marking the brand's expansion from Georgia into Florida.
Source: QSR magazine
Taziki’s Expands in Huntsville, Alabama
Taziki’s Mediterranean Café is opening three new locations in Huntsville: The Foundry on Governors Drive (expected December 2024), Huntington Plaza on Memorial Parkway SW (early next year), and Hampton Cove on Hwy 431 (mid-2025). These additions will bring the total number of Taziki's restaurants in Huntsville to five and in Alabama to 24.
Source: QSR magazine
Happy Joe’s Continues Expansion in the West
Happy Joe’s has signed a 10-unit franchise deal and two single-unit franchises, expanding into Arizona, Nevada, New Mexico, North Dakota, and Illinois. The first new locations will open in Surprise and Oro Valley, Arizona. The brand is also growing internationally with new locations in Egypt and Kuwait, totaling 22 signed franchises in the 2024 fiscal year.
Source: QSR magazine
Bubbakoo’s Burritos Signs First Franchise Deal in Utah
Bubbakoo’s Burritos is entering the Utah market with a multi-unit development agreement to open five or more locations over the next three years. This expansion aligns with the brand's nationwide growth in 2024, bringing its customizable Mexican-fusion menu to the Mountain West region.
Source: QSR magazine
Beyond Juicery + Eatery Introduces New Fall Menu
Beyond Juicery + Eatery has launched new limited-time fall menu items starting September 16. The offerings include a Buffalo Hummus Chicken Wrap, Spiced Pineapple Revive Smoothie, and Bluemood Rush Smoothie, all designed to promote wellness with fresh, nutrient-packed ingredients. The brand now has over 40 locations nationwide.
Source: QSR magazine
Panera Announces New and Returning Soups
Panera has introduced three soups for the fall season: new Hearty Fireside Chili, new Rustic Baked Potato Soup, and the returning Autumn Squash Soup. Additionally, Panera has updated its kids' menu with double portions on select items and is offering a promotion where new subscribers to the Unlimited Sip Club get three free months if they sign up by October 31.
Source: QSR magazine
Off The Hook Brings Back Cajun Rito for Limited Time
Off The Hook has announced the return of the Cajun Rito, available for a limited time at all locations. The dish features marinated chicken tenders, creamy red beans and rice, pepper jack cheese, lettuce, jalapeños, and chipotle sauce wrapped in a warm tortilla.
Source: QSR magazine
Smashburger Revamps Menu to Reclaim Trendsetter Status
Smashburger is overhauling its menu and brand to reestablish itself as the original innovator of the "smash burger" technique. The chain introduced eight new items and upgraded four classics, focusing on core categories like burgers, sides, and shakes. New offerings include the All-American Smash, Bacon Stack Smash, Chicken Smash Burger, and shakes like Peanut Butter Cookie Shake. A brand refresh features redesigned logos and in-store enhancements to restore its original appeal.
Source: Restaurant business online
Restaurant Tech Should Enhance, Not Overshadow, the Dining Experience
Industry leaders Jeff Caplan of Hooters and Sean Thompson of Freddy's emphasize that guests visit restaurants for food and experience, not technology. Speaking at the FSTEC conference, they highlighted the importance of using tech to remove friction and simplify operations for both customers and staff. They advocate for technology that leverages data and AI to improve service but remains unobtrusive, ensuring the focus stays on delivering a great dining experience.
Source: Restaurant business online
High Customer Satisfaction with Third-Party Delivery Services
An Intouch Insight study reveals that 90% of restaurant customers are satisfied with third-party delivery services like DoorDash, Uber Eats, and Grubhub, despite higher costs. Convenience and ease of ordering outweigh concerns about fees and price markups. DoorDash outperformed its rivals in customer satisfaction and order accuracy. Restaurant deliveries have higher satisfaction rates compared to convenience store deliveries.
Source: Restaurant business online
Delivery Apps Increase Discounts to Attract Price-Conscious Consumers
Delivery apps are offering more discounts as consumers become more price-sensitive, with nearly half of all orders featuring a discount. DoorDash leads with 65% of orders including a deal. While discounts help attract new customers and boost sales, they can reduce profitability for restaurants and train consumers to expect lower prices. Restaurants face a dilemma between leveraging discounts for growth and maintaining profit margins.
Source: Restaurant business online
Whataburger Announces CEO Transition and Future Plans
Ed Nelson is retiring as CEO of Whataburger at the end of the year, to be succeeded by Debbie Stroud, who brings experience from McDonald's and Starbucks. Nelson reflects on guiding the company through its transition from family ownership to investment firm BDT Capital Partners and navigating the pandemic. Stroud discusses her priorities for the brand's future growth, focusing on technology and maintaining strong customer connections in Texas and beyond.
Source: Restaurant business online
Consumers Are Dictating Value, Forcing Restaurants to Adapt
Consumers with tighter budgets are seeking more affordable dining options, causing restaurants to compete with value meals, combos, and promotions like buy-one-get-one offers. Brands such as McDonald's, Chili's, and Applebee's have introduced value deals to attract cost-conscious customers. Independent restaurants have also added combo meals and special offers. Customers are "buying down the menu," opting for less expensive items, and loyalty is now heavily influenced by perceived value. Restaurants must balance offering value with maintaining profitability, often using limited-time offers to avoid permanently lowering prices. Testing value deals is crucial to ensure they drive incremental sales rather than just cannibalizing existing revenue.
Source: RestaurantDive
Mod Pizza Abandons "One Price Fits All" Model
Mod Pizza has changed its pricing strategy from a flat-rate model to tiered pricing. The chain now offers pizzas at three price points: cheese pizzas at the lowest price, one-topping pizzas at a mid-level price, and unlimited-topping pizzas at the highest price. This shift aims to provide better value to customers and is part of a broader effort to redefine the brand following its acquisition by Elite Restaurant Group. The company had been rumored to consider bankruptcy before the acquisition. The new pricing reflects industry trends as restaurants adjust strategies amid rising food costs and decreased consumer spending on dining out.
Source: RestaurantDive
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