September 20th QSR Roundup: Key Trends, Tech Innovations, and Brand Revivals
QSR news for Sep 20, 2024. We checked 14 QSR publications and over 50 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 136 minutes. It will take you only 6 minutes to catch up with the latest news.
Delivery Experience Showdown
Source: Nation's Restaurant News
Restaurants need to enhance the delivery experience as they do for dine-in, ensuring fresh, accurate, and timely food.
- Carvel: Keeps ice cream at -10 to -20 degrees for delivery quality.
- Freddy’s Frozen Custard: Redesigned for dedicated mobile pickup stations, streamlining operations.
- Pizza Hut: AI system improved delivery satisfaction by 7%, ensuring hotter pizzas.
- Independent restaurants: Excel with 91% satisfaction, charging an extra $1.25 on average.
- Seoul Taco: Delivery sales increased from 25% to 50%, adapting to demand.
- Convenience stores: Lag behind with only 80% satisfaction.
Overall: Satisfaction in restaurant delivery has improved since 2022 despite stable accuracy rates.
Menu Innovations Revived
Source: Nation's Restaurant News
Technomic Inc. reports a resurgence in limited-time offers (LTOs) and new menu items post-pandemic.
- Culinary experts will discuss strategies like menu development and using social media to boost LTOs.
- Featured speakers include Candice Johnson (IHOP) and Chef John Csukor (Entegra).
Bankruptcy Hits Major Chains
Source: Nation's Restaurant News
- Dickey’s Barbecue: Franchisee filed for Chapter 11 bankruptcy.
- BurgerFi: Filed for Chapter 11, with $500M debt and $50M-$100M assets.
- Chipotle: Introduced Autocado, slicing avocados every 26 seconds to meet demand.
DoorDash's Delivery Dominance
Source: Nation's Restaurant News
DoorDash controls 67% of the food delivery market.
- 90% satisfaction rate for DoorDash, outperforming Uber Eats and Grubhub.
- Key success factors: Strategic partnerships and efficient driver pay structure.
- Uber and Grubhub struggle with fewer resources.
Sizzler's Rebranding Revival
Source: QSR Magazine
- CEO Chris Perkins leads a turnaround after 2020 bankruptcy, reducing locations to 81.
- Revives nostalgic mascot Ribby and introduces new characters.
- Upgrades focus on affordability and family-friendliness.
- Multi-year remodeling plan includes hyper-local initiatives and sweepstakes.
- Re-establishes Sizzler as a community dining venue.
European Restaurant M&A Trends
Source: QSR Magazine
- Post-pandemic, 150+ M&A transactions from 2018-2022.
- Fast casual and QSR lead M&A deals.
- Digital transformation is key to attracting investment.
- Economic challenges prompt investors to diversify for long-term success.
Taffer on Restaurant Value
Source: QSR Magazine
- Jon Taffer shares insights on pricing strategies to balance cost and quality.
- Predicts upcoming election impact on the restaurant industry.
- Emphasizes customer experience and leveraging technology to improve operations.
AI in Restaurant Hospitality
Source: QSR Magazine
- AI enhances customer experience by predicting wait times and offering personalized orders.
- Optimizes inventory and staffing to improve efficiency.
- Creates AI-driven loyalty programs to personalize customer rewards.
- Raises ethical concerns about privacy and data transparency.
Pizza Meets Automation
Source: QSR Magazine
- Picnic Works’ Pizza Station automates pizza making, producing 130+ pizzas/hour with one employee.
- Efficient ingredient use reduces waste.
- Modular design allows easy integration in venues like stadiums and universities.
- Expansion planned in 2024 with automation addressing labor shortages.
A&W's Resilient Growth Story
Source: QSR Magazine
- 105-year legacy, enduring economic crises.
- Same-store sales grew 3.7% in 2024, driven by price increases and new menu items.
- A&W positions itself on value and nostalgia without heavy price competition.
Olive Garden's Revival Strategies
Source: Restaurant Business
- Olive Garden sees a 2.9% sales drop in consecutive quarters.
- $13.99 Never-Ending Pasta Bowl shows promising results.
- On-demand delivery pilot with Uber to enhance customer convenience.
- Return of popular dishes and faster service boost customer retention.
Olo Cuts Jobs for Growth
Source: Restaurant Business
- Olo lays off 9% of workforce to streamline costs.
- Plans to reinvest savings into future growth initiatives.
- Serves over 700 restaurant brands with significant revenue growth.
Gas Prices and Restaurants
Source: Restaurant Business
Gas prices are declining, offering more disposable income for restaurant spending. Many owners are adjusting pricing to capitalize on the potential sales boost.
Cracker Barrel's Recovery Efforts
Source: Restaurant Business
- Cracker Barrel sees early recovery signs with a 0.4% sales increase.
- Launches a $700 million transformation strategy, adjusting pricing and menu items.
- Loyalty program growth and customer service improvements are key recovery focuses.
Leadership Changes in Food Industry
Source: Restaurant Business
- Christopher Dawson becomes president of 7 Brew after leading Walk-On’s Sports Bistreaux.
- Maggiano’s hires Michelin-starred chef Anthony Amoroso as VP of Innovation.
- Dan Hurwitz joins Smalls Sliders as CFO with experience from Philz Coffee and MGM Resorts.
- Christian Welch is now Executive Chef at The Pembroke, with a strong luxury hotel background.
- Jason Brooks becomes COO at Artistry Restaurants, planning expansion across brands.
Yum Brands' Tech Revolution
Source: Restaurant Business
- Joe Park, CTO of Yum Brands, stresses simplifying operations with technology.
- Yum has 60,000+ restaurants and is heavily investing in kiosks and POS systems.
- Voice AI improves drive-thru orders at Taco Bell.
- The Yum Crave AI platform identifies efficiency issues, boosting customer satisfaction.
- Despite tech growth, Park emphasizes Yum as a people company.
Tip Credit Controversy Revealed
Source: Restaurant Business
- Saru Jayaraman faces criticism during hearings, especially from a restaurant server.
- Rep. Burgess Owens challenges her credibility, pointing out she has never worked in the industry.
- Witnesses defend the tip credit, arguing its elimination could lead to job losses and higher prices.
Customer Satisfaction with Delivery Services
Source: Restaurant Business
- 90% of customers are satisfied with third-party delivery services.
- DoorDash leads in performance, with a 19% increase in orders.
- 72% of deliveries arrive earlier than promised, boosting satisfaction.
Starbucks: Caution on Tech Overload
Source: Restaurant Business
Starbucks faces tech-related operational issues, including malfunctioning apps. Over-automation risks customer dissatisfaction, highlighting the need for a balance between tech and personal service.
Whataburger Leadership Transition
Source: Restaurant Business
- Ed Nelson, CEO of Whataburger, retires, with Debbie Stroud taking over.
- The chain focuses on promoting general managers to improve stability.
- Stroud, with experience at McDonald’s, plans to emphasize technology and growth.
Olive Garden's Delivery Strategy
Source: FSR Magazine
- Olive Garden launches delivery with Uber, starting a pilot in late 2024.
- The service aims to boost sales by 3-5%, offering convenience for home dining.
- Olive Garden’s eClub and digital sales will support the rollout.
Premium Cocktails in Inflation
Source: FSR Magazine
- Tony Pereyra highlights using techniques like tableside presentations to enhance value.
- Ian Welby reports a 30% increase in sales by using premium spirits without raising prices.
- Jackson Cannon suggests partnering with reputable brands to create story-driven offerings.
Maggiano’s Menu Makeover
Source: FSR Magazine
Maggiano’s revamps its menu with sustainable and quality ingredients, including Veal Parmesan and Truffle & Honey Whipped Ricotta. Michelin-starred chef Anthony Amoroso leads the effort, ensuring innovation while maintaining its Italian-American roots.
Olive Garden's Delivery Evolution
Source: FSR Magazine
- Olive Garden partners with Uber Eats, reversing its earlier stance on third-party delivery.
- CEO Rick Cardenas sees delivery as essential for off-premises growth.
- Delivery could expand to 900 restaurants by 2025.
Soda Fountain Cleaning Tips
Source: FSR Magazine
- Daily cleaning of soda dispensers is crucial for quality and hygiene.
- Syrup lines need weekly deep cleaning, and ice dispensers should be sanitized monthly.
- Management should enforce regular cleanliness audits.
Gigglewaters: Where Movies Meet Dinner
Source: FSR Magazine
- Gigglewaters Cinema Supper Series offers themed dining with film screenings, ensuring timely food delivery based on on-screen cues.
- Founder Rachel Fine Wilson dresses as movie characters, enhancing the experience.
- The event has evolved into a monthly sensation, planning corporate expansions.
Adams Guides Black Bear Growth
Source: FSR
- Anita Adams, CEO of Black Bear Diner, focuses on expanding to 800 locations.
- Black Bear's AUV stands at $2.8 million, with 55 diners surpassing $3 million in annual sales.
- Adams emphasizes the importance of franchise collaboration and strong operational support.
Pinstripes Faces Economic Challenges
Source: FSR Magazine
- Pinstripes reduces costs by $10 million amid a tough economic landscape.
- Layoffs and local marketing initiatives like paint & sip nights help offset challenges.
- Event bookings show a 5.6% increase, with expansion plans for California and Florida.
Taco John's Expands Catering
Source: Restaurant Dive
- Taco John’s introduces a new catering menu through ezCater, aiming to attract new customers.
- Catering is seen as a growth opportunity for QSRs as office occupancy rises post-2020.
CEO Upheavals in Restaurants
Source: Restaurant Dive
- Five major chains replaced their CEOs in September, following eight transitions in August.
- Starbucks dissolves its North America CEO position due to declining sales.
- Whataburger’s CEO, Ed Nelson, will be succeeded by Debbie Stroud in 2025.
Olive Garden Partners with Uber
Source: Restaurant Dive
- Olive Garden begins testing delivery with Uber in late 2024, expanding to 100 locations.
- The partnership aims to retain consumer data while maintaining consistent menu prices.
Chili’s Competitive Eating Challenge
Source: Restaurant Dive
- Chili’s launches its 3 For Lunch Combo promotion, featuring Joey Chestnut in a competitive eating challenge.
- If Chestnut wins, he gets a free year of meals, with the event airing live on October 1.
White Castle Reimagines Loyalty Program
Source: Restaurant Dive
- White Castle revamps Craver Nation Rewards with dollars-for-points and tiered levels.
- Quests encourage trying new menu items and late-night visits, deepening customer engagement.
Chipotle's Quesadilla Giveaway
Source: Restaurant Dive
- Chipotle celebrates National Quesadilla Day by giving away up to $1 million in free quesadillas through a digital scavenger hunt.
- Influencers will distribute additional BOGO codes to enhance engagement.
Salad Collective's Growth Strategies
Source: QSR Web
- Darden Coors, CEO of Salad Collective, focuses on franchise expansion and tech-driven operational efficiency.
- Testing includes drone delivery to meet growing demand.
QSRNEXT Show Highlights
Source: QSR Web
- Roland Gonzalez, COO of Church's Texas Chicken, will discuss inflation and labor challenges at the QSRNEXT podcast.
- Katerina Glyptis will outline Tim Hortons' U.S. expansion, aiming for 1,000 locations by 2028.
New SHFM Leadership Announced
Source: Foodservice Equipment & Supplies
- Shayne Varnum is named SHFM president, with a diverse board including Jenna Calhoun (JLL) and Rob Yayac (Google).
- The Young Professional Advisor is Natalia Lopresti from Jane Street Capital.
SHFM Annual Award Winners
Source: Foodservice Equipment & Supplies
- Russ Benson wins the Robert Pacifico Award for his contributions to DayOne Hospitality Consulting.
- Other recipients include Eric Weiss and Amanda Beni for the President's Mentorship and Spirit Awards.
Ace Mart Acquires Curtis
Source: Foodservice Equipment & Supplies
- Ace Mart acquires Curtis Restaurant Supply, marking its third purchase in two years.
- Curtis has served national chains and hospitals since 1946.
Induction Cooking Benefits
Source: Foodservice Equipment & Supplies
- Induction cooktops support sustainability and offer cost-effective operation compared to gas.
- They provide precise temperature control, improving food consistency and reducing waste.
- Induction cooking also ensures safer kitchens by eliminating open flames.
Virginia's Seafood Distribution
Source: BlueCart
- Virginia’s seafood industry is thriving, with sustainable catches including oysters and blue crabs.
- Top distributors, like Sam Rust Seafood and Amory Seafood, prioritize freshness and sustainability.
Coffee Roasters in Denver
Source: BlueCart
- Denver’s top roasters include Corvus, Kaladi, and Copper Door (Denver’s only women-owned roastery).
- Specialty blends and subscription options enhance customer experience.
Virginia's Wholesale Meat Landscape
Source: BlueCart
- Virginia is a major beef producer, with over 23,000 livestock farms.
- Popular suppliers include Sunrise Farms (non-GMO meats) and Tom’s Meat & Produce (fast deliveries).
Virginia's Coffee Renaissance
Source: BlueCart
- Coffee consumption in Virginia Beach is booming, with rising demand for Fairtrade and organic options.
- Local roasters like Ironclad Coffee Roasters provide consulting services and equipment training.
Choosing Restaurant Furniture Wisely
Source: Modern Restaurant Management
- Layout and flow are key considerations.
- Booths take less space than tables.
- Wood durability depends on material; hardwoods like maple and oak last longer.
Minimizing Recall Costs
Source: Modern Restaurant Management
- Food recalls can cost $10 million per incident.
- Preparing with recall management plans and technology can minimize damage to brand reputation.
Minimum Wage and Restaurant Closures
Source: Modern Restaurant Management
- California’s minimum wage increase led to a 71% spike in restaurant closures.
- Broader economic factors, like interest rates, also play a significant role.
RevPAG: Boosting Hotel Revenue
Source: Modern Restaurant Management
- Hotels are shifting from RevPAR to RevPAG, focusing on total guest spend, including F&B operations.
- Mobile ordering speeds up service, increasing guest satisfaction and ticket sizes.
JD Vance's AcreTrader Investment
Source: Civil Eats
- JD Vance invested in AcreTrader, a platform for farmland investments, which have grown 231% since 2008.
- Critics argue these investments inflate land prices, making it harder for small farmers.
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