September 24th QSR Roundup: AI Advances, Flavor Innovations, and Labor Challenges Take Center Stage

QSR news for Sep 24, 2024. We checked 15 QSR publications and over 30 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 67 minutes. It will take you only 15 minutes to catch up.

Restaurant Industry Updates

Source: Nation's Restaurant News

MOD Pizza is developing a strategy to stabilize sales under new ownership with Elite Restaurant Group. Denny’s has reinstated Christopher Bode as COO and president to refine its management. A survey reveals 90% of Americans visited McDonald’s in the last year. The recent FSTEC conference highlighted discussions on AI and automation in food service tech. Taco Bell is introducing Disha Hot Sauce in collaboration with musician Omar Apollo, launching on Sept. 26. Tune in to the Restaurant Daily podcast for more insights!

AI Revolutionizes Restaurants

Source: Nation's Restaurant News

• AI enhances restaurant operations rather than replacing staff, allowing more focus on hospitality.
• AI-powered benchmarking gives insights into performance and pricing strategies compared to competitors.
• Hot dog sales dropped by 9% while healthier bowl options rose by 1% in popularity, indicating changing consumer preferences.
• AI aids menu optimization by identifying profitable dishes based on data, enhancing customer satisfaction and repeat visits.
• Real-time upselling through AI can boost sales by adjusting suggestions based on inventory and weather conditions.
• Predictive AI helps reduce food waste, which accounts for one-third of all food produced, benefiting both profit margins and the environment.
• AI chatbots can streamline problem-solving for operators by providing immediate answers, saving valuable time.
• The restaurant industry's AI moment is here—embracing these tools can define competitive success in a changing market.

Emerging Foodservice Franchises

Source: Nation's Restaurant News

Six promising early to mid-stage foodservice brands, including a gourmet French bakery and innovative healthy fast food concepts, have either launched their franchising efforts or signed their first franchisees. These brands represent the evolving landscape of franchise opportunities in the culinary world, showcasing fresh and nutritious takes on traditional dining.

Domino's Shareholder Lawsuit

Source: Nation's Restaurant News

A class action lawsuit has been filed against Domino’s Pizza by a shareholder, claiming the company misrepresented its long-term store growth forecasts. Allegations include that Domino’s made misleading statements about growth potential during the December 2023 Investor Day, particularly concerning its major franchisee, DPE, which struggles with store openings and closures. The lawsuit states that once Domino's revealed its actual performance in July 2024, it would not meet its growth guidance, prompting concerns over overstated business prospects. Shareholders can join the class action lawsuit until November.

Chris Bode Returns to Denny’s

Source: Nation's Restaurant News

Chris Bode rejoins Denny's as COO and president starting September 30, 2023. He previously served at Denny's for over a decade and held the position of president at Hardee’s USA. Denny's currently operates 1,541 restaurants, with 1,477 being franchised. Ceo Kelli Valade maintains her responsibilities following this transition.

Whataburger's Enduring Success

Source: QSR

• The company boasts over 1,000 locations and ranks among the top 10 largest burger chains in America, with an AUV of $3.96 million per restaurant.
• Founded in 1950, Whataburger remains committed to fresh, never-frozen ingredients, ensuring quality from processing to the plate.
• The iconic founder's vision emphasized huge, hearty burgers, setting a high standard in fast food.
• The chain embraces a people-first culture, treating employees as family, and boasts 24/7 service, catering to night-shift workers.
• Whataburger seeks controlled growth, prioritizing brand integrity over rapid expansion, with new locations planned in Nashville, North Carolina, and South Carolina.
• Under new leadership post-2024, Whataburger aims to mark its 75th anniversary with continued innovation while respecting its heritage.

Arby’s Double the Meats Meal

Source: QSR Magazine

Arby’s is launching a new meal deal called the Double the Meats Meal for only $7 starting September 23. This meal includes either a Double Roast Beef or Double Beef ‘N Cheddar sandwich, along with a medium fry and medium drink. The Double Roast Beef features twice the amount of thinly sliced roast beef, while the Double Beef ‘N Cheddar adds cheddar sauce and zesty Red Ranch on an onion roll. This option promises to satisfy hearty appetites with value and quality in every bite.

CurderBurger Returns with a Twist

Source: QSR Magazine

Culver's celebrates National Cheese Curd Day with the comeback of their famous CurderBurger and the introduction of Hot Honey Cheese Curds.

• Hot Honey Cheese Curds: Crunchy, golden-fried cheese curds with a sweet heat from hot honey breading, available from Oct. 15 to Oct. 31.
• CurderBurger's Popularity: Initially a joke in 2021, the CurderBurger has become a fan favorite, returning for its fourth appearance this October.
• The CurderBurger combines a Deluxe ButterBurger® with a crown of cheese curds, providing a unique cheesy experience.
• Culver’s aims to celebrate cheese curds while engaging guests in a delicious tradition.

Free Coffee on National Coffee Day

Source: QSR Magazine

Ellianos Coffee celebrates National Coffee Day by offering a free medium hot or iced drip coffee on September 29, limited to one per person. Customers can customize their coffee, although flavor add-ons incur regular charges. The menu includes popular items like Caffe Dolce Latte and a variety of breakfast foods. Ellianos is expanding its presence in Florida and Georgia, seeking franchise opportunities in additional states.

Innovative Fintech Solutions

Source: QSR Magazine

Sophia Goldberg founded Ansa in 2022 to revolutionize payment systems, addressing challenges like high fees that cost the restaurant industry $15 billion annually. Ansa's platform enables merchants to create virtual wallets, fostering customer loyalty and retention by allowing preloaded funds and cashback rewards. With a funding boost of $14 million, Ansa Anywhere offers seamless tap-to-pay transactions, focusing on brand-centric solutions without heavy investment in new hardware. Goldberg, a trailblazer for women in fintech, emphasizes the importance of mentorship and diversity in entrepreneurship, inspiring future female founders.

Tackling QSR Labor Shortages

Source: QSR Magazine

Quick-service restaurants (QSRs) face 62% of operators struggling to find staff, with 80% unable to fill positions. A high employee churn rate sees only 54% of new hires last longer than 90 days. The EB-3 Visa program offers a potential solution, allowing QSRs to hire foreign workers, creating a more stable workforce and boosting profits. This visa grants permanent residency, linking jobs to workers and reducing turnover. Requirements are flexible, making it easier for employers to access a dedicated labor pool and combat increasing demand.

TGI Fridays Franchisee in Trouble

Source: FSR Magazine

U.K.-based Hostmore, the largest TGI Fridays franchisee, is filing for administration after failed acquisition attempts. The franchisee operates 87 locations, all for sale by the end of September. Recent economic challenges have hampered their planned acquisition of the franchisor worth $220M, leading to operational and financial difficulties. TGI Fridays, which boasts 593 sites globally and $1.4 billion in sales in 2023, has faced declining revenues, closing 36 locations to streamline operations and focus on promising areas.

Huddle House Expands in Louisiana

Source: FSR Magazine

Huddle House is set to bolster its presence in Louisiana with a multi-unit franchise agreement, bringing new locations to Longville and Merryville by 2025. Franchisee Noor Ali Jumma, a local entrepreneur and fan of the brand, emphasizes the unique appeal of Huddle House for families in these tight-knit communities, offering quality food at any hour. The brand currently has 9 locations in Louisiana and aims to leverage the state's family values and thriving economy for its growth.

Mellow Mushroom's Twisted Fang Cocktail

Source: FSR Magazine

• New cocktail alert: Mellow Mushroom introduces the Twisted Fang cocktail from October 1 to November 11.
• Haunting ingredients: Combines Deep Eddy Lemon Vodka, DeKuyper Triple Sec, fresh lemon juice, house-made sour, and Monin Strawberry Purée.
• Garnish magic: Finished with a lemon twist and a unique vampire fang stir stick.
• Spooky delight: A creative spin on the classic Lemon Drop cocktail is sure to be a crowd-pleaser!

Daniel's Steakhouse Opens

Source: FSR Magazine

• Daniel’s, A Florida Steakhouse, opens on October 8 in Fort Lauderdale, featuring a menu focused on locally sourced ingredients.
• The restaurant aims to highlight Florida’s culinary bounty, with seafood like Skipper Sweet oysters and Prime steaks.
• Culinary Director Daniel Ganem emphasizes seasonality and freshness, supported by an extensive beverage program spearheaded by Daniel Bishop, showcasing local spirits.
• Monthly wine dinners, starting with a Macallan Dinner on October 24, 2024, highlight Florida Wagyu Beef.
• Aiming for a cozy yet upscale vibe, the space includes local artwork and accommodates private dining for intimate groups up to 25.
• Open Tuesday to Saturday with a late-night menu until 11 p.m., aiming to be a community favorite for gatherings and events.

Olo Announces Staff Layoffs

Source: FSR Magazine

• Olo is cutting 9% of its workforce (about 61 employees) to align with long-term goals.
• The company will incur $2.2M to $2.6M in costs related to severance and payroll taxes from these layoffs.
• CEO Noah Glass emphasized the need for cost efficiencies despite encouraging business growth.
• Q2 revenue rose 28% to $70.5M, with gross profit up 16% to $39.9M.
• Olo's services are now utilized at 82,000 locations, adding relationships with major brands like Bonchon and Culver’s.
• The focus will be on driving efficiencies and building stronger ties with over 700 restaurant partners.

Waffle House Wage Theft Allegations

Source: Restaurant Dive

The Union of Southern Service Workers claims Waffle House underpaid employees by misusing tip credits on non-tipped work. A survey revealed that 90% of Waffle House staff reported experiencing wage theft in the last year. Some employees, like Cindy Smith, faced dire financial struggles due to unpaid wages, receiving only five paychecks in 14 months and often going to bed hungry. The union demands a $25 hourly wage, 24/7 security, and an end to mandatory meal deductions, highlighting safety concerns after a recent shooting. Wage theft is rampant in the restaurant industry, costing workers approximately $15 billion annually, with several restaurants facing hefty fines for violations, indicating a systemic issue that demands attention.

Presto Automation's Transition

Source: Restaurant Dive

Presto Automation undergoes a sale process after shifting focus from tablets to drive-thru voice AI, backed by lender capital. Current shareholders won't benefit from the sale as the company prepares for winding up. CEO Lefevre emphasizes stability in service and expansion plans to 750 restaurants, including Taco John’s testing voice ordering for future franchising.

Effective Restaurant Training

Source: Restaurant Dive

Training is key for shaping new employees' views and integrating them into the restaurant's culture.

• Encouraging training duration: 1-2 weeks preferred by most employees, balancing quick employment with thorough preparation.
• In-person training is the top choice: 70% favor hands-on mentorship, while 44% want to shadow experienced staff.
• Visual learning reigns: 28% prefer videos over traditional reading, making training more engaging.
• Clear expectations are crucial: A detailed training roadmap helps new hires understand their learning journey.
• Ongoing training matters: Regular refresher courses and staff feedback sessions maintain engagement and skill development.
• Prioritizing training reduces turnover and boosts confidence, leading to satisfied employees and customers.

Qdoba's Spicy Marketing Push

Source: Restaurant Dive

• Qdoba is launching an 11-market campaign this month, serving as a precursor to its nationwide brand campaign set for 2025.
• The new menu item, Queso Apocalypto, is touted as the spiciest queso yet and targets younger millennials and Gen Z, who are 60% more inclined towards spicy foods.
• The item is promoted through social media, radio, and influencer partnerships, highlighting a shift from traditional ads to innovative marketing strategies.
• In a competitive landscape, Qdoba aims to claim National Queso Day while Chipotle faces leadership changes and recent competition.
• Qdoba plans to double its locations to over 1,500 by 2033, leveraging its franchising model.
• The Queso Apocalypto, made with fiery ingredients, is expected to resonate with adventurous diners looking for bold flavors.

Thai Breakfast Revolution

Source: Eater

• Breakfast in Thailand is not conventional; it can range from omelets to spicy fish curry.
• Chef Chutatip "Nok" Suntaranon emphasizes hearty meals like khao thom, or rice soup, often enjoyed any time of the day.
• Khao thom is comfort food that can be customized with various ingredients like shrimp and fish, and it plays a significant role in Southern Thai family gatherings.
• Family meals are integral to Thai culture, with breakfast being a time for connection over hearty dishes.

Flavor Collaborations Gone Wild

Source: Eater

• Snack Innovation: Grocery brands like Oreo and Sour Patch Kids create surprising products to attract curious consumers.
• Marketing Tactics: These collaborations entice customers to try new, quirky flavors, effectively doubling their purchases.
• Brand Connections: Limited-time offers encourage fans of one brand to engage with another, boosting brand visibility and sales.
• Corporate Synergy: Many collaborations simply shuffle resources within parent companies, making new products easy to produce.
• Sales Trends: Despite rising prices and consumer caution, companies like PepsiCo still report increased profits, although snack sales show signs of slowing down.
• Future of Collaborations: As quirky pairings continue, expect even stranger collaborations that challenge consumers' buying habits, leaving us anticipating bizarre combinations like Oscar Mayer Jell-O!

Mastering Wagyu Production

Source: Eater

• Toriyama Co. has been producing top-tier wagyu beef for 20 years, overseeing the entire production process.
• The farm houses 1,400 Japanese Black cows, raised over a three-year period before slaughter.
• New calves are cared for with temperature-controlled formula and fed a blend of rice and miso for optimal growth.
• After slaughter, each carcass is meticulously processed into premium cuts by Meister-certified butchers.
• The filet, the most coveted cut, comes from the loin, highlighting the careful butchering traditions.
• Shota Odabashi, a master butcher, emphasizes the artistry and skill in meat processing, aspiring to balance tradition with craftsmanship.
• Catch the latest episode of The Vendors for an inside look at this acclaimed beef production.

Menu Innovation in Fast-Casual

Source: Fast Casual

Fast casual dining is evolving beyond burgers and fries as consumers demand varied culinary experiences. The Fast Casual Executive Summit held in Denver will focus on strategies for menu diversification with notable speakers sharing insights on trends and customization. ClusterTruck's CEO emphasizes that offering over 100 customizable menu items caters to diverse tastes, enhancing customer satisfaction and loyalty.

Smashburger Menu Makeover

Source: Fast Casual

• Smashburger revitalizes its brand and menu, emphasizing bold flavors and a homestyle dining experience.
• New menu highlights include the All-American Smash, Bacon Stack Smash, and Spicy Jalapeño Smash, each with unique toppings on butter-toasted buns.
• Notable sides include Scorchin' Hot Fries and a Peanut Butter Cookie Shake made with Häagen Dazs ice cream.
• CMO Thomas Prather emphasizes a return to brand roots with fresh energy, aiming to create an enjoyable escape for guests.
• Smashburger now has 235 locations in 32 states and seven countries, reflecting rapid growth and innovation.

Southern Sweet Tea Culture

Source: Food & Wine

• Sweet tea is a staple in Southern culture, typically made with about 25 grams of sugar per glass.
• Robert F. Moss emphasizes the drink's importance in summer social gatherings, enhancing the cooling experience on hot days.
• The sweet tea experience varies by region: brands like Tetley and Luzianne are preferred, with traditions often passed down through families.
• Sweet tea goes beyond mere refreshment; it's a symbol of generosity and connection among Southerners, transcending class and race.
• Major players in the sweet tea production include Milo’s Tea Company, which projects sales of 250 million gallons this year alone, highlighting its commercial significance.

Delicious Whole Fish Recipes

Source: Food & Wine

Whole fish are more sustainable and often cheaper than fillets, making them perfect for special occasions. Here’s a taste of 15 methods to prepare them:

• Roasted Branzino: Italian sea bass with lemon and a caper butter.
• Steamed Snapper: Finished with hot ginger-scallion oil in just 45 minutes.
• Fried Trout: Salvadoran-style with a twist and served with lime and rice.
• Ouzo Snapper: Roasted with fennel and tomatoes for a sweet-flavored dish.
• Herb-Roasted Trout: Served with arugula and almonds for added crunch.
• Escovitch Snapper: A Jamaican favorite with pickled vegetables.
• Salt-Baked Fish: Moist and seasoned perfectly in a salt crust.
• Roasted Sea Bass: With potatoes, olives, and fragrant herbs for extra flavor.
  Discover these crowd-pleasers that highlight the beauty of seafood!

Virginia's Gourmet Food Scene

Source: BlueCart

Virginia boasts a vibrant gourmet sector, attracting millions with its wide-ranging specialty foods extracted from niche markets. 73% of consumers are eager to explore unique culinary experiences, driving the popularity of ethnic cuisines like Thai and Chinese. Notable suppliers include Gourmet Foods International, known for its comprehensive product sourcing, and Ripe Specialty Foods, celebrated for outstanding customer service. Popular product categories encompass high-end meats, artisanal cheeses, and vegan options. With increasing trends toward organic and eco-friendly products, there’s a notable rise in consumer seeking rich flavor exploration, ensuring the specialty food scene remains dynamic.

Top Seafood Suppliers in Denver

Source: BlueCart

Denver's restaurant scene benefits from a variety of wholesale seafood vendors, enhancing menu diversity beyond meat. 5 notable suppliers include:

• LV Seafood: Offers a wide selection of seafood and perishables with both delivery and in-store pickup options.
• Seattle Fish Co.: The largest seafood supplier in Denver since 1918, known for their sustainability and high-quality seafood served across the Rocky Mountain region.
• Alaskan Salmon Co.: Sells a diverse array of seafood products beyond just salmon, supporting extensive menu options.
• Niceland Seafood Inc.: Provides Icelandic seafood with innovative traceability via QR codes, promoting transparency and sustainability.
• Blue Ocean of Colorado: Combines wholesale supply with retail options, allowing businesses to sample products before bulk purchase.
  Overall, Denver's seafood availability is impressive, with fresh and frozen options sourced from coastal partners. Total estimated reading time savings: 2 minutes.

Building a Better Business Culture

Source: Modern Restaurant Management

Chef Erin Wade shares insights on creating a vibrant company culture through open communication and collective success, driven by personal values. Key strategies include:

• Collective Success: Decisions should enhance the experience for employees, customers, and the business profitability.
• Inclusive Decision-Making: Open discussions encourage diverse viewpoints, uniting employee and customer needs for optimal outcomes.
• Work Culture Values: Wade emphasizes the importance of anchoring decisions around meaningful company values, shaping a supportive environment.
  Wade's journey from corporate law to a thriving mac and cheese restaurant inspires others seeking alternatives to traditional work models.

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