September 27th QSR Roundup: Tipping Trends Decline, Starbucks Cuts Princi Branding, and a Sweet Onion Burger Launch!
QSR news for Sep 27, 2024. We checked 17 QSR publications, 2 subreddits, and over 40 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 128 minutes. It will take you only 17 minutes to catch up.
Election Impact on Restaurants
Source: Nation's Restaurant News
With the upcoming presidential election, two primary candidates, Kamala Harris and Donald Trump, present contrasting views crucial for restaurant operators. Harris plans to increase the small business tax credit from $5,000 to $50,000 and eliminate taxes on tips for service workers, while also aiming to raise the federal minimum wage. Trump promotes deregulation and tax cuts, favoring less government interference in businesses. Both candidates support the ‘No Tax on Tips’ initiative, though critics argue it could worsen the federal deficit. Immigration policies are also pivotal as Harris seeks a balanced approach, whereas Trump focuses on mass deportations. Corporate tax plans vary widely; Harris supports elevating the rate to 28%, while Trump favors a cut to 15%.
Shift in Restaurant Leadership
Source: Nation's Restaurant News
- Starbucks is ending its collaboration with Princi Bakery, removing the brand from 8 U.S. and China stores.
- IHOP President Jay Johns, after 6 impactful years, is retiring; he will be succeeded by Lawrence Kim, ex-chief innovation officer at Yum Brands.
- Raising Cane’s, led by founder Todd Graves, revealed ambitious goals during their conference in Cancun.
- The U.S. Department of Justice is taking action against Visa, aiming to reduce processing fees for restaurants and retailers amidst allegations of anti-competitive practices.
Wagamama has fully acquired the remaining 80% of its U.S. business from Conversion Venture Capital.
CREATE Conference Highlights
Source: Nation's Restaurant News
Attendees of CREATE: The Event for Emerging Restaurateurs in Nashville on Oct. 9-11 will enjoy unique culinary creations and live country music.
- The Dryes: A husband-and-wife duo from The Voice will perform, known for chart-topping hits like “Dolly Would.”
- Menu Highlights:
- Sausage Ravioli with Bolognese Sauce by John Baez featuring Johnsonville's Ultimate Italian Sausage.
- Sausage-Stuffed Turkey Leg with Kale Slaw created by Denny’s chef using Ultimate Stadium Brat.
- Quesabirriawurst, a concoction by Taco John’s chef using Ultimate Stadium Brat.
- Slow Cooked Pork Bolognese with Mezze Maniche crafted by culinary innovator Pete Balestreri using Italian Sausage.
- $5,000 Donation: A winning dish gets a donation to Pathways Kitchen supporting justice-impacted youth.
Starbucks Cuts Princi Branding
Source: Nation's Restaurant News
Starbucks is phasing out the Princi brand from its menu in eight Roastery and Reserve locations, while still offering the same popular items. The partnership with Princi started in 2016 when Starbucks invested in the Milanese bakery concept. Princi items will remain at 11 locations in Tokyo and the Milan Roastery. The decision was made based on business strategy prior to new CEO Brian Niccol's tenure. Starbucks maintains a global presence with six Roasteries and three Reserve stores in the U.S., with no closures planned.
Saucy Comeback in Restaurants
Source: Nation's Restaurant News
Firehouse Subs resurrects its popular Hot Sauce Bar, bringing back flavors that fans missed since the pandemic. Taco Bell and Pollo Campero join the trend with spicy new sauce additions. Chick-fil-A now offers pimento cheese as a side, while Dave's Hot Chicken has intensified its hottest sauce. Seasonal offerings highlight Halloween with Sonic's green apple drink featuring salted caramel boba and Carl's Jr.'s Ghost Burgers. Other restaurants are unveiling new items, from breakfast options at Miguel’s Jr. to seasonal cocktails at Cheddar’s Scratch Kitchen. Innovative flavors and menu updates reflect changing consumer preferences as restaurants tap into the spicy and seasonal trend.
Raising Cane's Expansion Journey
Source: Nation's Restaurant News
- Rapid Growth: Started with a second location just 18 months after initial launch.
- Challenges: Hurricane Katrina caused damage to 21 of 28 locations, but the team rallied to reopen.
- Market Expansion: Moved into Mississippi and Texas by 2005 and opened a larger support center in Dallas by 2008.
- Vision Update: In 2010, solidified commitment to quality chicken meals and strong community ties, emphasizing the importance of ingredient quality.
Cultural Focus: The company prioritizes a cool culture and a dedicated crew, avoiding shortcuts that could hurt the brand reputation.
Taco Bell Budget-Friendly Feature
Source: Nation's Restaurant News
Taco Bell introduced a name your price tool in its app, allowing users to select a budget between $5 to $25 to see menu options that fit their financial constraints. They can pin and re-randomize items within their budgeted subtotal. New menu items include a Caliente Cantina Chicken Menu with various chicken options and the return of the Double Decker Taco from Oct. 10 to 30 for $2. New beverage flavors, like Strawberry Passionfruit and Mango Peach, are in testing for the Charlotte market. This move aims to cater to cost-conscious consumers as restaurant traffic declines.
Franchisee Family Journey
Source: Nation's Restaurant News
- Franchising vital for restaurant growth; franchisees bring concepts worldwide.
- Taylor Thomas, a Whataburger franchisee, expands with Layne's Chicken Fingers, marking the family's first new brand venture.
- 23 Whataburger locations in Texas; Layne's Chicken Fingers is set for January 2025.
- Family legacy: Thomas took over Whataburger franchises in 2015; driven by community ties and family atmosphere.
- Collaborating with Layne's focuses on community relations, targeting local needs, and serving hot food in clean stores.
A 25-store agreement with Layne’s sets growth plans, emphasizing ongoing loyalty to Whataburger.
Good Times Chain Revamp
Source: QSR Magazine
Good Times, a popular late-night drive-thru establishment in Colorado, is undergoing a significant redesign after years without major updates.
- Founded in 1987, Good Times operates 31 locations, primarily in the Denver area.
- They aim to become the top late-night destination for burgers and treats, with locations open until midnight.
- Rapid growth is on the horizon with 10 remodels planned for the upcoming year, positively impacting locations revamped so far.
- The chain's new aesthetic features a fresh gray and red color palette, replacing outdated signage, while also bringing a community vibe with local artists’ murals.
- Notably, murals reflect local culture rather than food themes, showcasing unique designs like a bear with headphones.
- The flagship Boulder location recently underwent its first major update since opening, enhancing customer experience.
Same-store sales spiked by 5.8% in the latest fiscal quarter, equating to $10.4 million in revenue.
Taco John's Digital Drive-Thru Opens
Source: QSR Magazine
Taco John's is launching Minnesota's first Drive-Thru Olé location in Rice, designed to maximize drive-thru efficiency without indoor seating.
- Cassie Baum, a multi-unit franchise owner, expands her Taco John’s portfolio with a focus on community engagement.
- The compact 1,080 sq. ft. space features a lobby for walk-up and pick-up orders and clean restrooms adjacent to Highway 10.
- The menu highlights bold flavors with items like Meat and Potato Burritos and Potato Olés, plus great deals like Taco Tuesdays.
- 20 new hires are needed for the location, which aims to open by September 25.
Sweet Onion Burger Launch
Source: QSR Magazine
Local Kitchens partners with chef Alvin Cailan to introduce the Sweet Onion Burger in Northern California, available from September 26th. Cailan draws inspiration from the Oklahoma Onion Burger, which features Angus beef pressed with shaved onions and topped with American cheese, dill pickles, and bacon jam. This new burger venture, marking Cailan's Northern California debut, includes four burger varieties, grilled cheese, and a signature Molasses Chocolate Chunk Cookie.
Oktoberfest Chicken Collaboration
Source: QSR Magazine
Birdcall and Chef Caroline Glover unveil the limited edition 'Das Chicken Schnitzel' sandwich, combining crispy chicken with a flavorful pickled mustard seed dijonnaise and herbed coleslaw. Glover, a James Beard Award winner, emphasizes innovative flavors while supporting community causes, donating $1 from each sandwich to the Southern Smoke Foundation. Available throughout October for $8.95, this partnership highlights Birdcall's dedication to delicious food and important causes.
Boosting Restaurant Efficiency
Source: QSR Magazine
SPB Hospitality boosts operational efficiency across 500+ restaurants using MeazureUp, a digital checklist tool. Customizable checklists improve task completion transparency and accountability, minimizing guesswork. The platform’s adaptability allows tailored solutions for diverse restaurant formats, from fast food to fine dining. Data reporting features empower operators to proactively tackle recurring issues, enhancing legal compliance and easing workload across multiple locations.
Boosting Menus with Açaí
Source: QSR Magazine
Açaí is emerging as a profitable menu addition in U.S. restaurants, known for its high antioxidant and omega fatty acid content. SAMBAZON, a leading distributor, has revolutionized preparation with scoopable açaí, cutting prep time sharply from 4-5 minutes to a quick scoop and serve. This innovation has driven their foodservice operations to triple in size, with açaí bowls becoming top menu items at 14,000 locations. The appeal is further enhanced by SAMBAZON's commitment to sustainability and eco-friendly practices, resonating well with Millennials and Gen Z consumers.
Sodexo Eyes Aramark Acquisition
Source: Restaurant Business
Sodexo, a giant in food services, is contemplating acquiring rival Aramark, which would significantly enhance its global footprint. The potential deal has already influenced stock prices, with Aramark shares soaring by 13% while Sodexo shares dipped by 14% following the news.
Investment Boost for Dunkin’ Franchise
Source: Restaurant Business
Beach Point Capital invests in Metro Franchising, a leading Dunkin' franchisee operating 105 stores in NYC. This buyout from Quilvest Capital is set to fuel growth, promising a brighter future for the franchise. CEO Stuart Cohen emphasizes the deal opens a 'new chapter,' while Beach Point recognizes Dunkin's iconic status and the franchise’s stellar performance. Founded in 1998, Metro is poised to thrive despite recent market challenges.
Employee Protections on the Rise
Source: Restaurant Business
Several states are enacting "captive audience laws" to protect employees from being penalized for not attending mandatory meetings centered on company-political discussions, particularly those aimed at dissuading union organization. Legislation is advancing in various states including California and Illinois, with laws already in place in several others. In addition, efforts are underway to establish a 'right-to-disconnect' law similar to those in several countries, ensuring employees aren't compelled to engage with employers outside work hours. Meanwhile, the sale of THC-laden foods is facing increased regulation to protect children from unregulated products, especially in California and New York.
Wagamama Takes Control of U.S. Operations
Source: Restaurant Business
Wagamama, the U.K.-based casual-dining chain, has acquired full control of its eight U.S. locations from a joint venture, aiming for rapid expansion.
- Wagamama was founded in London in 1992 and is part of The Restaurant Group (TRG).
- CVC2, which operated the U.S. locations, sold its 80% stake, handing over total control to TRG.
- Locations include Boston, New York, Tampa, Dallas, and a new opening in Washington, D.C. earlier this year.
- CEO Thomas Heier expressed excitement for further growth in the U.S. market, emphasizing an innovative menu and unique culture.
- TRG oversees over 400 restaurants under various brands, and Wagamama has adapted to American tastes with modified seating arrangements and happy hours post-Covid.
Milton's Trattoria Opens
Source: FSR Magazine
• Acclaimed chef Benjy Levit and culinary director Seth Siegel-Gardner launch Milton's, an American Trattoria in Rice Village on September 27th.
• Menu features handmade pastas, Josper Grill-fired meats, and shareable comfort dishes, evoking a sense of nostalgia.
• Signature dishes include 3-day fermented Sourdough Garlic Knots, a luxurious 100-layer Lasagna, and a towering Tiramisu.
• Innovative cocktail selections like Milton’s Martini and The 77 Beige, along with an approachable wine program.
• Interior designed for warmth with a preppy palette and cozy banquettes, accommodating 60 guests, plus an enclosed patio for private dining.
• Milton’s opens Wednesday to Saturday evenings; reservations available via OpenTable.
Spooky Witches Brew Margarita
Source: FSR Magazine
Chili's Grill & Bar introduces a Halloween-themed Witches Brew Margarita for just $6. This seasonal treat features Lunazul Blanco Tequila and Blue Curacao, with a dash of Granny Smith Apple Syrup and garnished with a salt rim and orange wedge. It pairs well with popular menu items like the Nashville Hot Mozz, now a permanent feature, available through Halloween.
Tipping Trends Decline
Source: FSR Magazine
- 60% of consumers are tired of being asked to tip, up from 53% last year.
- 38% of diners now tip servers 20% or more, dropping from 42% in 2023 and 56% in 2021.
- 30% of consumers tip servers 10% or less, a significant increase from 19% last year.
- Many consumers (61%) are willing to pay more for meals if it means staff receive higher wages without tipping.
Overall, tipping fatigue is on the rise as households tighten budgets amid rising costs.
Black Rock Coffee's Unique Strategy
Source: Restaurant Dive
American coffee consumption is soaring, with two-thirds of adults drinking daily. Starbucks faces challenges, providing an opening for brands like Black Rock Coffee Bar. They focus on exceptional in-store experiences and hospitality training to foster customer loyalty. Currently at 144 stores across 7 states, Black Rock aims for responsible growth, particularly in high-volume California and Texas markets, with a goal of reaching 1,500 units eventually. CEO Mark Davis emphasizes understanding the competitive landscape while enhancing customer experiences, stating, “Everybody has become a beverage place.”
Restaurant Sales Show Signs of Recovery
Source: Restaurant Dive
- August saw 0.4% decline in same-store sales, marking the third consecutive month of negative performance.
- Traffic dropped by 3.6%, the second-largest decline since January.
- Early September shows positive trends with sales returning to growth, hinting at a potential recovery.
- Year-over-year sales growth improved by 2% in August, suggesting an upbeat future despite earlier challenges from weather and events.
- Quick-service restaurants (QSRs) showed positive comp growth for four straight months, even benefiting from consumer enthusiasm for the holiday season.
68% of consumers plan to celebrate the holidays at restaurants and bars, reflecting rising optimism.
C-Stores Lag Behind Restaurants
Source: Restaurant Dive
• Convenience stores ranked lower than restaurants in third-party delivery satisfaction according to a study by Intouch Insight.
• C-stores scored highest at 87% satisfaction for dinner orders and 85% for breakfast, but still fell short overall.
• 90% of restaurant orders were accurate, compared to only 77% for c-stores, with customization available for just 45% of c-store orders.
• Despite being faster by 43 seconds, customers felt delivery speed from convenience stores was lacking compared to restaurants.
• The study surveyed 300 restaurants and 300 convenience stores, highlighting areas for improvement in c-store foodservice.
White Sox's Campfire Milkshake
Source: Eater Chicago
The Chicago White Sox are enduring a dismal 2024 season, tying the MLB record for losses at 120, leading fans to don paper bags in frustration. Amidst the wreckage, the Campfire Milkshake, introduced for $15, has emerged as an unexpected highlight. This indulgence features torch-tipped marshmallows and chocolate-covered rim, becoming a temporary distraction for fans and raking in an estimated $500,000 in sales. Praised on social media, the shake has become a symbol of an otherwise forgettable season as attendance dwindled and team performance faltered.
Otium Employees Fight for Paychecks
Source: Eater LA
Former Otium workers protest in LA for missed final paychecks after the restaurant closed September 8.
About 15 ex-employees gathered to demand owed wages, chanting “I want my money.” Otium’s closure was due to unprecedented challenges and they hinted at a possible reopening.
Workers claim to be owed $3,000 to $3,500 each, with issues of prior bounced checks also surfacing.
Statements from former owners Tim Hollingsworth and Carl Schuster revealed intentions to pay workers, but mistrust remains. Communication on payments has been sparse, contributing to employee anxiety as rent deadlines loom.
Biggby Coffee's Farm-Direct Commitment
Source: QSR Web
Biggby Coffee is on a mission to source 100% of its coffee directly from farms by 2028, currently at 50%. Co-founder Bob Fish highlights the detrimental impacts of traditional coffee sourcing on poverty and climate change. Biggby partners with farms like La Fortaleza, buying nearly 1.3 million pounds of coffee annually. Consumer awareness is crucial, as many are unaware of where their coffee comes from or the farmers behind it. The partnership has significantly improved conditions at farms, allowing for essential community resources like schools and clinics. Biggby is exploring opportunities in places like Burundi, Mozambique, and Southeast Asia. Overall, Biggby Coffee is striving to transform the industry by prioritizing relationships with coffee growers.
Taco Bell Wedding Contest
Source: Fast Casual
Engaged couples can win a free wedding at the Taco Bell Cantina in Las Vegas, thanks to a collaboration with Diversified Restaurant Group and The Knot. To enter, couples must like a special Instagram post, tag a guest, fill out an online entry form detailing their love story, and share a Taco Bell photo. This unique contest allows couples to showcase their creativity while celebrating love in a vibrant setting. Taco Bell's Las Vegas Cantina, located on the Strip, is designed for weddings and events, making it the perfect place for a memorable ceremony.
Food & Beverage Industry Trends
Source: Modern Restaurant Management
- 82% of US restaurants are hiring, facing labor shortages, particularly for chefs and cooks. 47% of F&B managers cite recruitment and retention as major hurdles.
- 30% of restaurant staff are at risk of leaving in the next two years.
- Economic uncertainty affects 56% of F&B owners, marking it as their primary challenge, closely followed by operational costs at 52%.
- Fast-casual dining grows by 3.2%, outpacing quick-service restaurants' 0.4% growth amid rising prices.
- 68% of diners plan to celebrate holidays at restaurants, with 45% booking reservations early and a 62% likelihood of opting for dessert add-ons.
- NFL Sundays boost restaurant sales significantly, with Green Bay showing a 27% food sales increase and 169% rise in alcohol sales.
- South Korea's culinary influence is booming, with a 10% rise in Korean restaurants in the US and robust growth in Korean cuisine items.
The foodservice packaging market is projected to grow from $67.9 billion in 2024 to $121.7 billion by 2034, driven by sustainability trends.
Food & Wine Classic Charleston
Source: Food & Wine
Food & Wine expands its renowned culinary event to Charleston, promising a delightful fusion of gastronomy and southern charm.
- Date: September 27-29, 2024, featuring a weekend of tastings and seminars.
- Talent: Led by renowned chefs like Tyler Florence and Stephanie Izard, plus wine experts like Miles White.
- Signature Experience: Grand Tasting Pavilion showcases numerous food, wine, beer, and spirits brands, elevating the culinary journey.
- Accessibility: For those unable to attend, online seminars and chef interviews offer a chance to partake in the experience.
Overall: The event promises to be an enriching blend of education and flavor, enhancing Charleston's culinary landscape.
Food & Wine Awards Recognition
Source: Food & Wine
Food & Wine shines at the upcoming IACP Awards, securing three finalists in the Narrative Food Writing With Recipes category. Two of its photographs are also finalists for editorial food photography. Last year, the publication garnered eight awards for diverse features including Hawaiian food culture and sociopolitical essays.
Restaurant Owner-Chef Dynamics
Source: r/restaurantowners
The Reddit post invites restaurant owners and chefs to discuss their pain points and the ideal collaboration for success. Many owners express a desire for chefs to understand financial management and cost control, while chefs often seek more creative freedom and involvement in menu design. A common theme is the struggle to balance business demands with culinary aspirations, leading to differing expectations. Commenters highlight the need for transparent communication and compromise, with some suggesting regular meetings to align goals. Important point: Both sides benefit when chefs are empowered yet mindful of business constraints.
Managing Restaurant Challenges
Source: r/restaurantowners
In a Reddit thread, owners share their toughest management tasks, primarily focusing on marketing and customer service. Many users highlighted the struggles of limited staff affecting service quality and marketing efforts. Some successful strategies discussed included utilizing social media for cost-effective marketing and empowering existing staff for better customer interactions. Consensus among commenters indicates a strong need for technology to streamline operations and marketing, with others suggesting investing in training to improve service quality. Some commenters expressed conflicting views on hiring more staff versus optimizing existing processes to reduce costs. Given the complexity of restaurant management, several essential tips emerged:
- leverage technology
- promote employee empowerment
- and focus on effective communication to maintain service levels.
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