September 28th QSR Roundup: From Chick-fil-A's Bold U.K. Comeback to Mecha Noodle Bar's Cultural Synergy and More!

QSR news for Sep 28, 2024. We checked 18 QSR publications, 3 subreddits, and over 19 articles for you to bring the latest news. Estimated reading time saved (at 200wpm): 71 minutes. It will take you only 13 minutes to catch up.

Mecha Noodle Bar Success

Source: Nation's Restaurant News

• Founders Tony Pham and Rich Reyes bonded over their childhood as children of immigrants, leading to the creation of Mecha Noodle Bar in 2013.
• The restaurant offers Asian soul food, expanding from ramen to include pho, bao, and a variety of beverages.
• 10 locations across four states and D.C., with plans for further expansion, reflect the brand's growth since inception.
• Reyes emphasizes the importance of synergy in dining experiences, combining heritage with modern interpretations.
• The Eat Justice program donates 50 cents from every sale to an employee relief fund, underlining their commitment to social responsibility.

Recognized as a 2024 Hot Concept by Nation’s Restaurant News, highlighting its impressive growth and potential.

New Executives at Handel's and Bloomin' Brands

Source: Restaurant Business

• Handel’s Homemade Ice Cream appointed Hillary Frei as its new Chief Marketing Officer, enhancing its leadership team under CEO Jennifer Schuler.
• Frei has a strong marketing background, previously leading marketing at Wetzel’s Pretzels and working with FAO Schwarz.
• Bloomin’ Brands elevated Gagan Sinha to Chief Information Officer, solidifying his role in overseeing the company's global IT strategy.

Sinha brings extensive experience from Inspire Brands and Dunkin’ Brands, where he held VP of IT positions.

C-Stores Compete with Fast Food

Source: Restaurant Business

Convenience stores are actively introducing significant meal deals to rival fast-food chains in attracting budget-conscious consumers.

• Circle K launched a new Meal Deals line, with options starting at $3 for items like hot dogs and taquitos, complemented by drinks.
• Wawa offers $2 discounts on its hoagies, bringing prices under $10 for popular options.
• Market leader 7-Eleven entices loyalty members with 10 wings for the price of 5, and engages in targeted promotions like discounted quesadillas and tacos on their respective days.

The convenience of affordable meal offerings positions c-stores as formidable competitors against traditional fast-food brands.

CloudKitchens Faces Lawsuit

Source: Restaurant Business

CloudKitchens, the ghost kitchen company founded by Travis Kalanick, is embroiled in a lawsuit accusing it of discrimination and sexual harassment against a former female employee, Isabella Vincenza. The lawsuit highlights a toxic work environment, where Vincenza was subjected to harassment and retaliation after reporting her pregnancy, including being fired without warning after escalating her concerns. Despite legal challenges, CloudKitchens continues to expand, operating over 90 locations in the U.S. and valued at $15 billion as of late 2021. This lawsuit follows previous complaints from restaurant operators about misleading practices in the industry.

Chick-fil-A's Bold U.K. Comeback

Source: Restaurant Business

Chick-fil-A is making a significant return to the U.K. market five years after closing its only location, planning to open five new sites with a $100 million investment. Targeted cities include Belfast, Leeds, Liverpool, and London. Known for its high revenue generating stores, averaging $7.5 million annually, Chick-fil-A aims to strengthen its international presence, also expanding in Canada with four additional locations. The chain is committed to donating £25,000 to local charities for hunger relief with each new opening. This expansion is a strategic response to previous criticisms, seeking to enhance its footprint beyond the U.S.

Burger Rivalry Escalates

Source: Restaurant Business

Habit Burger & Grill is playfully mocking In-N-Out after being voted America's favorite burger in a USA Today poll, where its Double Charburger outperformed In-N-Out's Double-Double. The company is utilizing billboards across California to highlight this ranking, even placing one near an In-N-Out location at LAX, causing a stir among customers. Additionally, Habit appeared on 'Jimmy Kimmel Live' and launched a marketing campaign that included full-page ads congratulating In-N-Out as the second-favorite burger chain. However, reactions on social media have been mixed, with fans of both chains chiming in as the burger wars heat up.

Olive Garden's Value Strategy

Source: FSR Magazine

• Olive Garden's same-store sales fell 2.9% in Q1 despite pricing below competitors.
• The restaurant chain is introducing a 12-week promotion for the popular Never Ending Pasta Bowl at $13.99, extending it by four weeks from last year.
• Darden CEO Rick Cardenas emphasizes a shift in marketing focusing on value, targeting first-time guests who may not recognize their competitive pricing.

System sales climbed from $2.79B to $2.97B with slight profit increase from $293M to $294.7M.

Top Denver Dairy Suppliers

Source: BlueCart

Denver is a hub for excellent dairy suppliers which are essential for local restaurants.

• Royal Crest Dairy: Offers home delivery and has bulk options for businesses.
• Colorado Ranchers Inc: Specializes in Mexican and Central American cheeses, perfect for Latin cuisines.
• Farmer’s All Natural Milk: Sister brand to Royal Crest, providing high-quality milk products.
• Leprino Foods Company: World’s largest mozzarella producer, supplies various dairy ingredients and nutritional products.
• Colorado accounts for 3.5% of the nation’s farmland fostering dairy operations.
• Demand for dairy remains strong with local restaurants thriving on quality products.

Restaurant Owner Success Rates

Source: /r/restaurantowners

A Reddit user asks how many people others know who own restaurants and their success rates. Many commenters shared varying experiences:

• Success Stats: A consensus suggested about 25% success rate post-pandemic, down from around 70% before COVID, with many owners struggling.
• Personal Accounts: One commenter highlighted only 3 out of 10 owners are profitable even with extensive operational involvement.
• Geographic Variances: Opinions differed greatly; in the Southeast U.S., 8 out of 10 owners are thriving compared to 2 out of 10 in Denver.

Challenges cited included rising overhead costs, labor shortages, and insurance hikes, with several operators under significant financial strain or exiting the industry altogether. Despite hardship, successful owners attribute their longevity to strategic management, proper cost control, or advantageous locations, highlighting the industry's unpredictability.

Discount for Fellow Businesses

Source: /r/restaurantowners

A restaurant owner in a small village is considering offering discounts to employees of local businesses to encourage lunchtime traffic and enhance community relations. Commenters provide various insights on similar practices:

• Bluegrass_dude suggests offering a fun discount as a gimmick while sharing a successful experience from a mall, where employees used a promo code to order ahead, boosting visibility.
• Thefixonwheels advocates for free food for fellow food truck owners, emphasizing camaraderie; though he sets limits to prevent exploitation.
• Meatsntreats warns about blanket discounts potentially being abused when not restricted, and offers tailored industry discounts instead.
• DField118 mentions a stable 10% discount for those in the industry, which has worked for him.
• Burnt-White-Toast and Orangeshowergal stress the value of community reputation over blind giveaways.
• Ssiggs98 shares a collaborative approach of coupon exchanges between neighboring businesses to boost customer flow.
• Roseagate has implemented a 'Neighbor Discount' successfully, further enhancing business ties as it encourages mutual referrals.

Overall, there's a consensus that while discounts can foster goodwill and traffic, they need to be strategic to avoid misuse.

Most commenters emphasize the benefits of building strong relationships with local businesses, which can lead to more loyal customers and word-of-mouth referrals.

Important takeaway: Carefully structuring discounts can yield positive outcomes for both your business and the community.

Watching NFL on Multiple TVs

Source: /r/restaurantowners

A restaurant owner is seeking advice on how to view Thursday night NFL games across multiple TVs in their establishment using a single Amazon account, which limits login to one TV at a time. Commenters provided several suggestions:

• Using an HD modulator: One user recommends installing an HD modulator, like the PVI mini-mod2, which requires coaxial cable setups for each TV.
• Channel suggestion: Another commenter mentions using Channel 5035, possibly for directly tuning in NFL games.
• Personal account workaround: A suggestion was made to use a personal Amazon account for one of the TVs, circumventing the multi-login issue.

Screen mirroring: Screen mirroring is floated as a possibility, though it comes with a warning that ISPs might not support streaming for commercial use.
Overall, commenters are focused on practical solutions, emphasizing the importance of ensuring compliance with streaming and ISP regulations while trying to enhance the viewing experience for patrons.

Unox Oven Experiences

Source: /r/restaurantowners

The Reddit discussion revolves around the reliability and service issues of Unox ovens, which are Italian-made but come with only a one-year warranty. Many users share their experiences, with one user highlighting that Unox ovens often require service at least once a year, and that parts can take a long time to arrive—up to four weeks in some cases. Some commenters recommend alternative brands like Blodgett and Viking, citing them as more reliable and easier to service, especially when it comes to parts availability. One user recounted a particularly negative experience with Unox where their oven arrived misaligned, leading to multiple ongoing issues. Combi ovens are also mentioned as a more efficient and labor-saving alternative in some kitchens. Overall, consensus leans toward caution with Unox ovens, encouraging prospective buyers to ensure parts availability before purchasing.

Restaurant Sales Decline

Source: /r/restaurantowners

The owner of a wine bar in a prosperous area reports a 60% decline in sales year-over-year, echoing sentiments from fellow restaurant owners facing similar struggles. Despite maintaining competitive prices and a strong staff, external factors like inflation, changing consumer habits, and reduced dining out frequency are implicated. Several commenters note that dining out is often the first expense cut during economic downturns, and many are opting for home cooking or fast-casual dining. The conversation surrounding the decline highlights frustrations over tipping culture, increased menu prices, and a market focus shifting away from higher-end dining experiences to more budget-friendly options. Many also discuss how remote work and reduced foot traffic in downtown areas contribute to slower business for eateries. A consensus emerges that the restaurant industry is in a precarious state, particularly for independents, with calls for adaptation to survive the current economic climate.

Bookkeeping Costs for Restaurants

Source: /r/restaurantowners

The Reddit post initiated a discussion about the costs and experiences associated with bookkeeping services specifically for the restaurant industry. The original poster shared their journey with various bookkeeping methods, leading to a quote of $2,000 per month for professional services, which equates to 1.5-2% of their top-line revenue of over $1 million per year. Commenters shared their varied experiences, emphasizing that value comes from not just the cost, but the benefits and insights provided by the bookkeeping service. Popular comments highlighted:

• Timely reports are crucial; one commenter stressed needing reports shortly after the month ends to make informed decisions.
• Costs varied widely, with figures ranging from $150 to $6,500 annually depending on the services included. For instance, one owner mentioned paying $400 per month for comprehensive services, including taxes and payroll.
• A consensus emerged that 2% of sales is a fair charge, particularly if the service includes forecasting and budgeting assistance.

Seasoned owners reiterated that a good CPA or bookkeeper is worth every penny, as it alleviates significant headaches and provides valuable insights into operational metrics, such as food costs compared to peers.

Chefs vs. Owners Insights

Source: /r/restaurateur

• The Reddit discussion explores the tension between restaurant owners and chefs regarding responsibilities and creative control. Both parties express frustrations, with owners wanting to balance costs with menu creativity, while chefs seek autonomy in the kitchen.
• A chef shared the importance of sincere apologies and repairing relationships in a high-pressure environment, emphasizing that collaboration is key despite personal egos.
• Ex-head chef comments stressed that chefs should be empowered to manage the kitchen and menu, advocating for regular check-ins with owners for alignment on goals. This encourages a harmonious working relationship where both parties respect each other's expertise.
• Chefs expressed frustration with owners interfering in kitchen operations, citing issues like poor ingredient sourcing and logistics misunderstandings. One chef highlighted the absurdity of overspending on unnecessary items, such as 15 pounds of parsley, when better options were available.
• There’s a clear consensus that understanding kitchen logistics is crucial for owners; without proper knowledge, they often mismanage costs and hinder a chef’s ability to function optimally.

The dialogue indicates that both sides need to come together to foster a culture of trust, effective communication, and mutual respect for successes and failures in the restaurant business.

UberEats/Doordash Delivery Guide

Source: /r/restaurateur

A soon-to-be restaurant owner seeks advice on using third-party delivery apps like UberEats and Doordash, especially regarding multiple locations and necessary paperwork. Key insights from comments include:

• Each location must be registered separately with its own delivery area, which varies based on commission rates.
• Compliance with HACCP regulations is crucial, particularly around temperature logging; a digital logbook is recommended for efficiency.

The overall process of signing up for delivery services can vary in smoothness, with some users noting potential delays.
Consensus emphasizes the need for proper registration and compliance for successful delivery business operations.

Interview Wait Frustration

Source: /r/Restaurant_Managers

A Reddit user shares their frustrating experience waiting for an interview at a restaurant where they had no confirmed time. After waiting 1.5 hours, commenters express a mix of sympathy and tough love, suggesting actions like walking out or calling out the lack of professionalism. Key insights include:

• Many commenters agree that waiting over 20 minutes without communication is unacceptable, as it reflects poor management.
• Some suggest that waiting for 1.5 hours, especially during a lunch rush, implies the restaurant might not value employees' time.
• A user highlights the importance of respecting one’s time, stating, "if they can't communicate properly... they surely won't later."
• There's a consensus that a lack of professionalism during interviews often reflects poor workplace culture, with advice leaning towards walking away from such opportunities.

Commenters also note that a scheduled interview should be prioritized, and the original poster might need to reassess their interest in the restaurant given the circumstances.

Salary Negotiation for Restaurant Management

Source: /r/Restaurant_Managers

A Reddit user has been offered a management position at a high-end restaurant, starting at $20/hour, and is seeking advice on whether to accept or negotiate for a better salary. Commenters shared their insights, with several noting that $20/hour is typical for entry-level managers in larger cities, and some mentioned the potential for significant raises over time. A user highlighted the importance of getting a clear path to a salaried position in writing. Others advised considering the total compensation package, including tips, and being prepared to handle the demands of management. One commenter pointed out that similar positions in corporate restaurants often start around $60k/year, which aligns with a possible $67k salary a friend mentioned. Overall, the community consensus is that while $20/hour may not seem appealing, the opportunity for advancement and raises makes it worthwhile for those with little experience. Establish clear goals with the employer before committing, and consider the long-term career trajectory. There was a mix of opinions regarding whether to take the job or continue searching for higher pay. Some highlighted the risks of management positions, while others emphasized the potential benefits of gaining managerial experience.

Manager Salary Cut Concerns

Source: /r/Restaurant_Managers

The post discusses the author's experience as a mixology bar manager facing a drastic pay cut from $800 a week to $13/hour plus tips, while still being expected to fulfill managerial duties. Commenters express strong opinions, suggesting the owner is taking advantage of the author and recommending they start looking for a new job. Key insights include:

• Many commenters agree that it’s unacceptable for a manager to be paid hourly and still bear managerial responsibilities.
• One commenter shares a similar experience leading to a new law affecting salary positions due to exploitation in the industry.
• There's consensus on the need to file for unemployment if the salary reduction is significant, while others suggest negotiating for a salary with a capped hour limit.

Statistics mentioned include the previous managerial salary contrasted with the proposed hourly pay, demonstrating a significant drop.
Overall, many commenters recommend preparing for a job search as the restaurant seems to struggle financially.

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