QSR 318 August 2024 by WTWH Media LLC

BELL

Frenzy

CEO Sean Tresvant ignites

Taco Bell’s next chapter with bold moves, a mighty marketing engine, mouthwatering menu, and fanatic following that’s hotter than ever.

STAFF

One of the restaurant industry’s leading reports is back, full of information on the top quick-service chains in America in terms of U.S. systemwide sales, AUV, and development. Check out which brands made big moves in 2023 and which ones stayed the course.

WOMEN IN LEADERSHIP

Jack Has a Marketing Dynamo

Anna Gabele is playing a leading role in the burger chain’s biggest promotions. BY SATYNE DONER

100 FRANCHISE FORWARD

Crossing the Border

Canadian concepts are finding growth opportunities in the U.S. BY SAM DANLEY

INSIGHT

FRESH IDEAS

Hot Chicken Fever

The once-niche segment is surging in popularity nationwide.

BY SAM DANLEY

ONES TO WATCH Shaka Kitchen

This women-led business combines acai and poke into one concept.

BY SATYNE DONER

97 OPERATIONS

The Plight of Restaurant Delivery

Chains are learning how to bring customers to first-party channels. BY SAM DANLEY

104

START TO FINISH

Fabio Viviani

The well-known chef is now scaling and franchising a dessert concept.

ON THE COVER

Taco Bell CEO Sean Tresvant leads a team ready for innovation and excitement.

PHOTOGRAPHY: TACO BELL

Perfecting Brand Consistency, And Why It Matters Drive customer

Elevate Your Menu with Trendy Dressing Innovations Meet the trusted partner for all your

High-quality

EDITORIAL

EDITORIAL DIRECTOR

Danny Klein dklein@wtwhmedia.com

QSR EDITOR

Ben Coley bcoley@wtwhmedia.com

FSR EDITOR

Callie Evergreen cevergreen@wtwhmedia.com

ASSOCIATE EDITOR

Sam Danley sdanley@wtwhmedia.com

VICE PRESIDENT EDITORIALFOOD, RETAIL, & HOSPITALITY Greg Sanders gsanders@wtwhmedia.com

CONTENT STUDIO

VICE PRESIDENT, CONTENT STUDIO Peggy Carouthers pcarouthers@wtwhmedia.com

WRITER, CONTENT STUDIO Ya’el McLoud ymcloud@wtwhmedia.com

WRITER, CONTENT STUDIO Olivia Schuster oschuster@wtwhmedia.com

ART & PRODUCTION

SENIOR ART DIRECTOR Tory Bartelt tbartelt@wtwhmedia.com

FSR ART DIRECTOR Erica Naftolowitz enaftolowitz@wtwhmedia.com

SALES & BUSINESS DEVELOPMENT

VICE PRESIDENT SALESFOOD, RETAIL, & HOSPITALITY Lindsay Buck lbuck@wtwhmedia.com

VICE PRESIDENT, BUSINESS DEVELOPMENT Eugene Drezner edrezner@wtwhmedia.com 919-945-0705

NATIONAL SALES DIRECTOR Edward Richards erichards@wtwhmedia.com 216-956-6636

NATIONAL SALES DIRECTOR Amber Dobsovic adobsovic@wtwhmedia.com 757-637-8673

NATIONAL SALES MANAGER Mike Weinreich mweinreich@wtwhmedia.com 561-398-2686

CUSTOMER SERVICE REPRESENTATIVE Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704

CUSTOMER SERVICE REPRESENTATIVE Brandy Pinion bpinion@wtwhmedia.com 662-234-5481, EXT 127 FOUNDER Webb C. Howell

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Dive into the Data

The QSR 50 has once again returned!

Welcome to the August edition, where we provide another year of the QSR 50, our flagship report listing the top quick-service chains in America ordered by U.S. systemwide sales.

The beauty of this data is there are so many ways to break it down, with information regarding AUV, franchised units, and change in store count versus the previous year. I’ll use this letter to give a few observations.

The first big note is on Starbucks, which opened a net of 473 shops in 2023, by far the most on the QSR 50. The next closest is Jersey Mike’s at 287. The beverage company finished last year with 16,346 units domestically, trailing only Subway at 20,133. If Starbucks’ U.S. unit growth keeps pace, and Subway’s store count continues to falter, ( lost a net of 443 restaurants in 2023), then it shouldn’t be too long before Starbucks becomes the biggest restaurant chain in America in terms of footprint.

The next point of emphasis is Chipotle—the biggest fast-casual chain in America. The brand earned $9.872 billion in U.S. systemwide sales in 2023, meaning it will likely surpass $10 billion in sales for the first time at the end of 2024. Only seven companies had more than $10 billion in sales last year, according to our QSR 50 data ( McDonald’s, Starbucks, Chick-fil-A, Taco Bell, Wendy’s, Dunkin’, and Burger King). Keep in mind, Chipotle is going about this as a completely corporately owned company. Starbucks is the only chain with more company-owned units in the U.S. than Chipotle.

A third trend is the sustained momentum of smoothie chains. Tropical Smoothie tops this category, ending 2023

with 1,372 shops after opening a net of 174 units. Meanwhile, Smoothie King finished last year with 1,152 locations after opening a net of 49 outlets. These chains are growing for a variety of reasons, a couple of which are likely related to current consumer trends.

For one, younger guests are obsessed with cold drinks; several beverage chains have adjusted their menus over the years to meet this demand. Also, the long COVID pandemic likely made consumers more conscious of their health, and Tropical Smoothie and Smoothie King offer better-for-you menu choices that are accessible.

We also can’t forget our annual Contenders list, which highlights notable chains that fall outside of the QSR 50. Topping that group is CAVA. The fast casual opened a net of 72 restaurants in 2023 and continues to dominate the Mediterranean food segment. Another one to call out is 7 Brew. The company, QSR’s 2023 Breakout Brand of the Year, opened a net of 142 shops last year with a $1.8 million AUV. And nothing beats Portillo’s AUV, which reached $9.1 million in 2023. Granted, that’s among 72 restaurants systemwide, but still impressive.

I encourage you to spend time reading through the charts and crunching the numbers. You never know what interesting nugget you may find!

Ben Coley, Editor

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DRIVE CUSTOMER ENGAGEMENT AND LOYALTY ACROSS ALL LOCATIONS.

Imagine a scenario where customers receive mixed messages about a brand. For example, national advertising does not align with the messaging of a local franchisee. When consumers encounter di erent experiences across various channels, it can erode customer trust and loyalty.

Many brands don’t have an e cient way to provide approved brand assets and campaigns to the franchisee level. “Enterprises see these challenges and want a consistent way to get messaging down to the franchise level,” says Jennifer Gibbs, senior vice president of client partnership at Ansira. “They often ask, ‘How do we communicate to consumers in a clear, consistent voice?’ Whether consumers see a national ad on TV or visit their local restaurant, they should experience the same brand message.”

Another factor that can lead to inconsistencies is working with multiple vendors for marketing needs. Juggling different platforms, guidelines, and processes can be time-consuming and confusing.

Leading in the channel marketing space, Ansira o ers a proprietary technology platform that helps enterprises achieve brand consistency and market reach. Its centralized marketing hub provides all the tools and resources franchisees need.

Through the Digital Asset Management tool, franchisees can access ready-to-use assets, ensuring their advertising e orts meet the brand’s guidelines. Ansira’s pre-approval services allow franchisees to submit any local advertising developed o -platform to ensure brand compliance before running it.

“The biggest advantage for local franchisees is Ansira allows them to submit any advertising they do o -platform to ensure it’s brand compliant before running,” Gibbs says. “This way, they can’t get dinged for non-compliance.”

Ansira makes co-op reimbursement easy for franchisees by o ering direct access to marketing co-op and matching funds on a single platform. These funds can be easily applied to support local advertising efforts, ensuring brand consistency while reducing individual marketing costs. By leveraging co-op funds, franchisees beneﬁt from

enhanced marketing reach and impact, making their advertising more e ective and e cient.

“Franchisees select digital packages and can see available matching funds,” Gibbs says. “For example, the system may prompt, ‘You have $200 of matching funds. Apply to this order?’ They can use the funds based on co-op rules, which might limit the amount.”

Ansira works to understand the overall goals and KPIs of each franchisee, developing scalable local media, CRM, and website campaigns.

Recognizing the importance of tailoring marketing e orts to local markets, Ansira provides tools that enable franchisees to customize assets while maintaining brand compliance.

“While compliance with corporate messaging and creative is important, we also understand the importance of marketing at the local level. These franchisees have varying demographics based on their local markets,” Gibbs says. “We need to ensure that the local voice comes through and allow them to communicate through the right channels, and our platform is great because it allows for the necessary customization and access to these channels all in one place.”

-By Olivia Schuster

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Smoothie Rap

Musical artist 2 Chainz is now a franchisee for Smoothie King.

SMOOTHIE KING ANNOUNCED RAPPER and smoothie enthusiast 2 Chainz as its newest franchisee. In collaboration with Philip Jones, a longtime franchisee and friend, 2 Chainz opened a Smoothie King kiosk at State Farm Arena, debuting at the Atlanta Hawks NBA Draft Party on June 26. This partnership enhances the fan experience at Hawks games and other events and coincides with Smoothie King’s status as the team’s official smoothie partner since 2023.

The new kiosk offers popular blends like Angel Food, Gladiator Vanilla, and Caribbean Way, marking an expansion of Smoothie King’s presence in Atlanta, where it already operates over 80 stores. CEO Wan Kim expressed enthusiasm for 2 Chainz joining the franchisee family and highlighted his alignment with the brand’s mission of promoting a healthy lifestyle.

2 Chainz, a frequent Smoothie King customer, sees this partnership as a natural fit. He emphasized his commitment to healthy choices and praised Smoothie King for its nutritious and high-quality options.

2 Chainz helped open a kiosk inside State Farm Arena in Atlanta.

This past spring, ezCater released its “Feeding the Workplace in 2024” report, which provides data helping restaurants maximize revenue from catering and more. The company surveyed more than 2,800 restaurant operators, corporate catering orderers, workplace experience leaders, and employees and examined its own order data to assess the state of business catering.

Businesses Spend More on Food for Employees

percent of respondents said they plan to spend the same or more on food for work in 2024 compared to 2023.

percent said they order at least once per week, compared to 32 percent last year.

The top events for providing food to employees were:

• Holiday parties / 58 %

• Appreciation, thanks, or office perks / 53 %

• Company events / 49 %

• Department or team meetings / 44 %

• Employee celebrations / 44 %

• ezCater found that employees rank free or subsidized food as their most appreciated work perk. It was above flexible work arrangements, education benefits, and wellness benefits.

What Restaurants and Employees Are Saying

We see every interaction with a B2B catering guest as an opportunity to not only get another order or an incremental occasion out of that guest, but to turn them into a restaurant guest as well. You are now powering the marketing flywheel because that leads to incremental repeat traffic. ”

SMOKEY BONES CMO COLE ROBILLARD

Customer Order Preferences

of respondents said they currently use a mobile device to order catering, followed by a computer (33 percent), phone (24 percent), and walk-in (8 percent).

• In the future, 61 percent expect to use a mobile device, followed by a computer (51 percent), phone (38 percent), and walk-in (12 percent).

• ezCater discovered that 67 percent more orderers are using mobile devices to place orders versus a year ago. Gen Z is 43 percent more likely to use mobile devices as their most frequent payment method.

of employees said they prefer individual packaging like a boxed lunch compared to 36 percent wanting shared trays. Seventy-one percent said they want to choose their own meals.

Investment in Catering to Grow Your Business

percent of respondents said they expect yearover-year growth in their catering business. The top three areas operators said they’re investing in are improving processes, improving delivery, and creating or improving menus.

• Among the 44 percent of operators planning to expand services, 58 percent are adding special event services and 42 percent are adding group ordering capabilities.

percent said they’ve ordered at or eaten from a restaurant after first trying the food through an employer-provided meal.

• Operators ranked third-party marketplaces like ezCater as the best way to market their catering business, above paid social media advertising, catering sales teams, loyalty programs, and referral programs.

It’s kind of a jaw drop when people hear that we get lunch five days a week — and it’s paid for. It is probably one of our most exciting perks that we have because people love food around here. ”

MELISSA ALLINDER, OFFICE OPERATIONS MANAGER OF NORTHPOINT DEVELOPMENT

Elevate Your Menu with Trendy InnovationsDressing

In the quick-service restaurant industry, where every menu item matters, dressings play a crucial role in enhancing ﬂavor and satisfying customers. Restaurant operators face challenges like supply chain disruptions and changing consumer preferences, making the need for innovative and reliable dressing suppliers essential. One solution gaining traction is supplier diversiﬁ cation, aimed at reducing dependency and mitigating risks associated with sourcing essential ingredients like dressings and sauces.

Columbus Vegetable Oils, a distinguished name the food service industry with nearly 90 years of viding innovation, quality, and service, emerges as a reliable partner. Specializing in dressings, sauces, dips, edible oils, and shortenings, Columbus Vegetable Oils excels in crafting trendy and enticing dressing flavors that resonate with modern consumer preferences. From spicy sriracha ranch to refreshing avocado lime, its offerings are designed to elevate dishes and captivate taste buds, ensuring that every menu item stands out.

Jennifer Farrell, director of the research and development dressings lab at Columbus Vegetable Oils, emphasizes its commitment to flavor innovation. “We stay ahead of the curve by constantly exploring new trends and experimenting with unique flavor proﬁ les,” Farrell says. “This proactive approach ensures that our clients have access to cutting-edge products that resonate with today’s trends and customer preferences.”

One of the standout features of Columbus Vegetable Oils is its commitment to customization. It understands each quick-service restaurant has a unique brand identity and customer base. “We collaborate closely with our clients to create tailored solutions that perfectly match their culinary vision,” Farrell says. “Whether adjusting flavors or meeting speciﬁ c dietary requirements like vegan or non-GMO, we ensure that our products exceed expectations.”

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Ensuring consistent quality is non-negotiable in the food service industry. Columbus Vegetable Oils maintains rigorous quality assurance protocols, including comprehensive sensory and microbiological testing with SQF Level 3 certiﬁ cation across its Des Plaines, IL., and Reno, NV. facilities. Each product batch undergoes thorough testing to ensure it meets regulatory standards and its exacting criteria for taste, texture, and shelf stability.

“We pride ourselves on delivering products of uncompromising quality,” Farrell says. “Our comprehensive approach to quality assurance encompasses everything from sourcing the ﬁ nest ingredients to conducting sensory evaluations and microbiological tests. This ensures that every dressing and sauce bearing our name meets the highest standards of excellence.”

All products are made in a nut- and gluten-free facility, with options for non-GMO and organic products. Columbus Vegetable Oils works closely with customers to incorporate speciﬁc nutritional requests, like removing high fructose corn syrup or reducing fat, sodium, and sugar.

Columbus Vegetable Oils offers a variety of pack-size options, from gallon-sized containers ideal for back-of-house use to convenient cups for private labeling and to-go orders. This versatility enhances operational efﬁ ciency and preserves product quality and shelf life.

Beyond product excellence, Columbus Vegetable Oils is dedicated to supporting quick-service restaurants with streamlined logistics and responsive customer service. Its distribution network ensures timely delivery, minimizing downtime and optimizing operational efﬁ ciency.

As a fourth-generation, certiﬁed woman-owned business, Columbus Vegetable Oils values integrity, partnership, and long-term relationships. It has earned a reputation for reliability and innovation, making it the preferred partner for quick-service restaurants looking to differentiate themselves in a competitive market.

Bubble Tea Brand Captures Gen Z

Innovating beverage trends with vibrant, youthful branding.

In the beverage industry, staying ahead requires constant innovation and the ability to resonate with the latest consumer trends.

Gen Z consumers favor contemporary, exciting products and spend signiﬁcantly on items that reﬂect individuality and global appeal. Global bubble tea brand Chatime invests in innovation to stay ahead of market trends and ensure long-term relevance for Gen Z consumers.

According to Fortune Business Insights, the U.S. bubble tea market is expected to grow from $464.29 million in 2023 to $750.59 million by 2030. Bubble tea, with its unique textures and customizable options, has gained popularity among Gen Z consumers. Chewy tapioca pearls and diverse flavors make bubble tea fun and personalized. This growing demand presents a prime opportunity for investors to capitalize on its appeal to younger consumers.

Founded in Taiwan in 2005, Chatime has been a trailblazer in the bubble tea industry, introducing this iconic beverage to the international market. With nearly 1,500 stores in 63 countries and regions, Chatime has cemented its reputation as a leading bubble tea and innovative beverage brand.

“Chatime is a preferred brand when it comes to the taste of tea beverages, based on several market research studies we’ve conducted in the past,” says Carlos Antonius, Chatime Global

CEO. “In some markets, Chatime is almost synonymous with bubble tea.”

Chatime’s commitment to quality and innovation is evident in every aspect of its operations. The brand ensures every beverage is freshly prepared using the finest ingredients. “We maintain close connections with tea farmers and own one of the largest tapioca pearl manufacturers in Asia,” Antonius says. “Key ingredients such as tea leaves and tapioca pearls are carefully selected to ensure top quality.”

Recognizing the strong influence Gen Z has on creating and following trends, Chatime embarked on a brand refresh to resonate with this dynamic demographic. The new brand promise, “Cups of Joy,” encapsulates the fun and ﬂavorful experiences Chatime o ers, celebrating the joy customers get from consuming and being creative with Chatime products. The customization options, such as choosing ice or sugar levels and toppings, allow customers to express themselves.

“Our brand refresh is designed to reﬂect the

vibrant, youthful spirit of our brand and speak to evolving consumer tastes and preferences,” Antonius says. “It was speciﬁcally crafted to appeal to Gen Z consumers, who represent our fastest-growing customer base.”

Chatime’s dedication to quality has been validated through consumer testing and market research. In a blind taste test, Chatime ranked the highest in overall taste, ﬂavor, and visual appeal compared to other tested brands. A 2023 Chatime survey showed the brand ranked higher in repertoire behavior than

Carlos Antonius CHATIME GLOBAL CEO

“Our brand refresh is designed to reflect the vibrant, youthful spirit of our brand and speak to evolving consumer tastes and preferences.”

Starbucks, Costa, and Ca e Nero in the UK.

Chatime has the ability to create buzz and remain at the forefront of the beverage industry by tapping into popular culture. A prime example is their collaboration-inspired drinks, such as the SpongeBob and Barbie series. For SpongeBob, Chatime introduced the Golden Pineapple, a pineapple green tea latte, and the Pinky Watermelon, a watermelon milky smoothie. The Barbie series features delightful options like the Strawberry Swirl, a sweet frozen sensation of creamy strawberry with delicious raspberry-popping pearls, and the Berry Pop, a refreshing fruit-tea blend of strawberries and pomegranate. These innovative drinks, accompanied by a 360-degree marketing campaign, reinforce Chatime’s

brand promise, Cups of Joy, while achieving remarkable business growth in overall sales. “Chatime drinks are freshly prepared at our stores, and product SOP is strictly observed in every Chatime store,” Antonius says. “Chatime products are developed based on trends, with consideration of flavor preferences of global customers and historical data. However, there’s always a local component; we have a strong R&D team familiar with consumers’ ﬂavor preferences in each market.”

Chatime’s marketing strategies have been instrumental in expanding its global presence. The brand leverages its stores as showcases for its products and design, treating each customer as a potential business partner. Continuous communication with existing and potential partners, both on and o ine, helps Chatime expand naturally.

“Our Chatime stores around the world are our best marketing tools to expand our brand’s global presence,” Antonius says. The brand’s active marketing plans, including brand collaborations and limited-time offers, attract franchise partners and grow the Chatime fan base.

For potential franchisees, Chatime o ers a turnkey solution with extensive resources and support. “We provide comprehensive resources, including store planning and development, operations training, product innovation, marketing, branding, and supply chain management,” Antonius says. With a global network supported by a headquarters team with over 20 years of food and beverage experience, this robust support system, combined with Chatime’s global industry expertise, makes it an attractive opportunity for investors.

Looking ahead, Chatime plans to expand its presence in new markets. “We want to make Chatime more accessible to our global customers by opening in new markets such as the Middle East, Africa, and Europe—and to go wider and deeper into the markets where Chatime is presently located,” Antonius says.

Chatime’s brand refresh is a bold, strategic move to capture Gen Z’s attention and continue to solidify its position as a leading global beverage brand. With a proven business model, comprehensive support system, and commitment to innovation and global appeal, Chatime o ers an exceptional franchise opportunity for those looking to invest in a brand with a bright future.

|CATEGORY INNOVATION|

fresh ideas Hot Chicken Fever

The emerging niche is home to some of the country’s fastest-growing restaurant chains.

BY SAM DANLEY

Hot chicken is taking America by storm, evolving from prepandemic rarity to a nationwide sensation. Spurred by a growing appetite for fried and spicy fare, restaurant chains specializing in the fiery dish are emerging nationwide, with some expanding to hundreds of locations at breakneck speed.

The segment is home to some of the quick-service industry’s fastest-growing brands. Dave’s Hot Chicken clinched its 200th opening this summer, just five years after getting into the franchising game and seven years after launching as a pop-up concept

in a Los Angeles parking lot. It expects to land somewhere in the 270-unit range when the calendar flips over into 2025, with approximately 100 locations set to come online next year.

President and COO Jim Bitticks credits the brand’s meteoric rise to a few factors, starting with the namesake menu item. He recalls watching someone taste the product in a YouTube video back before he joined the team in 2020.

“His eyes literally rolled back in his head,” Bitticks says. “How do you operationalize that? That’s something I was thinking

 Crimson Coward was founded in 2019 in Downey, California.

fresh ideas

about before I even took the job. The idea of not screwing up the chicken is top of mind for us every single day. We’ve done some new things with shakes and plant-based chicken, but we haven’t done it by flipping our standard kitchen operations upside down. It’s about keeping the sales and profitability strong and not doing dumb things that screw up the brand promise.”

Dave’s also has benefited from a proven playbook that the corporate team, led by quick-service veteran Bill Phelps, previously used to build powerhouse brands Wetzel’s Pretzels and Blaze Pizza. All but five of the 200 locations are franchised, and the brand typically signs deals for 10–20 units at a time with “high caliber” franchisees.

“Bill talks about all the mistakes they made at Wetzel’s, and how they got rid of 75 percent of them with Blaze Pizza,” Bitticks says. “We’re very fortunate to have those learning experiences to build off of for this brand. When they started Blaze, they went after a higher tier of franchisees, and we copied that here. These are serious restaurant people with a lot of experience that are opening our restaurants. The team also has done the celebrity investor thing with the last two brands, so there’s a bit of a formula there, too.”

Dave’s counts Samuel L. Jackson, Pro Football Hall-of-Famer Michael Strahan, Red Sox owner Tom Werner, and former First

Lady of California Maria Shriver among its investors. Then, there’s Drake, who’s the “big dog” in the brand’s investor set. The Canadian rapper is one of the world’s best-selling music artists and has been involved since the early days, when there was just a single unit in Los Angeles. The company waited several years to announce the partnership until it had a larger footprint and could better capitalize on the increased exposure.

“Having the association with Drake has helped in a lot of ways,” Bitticks says. “It gives us some notoriety and it’s helped us sell franchises. It’s pretty impressive when you do a discovery day and you’ve got a key investor with 160 million Instagram followers who’s been involved since you had one restaurant.”

A couple of famous faces are helping Houston TX Hot Chicken drum up awareness, too. Founders Edmond Barseghian, a race car driver and internet personality, and Houston Crosta, an automotive influencer, launched the brand in Las Vegas in 2021. It opened its 20th store earlier this year and plans to have 100 units up and running by the end of 2025.

The founders’ personalities shine through in the restaurants’ decor, which feature artwork of exotic cars. Each new opening is marked by a car show that Barseghian says draws hundreds of people eager to experience the brand.

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“We’re opening with a bang, but we’re doing it in a very authentic way,” he says. “Consumers can sniff out when you’re just trying to do a gimmick and they can tell when it’s the real deal. We stay busy from the moment we open. It might be because of my following at first, but once people try it, they love it, and then they just keep coming back.”

Barseghian and Crosta spent two years working on the concept before opening the original location in Sin City. They saw hot chicken taking off and wanted to bring their own twist to it. So, they turned to Texas for inspiration, with sauces that are sweeter and more savory than the Nashville flavor profile that dominates the category.

“My concern in the beginning was that it was just going to be a menu item that other concepts can add, but we’ve seen that if you want real spicy hot chicken, you’re going to go to a hot chicken spot. It’s proved itself to be its concept and not just a menu item,” Barseghian says. “We’re not your typical Nashville hot chicken, either. Our sauce is very unique from all the hot chicken bases. That’s the key behind our success. That, and the atmosphere in the restaurant. It’s very lively. It’s a fun place to hangout. Every detail from the visuals, the audio, and the smell to the taste of the chicken, the feel of it in your hands, and the pop of it in your mouth was thought about before we launched. I wanted to hit all the right senses to really stick with customers.”

Some of the segment’s success can be chalked up to America’s ongoing obsession with its favorite protein. Hot or not, fried chicken is big business. Brands in this emerging niche are enhancing their appeal with unique and engaging experiences, and social media is overflowing with user-generated content centered around the hot chicken craze. Dave’s offers a “Hot Box Roulette” for group orders, featuring a mix of mild and spicy tenders or sandwiches with one unmarked, extra-spicy

“reaper” item added to the mix. Many concepts have spice levels that require a signed waiver from the customer.

Crimson Coward is tapping into that experiential aspect with a store design that allows guests to watch their food being made. The open kitchen concept spotlights the flagship, which comes in five heat levels, each distinctly colored by the specific peppers used in the recipes.

“We have a counter area with seven seats where guests can see all the cooking—breading stations, fry stations, and griddles for toasting bread,” says John Filipiak, managing partner of Restaurant Management Group-Mid Atlantic and area representative partner for franchise expansion with Crimson Coward. “We call these seats the ‘lucky seven’ because we’ll give everyone at the counter free samples of things like macaroni and cheese. We use it to really build a rapport with our guests. We also let everyone know that we’re not necessarily quick service. We’re made to order, so our wait times are a little bit longer, but that just allows for more interaction with the customers.”

Crimson Coward was established in 2019 in Downey, California. Filipiak joined in 2022 to oversee franchise growth on the East Coast. Since then, it’s grown to around a dozen units across California, Texas, Michigan, and Virginia, with more stores slated for those states as well as Washington and Florida. The brand is on track to hit the 20-store milestone this year. From there, the goal is to open 10-20 locations annually and reach 200 units across the country by 2027.

“Over the last four or five years, hot chicken has really grown from a fad to a trend, and I don’t see it going anywhere,” Filipiak says.

“I think it will be a niche within the chicken category, and I think we’ll all be able to take a little piece of that pie.”

CRIMSON COWARD HOPES TO REACH 200 STORES BY 2027.

The U.S. grass-fed meat market has seen a promising increase in sales both from retail and foodservices, especially in the beef category. Fortune Business Insights notes that grass-fed meat is dominating the global marketplace driven by rising consumer awareness of the health and environmental beneﬁ ts of grass-fed products.

“There’s a growing demand for authenticity and quality,” says Adam Hannon, vice president of Bord Bia – The Irish Food Board North America Ofﬁ ce. “Consumers are prioritizing health and sustainable practices more than ever.”

Bord Bia, an Irish government agency, supports Irish food producers and exporters in achieving growth and competitiveness on the world stage. Because of the United States’ high demand for quality food items, it presents a signiﬁ cant opportunity for Irish food products.

“My primary objective is to increase the availability of Irish products in America, especially in the foodservice sector,” Hannon says. “Irish producers are renowned for producing the highest

Why American Restaurants Should Consider Irish Solutions

quality and most sustainable products globally. We aim to educate consumers on the beneﬁ ts of choosing Irish, solidifying their presence in the U.S. market, and making Irish products a staple in the American dining experience.”

The grass-fed beef market is estimated to increase at a compound annual growth rate of 6.5 percent from 2024 to 2030, according to USD Analytics. With the market growing, Hannon plans to spearhead initiatives targeting the foodservice sector. “We will focus on strategic partnerships with key distributors and foodservice partners to ensure Irish products are accessible and prominently featured on menus,” Hannon says.

Bord Bia ensures the quality and sustainability of Irish food products through several key mechanisms: the Origin Green Program, which promotes sustainable food production practices, and various Quality Assurance Schemes that ensure high standards of food safety and animal welfare, providing full traceability from farm to fork. “Origin Green is the only national sustainability program in the world,” Hannon says. “Over 90% of Irish food and drink exports are veriﬁ ed members of the program, allowing foodservice customers to make claims around sustainability because they know Irish products meet these standards.”

Hannon gained ﬁ rsthand experience in the intricacies of retail and online grocery sectors working for the commercial departments at Lidl and Ocado. This role provided him with valuable insights into the priorities and decision-making

processes of buyers. “I have learned not only what buyers look for in potential products and partnerships but also the common pitfalls and red flags that can deter them,” Hannon says.

One of the biggest challenges Irish food producers face in the North American market is the ﬁ erce competition. It’s a vast and lucrative market with many players, each competing for a piece of the pie. Distribution and logistics are also complex, although not insurmountable. That’s where Bord Bia can provide valuable expertise and advice.

“In March, we took Irish suppliers to the Boston Seafood Expo, connecting them with international buyers and industry experts,” Hannon says. “We launched a U.S. foodservice market entry guide and are developing a market entry program to help Irish clients build business strategies for the U.S. We’re also planning chef table events in the U.S. to showcase Irish products with leading Irish chefs.”

Bord Bia’s comprehensive approach of combining strategic partnerships, targeted marketing, and consumer education will ensure that Irish products thrive in the U.S. market. “The future of Irish food in America is bright,” Hannon says. “We’re excited to bring a taste of Ireland to American tables.” -By Olivia Schuster ◗

Increasing Drive-Thru Pro tability with Greater Customer Satisfaction

High quality audio improves service times and the bottom line.

All operators understand the importance and value of drive thrus as they are responsible for 70 percent of quick-service sales. It is now more critical than ever to deliver a best-in-class drive-thru experience for customers and employees. A key characteristic of an optimal drive-thru experience is the audio quality a restaurant invests in. The better the audio quality, the greater the improvement in order accuracy, speed of service, sta and customer satisfaction, and the bottom line.

“Poor audio quality can lead to less e ective order taking and multitasking, which most order takers do, slowing down the entire operation,” says Scott Mullica, senior director of product management and innovation at HME. “The drive-thru is meant to be a fast and convenient channel to enjoy the food you love. Subpar audio contradicts everything the drive-thru is expected to be.”

The 2023 Intouch Insight Drive-Thru Study found a strong correlation between clear communication and order accuracy

as well as speed of service. When the drive-thru speaker was clear and understandable order accuracy was 18 percent higher and orders were 59 seconds faster. This same study determined that even a ﬁve-second improvement could result in a potential gain of over $8,200 per year per store unit.

Audio quality tests of HME’s patented high-deﬁnition audio presented increased clarity by 20 percent compared to standard digital headset systems and improved outbound noise reduction by a whopping 88 percent. The second generation of this patented drive-thru audio technology is only available with the NEXEO | HDX communication platform, which raises the audio quality bar even higher, including advancements to noise cancellation and more reliable digital delivery. Furthermore, the platform’s innovative features like group communication, one-to-one communication, voice commands, Text & Connect, timer-to-headset alerts, seamless voice AI integration, and more, ensure smooth and e cient crew collaboration, enhancing employee morale and productivity.

Customers expect instant assistance at quick-service restaurants. The expectation is even more apparent in drive thrus. According to an Intouch Insight survey, 45 percent of customers prefer the drive-thru over any other form of ordering. Insu cient audio quality can result in drastically decreased speed of service and inaccurate orders, which defeats drive-thru goals and risks disappointing customers. This is especially important to consider as operators shop for new order-taking technology. Advanced drive-thru audio technology not only improves accuracy and service times, but it simultaneously elevates the overall crew and customer experience, fostering customer loyalty and winning their return business.

Quality audio is not just a luxury—it’s a necessity for modern quick-service restaurant success. Mullica summarizes: “NEXEO | HDX is a world-class drive-thru solution and the only platform on the market that delivers patented high-deﬁnition audio, resulting in a better, faster, and more proﬁtable operation.”

Better Audio. Faster Service. Greater Profitability.

Did you know that even a 5-second improvement in speed of service could result in a potential gain of over $8,200 per year per store.* The NEXEO | HDX™ Communication Platform delivers unmatched, HME patented high-definition drive-thru audio, resulting in 20% better clarity and an 88% reduction in outbound noise, and ultimately, faster service. Quality audio is not a luxury—it's a necessity for drive-thru success.

Shaka Kitchen

Sisters Krista and Kiersten Gormeley share their story in bringing the nation’s first açaí and poke fast casual to fruition.

BY SATYNE DONER

HEADQUARTERS: Hoboken, NJ

YEAR STARTED: 2016

ANNUAL SALES: $900,000 to $1 million per location

TOTAL UNITS: 3

FRANCHISED UNITS: N/A

WAKE UP, GO TO CLASS, GRAB A FRESH POKE BOWL for lunch, go hiking, and end up on a beach to watch the sunset. In 2014, this was the typical day for sisters Kiersten and Krista Gormeley while they attended college in Hilo, Hawaii—a complete 180 from their upbringing in Hoboken, New Jersey.

Back home, Kiersten started a cooking business meal prepping for families with

food sensitivities, and Krista began her career in marketing. Still, they dreaded the idea of being locked into a traditional 9 to 5, and they found themselves reminiscing on their life in Hilo, where they could pick fresh fruit off trees and go about their day.

Kiersten was diagnosed with thyroid cancer in 2015, pushing her to return to the healthy and simple lifestyle synonymous with her year in Hawaii. She credits this with helping her beat the illness and was inspired to bring the Aloha Spirit to Hoboken.

“We didn’t know what we wanted to do when we came home from Hawaii. One day, our brother called us and said, ‘Guys, I think I found a spot,’ and we had no idea what he was talking about,” Krista recalls. “He told us there was a 600-square-foot

place below his office and it would make the perfect poke or açaí shop. He was our cheerleader and helped us get our foot in the door.”

Shaka Kitchen officially opened in 2016, featuring a menu built on simplicity and balance, which means no unhealthy additives or preservatives and using fresh, wholesome ingredients. The brand prides itself on being the nation’s first açaí and poke fast-casual concept.

The menu is designed to fit several dietary needs, such as vegan, vegetarian, gluten-free, dairy-free, and plant-based. Additionally, it adheres with keto, paleo, and whole 30 meal plants. Options include Land & Sea Bowls ( poke), Earth Bowls (açaí/ pitaya), smoothies, tacos, baked goods, and simply prepared sides.

“Kiersten and I always try to refer back to our time in Hawaii when developing recipes, which was a simple way of living,” Krista shares. “So our food lineup is all raw ingredients balanced with natural flavors that complement the food. With Shaka, we want the food to nourish without giving up flavor.”

Following the success of their first location, the sisters opened a second unit in Hoboken in July 2018, settling into a larger 2,300-square-foot historic building capable of seating 54 people. They planned to expand further in 2019, but the pandemic presented what Krista calls “a necessary slowdown” for the brand.

At this time, Shaka’s offerings had grown in size, challenging the simplicity of the original concept. Supply chain shortages worldwide bottlenecked them, raising costs on fresh produce and pushing inventory operations to the limit. The sisters knew they had to change to preserve the future of Shaka.

“Through COVID we could sit back and evaluate our model and

WOMEN IN LEADERSHIP

Jack Has a Marketing Dynamo

From electronics manufacturing to designing hamburgers and fries, to being a mom and a business leader, Jack in the Box’s Anna Gabele is a jack of all trades.

BY SATYNE DONER

At San Diego State University, students who majored in marketing and got a job at Jack in the Box “made it,” recalls Anna Gabele, vice president of product marketing and culinary innovation. She calls the brand a local celebrity, a nod to the chain’s San Diego origins. It has now grown into a leading national quick-service restaurant, ending 2023 with just under 2,200 stores.

She didn’t start off her post-college career with Jack. Instead, she delved into the consumer electronics and industrial storage space.

“I don’t know if I imagined myself working for Jack’s at first, and it’s not where I started after college, but it was exciting to end up here,” Gabele says.

Before her foray into hospitality, Gabele’s research and development teams comprised electrical engineers and technological manufacturers, which admittedly she knew nothing about. However, she learned from them throughout her decade-long tenure. When applying for Jack, the quick-service industry felt intimidating… until the vice president of marketing told her, “It’s just burgers and fries, you’ll figure it out.”

“Thinking about it in terms of hamburgers and fries took away

some of the fears I had because everybody has taste buds and eats, so I viewed it as a fun industry to dive into,” Gabele adds. “Eating and food is so emotional, and people can be passionate about it. I was intimidated at first, but I was also very excited.”

Gabele started as a senior manager of strategic initiatives in 2017, climbing up the ranks to director of product marketing in 2018 and eventually to her current role in November 2020. At almost eight years with the brand, a typical day in her life is still unpredictable. But she says this is what she loves most about working for Jack.

“The beauty of Jack in the Box is the idea that we’re not a giant brand, but we’re not small either. We can be nimble in our marketing practices and every day is a puzzle,” Gabele says. “A conversation may start in the morning because somebody on the team saw a TikTok and now we’re diving into something we didn’t expect to be working on. I love the level of spontaneity in this role.”

She points toward the hyper-competitive nature of restaurant marketing and the ever-shifting consumer tastes driving product innovation forward. Gabele is the finger on the pulse of what’s trending in quick service. For example, a recent trend tour in Miami led to the creation of the Smashed Jack, which sold out in two weeks with no paid media promotion. Over 70,000 burgers were sold on the first day, with one person ordering 27 on the same ticket.

“The development of the Smashed Jack was rooted in creating something we saw our guests wanting and not being able to get through a drive-thru. We saw lines around the block in Miami for smash-style burgers,” Gabele explains. “By the time Jack in the Box launched the Smashed Jack, guests came naturally because they were already telling us what they wanted.”

With an 80-plus item menu spanning several food categories, continuously creating innovative products that connect with guests is a challenge Gabele welcomes. In discussing her greatest successes at Jack, she says it would be taking what she knew from a completely different industry and applying it through a quick-service lens.

“The way we design our menu board and the customer journey, as far as creating items and appealing promotions, has been a big success for us as a brand,” Gabele says. “It’s

Jack in the Box has the freedom to be nimble in its marketing practices.

Portable: Ideal for QSRs and customers on the go.

All-day appeal: Popular for breakfast, lunch, dinner and late night.

No additional training or equipment required.

TACO BELL’S UNSTOPPABLE FAN FRENZY

CEO Sean Tresvant ignites Taco Bell’s next chapter with bold moves, a mighty marketing engine, mouthwatering menu, and fanatic following that’s hotter than ever.

/ BY BEN COLEY

SEAN TRESVANT WORKED AT NIKE FOR 15 YEARS, EVENTUALLY CLIMBING TO CMO OF THE JORDAN BRAND.

In his time at the popular shoe company, he engaged with the most passionate fans he’s ever seen.

That’s until he joined Taco Bell.

Tresvant quickly discovered the Mexican chain is a completely different animal in terms of customer rabidness and cult-following. Several fans approach him at events and reminisce about how they dined at their local store every Friday night or pepper him with questions about what food items will return to the menu.

“The passion, the energy, the love people feel with Taco Bell is truly, truly unbelievable,” says Tresvant, who started as chief brand officer in December 2021 and moved up to CEO in January.

The brand’s gravitational pull is fueled by a culture of not settling and taking big swings. It’s a standard upheld by everyone at the restaurant support center in California, from the marketing and digital teams to the food innovation and operational leaders.

“We have an amazing team of marketers. We have an amazing agency roster that all work together,” Tresvant says. “And when you’re thinking about the next thing and keeping fans interested in breaking through,

LOVES UNVEILING MENU INNOVATION FOR ITS FANS.

if you don’t have the culture to take big swings, if you don’t have the ‘all for one’ mentality of your agencies, and if you don’t have the ability to, ‘Hey, that idea is good, but it’s not great, but that idea is great, but it’s not awesome,’ if you don’t have that culture, you’ll settle. And what I love about the team is we don’t settle, and I’m not just talking marketing. When you think about our food team, if you think about Street Chalupas or Baja Blast or Cheez-It, I mean, these are some breakthrough, incredibly innovative products.”

Coming from Nike, Tresvant has always understood two key principles—serving consumers through multiple brand experiences and evoking an emotional response through storytelling. Taco Bell is no stranger to either of these philosophies. The company opened 2024 with its first-ever Live Más Live event in Las Vegas during Super Bowl week. The chain essentially put a firehouse up to the mouths of customers and hit them with several pieces of new and returning menu innovations. In 2023, Taco Bell found time to liberate “Taco Tuesday” from its trademark, and for many years, it’s built relevancy with its “Steal a Base, Steal a Taco” promotion during the World Series.

Taco Bell isn’t interested in any move that won’t hold an intriguing place in the zeitgeist. It’s targeting the “cultural rebel”—a subset of Gen Z that’s psychologically pushing culture forward. The tone of the menu,

TACO BELL

social media posts, and other experiences are built for this particular guest who serves as an aspiration to all.

“We want to make sure we put consumers front and center and we surround that consumer through insights, whether it’s qualitative insights, quantitative insights with great menu items and great consumer experiences, whether that’s in the drive-thru, whether that’s at the kiosk with great franchisee partnership and with great team members,” Tresvant says.

Following the Customer

Taco Bell has disrupted the restaurant industry for 62 years, and Tresvant plans on continuing that legacy.

“We’re going to do it for the cultural rebel,” he says. “So an Apple keynote event where we unveil our menu called Live Más Live—that’s not necessarily a [quickservice restaurant] thing. That’s just a great brand thing. Like how do you get your menu out in a new and disruptive way for that Gen Z cultural crowd who’s streaming or on social media?”

International CMO Amy Durini says her team begins every conversation with the thought of, “We have to go out and build a taco world.” Taco Bell does this by taking a fan-first approach. The brand sees what’s happening with its customers and anchors itself in their preferences and culture. The group digs into local insights to understand what’s going on in the market.

The chain does indeed explore “culture,” but that can be a vast term, says Durini. So Taco Bell breaks it into specific areas like music, fashion, and sports. For example, the U.S. segment has a long history with music and Feed the Beat, a program that’s helped support thousands of artists and bands for close to 20 years. This year, Taco Bell is piloting the initiative internationally for the first time in the U.K. It recently launched with High Vis—an English rock band—by using one of its songs in a Cravings Burrito commercial.

“It was a really fun moment for us to say, ‘Hey, this is something that is from the U.S., but we can hyperlocalize it with local bands,’” Durini says. “And so it’s a really fun way to say, ‘Hey, we have this program, but this makes a lot of sense.’ We’re actually also about to do it in Australia. And so it’s a really nice way for us to have a universal language across our markets, but in a customized way for local culture.”

Durini says good ideas can come from anywhere and adds that Taco Bell’s most impactful marketing campaigns are often inspired by fans. This fact is true for both U.S. and international markets. Durini cites the “Taco Zone” campaign during the World Cup as an example. Recognizing soccer’s immense global popularity, the chain created a promotion where goals

TACO BELL CONNECTS WITH CULTURE, NO MATTER THE MARKET.

scored within the penalty arc, which resembles a taco, triggered a taco giveaway. The idea originated from the Latin America marketing team and was implemented in multiple markets.

When it comes to menu offerings, the brand incorporates market learnings with what it calls the “Taco Bell Twist,” which involves adding a unique Taco Bell element to all of its products while remaining open to pushing boundaries. Durini says tacos themselves are a novel and rebellious choice in many international markets, making the chain’s core food items a new option for many consumers. At the same time, the company embraces localization, allowing each trade area to innovate with local flavors, like the Lomo Saltado Burrito in Peru, Paneer Chalupa Taco in India, and Kimchi Quesadilla in South Korea. Additionally, Taco Bell engages in creative partnerships, such as its collaboration in Australia to create a Vegemite Taco.

Taco Bell’s constant work with marketing and menu feeds directly into its growing digital prowess. In Q4, the Mexican concept saw a record 31 percent digital mix, up 7 percentage points year-over-year. A major driver of that was kiosks, which saw its sales mix rise 15 points compared to Q4 2023. Active loyalty users increased 17 percent in 2023.

Chief digital and technology officer Dane Matthews believes having a loyalty program is table stakes in the restaurant industry; he compares it to having essential kitchen equipment in the back of house. He notes that the true strength of Taco Bell’s program lies in its members, who actively engage with and promote it. The executive mentions how Taco Bell allows members to vote on bringing back menu items and provides them early access to products.

GUESTS ARE DRAWN TO TACO BELL’S EYE-CATCHING PRODUCTS.

“It’s the members that make our loyalty program really grow and sing because they sing its praises,” Matthews explains.

Matthews also emphasizes the program’s relevance, stating that Taco Bell is deeply integrated into culture and conversation. He points to the success of “Taco Tuesdays,” when the company offers special deals, exclusive merchandise, and sometimes event tickets. This initiative has significantly boosted app traffic and loyalty sign-ups and transformed Tuesday into the highest traffic-driving day of the week, surpassing even the weekends.

While many marketing professionals discuss the importance of targeted promotions in today’s time, Matthews questions the use of the term “personalization.” He thinks what consumers actually seek is more control over their experiences. He clarifies that control means presenting relevant options upfront while not overwhelming guests with constant suggestions.

“I want some control,” Matthews says. “I don’t want

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to be bombarded with pop-ups all over the place. … I don’t want things personalized. I just want things that are relevant to me.”

The increase in digital orders is good for business, but it can also be an extra burden for team members who are dealing with seven distinct ordering

channels. Matthews says Taco Bell is working with automation to address these challenges, and by that, he means removing mundane tasks from employees’ daily routines instead of replacing bodies. The goal is to free up time for workers to have meaningful interactions with customers.

Matthews says AI can help with Taco Bell’s meal choices as well. The highly customizable menu offers numerous opportunities for discovery, and he thinks AI could play a powerful role in helping guests find and enjoy their favorite combinations. Additionally, he envisions the technology connecting different food communities, such as vegetarians, vegans, and spicy food enthusiasts. Taco Bell reported during its Q1 earnings call that it has been testing voice AI at five restaurants in California. It expanded that pilot to 30 stores based on positive feedback.

“Thinking about our business, we need to ease the workload of our team members and make their jobs easier,” Matthews says.

International Headwinds

Tresvant is early into his tenure as CEO, but there have already been plenty of wins.

In the first quarter, the chain’s U.S. market outperformed the industry with 2 percent same-store sales

growth and delivered an industry-leading margin. That rise in comp lapped a 9 percent increase in Q1 2023. The company put itself at the center of the cultural conversation by focusing on a magic formula of building brand buzz, providing value, and expanding into new categories. For instance, early into the first quarter, the brand launched a new Cravings Value Menu featuring 10 items priced under $3. Guests responded; nearly one-third of transactions contained an item off of this menu and 80 percent of those orders had at least one other item added. That translated to a nearly 10 percent lift in average check compared to non-Cravings Value Menu checks.

Taco Bell finished the first quarter with 7,423 U.S. stores, making it the fourth-largest quick-service restaurant in the country when it comes to systemwide sales.

“I told people when I started, sometimes when you’re in it, you don’t realize how powerful a brand you have with consumers,” Tresvant says. “And I always felt from the food to the content to the mystique, it’s a very, very powerful brand.”

Tresvant is ot only tasked with fanning the flames in Taco Bell’s U.S. market but also amplifying the chain’s international presence, an area where admittedly “We’ve got some work to do.” He’s confident the company has the strategy and team in place to become a truly global brand.

He’s backed by experienced management, like Scott Mezvinsky, who serves as the chain’s North America and international president and has been with Yum! Brands for 20 years. To him, the biggest driver of growth is taking care of unit economics for franchisees. That’s the same mindset in every country and part of the world—if operators are making good money, they’ll build restaurants. Taco Bell’s international whitespace is one of Yum!’s largest opportunities, Mezvinsky says.

“The U.S. has a long history, and will continue to be great,” the industry veteran says. “We’re going to continue to make it great. But one of the things that I think has been a challenge for us as Taco Bell is how we make the brand successful outside the U.S. And so we’re spending a lot of time thinking through that and putting a lot of effort against that.”

There have been international success stories. Taco Bell has spent decades establishing flags in places like Guatemala, Costa Rica, and Puerto Rico (U.S. territory) with superior franchise partners. Additionally, as of early May, Spain was up to 150 stores and the U.K. and India were north of 100 restaurants. After surpassing 1,000 international outlets for the first time in 2023, Taco Bell finished Q1 with 1,132 stores outside the U.S. System sales for this group rose 6 percent in the quarter.



TACO BELL’S FORWARD-THINKING MINDSET EXTENDS TO ITS EMPLOYEES.

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Mezvinsky points out two things to watch with international expansion. The first is properly bottling the power of the U.S. business—which has an edge to it—and selling it overseas. The other part is choosing the right markets where Taco Bell will be successful. The chain takes much inspiration from sister brands KFC and Pizza Hut, two brands that have a much more mature international footprint.

Mezvinsky took on international responsibilities less than a year ago, but he’s already been encouraged by the number of operators showing interest in the brand. He says there’s more demand for Taco Bell outside of the U.S. than he had originally thought.

Another key unlock is building awareness around Mexican cuisine, according to Tresvant.

“We have to make sure we have great category awareness of what Mexican cuisine is all about. What a taco, burrito, nachos is all about because Mexican cuisine is not very developed internationally,” the CEO says. “Once you get the cuisine awareness internationally, what’s the brand awareness? What makes Taco Bell very special? And that’s kind of the brand soul, the brand magic to the deliciousness of a taco at its core. We have to make sure that people understand Taco Bell is about this creative magical brand and that has been really, really, really successful in the U.S. How do we make that successful internationally? And then third, fundamentally, make sure we have the right franchi-

sees and make sure we’re in the right markets.”

In the U.S., Taco Bell’s huge consumer following has been boosted by eye-catching store designs, whether it’s the wedding chapel in Las Vegas, Defy concept in Minnesota with two stories and four drive-thru lanes, or the Pacifica, California, unit that’s on a beach. Mezvinsky says the chain’s approach to store design is fueled by consumers. He notes that in the U.S., the focus is heavily on drive-thru options due to the strong drive-thru culture. However, in urban areas like New York City, where freestanding drive-thru locations aren’t feasible, Taco Bell adapts with street locations and focuses on pickup and delivery.

He also explains that the brand uses a global design team, so the same people crafting restaurants in the U.S. are designing stores in India, the U.K. and other overseas markets. According to Mezvinsky, drive-thru culture is less prevalent outside the U.S. A Taco Bell in Madrid operates with no indoor seating, only kiosks, and a patio—catering to the local consumer behavior. Mezvinsky suggests that such international design solutions could be adapted to U.S. cities with similar urban dynamics, like Washington, D.C., but would be less applicable to areas with a strong drive-thru component, such as Birmingham, Alabama.

This global perspective allows Taco Bell to draw from a diverse portfolio of prototypes to meet specific guest demands across different regions.

TACO BELL HAS SOME OF THE MOST CREATIVE STORE DESIGNS IN THE U.S.

JOSH CHO

SEAN TRESVANT

“ AT THE END OF THE DAY, IF WE CAN’T HAVE FUN WORKING AT TACO BELL, I’M NOT SURE WHAT WE’RE DOING.

”

When the company builds restaurants, the core question is “How are we solving consumer problems?” Tresvant says.

“If you think about Cantinas, consumers don’t only want to buy brands, they want to experience brands, and Cantinas give them a little bit of an experience,” Tresvant says. “ … That’s one way we solve consumer problems. Other ways like Defy is how are we digitalforward and fast? Think about the Defy, it’s drive-thru. It’s QR code. It’s innovative. Think about other things— smaller footprints in maybe more concentrated parts

of the city will have walk-up vestibules because we know we probably don’t need a bigger dining room. We know consumers are on the go and you need to serve them pretty quickly through a walk-up window or vestibule. So at the end of the day for us, we want to be digital-forward. But most importantly, our restaurants are built to serve and give consumers the best experience possible.”

Franchise Foundation

Taco Bell’s strength as a franchisor has been repeatedly recognized by the franchise community. The brand has topped the Entrepreneur Franchise 500 for four years in a row. In 2020, it was ranked No. 2.

Tresvant says the company’s secret sauce is the relationship between the restaurant support center and operators. The two sides have the same goals and want the same things. It doesn’t mean Taco Bell and its franchisees agree on everything, but it shows they can talk through matters and come to an alignment.

“We don’t always have to be right. The franchisee doesn’t have to be all right,” he says. “As long as we’re doing it in the best interests of the consumer and the team member, then we win.”

Mezvinsky says the key is mutual listening. He describes the relationship as a two-way street where both parties benefit from understanding and collaborating. He adds that acting as a unified system is more beneficial than internal disagreements, as it directs energy toward external competition and attracting more consumers.

He acknowledges though that healthy debates with franchisees can be productive and bring the brand forward.

“Franchisees help push us, and it’s actually good when we disagree sometimes,” Mezvinsky says, using the example of the Defy restaurant, an idea that originated from a franchisee. Similarly, many Cantina restaurants have been driven by franchisee initiatives. He also notes that good ideas come from anywhere and that Taco Bell has shown a willingness to learn from all suggestions.

The franchisees, in combination with Taco Bell’s continuous work around marketing, digital efforts, and global growth, fuel Tresvant’s optimism for the brand’s future.

“At the end of the day, if we can’t have fun working at Taco Bell, I’m not sure what we’re doing,” Tresvant says. “So we’re going to be a growth brand. We’re going to be digital-forward, we’re going to take some big swings, but for sure, we’re going to have some fun while we do it.”

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QSR 50 QSR 50

ABOUT THE QSR 50 / The QSR 50 is an annual ranking of limited-service restaurant companies by U.S. system-wide sales. QSR magazine directly from restaurant companies from March to May 2024.

1 McDONALD’S

McDonald’s is the biggest restaurant chain in the U.S. in terms of systemwide sales, and industry onlookers should expect that to continue in the future, with the gap possibly becoming wider. McDonald’s is planning an aggressive expansion, intending to grow to 50,000 restaurants globally by 2027. This growth includes 1,000 new openings annually across the U.S. and international markets, supported by a robust investment in digital, delivery, drivethru, and development initiatives. The company is heavily banking on its digital ecosystem, planning to increase its active loyalty users to 250 million and boost annual systemwide sales to $45 billion through loyalty members by 2027. Additionally, McDonald’s is implementing technological advancements such as “Ready On Arrival” to streamline order preparation and improve customer experience

Last year also saw the unveiling of CosMc’s, a new small-format restaurant focused on customizable beverages like specialty lemonades, teas, and cold coffees. The first location opened in Bolingbrook, Illinois, with plans for nine more by the end of 2024. CosMc’s offers unique food items and classic McDonald’s treats, targeting the afternoon “3 p.m. slump.” This pilot will help McDonald’s explore the growing $100 billion specialty beverage market, with potential for broader expansion if successful.

In May, the chain revealed that it will invest hundreds of millions in a new digital marketing strategy, shifting focus from traditional media to grow MyMcDonald’s Rewards and digital ordering. Starting in 2025, U.S. franchisees will contribute 1.2 percent of digital sales to a new digital marketing fund. This investment should increase personalized customer experiences and improve e-commerce capabilities. Also, McDonald’s is expanding its outside partnerships. The fast-food giant will roll out Krispy Kreme doughnuts nationwide after a successful test in Kentucky. McDonald’s will offer three varieties—Original Glazed, Chocolate Iced with Sprinkles, and Chocolate Iced Kreme Filled—available via instore, drive-thru, and mobile app orders.

c DONALD’S NEW COSMC’S CONCEPT HOPES TO GAIN SHARE IN THE GROWING DRINK CATEGORY.

2

STARBUCKS

By net unit growth, Starbucks expanded by the most locations of any restaurant chain in America last year—just as it did the prior calendar. The java chain’s U.S. store count has widened by 902 (473 this recent stretch) from the start of 2021 to the close of 2023. After Subway, which retracted some 7,000 restaurants since early 2016, Starbucks is easily the second-largest brand in the U.S. at 16,346 shops year-end 2023. McDonald’s is next at 13,457. Given Subway slid 443 units to 20,133 in 2023, there is a path for Starbucks to become the No. 1 figure within the next few years.

However, Starbucks’ growth is just one side of the story today. The other is a challenged dynamic that

pulsed in Q2 2024 with the chain’s worst traffic performance (negative 7 percent) outside of the pandemic or Great Recession. Starbucks has a lot of changes underway with CEO Laxman Narasimhan at the reins, who began his tenure last March. Mainly, they center around digital engagement, like opening the app for all—not just loyalty members—while making mobile order and pay available in places outside the app; continued beverage and product innovation (“pearls” were scheduled to arrive in summer); and technology and equipment ties-ins to improve throughput and make it easier to execute inside units, such as the “Siren system,” Clover Vertica machine rollout, and “Deep Brew” AI expansion. There are broader efforts in motion, too, from trying to convey value to Starbucks’ “occasional customer” to shoring up the supply chain so high-demand products don’t go dry. Sizable shifts to Starbucks’ rewards platform are underway as well following a 4 percent decline on a sequential basis of

90-day active domestic members in the quarter. The 33-million member group, starting in May, began to see more exclusive in-app offers and upgrades to wait time algorithms. The decision to open it up came in July. Narasimhan also suggested there was an opportunity for Starbucks to expand dayparts, better serve peak morning demand, court families and kids, and ramp up late-night business.

A telling picture of some of the setbacks in Q2 flashed with mobile order and pay, which represented 31 percent of all transactions that quarter. The company witnessed a mid-teens percent order completion rate within the channel, meaning guests put items into their cart but decided not to hit send, “citing long wait times of product and availability.”

Overall, Starbucks, while scaling bigger than ever and solidifying its footprint of the future—more drivethrus—there’s a hill to climb operationally and from a guest and value perception front, both through social media chatter in recent months and the need to reengage loyalty users.

3 CHICK-FIL-A

During the pandemic, Chick-fil-A’s busy drive-thrus became a subject of social media lore of sorts. Not just how packed they were, but also the efficiency and creativity with which operators flowed cars through the line. Multiple-lane setups and employees walking through lines of cars brought the spotlight to an already industryhigh standard. It evolved through check-point systems of hospitality, workers greeting and engaging with cars multiple times en route, to consistent, accurate food and customer service in line with what guests at the counter were used to receiving. In fact, per Datassential’s Top 500 report, Chick-fil-A topped the firm’s consumer perception rankings across all 500 brands, from fine dining to midscale sit-down concepts. At 72 percent, Chick-fil-A tied Texas Roadhouse. At 73 percent, it was the No. 1 chain for “experience,” besting Ruth’s Chris Steak House and Texas Roadhouse, each scoring 70 percent. These anecdotal points translated to sales in a massive fashion. Chick-fil-A continues to

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grow across all fronts. In 2023, its drive-thru locations averaged $9.275 million, up from $8.51 million the prior year and $8.142 million the year before that. The top store made $19.094 million in 2023, which is more than the average sales take of a Cheesecake Factory, Outback Steakhouse, and Cracker Barrel, combined. As for broader sales, Chick-fil-A exited 2023 with total revenue and income of $7,888,050,586. A year ago, it was $6,373,786,108; and $5,764,153,899 in 2021. Chick-fil-A in 2022 approached the $19 billion mark in total systemwide sales as it closed with $18.815 billion (a sizable year-over-year jump from $16.674 billion the previous calendar). The brand soared past that milestone in 2023 to $21,585,752,000.

Chick-fil-A also sped up net unit growth to 141 stores. In the past two years, it was 100 and 102, respectively.

Going forward, it’s bankable Chick-fil-A will continue strengthening its core efforts while also looking toward accelerated expansion in Canada and Puerto Rico, as well as other potential markets.

4 TACO BELL

While many fast-food brands are looking to win back guests that have fallen off amid soaring costs for food away from home, is flexing its strong value muscle to attract and retain wallet-conscious guests.

U.S. systemwide sales crossed $15 billion for the first time in 2023, with comps up 6 percent and AUVs increasing 10.5 percent to $2.1 million. The chain managed to deliver 24 percent margins while still leading the quick-service industry in several key performance indicators.

Restaurants in low-income areas outperformed the rest of the system. The value menu—tweaked to be $3 and under—over-indexed compared to the testing stage. Around a third of Taco Bell’s sales are now flowing through digital channels, thanks to in-store kiosks that finished rolling out across the entire footprint last year alongside a substantial lift in active loyalty members. The chain is ramping up excitement for loyalty guests this year by introducing a new product every five weeks. That’s twice the rate of 2023.

The past few years have seen Taco Bell upgrade its tech stack with a new POS system and an automated inventory management tool. The pace of digital evolution isn’t slowing down anytime soon. The brand recently onboarded the Yum! Commerce Platform, an omnichannel engine that is expected to increase digital order capacity tenfold. The new system also is

playing into the value proposition by accelerating viral promotions. Additionally, Taco Bell is integrating into Yum’s consumer data insights system and expanding its pilot of AI voice technology in the drive-thru.

The chain netted 207 new units in the U.S. and 139 new units in international markets last year. It ended 2023 with 7,405 domestic and 1,159 international restaurants for a total of 8,564.

WENDY’S HAS SPENT 2024 RESHAPING ITS LEADERSHIP TEAM.

5 WENDY’S

Wendy’s has seen huge steps in its digital and drive-thru operations. A $100 million plan was unveiled to build its breakfast and digital business, which should boost customer engagement through product innovation and value offers. Additionally, Wendy’s is piloting drive-thru automation using AI technology to improve service levels and accuracy.

Leadership changes have also been made, with Kirk Tanner from Pepsi being appointed CEO. In May, the chain named Abigail Pringle president, U.S., and E.J. Wunsch president, International. Pringle, who joined Wendy’s in 2002, previously served as president, international and chief development officer. Wunsch, who joined in 2016, was chief legal officer and has extensive international experience. Tanner believes these dedicated roles will drive growth in sales, digital initiatives, and new restaurant development.

However, Wendy’s faced challenges with its dynamic pricing strategy, which led to negative media reactions and a subsequent need for damage control. The company clarified that its pricing model was not equivalent to surge pricing. Another big goal for the company is accelerating global unit expansion. The chain wants to achieve over 2 percent growth in 2024 and 3-4 percent in 2025. Franchisees are incentivized to open new stores due to better returns compared to older restaurants. The cost to build a Global Next Gen prototype is $1.9 million, similar to the cost eight years ago. Wendy’s build-to-suit program offers a levered

E.J. WUNSCH

ABIGAIL PRINGLE

KIRK TANNER

return in about 3.5 years. Approximately 70 percent of Wendy’s future growth is anticipated to occur outside the U.S., with a particular focus on the U.K. The brand hopes to expand to 45-50 units in the market by the end of 2024, with a long-term goal of reaching 400 stores in the region.

6DUNKIN’

Dunkin’ is officially back on a steady growth trail after retracting by a net 547 units in 2020—a number heavily influenced by the closure of 450 Speedway stores. Since being acquired by Inspire Brands, along with Baskin-Robbins, for $11.3 billion at the end of 2020, the brand has scaled by 161, 126, and 210 locations, respectively.

Dunkin’s average-unit volumes also climbed to $1.3 million last year, up from $1.2 million, and the brand has asset evolution on the mind, as well as continued international whitespace (there are roughly more units in Saudi Arabia than there are west of the Mississippi). Inspire, which also owns Sonic Drive-In, Jimmy John’s, Arby’s, and Buffalo Wild Wings, recently unveiled a “Universal Modular” design that could be fitted to any of its brands. It’s built off-site and stood up quickly and at a better ROI than traditional boxes. Additionally, the company is exploring co-location opportunities that can capture transactions with shared resources, such as crosstrained staff and equipment. There’s a Dunkin’-Jimmy John’s combo on Georgia Tech’s campus in Atlanta, for instance. Another vision of what’s potentially ahead is a Dunkin’-Buffalo Wild Wings GO (the counter-service iteration of the sports-bar chain) side-by-side operation debuted by a franchisee in Florida. The operator was a legacy Dunkin’ franchisee who decided to sign up with Buffalo Wild Wings and took advantage of a lease ending next door to his Dunkin’. As it has been for years, Dunkin’ also remains ahead of the pack with modern builds, including a 1,000-square-foot or so drive-thru-only concept that features multiple lanes, of which one serves order-ahead app business. They can be outfitted with a walk-up window as well. All told, Dunkin’s innovation DNA remains a physical and product strength.

7 BURGER KING

Burger King has been actively transforming its operations and strategy to regain market prominence. The chain has focused on remodeling and refranchising efforts, notably through the acquisition of its largest fran-

chisee, Carrols Restaurant Group, for $1 billion. This transaction intends to remodel 600 stores and refranchise them to smaller, local operators to improve performance and community connection. This shift is part of a broader strategy to modernize U.S. restaurants and lift franchisee profitability

The remodels play into Burger King’s new “Sizzle” prototype restaurant design, which focuses on a modern, efficient guest experience with kiosks, double-lane drive-thrus, and optimized kitchen layouts. The $400 million “Reclaim the Flame” initiative wants to refresh existing locations and encourage franchisees to adopt the Sizzle design, which is expected to become the standard for new builds and remodels. The plan emphasizes digital ordering capabilities and streamlined operations to increase customer satisfaction and operational efficiency. In April, Burger King announced it will invest an additional $300 million in its modernization plan to update 85-90 percent of U.S. locations by 2028. The brand’s strategy includes remodeling existing structures, converting single drive-thrus to double lanes, and introducing advanced kitchen equipment to boost sales and traffic.

Most importantly for Burger King, franchisee

 BURGER KING’S ‘RECLAIM THE FLAME’ PLAN IS WINNING BACK CUSTOMERS.

DUNKIN’

EBITDA is growing. Average profitability per restaurant increased nearly 50 percent in 2023, from $140,000 to over $205,000. The near-term goal is to reach $300,000 per store.

8SUBWAY

The biggest industry M&A blockbuster in some time closed in April with Subway’s sale to Roark Capital, a firm that backs giants Inspire Brands and GoTo Foods. Reports put the deal at about $9.6 billion—the largest transaction since Inspire’s $11.3 billion acquisition of Dunkin’ and Baskin-Robbins. What’s to come for Subway under Roark’s direction remains a story in flux. But the chain did join on a hot streak. Last year, according to Subway, it experienced positive global net growth for the first time since 2016, mostly thanks to international expansion. Although Subway’s U.S. count has shed about 7,000 venues since that time, it is headed in the right direction. The brand closed a net of 1,043 shops in 2021, 571 in 2022, and 443 in 2023. Even so, there are about 37,000 Subways through more than 100 countries. Globally, it’s the third-largest concept behind McDonald’s and Starbucks. The chain inked roughly 15 major franchise deals over the last couple of years, resulting in over 9,000 restaurant commitments spanning Europe, the Middle East, Africa, Asia Pacific, Latin America, and the Caribbean.

As it has for years, Subway’s update to a contemporary “Fresh Forward” image anchors progress. More than 18,000 units worldwide were revamped as of February, including 12,000-plus in North America. A record 4,000 remodels finished in the region last year. Subway’s global same-store sales hiked 6.4 percent in 2023, year-over-year, including 5.9 percent in North America, with the top 75 percent (a whopping 17,000 restaurants) up 10.1 percent.

Subway also said it exited 2023 with 12 straight quarters of positive comps. Global and North America digital sales lifted double-digits thanks to Subway MVP Rewards improvements and menu innovation. Subway Sidekick desserts were recently introduced as well as a fresh lineup of signature wraps on a new lavash-style flatbread.

Subway has also begun to welcome well-funded franchisees with multiple brands to join its network, allowing them to acquire stores from existing franchisees and expand into profitable markets. This

marked a departure from its traditional approach, which previously aimed to be the sole concept within a franchisee’s portfolio.

9

CHIPOTLE IS WILLING TO TRY MULTIPLE INITIATIVES TO IMPROVE EFFICIENCY.

CHIPOTLE

Chipotle has undertaken several initiatives to develop its operations and expand its reach. The fast casual marked its first new country entry in a decade by opening a restaurant in Kuwait. This expansion is part of a partnership with Alshaya Group, which plans to open additional locations in Dubai and other parts of the Middle East. To support innovation and growth, Chipotle doubled its venture fund to $100 million. This fund wishes to invest in areas such as supply chain improvements, agriculture, restaurant innovation, and automation. Notably, the brand has been testing a robotic digital makeline and the “Autocado,” a robot designed to streamline avocado processing

On the workforce front, Chipotle introduced new benefits tailored to its predominantly Gen Z employ-

ees. These benefits include a student loan retirement match program and access to a high-tech Visa card for credit building. The company also launched a hiring campaign, looking to add 19,000 employees in preparation for its busiest season. Additionally, Chipotle appointed Ilene Eskenazi as the new chief human resources officer to drive these initiatives. The company also grappled with the effects of California’s minimum wage hike, raising menu prices at several locations to offset increased labor costs

One big move was the announcement of a 50-forone stock split to make its shares more accessible to a

broader range of investors. Another was the closure of its virtual brand, Farmesa, to refocus on core business operations. Farmesa, which operated out of a ghost kitchen, was shut down after Kitchen United shuttered its Santa Monica location.

10 DOMINO’S

Domino’s has focused on several key strategies and initiatives to drive growth and upgrade its market presence. In late 2023, the pizza company released its “Hungry for More” plan covering food, operational improvements, better value, and enhanced profitability for franchisees. The framework looks to capture $7 billion in incremental sales in the next five years and reaching close to 50,000 restaurants globally in the longer term. The strategy includes increasing annual global retail sales growth to 7 percent from 2024-2028 and boosting net unit growth to 1,100 stores per year.

Domino’s projects that it will reach over 7,700 U.S. locations and 18,500 international stores by 2028. The company also plans to boost franchisee profitability, targeting 8 percent annual operating income growth.

To provide greater value for customers, Domino’s signed a global deal with Uber Eats and Postmates to offer third-party delivery. The partnership aims to address delivery challenges and attract new custom-

ers. Domino’s drivers handle deliveries and customers can still use the Domino’s Tracker through the Uber Eats app. The deal marks a strategic shift for Domino’s, which had previously resisted third-party delivery services. Additionally in 2023, Domino’s launched a revamped loyalty program offering more opportunities for customers to earn and redeem points. The chain also introduced new menu items, including Pepperoni Stuffed Cheesy Bread and Loaded Tots, marking a notable step in innovation.

Domino’s franchisees are seeing financial gains, with average EBITDA per unit rising from $139,000 in 2022 to $162,000 in 2023, and targeting over $170,000 in 2024. The company emphasized franchisee success by adding over 60 new U.S. operators in 2023, the highest in 15 years, and maintaining a strong pipeline of future restaurateurs

11 PANERA

Panera is focusing on corporate restructuring, financial maneuvers, and innovative partnerships as it prepares to go public. Panera Brands, which includes Panera Bread, Caribou Coffee, and Einstein Bros. Bagels, confidentially filed for an IPO, targeting a public market debut in 2024. This move is part of a broader strategy to improve its financial performance and market position. In preparation for the IPO, Panera undertook substantial corporate restructuring, including laying off 17 percent of its corporate staff. This reduction aimed to streamline operations and improve efficiency. Additionally, the leadership team saw significant changes, with Paul Carbone appointed as CFO, bringing extensive experience from his tenure at Dunkin’ Brands, and former Krispy Kreme CEO Michael Tattersfield being named new chairman Earlier this year, Panera launched its largest menu update in history, introducing nine new items and enhancing 12 existing favorites. The revamped menu features soups, salads, sandwiches, and mac and cheese with larger protein portions and lower prices. New items include the Tomato Basil BLT and Ranch Cobb Salad, all priced under $10. The changes should simplify operations and improve customer experience by focusing on core offerings. Panera will also offer exclusive previews to MyPanera members before the public launch.

PAUL CARBONE

MICHAEL TATTERSFIELD

DOMINO’S FOCUS ON LOYALTY AND MENU IS LEADING TO BETTER SALES.

n Access to Multiple formats to support and maximize your choice of real estate

n Technology, Innovation and metrics-driven business model that keeps expenses inline and combats increases in operation costs

n Ranked Top 200 by Franchise Business Review in owner Satisfaction, with 86% who enjoy operating their business and 89% of owners who say they are likely to invest again

The fast casual also cut Charged Lemonades, which are the target of multiple lawsuits involving the death of customers. Low-sugar and low-caffeine drinks will replace the beverages.

12 PANDA EXPRESS

Panda Express has focused on partnerships, product innovations, and community initiatives. The brand collaborated with NRG, a major gaming company, to integrate its offerings with the popular game Rocket League, emphasizing the social nature of both gaming and dining. It also partnered with “Hot Ones” to launch a new limited-time dish, Blazing Bourbon Chicken.

The fast casual reintroduced its popular Firecracker Shrimp for a limited time and celebrated with special culinary dinners in Los Angeles and New York. Additionally, it launched Chili Crisp Shrimp, a new entrée inspired by Sichuan cuisine, offering a blend of spicy and crunchy flavors. A major milestone was the introduction of the Apple Pie Roll, the first dessert item in the company’s history, celebrating its 40th anniversary

13 PIZZA HUT

Pizza Hut’s U.S. division added a $7 Deal Lover’s menu to win over price-conscious customers last year. It also extended operating hours to attract more late-night traffic. In 2022, it made itself available on third-party delivery platforms, brought back the fanfavorite Big New Yorker Pizza, and launched a line of handheld sandwiches designed for individual meal occasions.

Those menu innovations and efforts to expand access to guests have helped the needle on a quarterly basis. Still, domestic system sales haven’t grown much year-over-year coming out of the pandemic. Pizza Hut’s U.S. division earned $5.6 billion in 2023, a slight uptick from $5.5 billion in 2022 and 2021 and $5.4 billion in 2020. The international division has fared better. System sales increased 6 percent and 8 percent in 2023 and 2022, respectively. Meanwhile, the development engine has been gaining steam. Pizza Hut is fast approaching 20,000 units around the world. Globally, it grossed almost 1,600 new stores in 2023—a new record for the company. Seventy-three markets contributed to brand development, including 900-plus locations across China, India, Turkey, Japan, and Canada. Stateside, the company netted 32 units, pushing its domestic footprint to 6,593 restaurants.

Pizza Hut kicked off a wide-ranging digital transformation five years ago when parent company Yum! Brands started deploying a suite of new tools across all of its businesses—everything from enhanced loyalty and POS systems to automated inventory and delivery sequencing platforms. Now, it is entering a second chapter aimed at leveraging the immense data assets generated from those tools. Pizza Hut recently integrated into a new U.S. cross-brand customer data platform that paves the way for personalization opportunities on digital channels. It also is tapping into the Yum! Global Data Hub, which captures a majority of global transaction-level sales data plus other operational and guest metrics.

14 SONIC DRIVE-IN

SONIC HAS REACHED NORMAL OPERATING ENVIRONMENTS, BUT CONTINUES TO REFINE ITS APPROACH.

Sonic’s U.S. unit count slid 25 stores last year after retracting by six the prior calendar. The year before that, it grew 26 and was riding a two-year same-store sales bump of 25.8 percent as its “car picnic” strength fit the landscape. The brand has settled into a more “normal” operating environment since, yet continues to refine its approach. Owner Inspire Brands shared a blueprint earlier in the year where a site that would have only housed a Sonic before could be rethought to include a Jimmy John’s on the same parcel of land. Inspire also opened a Sonic without seating last year in Cornelia, Georgia,

 PIZZA HUT IS TRYING TO PUSH SALES WITH INNOVATION AND VALUE PROMOTIONS.

which represented both the brand’s first drive-thruonly build and Inspire’s debut Universal Modular.

Following a November organizational realignment that focused Inspire’s business on three key segments—brands, commercial and company restaurants, and growth—Sonic is now overseen by chief brand officer Scott Murphy, who previously served as head of beverage & snacking and Dunkin’s president. Murphy directs all of Inspire’s chains—a move that company said would maintain each brand’s distinctive positioning, but also facilitate better coordination among the concepts and the company’s overall shared services platform. Jim Taylor, the brand president of Sonic who came over from Arby’s, reports to Murphy.

Of course, through these adjustments, Sonic’s menu cadence is as vibrant as ever, from Black Slush Floats (in honor of the solar eclipse) to Groovy Fries (the first fries update in more than 10 years, featuring a Groovy Sauce), to pulled pork items that hit stores in January.

15 POPEYES

Popeyes has focused on monumental growth and changes. RBI, the parent company of Popeyes, set a target to open 800 new locations across the U.S. and Canada by 2028, increasing the total store count from 3,400 to over 4,200. This expansion strategy also includes entering new international markets such as Italy. These efforts hope to bolster the brand’s global footprint, which has already seen considerable growth, with Popeyes now present in nearly 40 markets worldwide. Financially, despite some setbacks like the bankruptcy of a 17-unit franchisee, Popeyes has demonstrated strong performance. The chain has experienced consistent positive same-store sales growth, supported by successful product launches and promotions, including the reintroduction of Ghost Pepper Wings. Popeyes hopes to increase average franchisee profitability to $300,000 per unit by 2025, up from $245,000 in 2023.

Menu innovation continues to play a crucial role, with the permanent addition of wings and market-

ing efforts like the brand’s first Super Bowl ad, which have boosted customer engagement and visibility. Operationally, Popeyes is implementing a multi-year plan known as “Easy to Love,” directed at simplifying operations for franchisees and employees, enhancing guest satisfaction, and optimizing kitchen processes. This plan includes adopting best practices from international markets and focusing on modern and convenient restaurant designs.

Additionally, RBI appointed Jeff Klein as president of Popeyes U.S. and Canada, succeeding Sami Siddiqui. Klein, who joined Popeyes as CMO two years ago, brings 25 years of marketing and consumer insights experience. Previously, he was CMO for Little Caesars Pizza and held senior marketing roles at PepsiCo, including SVP and CMO for PepsiCo Foodservice.

16 KFC

Choppy consumer demand and growing competition in a crowded category are taking a bite out of KFC’s domestic business. The chain has pulled a few different levers to attract guests, leaning deeper into value promotions, rolling out a steady stream of new menu items, and introducing its first-ever rewards program. But traffic remains a challenge.

“The KFC brand in the U.S. has been struggling,” Yum! Brands CEO David Gibbs said during the company’s Q1 earnings recap this spring, hinting at work that’s going on behind the scenes to “boldly reset the brand.” He didn’t offer details on what that work looks like but said the playbook takes a cue from the brand’s international division.

JEFF KLEIN

 POPEYES IS NOW LED BY JEFF KLEIN, WHO JOINED THE TEAM TWO YEARS AGO.

KFC WILL LOOK TO ITS INTERNATIONAL BUSINESS TO HELP BOOST THE U.S. SEGMENT.

While KFC has been losing share in the U.S. and shrinking its domestic footprint, a completely different story is playing out overseas, where the brand’s strength is hard to match. Internationally, comps lifted 9 percent in 2023, while the U.S. rose 2 percent. System sales hiked 14 and 2 percent, respectively. The company opened a record high of 2,267 new stores across 96 countries in 2023. That put its total footprint outside of the U.S. at 26,109 stores. More than 80 percent of that came from 15 publicly traded franchisees. Among those was Yum! China, which crossed 10,000 KFC stores in Q4, with nearly 40 percent of them built in the past three years. The company kicked off 2024 by crossing the 30,000-unit threshold with an opening in Rome, Italy. Long-term, KFC sees an opportunity to reach 50,000 worldwide.

The company had 3,971 domestic stores at the end of 2023. After seeing U.S. net positive growth in 2021 for the first time in 17 years, it shuttered a net of 162 restaurants combined in 2022 and 2023.

17 DAIRY QUEEN

Dairy Queen’s global footprint collected record-breaking sales for four years, culminating in $6.37 billion in 2023 (worldwide). There are now 7,500 restaurants in 20 countries for the Minneapolis-based concept. While Dairy Queen’s unit count declined by 32 in the U.S. last year, system sales bumped from $4.579 billion to $4.968 billion—a reflection of newer, more modern facilities that provide franchisees the opportunity to more efficiently process additional transactions. The chain, whose vast majority of stores in the U.S. and Canada serve full hot food and treat menus (chicken strips, burgers, fries/onion rings, and treats), closed 2023 with AUVs of $1.168 million, up from $1.063 million the year before.

In April, Dairy Queen made two key hires. It tapped Jane Friedrich as EVP, research and development, where she’ll set the strategic vision and lead a team to R&D ingredients and menu items, while overseeing food safety, quality, and regulatory standards. She arrived from Cargill, where she spent more than 20 years. The company also brought in Gregg Benvenuto as vice president of franchise development in the U.S. and Canada. His resume includes stops at Dine Brands, Papa Murphy’s, and The Coffee Bean and Tea Leaf, as well as time as a franchise business consultant at Yum! Brands.

18 ARBY’S

The brand that started Inspire (Arby’s Restaurant Group acquired Buffalo Wild Wings in February 2018 to kick things off) had held steady in recent years. It expanded by six units in 2022 before retracting by two this past year. And Arby’s average-unit volumes climbed to $1.4 million from $1.3 million during that span. There have been some offbeat marketing activations of late, too, including a Horsey Sauce inspired by Beyoncé and merchandise celebrating the release of “GOOD BURGER 2.”

19 JACK IN THE BOX

Jack in the Box opened 20 new restaurants and closed 15 in its fiscal 2023, marking its first positive net new unit growth since 2019. It signed 123 new store commitments last year and entered 2024 with around 80 locations in the design, permitting, and construction phases.

Getting the development flywheel going again has been a key priority for the San Diego-based burger chain since 2021, when it relaunched a franchise development program after a decade-long hiatus. Now, it has its sights set on reaching 2.5 percent annual unit expansion by 2027. Folding in growth projections for sister brand Del Taco, the company anticipates opening at least 90 new stores per year by then. Longer term, it thinks there’s enough whitespace across the country for Jack in the Box to reach 5,750 restaurants. In 2024 and beyond, the company hopes leveraging high sales, improving restaurant-level economics, and strengthening development capabilities will drive a $2.5 million AUV, a 20 percent digital sales mix and $1 billion on a dollar basis, a 15 percent four-wall franchise EBITDA, and less than a five-year payback.

JANE FRIEDRICH

GREGG BENVENUTO

 ARBY’S HAS PUSHED OUT UNIQUE MARKETING PROMOS.

JACK IN THE BOX WANTS TO REACH 2.5 PERCENT ANNUAL UNIT GROWTH BY 2027.

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$2 billion+ GLOBALRESTAURANTS

20 PAPA JOHNS

The biggest news out of the pizza chain in recent months arrived when CEO Rob Lynch left the company in March to take the reins at Shake Shack. CFO and former Nike executive Ravi Thanawala stepped into the interim post. Lynch, a former Arby’s president, joined Papa Johns in August 2019 and guided it through some turbulent times, first emerging from controversy tied to its founder and then working through a COVID stretch that initially provided tailwinds (thanks to off-premises growth) and then hurdles in the form of labor challenges and softness in consumer spending habits. More recently, Thanawala shared with investors third-party delivery—a space Papa Johns got into before much of its competitive set in 2019—was performing well, representing 16 percent of sales in Q1 2024 compared to 12 percent a year ago. However, lower-income guests caused a notable decline in first-party delivery and a flattish result in carryout sales. In all, it totaled a 2 percent drop in North America same-store sales. Lower traffic and consumer check management carried over into Q2 as well.

Going back a few months, Papa Johns introduced a “Back to Better 2.0” plan designed to refine its business and stimulate growth. Central to this is a 20 percent increase in contributions from domestic franchisees to the national marketing fund. Thus far, it’s involved a new “Better Get You Some” platform that showcases Papa Johns’ ingredients and a “universal love for pizza.” The campaign features dynamic visuals, a new soundtrack, and a hip-hop-themed multimedia experience created with Grammy-winning artist Big Boi and

director Dave Meyers, along with the Martin Agency. Papa Johns lifted its U.S. store count by 20 units in 2023 and expects the entire North American view (Canada included) to pace 20 percent net growth this year, and for the company to open a gross of 100–140 new stores in other parts of the world. Part of the “Back to Better” positioning also included the reveal of Papa Johns’ largest development incentive in company history. It noted it would “deliver significantly higher restaurant-level EBITDA margins during the first five years of operations through a waiver of national marketing fund contributions.”

21

WHATABURGER

Whataburger has been on a growth spurt lately, moving into various markets well beyond its Texas origins, where the bulk of its restaurants are located. It netted 72 restaurants last year, pushing into several new states and crossing the 1,000-unit threshold. That represented a nearly 40 percent year-over-year increase in new store openings. The system remains largely companyowned. Franchised locations account for around 17 percent of the total footprint.

The burger chain earned $3.78 billion in systemwide sales in 2023, up 13 percent from $3.34 billion in 2022. AUVs increased 6 percent to $3.962 million.

Whataburger’s menu and store design are evolving alongside its geographic reach. It has expanded its offers with items like boneless wings and cold coffee lately. It also debuted its first Digital Kitchen unit last fall. The prototype is similar to a standard restaurant at roughly 2,300 square feet, but it is exclusively off-premises and features a mobile order lane instead of a traditional drive-thru. It is completely cashless and solely relies on customers using the website, app, or outdoor self-service kiosks to order meals. Guests also have the option to pick up food through exterior, weather-resistant food lockers instead of the mobile order lane.

RAVI THANAWALA



RAVI THANAWALA IS SERVING AS PAPA JOHNS’ INTERIM CEO AFTER THE DEPARTURE OF ROB LYNCH.

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22 RAISING CANE’S

Raising Cane’s remains one of the industry’s fastest risers. Just from a store-count perspective, it lifted by 79 in 2022 and 81 last year. And its $5.69 million AUV (higher than last year’s $5.44 million) was behind only Chick-fil-A among the entire QSR 50. That was true in 2022 as well. But it’s the wider picture that presents the most allure. Co-CEO AJ Kumaran told QSR earlier in the year the brand expected to eclipse $6 million per unit in 2024 and debut 90-plus locations. A New York City flagship that opened in Times Square was pacing north of $20 million for year 1. As of May, Raising Cane’s had put down an eye-popping 62 straight quarters of positive comps, or some 15 and half years. That AUV figure more than doubled since 2015. In Q1 2024, same-store sales hiked 15.1 percent, driven by an 11.4 percent rise in guest counts during a time when (very) few restaurant chains expanded on any line other than price. Also, there were more than 350 locations in the pipeline.

In other terms, Raising Cane’s rapid ascension has no downturn in sight. The chain increased the number of employees per store to more than 100 and planned to promote over 2,000 crew members this year alone. Hourly managers are earning at least $18 per hour and Raising Cane’s continues to emphasize development pathways—like its Restaurant Partner Program where managers can become operators—to strengthen the system from the inside out as it supports that robust development.

RAISING CANE’S AUV HAS MORE THAN DOUBLED SINCE 2015.

23 LITTLE CAESARS

Little Caesars spent the past few years plotting aggressive franchise growth, ramping up the rate of new store commitments by targeting multi-unit deals with operators in specific markets. At the same time, it focused

on speeding up development, adapting its carryoutfocused model with digital and delivery options, and diversifying its asset mix with drive-thrus and nontraditional units.

Those efforts are starting to pay off. Little Caesars is back in expansion mode after seeing its U.S. footprint shrink coming out of the pandemic. The pizza chain shed nearly 100 locations between 2019 and 2022. It returned to net unit growth in 2023, adding 44 locations and ending the year with 4,217 restaurants. Now, it projects to open upwards of 90 franchised stores this year. A new POD program could pour some fuel into the growth engine. The company late last year added a modular unit to its prototype portfolio. The prefabricated buildings are constructed in Las Vegas and transported to their final location by a semi-truck. Since manufacturing and site work occur simultaneously, projects can be completed in up to half the time as traditional construction.

24 WINGSTOP

Wingstop has shown remarkable growth and developments in expansion and financial performance. The chain achieved a milestone by opening its 2,000th global restaurant in Pittsburgh. The fast casual aims to grow to over 7,000 restaurants worldwide, with a substantial increase in both domestic and international locations. The chain raised its 2024 outlook to a net of 275 to 295 net new restaurants,

up from approximately 270. That implies a unit growth rate well past the chain’s target of 10-plus percent. New markets Canada, Puerto Rico, and South Korea are achieving record sales weeks.

Wingstop has demonstrated impressive financial gains. In the first quarter of 2024, same-store sales surged by 21.6 percent, driven primarily by transactions. This growth is underpinned by a successful customer acquisition strategy that attracts higherincome Gen Z and millennial customers, many of whom are new to the brand. Wingstop’s AUV reached over $1.9 million, and the company reported a 37 percent increase in systemwide sales during the first quarter. The wing company keeps building brand awareness in the quick-service segment by placing advertisements during major live sports events, like the NFL and NBA playoffs.

A big driver of Wingstop’s success has been its investment in technology. The chain dropped $50 million on developing a proprietary digital platform, MyWingstop, which enhances personalized customer interactions and addresses retention and frequency of visits. Additionally, Wingstop has leveraged digital ordering channels, which accounted for a record 68 percent of total orders in Q1 2024. The brand’s digital database has expanded to over 40 million users, facilitating targeted marketing and customer engagement

25

JERSEY MIKE’S

Earlier in 2023, Jersey Mike’s laid some long-term targets on the table. The goal for 2024 was to open 350 locations (it expanded by 287 in 2023). A similar figure would be on deck for the following year. But, come 2026, the sandwich chain believes it can lift that to 400 or 450 openings before settling into a cadence of 13–15 percent annual growth. That would represent roughly 10–15 debuts per week, or 5,000-plus total domestic locations within five years. Ultimately, Jersey Mikes sees 10,000 units on the horizon.

What makes Jersey Mike’s blueprint worth tracking is the brand has a history of honoring its aspirations. In the fall of 2021, the brand projected it would open 250 restaurants. It brought 246 to market. CEO Peter Cancro noted then the ensuing goal would be to reach 300 net openings in 2022. Jersey Mike’s posted 297, which was more like 308, he explained, when you consider relocations and semantics of development. In the past six years, Jersey Mike’s has expanded by 1,342 locations.

Arguably, equally, if not more, impressive during this run have been store-level results. Jersey Mike’s AUV in 2019 was $824,000. It exited 2023 at $1.3 million—well ahead of much of the sandwich field.

A Wall Street Journal report surfaced in April of a potential $8 billion sale to Blackstone, a private equity giant that eventually bought Tropical Smoothie for $2 billion later the same month. Nothing materialized and the brand said it wasn’t looking to sell. For now, it simply remains the fastest-growing sandwich chain in America, and one that hit a milestone last year when it opened in Alaska, its 50th state. California hosts the most Jersey Mike’s restaurants, followed by Florida, Texas, North Carolina, and home state New Jersey.

26 CULVER’S

Few fast-food chains are expanding as consistently as Culver’s, which remains family-owned and operated alongside an investment from Inspire Brands, Subway, and GoTo Foods backer Roark Capital. The brand lifted by a net of 52 locations in 2023 and is fast approaching a four-figure unit count. It exited the year with 944 restaurants, the vast majority of which are franchised.

Culver’s opened 50 stores in 2019 and 2020, respectively, and followed with 55 net openings apiece in 2021 and 2022. That means it has added 262 locations since 2019. Sales have followed a similar trajectory. The chain’s AUV clocked in at $3.487 million in 2023, a material rise from 2022, when it was $3.28 million, and 2021, when it was $3.099 million. The chain’s AUV was $2.624 million in 2020 and $2.453 million in 2019. In short, it emerged from the pandemic making roughly $1 million-plus more per location than it did going in. The Wisconsin-based burger chain is projected to add

CULVER’S HAS ADDED 262 UNITS SINCE 2019.

another 51 units this year, with 60 franchise agreements signed and outlets still waiting to be opened. If that happens, it could cross into 2025 with 995 restaurants.

JIMMY JOHN’S

In early 2024, Inspire Brands announced plans to take Jimmy John’s global with two franchise deals. The pair of agreements marked the first time Inspire had brought a brand international (it inherited overseas business but hadn’t launched there). Jimmy John’s now plans to grow in Canada and Latin America. The former will be with Foodtas-

tic, a franchisor that oversees north of 1,100 locations through a collection of concepts, including Freshii and Pita Pit. The Latin America deal was with Franquicias Internacionales, a group based in El Salvador whose portfolio runs from F&B to digital media and logistics. It’s unclear how many Jimmy John’s will open in either. However, Inspire noted the news was part of a broader global expansion approach that would “usher in a new way for international guests to enjoy [Jimmy John’s] iconic menu …”

A year after retracting by 25 stores in the U.S., Jimmy John’s expanded by a net seven in 2023. It’s also seen AUVs rise from $866,000 to $936,000 during that two-year period. The chain’s menu innovation in recent months included a Firecracker Wrap with new custom-made Firecracker Jimmy Chips dusted with red, ghost pepper flavor, and a Red Velvet Brownie.

ZAXBY’S

Zaxby’s has expanded geographically, with developments in the Midwest and Dallas markets. New franchise owner Manish Malhotra is opening locations in Indiana and Kentucky, contributing to Zaxby’s surpassing 930 locations. In Dallas, the SIGWELL GROUP, led by Jade Sigler and her family, is bringing the fast casual to this growing market . Additionally, the chain announced its first entry into Phoenix, marking its 21st state

The company has also made moves to enhance its market presence and product offerings. The brand collaborated with YouTube star MrBeast to launch the MrBeast Box, a meal featuring Chicken Fingerz, Crin-

kle Fries, Cheddar Bites, Texas Toast, and a Feastables Milk Chocolate Bar. This collaboration intends to attract younger consumers and capitalize on MrBeast’s massive online following. That’s only a portion of the brand’s innovation work. It introduced Southern Fried Shrimp, a first-time seafood offering, and launched the Fried Chicken Philly sandwich, promoting it boldly in Philadelphia. In terms of corporate changes, Donny Lau was appointed as the new CFO, bringing experience from Dollar General and Yum! Brands

29 HARDEE’S

Parent company CKE Restaurants in April announced the separation of the Carl’s Jr. and Hardee’s brand, and, in turn, a new business approach with a leadership structure with three teams. Each will be led by a president in charge of strategic growth. The news highlighted Mike Woida continuing as president of international; Chris Bode, who was named Hardee’s USA president last fall; and Blake Devillier being the latest hire, coming on board as Carl’s Jr. USA president. Devillier officially started on April 1 from Yum!, where he was SVP of field operations for Taco Bell. Before, he spent more than 25 years at GAP, Inc, with roles at Banana Republic, Gap brand, and Old Navy. Hardee’s unit count in the U.S. last year slid by 45 stores. Bode joined the company as COO in September 2022 after 11 years with Denny’s. He also clocked time at Dunkin’ Brands as COO for QSR Management and VP of development and construction.

30 BOJANGLES

From a development standpoint, 2023 was a watershed year for the chicken chain. Bojangles said it added 270 units to its pipeline and put the pieces in place to enter new markets across America. The brand’s expansion path now includes an updated store design, staffing model, and streamlined menu that centers on boneless chicken across three dayparts. In addition to filling that pipeline, Bojangles opened 40 new restaurants last year (25 net

BOJANGLES, MOSTLY BASED IN THE SOUTHEAST, IS SIGNING FRANCHISE DEALS IN NEW U.S. MARKETS.

in the U.S.), with 10 of those being in fresh markets. The 25 net expansion is 10 ahead of 2022’s 15 openings. In April, the brand announced the signing of a 30-unit agreement to bring the concept to L.A. for the first time by 2025.

The strategy at work today arrived in 2021 with the aforementioned boneless chicken menu that features the best of Bojangles, including Bo’s Chicken Tenders for lunch and dinner, with no bone-in chicken (legacy markets are keeping the bone-in options). The “Genesis” building prototype has an ergonomic layout with digital menu boards, dual drive-thru lanes, and a labor model that works to simplify operations, reduce complexities in the kitchen, and boost guest experience. Particularly on the staffing note, there’s a restructured team able to handle high-traffic volume and streamline hospitality with enhanced team training, as well as outside order-takers and food runners for the drive-thru.

Nearly 40 percent of sales at Bojangles arrive before many competitors open their doors in the morning daypart. There are currently six total prototypes and the “Biscuit Theatre,” which details a 49-step biscuitmaking process made by Certified Biscuit Makers, remains a lead feature.

31 FIVE GUYS

The burger brand lifted its yearover-year U.S. unit count by 67. It also recently opened its first airport store outside the country with a Terminal

MIKE WOIDA

CHRIS BODE

BLAKE DEVILLIER

CHICKEN TOSTADAS WITH CACTUS CORN SALAD

3-Concourse B venue in Dubai. The 6,200-square foot spot—the brand’s 15th in the UAE—is also its largest location in the region.

32 CARL’S JR.

Alongside the news mentioned in Hardee’s QSR 50 recap, CKE shared in May a new agreement with Boparan Restaurant Group to develop Carl’s Jr. restaurants in the U.K. and the Republic of Ireland. The partnership deepens Carl’s Jr.’s European presence, which includes nearly 100 restaurants across

Spain, France, Denmark, Turkey, and Switzerland. CKE said the California-born brand plans to accelerate growth overseas. It currently boasts more than 1,100 international units in over 35 countries around the world. The U.S. footprint dropped by two locations in 2023.

33 DUTCH BROS

In 2023, Dutch Bros made major strides in its growth and operational strategies. The coffee chain, which ended the year with 831 shops, plans to surpass 1,000 locations by 2025. Dutch Bros has focused on a company-operated model since 2017, halting new franchise awards to existing franchisees only. This shift has supported a robust expansion strategy, particularly in high-growth markets like Texas, where the brand has rapidly established a presence since 2021

The company’s growth is underpinned by a strong leadership team. Christine Barone, who joined as president in early 2023, took over as CEO in 2024. Dutch Bros also welcomed new executives, including Joshua Guenser as CFO and Sumitro Ghosh as president of operations, to drive its ambitious expansion plans

Despite facing rising build-out costs, Dutch Bros is adapting by adjusting its real estate strategy and expanding its store formats. The chain is moving away from its traditional fortressing strategy, which concentrated stores in specific areas to build brand awareness

and reduce drive-thru times. Instead, it plans to spread stores more evenly across new markets.

Last year, Dutch Bros opened 159 new shops and is targeting at least 150-165 openings in 2024. The brand’s focus remains on enhancing customer experience and operational efficiency, with drive-thru sales accounting for 90 percent of its revenue. Innovations like AI and technology integration have played a crucial role in identifying promising markets and streamlining operations

Overall, Dutch Bros continues to build on its disciplined growth plan, aspiring to expand to 4,000 locations in the next decade while maintaining strong community connections and customer loyalty. The chain announced in 2024 that it will roll out digital ordering capabilities for the first time with the help of Olo. Tests began in Arizona and will spread nationwide by the end of the year.

34 TROPICAL SMOOTHIE CAFE

Tropical Smoothie Cafe is looking to continue its decade-long upswing under a new owner. After rumblings of a sale surfaced late last year, the company announced this spring that it was being

CHRISTINE BARONE

 AT DUTCH BROS, 90 PERCENT OF SALES COME VIA THE DRIVE-THRU.

acquired by private equity firm Black Rock Capital in a transaction reportedly worth roughly $2 billion.

The deal came on the heels of another strong year for the better-for-you chain. It finished 2023 with systemwide sales of $1.253 billion, up 17 percent from 2022, and an AUV of $980,000. It netted 174 new stores, earning it a place among the country’s fastest-growing restaurant brands and pushing the total footprint to 1,372 units. Nearly three-quarters of those openings were with existing franchisees. The chain also signed more than 150 franchise agreements. Additionally, 2023 marked the 12th straight year of positive samestore sales. The comps growth was largely fueled by ongoing momentum across digital channels, which mixed at just under 40 percent.

CEO Charles Watson said at last year’s QSR Evolution Conference that Tropical Smoothie Cafe has the potential to expand to 4,000 or even 5,000 units. By the end of the year, there were north of 850 units in the pipeline. If those developments proceed as historically, with an 85 percent conversion rate to operational restaurants, the company would exceed 2,000 outlets. Watson believes the fast casual has the necessary market presence, branding, and product offerings to double this count. That confidence stems from lower development costs and adaptable store layouts, with 40 percent of the current system featuring drive-thrus. About 45 percent of the new shops that opened last year included the popular off-premises channel..

35 IN-N-OUT

This past year for the cultfavorite included the announcement it would enter a new market in New Mexico—a rare, but suddenly more common move for the family-run burger shop. It said it was in the early stages of planning its first stores in the state. Openings in Albuquerque should happen by 2027. Expansion into other cities are expected beyond that. In-N-Out will use a distribution facility in Colorado Springs to deliver products to the upcoming New Mexico locations. At the end of 2023, In-N-Out opened in Meridian, Idaho. It journeyed into Colorado

CEO CHARLES

WATSON BELIEVES

TROPICAL SMOOTHIE CAFE COULD REACH 4,000 TO 5,000 STORES.

in 2020, Texas in 2011, and Oregon in 2015. The completely corporately owned chain also owns units in California, Nevada, Arizona, and Utah. Toward the start of 2023, In-N-Out revealed it would open its first restaurant east of Texas in the Nashville market by 2026, a move backed by a $125.5 million investment to build a 100,000-square-foot corporate office in Franklin, Tennessee.

SHAKE SHACK

Shake Shack CEO Randy Garutti announced his retirement after leading the company from a hot dog cart to over 500 locations globally. The fast casual later appointed Rob Lynch, former CEO of Papa Johns, as its new leader, effective May 20. Known for his successful turnaround strategies at Papa Johns, the industry veteran is expected to drive Shake Shack’s next growth phase. He will be tasked with navigating a competitive environment and maintaining Shake Shack’s premium position. The company wants to expand its omnichannel presence, leveraging kiosks, and enhancing marketing efforts. Shake Shack reported during its Q1 earnings call that kiosks are now its largest ordering channel

CHARLES WATSON

and its most profitable one. Average order values are at least a high teens percentage more than a traditional check thanks to recent digital enhancements that help with upselling. Inclusive of Q1, Shake Shack has achieved 13 consecutive quarters of positive same-store sales, with a 1.6 percent increase during the first three months of the year. After a slow January, sales improved in February and March. In April, same-store sales rose by 4.9 percent with steady traffic. The company reported its highest Q1 restaurant margin since 2019 at 19.5 percent and a record Q1 adjusted EBITDA of $35.9 million. The brand finished the first quarter with 525 restaurants globally, consisting of 338 in the U.S. and 187 internationally. The goal is to open roughly 80 stores systemwide in 2024. Half of that will be company-operated locations, which will be built at an average cost 10 percent lower than 2023. The brand is setting itself up to lower build-out expenses even further in 2025.

37 QDOBA

QDOBA, the No. 2 player in the Mexican fast-casual space, wants to double in size over the next decade. It is setting its sights on aggressive expansion under the ownership of Butterfly Equity, which took control two years ago.

After shuttering eight locations in fiscal 2021 and 2022 combined, the chain roared back with net growth of 14 restaurants last year. It wants to keep that momentum going with projected net openings of 50, 75, and 100 over the next three years. If all goes according to plan, it will be at around 1,075 restaurants by the end of fiscal 2027. It expects the portion of franchised units will grow to 90-plus percent by then, up from around 80 percent today. QDOBA will pair that unit growth with more brand awareness. The chain’s 2.25 percent contribution rate to the national marketing fund will grow to 3.25 percent in 2025. Meanwhile, this year will see $30 million in capital investment, including 85 company-owned remodels. QDOBA also plans to install digital menu boards in all corporate outlets.

In fiscal 2023, the brand earned $1.154 billion in sales. AUVs were $1.54 million, up 30 percent from pre-COVID times in 2019. About 70 percent of that growth came from price and 30 percent came from transactions.

38 FIREHOUSE SUBS

Firehouse Subs is aiming to become the first fully digital quick-service restaurant in America by 2025. This initiative involves replacing traditional cashier points with self-order kiosks,

reflecting a broader industry trend toward omnichannel ordering systems and reduced wait times. Another key element of its growth strategy is the 2024 Veteran and First Responder Development Incentive Pro-

 SHAKE SHACK WILL ENTER A DIFFERENT ERA WITH NEW CEO ROB LYNCH.

QDOBA WANTS TO DOUBLE ITS UNIT COUNT OVER THE NEXT SEVERAL YEARS.

ROB LYNCH

gram, which provides $100,000 upfront to veterans and first responders to open new franchises. This program aims to honor the company’s roots and attract franchisees who align with its mission. Financially, franchisees are seeing better unit economics. The chain’s average EBITDA per unit rose 38 percent in 2023, moving from $80,000 to $110,000.

39 EL POLLO LOCO

With new CEO Liz Williams at the helm, El Pollo Loco is drawing up a blueprint to drive sales, decrease costs, and ultimately spark new unit growth. It starts with improving brand awareness and the guest experience, with a focus on key differentiators like better-for-you grilled chicken and Mexican flavors.

The brand’s solid 2023 results and strong start to the current fiscal year show it already has the right building blocks in place. El Pollo Loco posted an AUV of $2.2 million last year, up 4.7 percent from 2022. Comps, average check, and transactions were all up in Q1 of 2024. Restaurant-level margin was 17.1 percent. Williams wants to see that grow to 20-plus percent through labor productivity gains. Other areas of focus

include accelerating the rollout of in-store kiosks and exploring opportunities for automation in the drivethru. Those initiatives come on the heels of a series of investments in consumer-facing technology, like the revamped loyalty program and enhanced online ordering capabilities.

Additionally, El Pollo Loco is looking to reduce the cost of the new prototype it has in the works. It also is aiming to improve its development capabilities by dedicating more resources toward the franchise business. Two corporate restaurants and five to seven franchised restaurants are slated to open in 2024, up from the five restaurants that opened in 2023. Williams believes the combination of reducing build-out costs and improving unit-level margins is a formula that will help reinvigorate the pipeline over time.

40 MARCO’S PIZZA

Franchise expansion continues to surge at Marco’s Pizza. The chain awarded 86 franchises last year and netted 77 new restaurants, bringing its total footprint to 1,144 units. Roughly half of the franchise system consists of multi-unit operators, and the development strategy will continue to center around multi-unit growth going forward. The company has invested in tools to help identify areas for expansion and support franchisees in real estate, construction management, field operations, and financing to help unlock the massive whitespace it sees across the U.S. International expansion in Latin America also is on the radar.

Marco’s is prioritizing investments in new technology alongside unit growth. Last year saw the rollout of Marco’s Order Management System (MOMS), a proprietary cloud-based platform that is owned and operated

by an affiliate of the company. Additionally, the pizza chain started testing a variety of last mile delivery options, like autonomous and electric solutions. Other areas of focus include investments in multichannel national advertising and ongoing product

LIZ WILLIAMS

development to diversify its offerings. The company brought in several fresh faces to head up its marketing efforts and tapped a new director of culinary innovation last year. On the menu front, it teamed up with Mike’s Hot Honey for a successful LTO and launched boneless wings as a permanent addition. It also introduced the Pizzoli, a handheld item that is proving to be the strongest selling new product in recent brand history.

41 McALISTER’S

In 2023, McAlister’s achieved $1 billion in sales for the first time. This milestone was driven by enhancing guest experiences, strong franchisee relationships, and national-scale solutions. The brand’s success is attributed to decision-making focused on guests, protecting unit-level economics, and leveraging fran-

M c ALISTER’S IS THE FIRST BRAND IN GOTO FOOD’S PORTFOLIO TO REACH $1 BILLION IN SALES.

chise ownership, with 95 percent of its roughly 540 units being franchisee-operated. McAlister’s flexible real estate strategies and innovative digital ordering have also contributed to its growth. These efforts have established the fast casual as a key growth engine for GoTo Foods, formerly Focus Brands, solidifying its market presence and future potential.

Also last year, McAlister’s cemented its status as a world-class caterer, focusing on contemporary solutions for breakfast, lunch, and dinner. Key innovations included new breakfast boxes and customizable toast bars. The brand leveraged its dependable reputation and streamlined ordering processes to increase customer experience and operational efficiency. By utilizing existing inventory and simplifying operations, McAlister’s achieved double-digit same-store sales growth in catering. The chain continues to explore new opportunities, including snack and dinner options, driven by data and franchisee collaboration.

42 DEL TACO

Roughly half of Del Taco’s locations were company-owned when Jack in the Box completed its acquisition of the brand two years ago. That figure was down to just under 30 percent heading into 2024. And it’s only going to get smaller. Del Taco covered a lot of ground on its journey toward an asset-light model last year. It refranchised 111 restaurants and entered 2024 with a 71 percent franchised system. It sees a clear path to refranchise at least 120 more locations over the next three years. That would give it a 90-plus percent franchised system by 2026. That initiative is helping Del Taco grow its pipeline of new

stores. It inked 128 fresh commitments last year. Most were with the new and existing franchisees that also signed on to take over company-owned locations. Several sales and profitability initiatives are underway at the Mexican food chain. There’s a menu simplification test that is showing signs of improv-

EDUCATE YOURSELF

ing sales and speed of service. Del Taco also wants to test new breakfast items through digital channels and make the morning daypart a recurring part of its marketing calendar. With the recent Shredded Beef Birria LTO generating some of the brand’s strongest traffic gains in recent years, it sees an opportunity for more premium offerings, too. There’s also a self-order kiosk test that comes on the heels of a major update to the brand’s loyalty program last year.

43 FREDDY’S FROZEN CUSTARD & STEAKBURGERS

Freddy’s Frozen Custard & Steakburgers netted a company-record 62 new restaurants last year, including its 500th location. Systemwide sales increased 14 percent to $925 million.

A series of major investments helped pave the way for that growth. In recent years, the company gutted and rebuilt its tech stack—everything from the POS system and the web platform to the loyalty program. It also switched from four cup sizes and five or six lids to three cup sizes and three lids. That alone saved approximately $3.5 million for the franchise system.

More updates are coming down the line. Last year, Freddy’s started rolling out a new prototype across corporate stores. It is optimized for digital experiences with an enhanced area for mobile order pickup and room to add kiosks. This year, it began installing a partially automated grill press alongside an updated kitchen display system. The new tools should help improve the made-to-order burger chain’s already impressive speed of service. It boasts an average drivethru time of around four minutes.

Ongoing investments to streamline the employee workload, boost consistency, and drive throughput are setting the stage for accelerated expansion going forward. The company entered 2024 with a pipeline of over 130 restaurants in development. It hopes to open about 65 of them before the calendar flips over into 2025. That’ll come with little to no closures, considering the brand has only shuttered 22 units since it first opened its doors in 2002. Freddy’s wants to get to 800 locations by 2026. It believes there’s enough whitespace in new and existing markets across North America to eventually reach 3,000 units.

44 CHECKERS/ RALLY’S

Checkers and Rally’s is in the middle of a leadership transition. Earlier in 2024, CEO Frances Allen announced her resignation to focus on board work. The industry veteran, who led the company since February 2020, will

remain until September during the search for her successor. Under her leadership, Checkers introduced a new store remodel, AI drive-thru ordering, and other innovations. The CEO search follows a significant restructuring in which the brand reduced its long-term

FREDDY’S BEGAN THIS YEAR WITH 130-PLUS STORES IN DEVELOPMENT.

ATLANTA MARRIOT MARQUIS

debt from $300 million to $75 million and secured $25 million for remodeling and growth. Ownership shifted from Oak Hill Capital Partners to creditors Arbour Lane Capital Management, Garnett Station Partners, and Guggenheim Investments.

45 CHURCH’S CHICKEN

is using insights from international operations to bolster execution across its domestic footprint. Namely, it’s consolidating multiple battering systems to improve efficiency. That’s just one initiative driving the brand’s resurgence under a largely new executive team. It also is reimaging existing restaurants with fresh design elements and making improvements to its digital experience.

Momentum started surging throughout the business last year. Church’s surpassed $1 million AUVs in the U.S. for the first time in 2023. It also posted a threefold increase in the number of domestic new deal

CHURCH’S TEXAS CHICKEN IS FOCUSED ON VALUE AND MENU DEVELOPMENT.

signings. Another factor driving the turnaround is a sharper focus on value—a return to the core strategy that shaped the business for most of its 72-year history. CEO Joe Guith told QSR earlier this year the chain’s customer base is more multicultural and significantly lower-income relative to its primary competitors. “We want to own that instead of running from it,” he said.

Going forward, the company will focus on menu development that unlocks multiple benefits, like its new spicy platform that Guith said tastes better and eliminates kitchen complexity. It also is gearing up to launch its first-ever loyalty program. And there’s a lower-cost prototype rolling out this year that shaves 700 square feet from the traditional build.

AUNTIE ANNE’S

Auntie Anne’s made waves in 2021 by opening its first drivethru location. Located in Wiley, Texas, the store featured two GoTo Foods concepts under one roof—Auntie Anne’s and its sister brand Jamba. While the pretzel chain already had many cobranded sites with Cinnabon and Carvel, the store in Wiley marked a significant move beyon d its typical food court setting.

In the three years since, GoTo Foods has opened over 20 co-branded Auntie Anne’s and Jamba locations. Approximately half of them feature a drive-thru lane. Stepping out of the mall has also sparked new opportunities for product innovation. This shift has allowed for more substantial menu items that can potentially serve as a meal replacement, especially when paired with a smoothie from Jamba, like the Pepperoni Bites introduced earlier this year.

Auntie Anne’s earned $762 million in domestic system sales in 2023 and had an AUV of $769,000. It added

19 stores to its footprint in the U.S. and entered 2024 with 1,198 units, including 1,187 franchised locations and 11 company-owned locations.

JOE GUITH

THE CONTENDERS/ From legacy chains to rising upstarts, here’s a look at 50 brands ready to break through in the coming years. All inform directly to QSR magazine. The list was ranked by total systemwide sales from the pool of submissions.

ation in this chart, except for where * is indicated, was submitted

47 PAPA MURPHY’S

Papa Murphy’s regained some momentum last year after softer traffic and elevated costs for franchisees weighed on its performance in 2022. The chain earned $758 million in systemwide sales, up slightly from $753 million in 2022 but down 6 percent on a two-year stack. It ended 2023 with 26 fewer franchised restaurants and 15 fewer corporate restau-

rants for a net decline of 41 locations. That marked an improvement from 2022 and 2021, when it posted net declines of 72 and 53 units, respectively.

The pizza chain continued leaning deeper into menu innovation with new take-and-bake offerings. Last year it added Monkey Bites, a shareable bread bites platform available in both savory and sweet varieties, along with an assortment of single-serve personal calzones that cater to a broader range of need states and use occasions. It also began running more national marketing campaigns and funneling more resources into digital channels to generate buzz around new launches.

A fresh headwind came in early fiscal 2024 with the loss of lower-income customers. EBT sales fell roughly 40 percent in the first quarter thanks to decreased government funding for the Supplemental Nutrition Assistance Program (snap). Eric Lefebvre, CEO of parent company MTY Food Group, told investors this spring the brand has many initiatives in the works and “a lot more is coming.” That includes changes in leadership—Papa Murphy’s appointed two new coCOOs late last year—as well as ongoing innovation on the menu and marketing fronts. More AI tools and strategic partnerships are on the horizon, too.

48 TIM HORTONS

In 2024, Tim Hortons opened a new shop in Metro Atlanta as part of its broader strategy to increase its U.S. presence. This expansion is spearheaded by Katerina Glyptis, recently appointed as president of Tim Hortons U.S., who aims to leverage

new, cost-effective store prototypes to drive profitability for franchisees. Tim Hortons ended 2023 with its largest number of U.S. restaurant openings in over five years. Additionally, it finalized agreements with operators to open in Arizona, Tennessee, Missouri, Delaware, and New Jersey. This year marks the 60th in Tim Hortons’ history. It’s also the 40th since Tim Hortons launched stateside in 1984 in Tonawanda, New York, at the northern edge of Erie County. Over 40 years, Tim Hortons’ U.S. footprint has grown through local, often smaller operators, as evidenced by the low restaurant counts in so many states. On a global scale, Tim Hortons sees significant growth in markets like South Korea and China, where it celebrated the opening of its 700th location.

49 MOE’S



TIM HORTONS IS FINDING MORE EXPANSION OPPORTUNITIES IN THE U.S.

50 SMOOTHIE KING

Smoothie King is on quite the hot streak. In 2023, the company saw record-breaking expansion, highlighted by a significant 11.5 percent increase in same-store sales and a notable jump instore traffic. The brand’s development pipeline added 189 new store commitments in 2023. This includes 39 franchise agreements and 20 area development commitments in Q4 alone, making it the largest signings quarter since 2017. Smoothie King also expanded into new markets, including Utah, Minnesota, Massachusetts, and New Hampshire, and reinforced its presence in Dallas-Fort Worth with 15 new units

Fueling this success was Smoothie King’s focus on menu innovation and marketing. The introduction of Smoothie Bowls in April 2023 was a triumph, with over 5.5 million bowls sold by year’s end. These bowls featured fresh fruit and premium granola, aligning with the brand’s health-conscious image. Additionally, Smoothie King launched new products like the SK Refreshers, a line of lightly caffeinated fruit beverages, and the Sleepy Girlzzz Smoothie, inspired by a viral internet trend

The fast casual also strengthened its brand through strategic partnerships and promotions. The company became the Official Smoothie of the Atlanta Hawks, marking its first professional sports partnership in Atlanta. This collaboration included the launch of a

Moe’s Southwest Grill has undergone a major transformation through “Project VICTORY,” focusing on building guest experience, streamlining operations, and modernizing its menu and restaurant design. Key changes include improving ingredient quality, updating service efficiencies, and introducing new sauces and flavor profiles. The initiative also involves redesigning menu boards and leveraging omnichannel growth to boost sales. This strategic evolution aims to position Moe’s for sustained growth and increased market competitiveness.

The fast casual also opened multiple new locations across the U.S. in 2023, including in White Lake, Michigan; Centerville, Ohio; West Babylon, New York; and Smyrna, Tennessee. Each grand opening featured promotions such as free burritos for a year to the first customers, along with community-focused events and giveaways.

Hawks-branded smoothie and reinforced Smoothie King’s commitment to promoting a healthy and active lifestyle

Smoothie King reported its fifth consecutive quarter of positive same-store sales in Q1 2024, opened 14 new stores, and signed 27 development commitments across 13 states. About 62 percent of new agreements in the quarter came from existing franchisees. The brand inked significant franchise deals in Las Vegas and San Antonio during the period. It also launched the Dude Perfect Smoothie, featuring blue spirulina, as part of its Clean Blends Initiative. This product, in collaboration with Dude Perfect, has driven sales and attracted a younger demographic.

Curbing Labor Challenges in Quick-Service Kitchens

How restaurant operators are achieving consistent quality.

According to the National Restaurant Association, at the start of 2023 there were 400,000 fewer people employed in the hospitality industry than in 2020, and an estimated 87 percent of restaurants were operating with insufficient staff. Amid these pressures, automation has emerged as a transformative solution, offering a pathway to streamlined operations, enhanced efficiency, and consistent service quality across locations.

Labor challenges are not new to the quick-service restaurant industry, but it has become more pronounced in recent years. According to the Bureau of Labor Statistics, there were still nearly 1 mil-

lion job openings in the restaurant industry, and restaurants faced an annual turnover rate of 74 percent—the highest of any industry in America, according to the reservation-software company Toast. The dual issues of labor shortages and rising costs have created a signiﬁcant burden for restaurateurs and operators. Rising labor costs underscore the ongoing diﬃculties faced by the industry. This situation has forced operators to identify alternative solutions.

Automation oﬀers a promising resolution to these challenges. “Reviewing processes and procedures in the kitchen that can be automated or streamlined can help operators bridge the gap,” says Ben

Leingang, director of national accounts at Alto-Shaam . “This is also where technology, and investing in the right solutions can deliver greater eﬃciencies in the kitchen.”

Automating kitchen solutions has several key beneﬁts like making implementation in quick-service kitchens more eﬃcient. “The ability to serve food consistently across locations to protect brand and customer satisfaction highlights the importance of maintaining high standards across all outlets,” says Stacey Turek, director of chain sales at Vulcan

Implementing kitchen automation requires meticulous planning and consideration. Operators must thoroughly evaluate automation solutions to ensure their menus can still be served—even if a failure occurs. It’s essential to anticipate potential issues, such as breakdowns due to use or abuse, and have contingency plans.

“It isn’t necessarily a robotic arm in a kitchen in an enclosed room without human touch,” Turek says. “Something simple like a basket lift that can remove a fryer basket without labor to avoid the costly waste of over-cooking products and creating food consistency from store to store is an example.”

As automation becomes more prevalent, the nature of employee training will need to evolve. Staﬀ will require training in more automated types of technology to fully use new systems. This shift in training focus will include understanding the operation and maintenance of equipment, troubleshooting common issues, and maximizing the eﬃciency of new tools.

The current skill sets of employees, the time required for retraining, and resistance to change are all factors operators must consider. However, automation can help reduce the need for skilled labor by

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SmartChain Kitchen Solutions

taking over repetitive and mundane tasks. “Programming takes away a lot of the manual labor and need for skill,” Leingang says. “If a program has been designed by a professional chef, it cooks to an exact desired level. Operators don’t have to plug in a skilled employee, any employee will do.”

Several key tasks in the back-of-house operations can benefit significantly from automation. These include inventory management, order taking, and food preparation. “Predictive ordering is a fantastic piece that can streamline many of the more mundane tasks allowing staff to focus on delivering exceptional customer service,” Leingang says.

The integration of automation and AI-powered systems in the kitchen is revolutionizing food preparation by streamlining processes and ensuring unifor-

mity. These technologies allow operators to maintain high standards with reduced labor requirements. “Automation and AI-powered systems also enhance eﬃciency and consistency in food preparation and cooking processes,” says Bob Dellert, vice president of sales and marketing for Garland Commercial Ranges.

While back-of-house automation focuses on efficiency and quality, frontof-house automation aims to improve the customer experience. Modern POS systems enable better communication between staff, streamline order processing, and enhance customer service. “Some other examples include allowing staff to split checks, run multiple credit cards, or fix errors in the system,” says Chris Hellmann, chief commercial officer at Restaurant Technologies.

However, there is a risk that front-ofhouse automation could reduce personalized service, a crucial aspect of the hospitality industry. “Labor and labor costs are an ongoing challenge within the industry,” Hellmann says. “The underlying risk with front-of-house automation is the loss of personalized service. There’s a reason the industry is referred to as ‘hospitality.’ So much of the experience for foodservice operators is the face-to-face interaction with customers.”

The trend towards automation in the quick-service restaurant industry is clear. “The trend is to get more out of a smaller amount of equipment solutions with less staﬀ to produce highly consistent ondemand cuisine,” says Chef John Reed, consultant for Taylor Company

Advances in front-of-house and backof-house automation are helping restaurant operators tackle labor issues. “It’s been clear for a few years now that the future of foodservice operations is in automation,” Hellmann says. “If you enter any trade show, you’ll see automation everywhere. Businesses are ﬁnding more ways to address the labor challenges while maintaining, or even increasing operating eﬃciency.”

Operators are also investing in automation solutions that benefit their employees by enhancing safety and retention. “Adding efficiency and quality is paramount to staying competitive in today’s environment,” Hellmann says. “Operators also need to invest in automation that benefits their employees—both for retention and safety.”

As the industry continues to evolve, the balance between automation and human touch will be crucial in delivering exceptional customer experiences while managing labor issues. “Anything that helps improve food throughput with less labor is going to be well received,” says Stuart Sharp, dealer sales manager at Hatco Corporation . “Whether it is automation or programmed activities that can be run automatically, this kind of solution is sought after.” The future of restaurants lies in smart investments in technology enhancing operational eﬃciency and customer experience. SC

Restaurant Technologies

Taylor Company

People who serve, products that solve. ®

SmartChain Kitchen Solutions

Maximizing Proﬁ ts and Minimizing Space

Enhance operations through efﬁcient solutions.

In the fast-paced world of the restaurant industry, efficiency is paramount.

As kitchens strive to meet increasing demands with shrinking resources, the need for innovative solutions becomes more critical. From advanced controls to multi-use equipment, and sustainable practices the evolution of kitchen efficiency is reshaping how restaurants operate.

One of the most signiﬁcant challenges in the quick-service restaurant industry is the transition to a more modern kitchen design. “A smaller kitchen footprint is the goal, however, operators still must sustain or increase output in a smaller space,” says Stacey Turek, director of chain sales at Vulcan . This trend reﬂects the broader industry shift towards maximizing dining space and minimizing kitchen size. By doing so, restaurants can accommodate more patrons, thereby increasing revenue potential.

“Kitchens are constantly evolving,” says Ben Leingang, director of national accounts at Alto-Shaam . “As menus evolve, the footprint and layout of your kitchen also needs to.” This evolution necessitates careful planning and innovative design to ensure that smaller spaces do not compromise eﬃciency or output.

Sustainability is another crucial factor driving kitchen efficiency. Restaurants are searching for energy-efficient solutions that reduce environmental impact and operational costs. By partnering with suppliers and brands that prioritize sustainability, restaurants can implement ecofriendly practices that benefit the environment and their bottom line.

Electric equipment is a prime example of sustainable innovation. “Electric equipment is far less complex and is easier to

maintain than gas equipment,” Leingang says. “Electricity is far more efficient. It has fewer parts and the same recovery rate.” The shift towards electric equipment simplifies maintenance while enhancing energy efficiency, making it a cost-effective choice for modern kitchens.

The trend towards multi-use equipment is transforming kitchen efficiency. “We’ve seen a big shift towards multi-use equipment because the one trick pony is not only expensive, but also inefficient,” Leingang says. “Even if it is inexpensive to purchase, it adds up compared to a more evolved kitchen.” Multi-use equipment saves space while reducing the need for multiple single-purpose devices, thereby cutting costs and increasing operational flexibility.

“Advanced controls with connectiv-

ity can be a game changer for operators and deliver real eﬃciencies,” Leingang says. “One of the biggest mistakes I hear is ‘I cook one to two things; I don’t need advanced controls’. When, in reality, advanced controls can deliver real data to help inform decisions.”

“There is a huge amount of data that can be used to inform better decisionmaking processes that will in turn deliver cost savings,” Leingang says. “Sometimes we are too focused on saving money in the short term, rather than the potential long-term gains.” By embracing advanced controls, restaurants can achieve significant long-term savings and operational eﬃciencies.

The demand for smaller kitchens and revised menus has also highlighted the importance of HVAC systems. Eﬃcient

Alto-Shaam

SmartChain Kitchen Solutions

HVAC systems are essential for maintaining comfortable working conditions and ensuring food safety, but they also represent a signiﬁcant investment.

Optimizing kitchen layout and workflow efficiency is crucial in overcoming these barriers. By designing kitchens that maximize space and streamline processes, restaurants can enhance both efficiency and employee satisfaction. This approach reduces costs and improves overall operational effectiveness.

Partnering with trusted brands is another key strategy for enhancing kitchen eﬃciency. “A trusted brand can provide access to resources, expertise, and support systems that help operators navigate challenges and stay competitive in the market,” says Bob Dellert, vice president of sales and marketing for Garland Commercial Ranges. Trusted partners oﬀer valuable resources and support, from training and maintenance to cleaning and maximizing uptime.

“Automation, multi-platform systems, and space eﬃciency are all playing big roles in providing solutions,” says Chef John Reed, consultant for Taylor Company. These technologies streamline various aspects of kitchen operations, from inventory management to food preparation, thereby enhancing overall eﬃciency. “Technology helps foodservice businesses maintain some control of an

industry that can often be chaotic,” says Chris Hellmann, chief commercial oﬃcer at Restaurant Technologies

It is essential for restaurant operators to understand their speciﬁc needs and

seek guidance from experts who prioritize their success over sales commissions. “Most want help, but they don’t know what it looks like,” Reed says. “Just throwing dollars at new equipment might not be the only solution. Without guidance, and those who have the best interest in their success, not just a commission in mind, operators may not get the help they need.”

The COVID-19 pandemic has also inﬂuenced kitchen design and operations.

“Quick-service restaurants still struggle with old designs and aging facilities where the focus was big dine-in, small kitchens,” Reed says. As the industry continues to adapt to new norms, the focus has shifted towards smaller kitchens that can support diverse and on-demand dining options.

This shift underscores the need for ﬂexible and eﬃcient kitchen solutions that accommodate changing consumer preferences and operational requirements. By embracing innovative designs and technologies, restaurants can stay ahead of industry trends and meet the evolving demands of their customers.

Investing in quality equipment is crucial for long-term eﬃciency and cost savings. “The cost of a warranty repair can often be more than what the product is worth,” says Stuart Sharp, dealer sales manager at Hatco Corporation . “This emphasizes the importance of quality trusted brands.” By choosing reliable and high-quality equipment restaurants can minimize the need for repairs and reduce overall maintenance costs.

Buying the right pieces of equipment is not just about immediate cost savings but also about ensuring long-term operational efficiency and sustainability. Trusted brands offer the reliability and support necessary to keep kitchen operations running smoothly and efficiently.

The path to kitchen eﬃciency lies in embracing innovation and sustainability. From smaller kitchen footprints and multiuse equipment to advanced controls and trusted partnerships, these strategies provide a roadmap for modernizing kitchen operations. By prioritizing eﬃciency and sustainability, restaurants can enhance their operations, reduce costs, and meet the evolving demands of their customers.

Garland Commercial Ranges

Taylor Company

Why Efﬁcient Kitchen Solutions Boost Customer Loyalty

The strategic way restaurant operators are keeping their consumers happy.

In the quick-service restaurant industry efficiency is not just a luxury; it’s a necessity. Streamlined kitchen operations can significantly enhance customer loyalty and satisfaction, providing a competitive edge in an increasingly crowded market. By focusing on operational excellence, quick-service restaurants can meet and exceed customer expectations, fostering a loyal customer base.

The foundation of any successful quickservice restaurant is its ability to understand and meet customer needs. “The best operators conduct regular customer evaluations and use their customers’ feedback and assessments to help them develop new techniques and formulations,” says Ben Leingang, director of national accounts of Alto-Shaam . This process ensures that restaurants remain aligned with their customers’ evolving preferences, leading to enhanced satisfaction.

Data analytics play a crucial role in optimizing quick-service restaurant operations. “Adapting to changing consumer preferences and dietary trends, operators leverage data analytics to optimize inventory management and menu oﬀer-

ings based on customer preferences and demand patterns,” says Bob Dellert, vice president of sales and marketing for Garland Commercial Ranges. Eﬃcient inventory management minimizes waste, reduces costs, and ensures that popular items are always available, enhancing the overall customer experience.

“In recent years, customers have come to expect more convenience, customization, and transparency in kitchen solutions,” Dellert says. “They value speed of service, food quality, and environmentally sustainable practices. Operators should communicate to consumers their needs are being met through transparent sourcing practices, menu transparency—regarding ingredients and nutritional information, eﬃcient order fulﬁllment, and environmentally friendly packaging and waste management initiatives.” By addressing these expectations, quick-service restaurants can build trust among their customers.

To stay relevant in the dynamic quickservice restaurant industry, embracing innovation and adaptability is crucial. “It’s essential to stay agile and continuously evolve operations, menu oﬀerings, and

customer experiences to remain relevant and competitive,” Dellert says. “Fostering a culture of collaboration and continuous improvement within the organization can drive long-term success in the dynamic foodservice landscape.” This proactive approach ensures that restaurants can respond swiftly to market changes and maintain a competitive edge.

Ultimately, quick-service restaurant customers are focused on results. They expect seamless ordering, quick service, and high-quality food. Any disruptions in these areas can signiﬁcantly impact their overall experience. “Customers are not concerned about how the operator does it; they are highly focused on the results in real time,” says Chef John Reed, consultant for Taylor Company

“As restaurant consumers, we want to know our money will be well spent,” says Chris Hellmann, chief commercial oﬃcer at Restaurant Technologies. “Whether it’s reading a review before visiting an outlet or asking for recommendations from a trusted friend, we want to spend our money wisely.” By consistently delivering high-quality food and service, restaurants can build a reputation for reliability and value, attracting repeat customers, and positive word-of-mouth referrals.

Eﬃcient kitchen solutions are a cornerstone of success in the quick-service restaurant industry. By focusing on customer feedback, leveraging data analytics, and meeting consumer expectations operators can enhance consumer satisfaction. Furthermore, partnering with trusted brands and embracing innovation increases customer loyalty. In a competitive market, these strategies not only drive immediate results but also build a strong foundation for long-term success. SC

Alto-Shaam

Alto-Shaam

W164N9221 Water Street

Menomonee Falls, WI

262-251-3800

alto-shaam.com

Alto-Shaam is an industry leading global manufacturer of professional food service equipment. As a private, multi-generational company since 1955, Alto-Shaam continuously responds to customer needs by pioneering cutting-edge solutions. Alto-Shaam offers an expanded, award-winning product portfolio, including revolutionary multi-cook ovens, Prodigi™ combi ovens, Cook & Hold ovens and heated holding.

Garland Commercial Ranges

1177 Kamato Rd

Mississauga, ON L4W 1X4 Canada

905-624-1419

garland-group.com

For 160 years, Garland Commercial Ranges has been a leading innovator in foodservice equipment, design, and manufacturing directly with our customers, collaborating on practical, effective, and long-lasting solutions, helping to bring their passion to the surface every day.

Hatco Corporation

635 South 28th Street

Milwaukee, WI 53215

414-671-6350

hatcocorp.com

Hatco Corporation is a proud employeeowned company whose brands include ADM, American Range, FWE and Ovention, Inc. Since 1950, Hatco has a history of excellence in the quality design, production, and servicing of warming, toasting, holding, cooking, sanitizing, sneeze guards and cooling equipment. To learn more, visit hatcocorp.com.

Restaurant Technologies

4771 Holly St Unit G Denver, CO 80216

866-399-3802

rti-inc.com

Restaurant Technologies is the leading provider of commercial kitchen solutions for over 40,000 customers nationwide. By automating the hardest tasks in the kitchen, Restaurant Technologies improves food quality, safety, and efficiency for its customers.

Taylor Company

750 North Blackhawk Blvd Rockton Illinois 61072

800-255-0626

Taylor-Company.com

With headquarters in Rockton, Illinois, Taylor Company is one of the world’s leading manufacturers of commercial grill, soft serve, and frozen beverage equipment. It has a long-standing reputation for superior engineering and exceptional customer service. Taylor Company is part of The Middleby Corporation. For more information, visit Taylor-Company.com.

Vulcan

3600 North Point Blvd Baltimore MD 21222

800-814-2028

vulcanequipment.com

For more than 150 years, Vulcan has been recognized by chefs and operators throughout the world for top-quality, energy efficient commercial cooking equipment that consistently produces spectacular results. Trust Vulcan to help make your culinary creations turn out just right—each and every time. Vulcan is part of ITW FEG.

The Plight of Restaurant Delivery

Chains are shifting orders to first-party channels and using gig fleets over in-house drivers.

BY SAM DANLEY

With third-party aggregators charging hefty commissions and consumers pushing back on higher prices for delivered food, restaurants are looking to steer customers to their own ordering channels. That’s particularly evident in the pizza segment.

The category has a complicated relationship with aggregators. With their long-standing inhouse delivery capabilities, many pizza brands initially resisted third-party delivery, until postCOVID staffing challenges pushed them to rethink that hardline stance.

“It’s been proven that the answer is yes, you have to play with third-party,” says Zach Goldstein, founder and CEO of Thanx, a loyalty and guest engagement platform. “It’s part of how diners expect to get food from restaurants.”

It isn’t just about higher prices and lower margins. Restaurants are missing out on valuable data and the ability to establish direct relationships with guests when orders come from third-party channels.

Restaurants still have a complicated relationship with third-party aggregators.

“It’s a battle for the lifetime value of the customer,” Goldstein says. “It’s very difficult to drive repeat purchasing from customers on third-party when you don’t really have a way to influence them.”

Variety is a key attribute driving behavior for many guests, he adds, and restaurants will never be able to compete on that front. There are other battles restaurants can win to close the gap, though. Third-party marketplaces have created digital experiences that are easy to use and reuse. They’ve made the process of selecting and buying foods simple and intuitive. Goldstein says that’s not an advantage that restaurants have the luxury of ceding to aggregators. They need to be equally if not more convenient.

Loyalty programs are table stakes for driving first-party delivery orders and encouraging repeat business. But it isn’t enough to rely solely on routine discounts.

“Recognizing your top guests with a special experience, giving loyalty members early access or extended access to LTOs, offering exclusive merch—there are a number of things we’re seeing brands lean into that are more experiential,” Goldstein says. “Using data from the loyalty program to drive personalized recommendations really works, too. Innovating and using that data to recognize that

not every guest is the same is what makes a modern loyalty program successful.”

A key metric for predicting future traffic growth is third purchase activation, which measures how effectively a brand brings back a first-time guest for two additional orders. The best way to get someone to come back for the third time is to have great food. There’s no getting around that. It’s also about making it convenient for them to make their purchases.

“Breaking through the noise of all the brands trying to talk to consumers is quite hard,” Goldstein says. “Have you learned from that first or second purchase so that the message you send them is relevant and personalized? And as you get more data, are you getting more personalized and segmented? You have to keep working at the program. You can’t just set it and forget it. That’s one of the things we emphasize as a key element of Thanx. We want to make it easier to dynamically evolve your program so that you don’t need a gigantic team of marketers and data analysts.”

The pizza segment has been a pioneer in both delivery and loyalty innovations, he adds. Transparency in

order status, for example, has become an investment in loyalty for many pizza brands.

“It goes back to making your first-party channel differentiated to drive loyalty beyond just using discounts,” Goldstein says. “That said, we’re seeing some really interesting stuff around price differences and the ability to get special promos for first-party. It’s about communicating to consumers why they should come direct.”

Frictionless digital experiences, personalized rewards, and other incentives for choosing first-party channels are only part of the equation. Pizza companies looking to drive more direct orders also need to focus on the delivery experience.

“It’s important to differentiate between third-party ordering and third-party delivery as to where the problems are,” says Meredith Sandland, CEO of Empower Delivery, a software-as-aservice company that powers off-premises-centric kitchens. “A lot of resources have gone into developing wonderful first-party ordering platforms and loyalty programs, which is very important, but now we have a whole bunch of restaurants that have invested on the front end while the back end remains broken. It’s still disjointed because they’re driving first-party orders and then fulfilling them with third-party drivers.”

A few factors are driving that uptick in second-party delivery models. Restaurants are getting rid of W-2 drivers and outsourcing to third-party couriers because they can pay per delivery instead of per hour. That’s only becoming more common as labor costs

continue climbing and efforts to eliminate the tip credit ramp up across the country.

Sandland says drivers increasingly prefer the flexibility that comes with 1099 contractor relationships, too. Combined with the increasing minimum wages, that’s making it harder to find and retain W-2 drivers at a cost that makes sense. And while outsourcing those operations offloads the hassle of managing your own delivery fleet, it also compounds other challenges.

“The restaurant loses control of that delivery,” she says. “They lose the ability to do the win-back. They start having all of this disjointedness between pizza readiness and driver availability. They’re subject to batching that they can’t control. And if they forget the salad dressing or something like that, there’s no way for them to fix it, because they’ve used a third-party to deliver the product.”

Empower Delivery created a product to help restaurants harness the benefits of both third-party and in-house fleets through dedicated, on-demand 1099 delivery drivers. The tool facilitates order-to-driver matching, routes delivery drivers, gives restaurants a view to courier locations, and provides customers with real-time order tracking. Pizza companies only pay for completed deliveries on a contract basis, which eliminates the need to forecast sales, schedule drivers, and put workers on payroll. It also avoids issues with callouts, no-shows, and overstaffing.

Sam

Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com.

Crossing the Border

Canadian brands eyeing U.S. growth find it a natural fit, but the stateside expansion comes with plenty of challenges.

BY SAM DANLEY

Tim Hortons entered the U.S. 40 years ago, establishing itself in markets where Canadians could make cross-border coffee runs. And while it’s added over 600 units in the country since then, the last four decades haven’t quite seen the coffee chain grab share the way it has up north, where there’s roughly one store for every 10,000 residents.

The brand started making a stronger push to grow in international markets after it was acquired by RBI a decade ago. Since then, it’s been implementing some changes to the U.S. business, adding more cold beverages and savory breakfast offerings and introducing new streamlined prototypes that come with lower CapEx and better paybacks for operators, says Ryan Ferranti, head of business development and franchising.

It’s also evolving its franchising strategy to accelerate growth in new markets across the country.

“Originally, we thought, ‘We’re close to the border in Michigan, Ohio, and New York. How do we grow around those?’ Then we looked around and said, ‘Perhaps a more optimal approach is to go to the places that are growing,’” Ferranti says. “That’s twofold.

What areas are growing, but also where are people from Canada and from our core markets in the Northeast and Midwest migrating? A lot of them are migrating south, so we have built-in brand awareness in those markets.”

To build density more quickly and effectively, Tim Hortons has shifted from relying on smaller, local franchisees to partnering with larger, more experienced multi-unit operators.

“Selecting the right markets and franchisees and changing the format, including both the actual prototype as well as our menu architecture—those three things were the pillars of what we needed to change,” Ferranti says. “Since then, we’ve seen a ton of success.”

Tim Hortons ended 2023 with its largest number of U.S. restaurant openings in over five years, including some important expansions into new markets like Texas and Georgia. It also has signed agreements to enter Arizona, Missouri, Delaware, New Jersey, Tennessee, and several other states.

Like many brands that cut their teeth in Canada, BURRITOBAR made its U.S. debut close to home. It awarded its initial master franchise agreement for Michigan and opened its first location in 2020 about 60 miles from the border. Two more stores in the state and one store in Delaware have opened since then. Leases have been signed or are under negotiation in Hawaii, Tennessee, and several additional parts of the country. Master franchise agreements have been awarded for nine other states, too.

“Following the proven formula in Canada, our tactic is to focus on developing the brand in suburban, secondary, and tertiary markets as a priority,” says chief development officer Jeff Young. “Once we build brand awareness and a critical mass, then we’ll shift to more urban settings.”

U.S. expansion isn’t just about replicating the playbook that helped it reach more than 300 locations in Canada, though. The Tex-Mex chain goes by the name barBURRITO in its home market but entered the U.S. under a different moniker to avoid potential trademark disputes. Now, it’s teaming up with a design and marketing agency to help facilitate the evolution of BURRITOBAR.

The franchisor is crafting a new look and feel for the brand with an updated logo and fresh design elements that Young says will “elevate all of the consumer touchpoints”

BURRITOBAR (top left), Odd Burger (right), and Tim Hortons see whitespace in the U.S.

KEEP

SAVE

hone in on what was working for us operationally and what would be hard to scale moving forward. We tightened everything and eradicated what was too much for us,” Krista says. “The pandemic gave us a chance to sit back and ask ourselves what and who we wanted to be as a company.”

Shaka Kitchen emerged from the pandemic more technologically sound, replacing its hand-drawn menu boards with a digital screen that connects directly with POS systems. While the original boxes were rustic and authentic, Krista says it became challenging with constantly fluctuating prices and stock levels. This is just one example of how Shaka streamlined itself post-pandemic.

In 2021, Kiersten appeared on and won the “Taco Brawl” episode of Food Network’s “CHOPPED”, fulfilling a life-long dream and attracting a new audience to Shaka Kitchen. In a world where chefs are valued only by their credentials, this elevated the self-taught Kiersten and brought her life full circle, as she used to dream of being on the Food Network as a child.

The journey to building a brand from scratch in their early twenties was difficult. Looking back, Kiersten and Krista say they felt alienated from others in their age group. They also felt isolated as entrepreneurs in a male-dominated space—growing up, they only had Food Network giants like Paula Deen and Barefoot Contessa to look up to, which were outliers and not the standard at the time.

“We were forced to grow up. We lost friends and relationships, and we couldn’t talk to anyone about it who would understand. We had to quickly throw ourselves into a mindset we weren’t necessarily ready for,” Krista says.

Shaka Kitchen’s third location opened in Morristown, New Jersey, in April 2024. This marks the first unit outside Hoboken and the sisters’ first foray into different markets. With annual sales ringing up to around $1 million yearly per location, Krista and Kiersten continue to refine their concept, growing locally before expanding outward and franchising. Eventually, they hope to develop a concept beyond brick and mortar. They emphasized slow, strategic advancement.

a strategy I learned in other industries and brought to Jack in the Box when I started.”

It starts with creating products guests are talking about and seeing what’s trending outside of the industry. Then the investigation process begins through social media channels or trend tours such as the one in Miami.

Specifically, Gabele drives connections with guests by creating a journey beyond hooking them with a compelling offer or trendy new item.

In her role, the biggest challenge is not leaping too far into the future—something she often did in the electronics industry working with up-and-coming technology. She often finds herself wanting to move faster than what’s possible, looking toward what’s next and what’s trending. Sometimes this friction turns into frustration, taking six months to develop a product a competitor is launching tomorrow.

“It feels like a game, moving quicker towards the right answer, but having empathy for what we’re putting in the restaurant is more important,” Gabele adds. “We’ve spent a lot of time building our back of house and making our core menu simple without losing variety. We focus on the partnership with our operations team so we’re not developing something they’re unable to execute. We immerse ourselves in their daily job, working all the stations … For example, packaging continues to confuse me, but we work together for solutions.”

When Gabele started a family of her own, she says it was the hardest moment in her entire career.

Not only was she a first-time parent, but she also had a team she didn’t want to let down. She was reminded of her childhood Girl Scout leader, who gracefully juggled her personal life, a career, and taught 8-yearolds how to sell cookies.

“I’ve always kept her in my mind as I navigated difficult transitions. I am a mom, but I am also a career person, and not only do I embrace it but I feel as if I can do it gracefully and show through an example that you don’t have to pick and choose,” Gabele says. “I can be a successful family person and business person. I think if you’re a great business leader, it doesn’t matter … It speaks for itself.”

and “reinforce our niche within the category.” That’s important, he adds, because Canadian chains looking to gain a foothold in the U.S. need to have a clearly defined niche within their respective segment. They also need to have “a compelling story of a resilient brand with a proven business model” along with “a rich history of success.”

“Generally speaking, Canada can be a challenging marketplace due to the higher costs of doing business,” Young says. “Occupancy costs, labor, cost of goods, and taxes are typically higher and AUVs are lower than south of the border. If a brand demonstrates that it can thrive in Canada, the U.S. offers a world of opportunity.”

With a population 10 times the size of Canada, America is an appealing market and natural extension for restaurant chains that got their start up north. But breaking into the U.S. comes with plenty of challenges. For starters, the intricate web of franchise regulations often makes entry more daunting compared to other international markets.

That’s something James McInnes, CEO of Ontario-based Odd Burger, learned to navigate when plotting the vegan fast-food chain’s stateside expansion.

In some states, brands must register their franchise disclosure agreement before offering or selling franchises. Those standards vary from state-to-state. Some include extensive details like financial statements and litigation history while others mandate only basic information. Some states have no disclosure requirements.

The company is gearing up to open its first batch of stores in two states next year. One requires registration and one doesn’t. But the decision about where on the map it should plant its flags first ultimately had less to do with registration requirements and more to do with its plan for building up a footprint and raising brand awareness in the country.

Odd Burger inked its first deal to grow in a state that borders Canada. It signed an area representative agreement to build 20 locations in Washington last year. It followed that up this spring when it signed its second agreement to establish 40 locations in Florida.

Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com

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START TO FINISH

Fabio Viviani

Founder JARS

What was your first job?

I discovered my passion for food as a young child. At 11 years old, growing up in Florence, Italy, I started working at a local bakery in my hometown baking pies. I grew up in a family that didn’t have much and even though you can’t be employed until 14–15 in Italy, I took a night job from midnight to 7 a.m. every night. I would then get my backpack at 7:15 before biking to school each day.

What’s your favorite menu item at JARS?

I have a huge sweet tooth so it’s difficult for me to just pick one. As of right now I have to say it’s our newest JAR that we partnered with the Girl Scouts on—the Mint Chocolate Chip Express Jar.

What is your favorite cuisine aside from what is offered at JARS?

My favorite cuisine has to be something with chicken and fresh pasta.

Who inspires you as a leader? My team always inspires me to be a better leader! I do it for them, and the more your team grows, the more you do.

What is the best piece of advice you have that other restaurant executives should hear? The best piece of advice I can offer my fellow restaurant executives is to prioritize authenticity in everything you do.

What are some of your interests outside of work? Outside of work, I enjoy spending time with my family, farming, and gardening, I also enjoy combat sports.

The restaurant industry has always been a passion of mine ever since I had my first experience working in a bakery in Florence, Italy, at 11 years old. Learning all I could about the industry over the years, and participating on “Top Chef,” eventually led to the opening of my first restaurant hospitality company in 2015, which has continued to grow since. The most important thing I have learned on this journey is the importance of continuing to evolve with the industry while staying true to your brand and what you wish to accomplish with it.

It is no secret that the COVID-19 pandemic permanently changed the landscape of the restaurant and hospitality industry in several ways due to the inability to interact with others, labor issues, and rising costs. While that time created a struggle the industry that many are still recovering from, it was an eye-opening experience that gave me the opportunity to assess the many vulnerabilities in the restaurant space and come up with a solution. That solution became JARS.

I wanted to create a concept that could be resilient under the circumstances we saw in 2020 and accessible to entrepreneurs who might be intimidated by the industry.

JARS by Fabio Viviani was born from knowledge I accrued over years of experience launching and building restaurant concepts. I saw the many aspects of the business and how they held people back from entering the restaurant industry. Kitchen equipment is a huge barrier for entrepreneurs entering the restaurant space. JARS entails a considerably smaller investment because it requires a minimal kitchen buildout with no grills, vents or hoods necessary. JARS also requires a small labor force of one to two employees to assemble JARS desserts and keep operations running smoothly. There is no need for an executive chef, and employees each go through a one-day, in depth training program to set them up for success. These factors set up franchisees to quickly receive a high ROI and provide a decadent dessert for guests to enjoy.

By Kitchen Brains

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