Professional Documents
Culture Documents
QSR Mag Coronavirus
QSR Mag Coronavirus
QSR Mag Coronavirus
m ay 2020 / no. 26 8
What to Off-Premises
This
Do Now to Ideas to Get
Save Your Sales Back
Business / P. 36
/ P. 52
Ch a nge s
after coronavirus resets
e v e ry T h i n g
the restaurant landscape
down...
WebstaurantStore introduces Clark National Accounts
Again.
C O N T E N T S
36
Virtual Insanity
By Kevin Hardy
Off-premises used to be a
difference-maker; now it’s a
survival tactic. And brands that
were already thinking outside
the box with off-premises
have a leg up in this season of
recovery.
44
Better Culture,
Better Plan, Better
Papa John’s?
By Barne y Wolf
52
Crisis: Coronavirus
36
By Q Sr S taff
/
BrandS are douBling doWn on
tHeir off-premiSeS innovation,
istock.com / LeoPatrizi
44
COVID-19 has upended the
entire restaurant industry in
the worst crisis since at least
the Great Recession. Get a
glimpse at how the industry is
responding.
On the cOver: Coronavirus disrupted the entire restaurant industry beginning in mid-March, and plenty of uncertainty remains for operators.
Periodicals Postage Paid at chaPel hill, Nc, aNd additioNal eNtry PoiNts. www.qsrmagazine.com | QSR | may 2020 1
May:
DePartMeNts
m Ay 2 0 2 0 / I S S U E 2 6 8
19
4 branded content
6 touchpoint
8 editor’S Letter
16 newS to go
85 new on the Market
87 advertiSer index
87 the MarketpLace
Fresh Ideas 34
sTarT Up
19 under construction
Food Trends Scheduling and financial
Fine and Fast Fine-dining planning are critical in the
quality meets fast-casual restaurant construction
service in fine-casual brands. phase. BY AMANDA BALTAZAR
BY LAURA ZOLMAN KIRK
88
24 sTarT To FInIsh
InspIraTIons
Sandra noonan The chief
Well plated Three upscale sustainability officer at Just
dishes that rethink what’s Salad is out to rid the world
possible in a counter-service of plastics, one salad bowl at
setting. a time.
26
CheF Q&a
Service Switching
Dish Society founder Aaron
News
Lyons details the brand’s
29 counter-service-by-day,
table-service-by-night
11
Short order
approach.
79
operaTIons
beyond tried and true
Insight How loyalty programs help
brands collect and use
valuable data. BY CONOR MORRIS
29
FranChIse Forward 80
What to learn from soCIal savvy
32
BIg Idea
88 communication Key
in crisis Cousins Subs’
QSR is a registered trademark ® of Journalistic, Inc. QSR is copyright © 2020 Journalistic, Inc. All rights reserved. 101 Europa Drive, CEO details how a smart
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their writing does not imply endorsement by Journalistic, Inc. QSR (ISSN 1093-7994) is published monthly. Periodicals postage
communication strategy
paid at Chapel Hill, NC, and additional entry points. SUBSCRIPTIONS: (800) 662-4834, www.qsrmagazine.com/subscribe. helped the brand react quickly
QSR is provided without charge upon request to individuals residing in the U.S. meeting subscription criteria as set forth by
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Hill, NC 27517-2380. All rights reserved. No part of this magazine may be reproduced in any fashion without the expressed
written consent of Journalistic, Inc.
BIG TIME
COSTREDUCTION
at no cost.
Consolidated Concepts offers comprehensive cost reduction consulting. Our programs are
free to implement and can bring big savings to your bottom line.
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In thIs Issue a s s o C I aT e e d I T o r :
rachel pittman
rachelp@qsrmagazine.com
CUs To M Co n T en T edITo r :
57/ peggy carouthers
peggy@qsrmagazine.com
looking to the
industry’s Future
C U s T o M C o n T e n T a s s o C I aT e e d I T o r :
charlie pogacar
charlie@qsrmagazine.com
Profiles of brands we’ll be watching
as the industry bounces back, and d I g I Ta l C o n T e n T d I r e C T o r :
58/ for customers. crisis calls for an business back ARt & PRODuCtIOn
the clear edge SponSored By mrS. t’S up-to-date up. Here are arT dIreC To r :
packaging make For those Who SponSored By tHe Kathryn “rosie” haller
this kids-menu Want it All New HoWard company 74/ rosie@qsrmagazine.com
SponSored By tree top oil drives flavor 70/ digital erica naftolowitz
erica@qsrmagazine.com
and versatility hand How remote
60/ in restaurants. Washing— monitoring prodUC TIon Manager:
ConTroller
the box.
Will instantly boost toll free: 800.290.5460
faX: 717.825.2150
SponSored By frontline
Your Kids’ menu There’s e-mail: qsrmagazine@theygsgroup.com
At Home
with QSR
M u s t- R e a d With QSR ’s editorial team working
from home in the midst of the COVID-19
ResouRces pandemic, here’s how they’re getting by:
of essential headlines, with Landlords to for Restaurant Franchise Ben: I usually spend my afternoons surviv-
Systems ing on Granny Smith apples and bottles
including: Secure Rent Relief of water.
Rachel: Chocolate and LaCroix.
Danny: I’ve started drinking coffee for the
first time. Which is not a good sign.
Sam: Besides a bottomless coffee mug,
Tune in
For those operators on the go who are looking for
homemade smoothies with lots of greens.
something to stream, QSR’s podcast “Fast Forward”
for More
features several emergency episodes detailing how
the industry is overcoming the challenges posed Last thing I ordered for pickup or delivery:
by coronavirus. Check out one of these informative Ben: Chipotle because I love their food and
episodes on any of the major podcast streaming because I live 0.6 miles away from one.
services: Rachel: A CAVA Greens + Grains bowl.
• Tips for emerging brands Danny: Indian food.
• An exciting
franchise to get through coronavirus Sam: A Kimchi Reuben with curly fries and
wrestles with a six-pack from Eastcut Sandwich Bar in
new realities Durham, NC.
• What to know
• Preparing about supply
for life after chain during Show to binge at the end of the workday:
• Could virtual
coronavirus coronavirus Ben: “The Simpsons,” which has nearly
istock.com / PHotoGraPHer aND ViDeoGraPHer
brands help
sales during 700 episodes. I’m invested now and can’t
turn back.
coronavirus? • What consumers
think about Rachel: “The Marvelous Mrs. Maisel” or
restaurants during “New Girl.”
• Adjusting your business
model on the fly coronavirus Danny: “Jane the Virgin.”
Sam: “Tiger King,” of course.
anchorpac.com
©2020 Anchor Packaging LLC - St. Louis, Missouri
edItor’S Letter
Online Ordering
Most of your customers are visiting your website, social media
or Google listing to order from you. So use an online ordering
system that lets you keep your customers and your margins.
Sweetgreen
Medical professionals have eMerged as one of the most vulner-
able communities during the coronavirus outbreak. Health-forward chain Sweetgreen
Feeds the
stepped up to serve this population with its Impact Outpost Fund, a partnership with chef
Jose Andres’ World Central Kitchen that will donate free salads and bowls to hospitals in
Front Lines
markets the fast casual already serves.
Created as an off-premises innovation, Sweetgreen’s Outpost platform set up central
access points in office spaces across the country where customers could receive their or-
ders. The Impact Outpost Fund leverages that platform and the logistics and team mem-
Through Sweetgreen’s Impact Outpost bers that drive it, but redirects the food deliveries to hospitals. The company also has plans
Fund, hospitals will receive free meals to contribute to other communities made more vulnerable by the advent of COVID-19, like
during the coronavirus pandemic. schools and nursing homes. Those who wish to get involved can visit sweetgreen.com/
donate to support the fund.
sWeetGreeN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Location,
Consumers are becoming more percent purchasing less. Millennials
conscious of the sustainability of are the age group most interested in
products they purchase, but eco- sustainable products; 25 percent of
friendliness varies among age groups that generation say they consider
and often comes after other consid- the earth when purchasing always
erations when buying, new research or most of the time, in contrast with
/ suggests. 18 percent of both gen X and gen Z.
57 % The hartman group found that, Overall, though, most consumers
of quick-serve over the last year, most consumers deprioritize sustainability in favor of
Location,
marketers are already
(68 percent) stuck to the same sus- other factors. The attributes most
using location data
tainable product purchasing habits, important to U.s. consumers when
with 24 percent purchasing a greater purchasing are:
amount of sustainable products and 8
BUYING SAFE AND
ND
49 % 36%
HEALTHY PRODUCTS:
SAVING
Location MONEY:
/ BUYING
Delivery of EFFECTIVE
Many quick-serve brands are tapping into
33 31%
targeted ads PRODUCTS: SUPPORTING
location data to enhance their marketing
capabilities and better understand consumer
and offers
( 65 percent of
% THE U.S.
ECONOMY:
respondents )
behavior—and an overwhelming majority of / ANIMALL
those companies plan to ramp up their use Geofence-
29 %
WELFARE:
RE:
triggered
of the data in coming years, a new report finds. promotions
CURBING
According to a report from 451 Research ( 62 percent )
27%
POLLUTION:
and customer insights company Cuebiq, /
Analyzing
57 percent of quick-serve marketers are attribution
already using location data, and a whopping ( 57 percent )
/
istock.com / JULia_sUDNitskaYa
97 percent say they plan to increase their MAINTAINING
ConsCientious
Better NATURAL
istock.com / matHisWorks
25%
understanding RESOURCES:
customer
Reasons for using location data in
Consumers
behavior
marketing strategies include ( 57 percent )
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• Plant Power • 50 %
OF AMERICANS
● 39%
27%
OF THOSE
HAVE WHO PLAN TO
tried OF THOSE
CONSUME
PLANT-BASED PLANT-BASED
WHO HAVE
DAIRY DAIRY
SAMPLED
ALTERNATIVES THINK IT’S
PLANT-BASED
DAIRY PRODUCTS more
are not NUTRITIOUS
INTERESTED
●
27%
●
standout store
Cook’s Tortas / LOS ANGELES
TORTAS ARE GOURMET And people are happy with the result—we have
MEXICAN SANDWICHES some customers who come in two to three times
MADE WITH FLUFFY BREAD.
COOK’S TORTAS AIMS TO a week.
MAKE THE HANDHELDS
AS POPULAR
AS TACOS.
Has it been difficult to make in a
competitive market like Monterey
Park in Los Angeles?
It’s a food area. We’re also located in an Asian
community with lots of Asian food options. And
people asked us why we were working there,
because it seemed like it wouldn’t work in that
market. But it’s been incredible. In the beginning,
we didn’t do any promotion and we got custom-
ers by word of mouth. We have been lucky
C
ook’s Tortas is looking to make Mexico’s lesser-known handheld street food
as popular as tacos.
When Elyan Zamore and her mother opened the doors on the concept
in Monterey Park, California, 12 years ago, Zamore knew she could find her niche
selling not tacos, but tortas, or gourmet Mexican sandwiches made with fluffy
buttered bread. COOK’S TORTAS
“We saw that there was an opportunity for tortas because, obviously, tacos are HAS FRESH
SANDWICH
an oversaturated market in some places,” Zamore says. “We wanted to do some- INGREDIENTS
DELIVERED
thing different that was based on our family recipes and also recipes from all over EVERY DAY.
the world.”
After developing a solid customer base around its original outpost, Cook’s Tor-
tas was planning to put a franchise plan in action this year. The sandwich brand
partnered with franchise development company Fransmart to offer its range of
more than 60 tortas all over California and, eventually, the country. Now on the
brink of Cook’s becoming a chain, Zamore spoke with QSR (prior to the coronavirus
outbreak) about the unique appeal of tortas, growth, and making it in Los Angeles. enough that people have continued visiting and
brought their friends. It hasn’t been hard for us to
bring in new customers.
How do you keep guests coming Our menu is great because sandwiches are
back 12 years in? What is unique What are the details on your new
something that everyone is familiar with, but we franchising strategy?
about Cook’s offerings?
People enjoy what we’re doing because we’ve have recipes from all over the world. We wanted We have a great partner in Fransmart, and we’re
been growing the same great team for 12 years. people to try different flavors from our family very excited to work with them. We already
Customers develop a relationship with our and from different parts of the nation and world. have some people in talks to open new stores.
employees, so we have not only a concept and Every day, we’re also focused on quality and Our goal is to start in California and then grow
cook’s tortas (3)
a menu that they love, but also a team that they freshness. We get deliveries every day; all of our outside of the state. I’m telling people to keep
know and grow with. produce is fresh; we make our salads to order. their eyes out for a Cook’s on every corner.
NEWS TO GO /
Here’s a look at what some of the biggest quick serves in the U.S. did in the few weeks
following the initial coronavirus outbreak.
• Committed to paying quarantined • Expanded employee “catastrophe pay” • Reduced franchisee royalty payments
hourly employees at corporate units by 50 percent
• Shuttered all cafes except for drive-
• Suspended all-day breakfast menu to thru and third-party delivery service • Provided franchisees with rent abate-
limit pressure on restaurants ment, reduction, and deferral
• Established $10 million Relief Program
• Cut capital expenditures by $1 billion to aid workers
• Donated $1 million to No Kid Hungry • Implemented paid sick leave policy of • Advanced cash payments and rebates
up to 14 days pay for quarantined em- to franchisees, and deferred rent pay-
• Served free Doritos Locos Taco to ployees at company-owned locations ments for up to 45 days
drive-thru guests on designated days
• Extended by 45 days deadlines for • Provided corporate-store employees
• Deployed Taco Truck to feed frontline franchisee royalties and marketing with one-time bonus
healthcare workers and other essential funds
personnel • Offered two free King Jr. kids’ meals
• Deferred rent on property it owns by with purchase of any adult meal
• Rolled out seven-point safety platform 50 percent over three months through its app
mcDoNaLD’s, starBUcks, sUBWaY, taco BeLL, WeNDY’s, BUrGer kiNG, DomiNo’s, cHiPotLe, PaPa JoHN’s
including contactless payment and
service, employee temperature checks, • Increased pay for hourly corporate-
and extra sanitization store employees by 10 percent
• Sought to fill 10,000 extra positions to • Hosted “Virtual Lunchtime Hangouts” • Committed to hiring 20,000 new work-
support delivery network with celebrities via Zoom ers to support increased delivery
• Committed to additional compensa- • Gave away hundreds of thousands of • Expanded health care to include free
tion for hourly workers through crisis free burritos to healthcare workers virtual doctor visits
Choose your Flavors For The Road and SAVE up to $200 now!
Visit: TexasPeteFoodService.com/FlavorsForTheRoad
atics.
we’re also supply chain fan
can’t help it—we ’re fre sh fanatics, which means
We s.
fanatics. Food safety fanatic
tion fanatics. An d qua lity fanatics. Sustainability
And innova
h ours.
g your business along wit
And fanatics about growin
C
onsumer demand for high-quality menu items is at an all-time sumer is willing to pay up slightly for a menu with greater variety, a
high. So, too, is demand for convenience and accessibility. heavier emphasis on a-la-minute cooking, and higher-quality service
And the fine-casual segment has sprung up at the intersection and space touchpoints.”
of those two trends, bringing with it restaurants that typically serve Flexibility on the menu for these fine-casual restaurants is also
innovative menu items made with high-quality ingredients on nice available in a way the quick-serve segment has never experienced,
dishware, but with a counter-service format. Often with this new wave giving brands the opportunity to showcase personality and be more
of restaurants, the counter is where the quick-serve element ends, as daring in menu offerings.
UrBaN PLates / JUstiN GaLLoWaY
servers tend to customers as they would in a full-service restaurant, Quality food is key for Agra culture, which has four locations in
refilling drinks, bussing tables, and asking if they need anything else. the Minneapolis area. The team prepares dishes on a level that far
As one might expect, menus at restaurants like these are rede- exceeds traditional limited service. “Our food quality and menu are
fining what can be “quick serve.” “We have found that there is an more in line with what you see at white-tablecloth, full-service restau-
absolute hunger for a more fine-casual experience,” says Benedict rants,” says Aaron Switz, cofounder and CEO. The concept focuses
W. Koenig IV, founder of California-based heritage eats. “The con- on serving real food with lots of flavor, like the Agra Bowl, which com-
bines chicken or tofu with kale pesto, brown rice, roasted zucchini Kunk, expressing a sentiment that’s expected in the full-service seg-
and squash, thyme asparagus, and lime crème fraîche. “We see fine- ment but also becoming commonplace for fast casual.
casual and full-service-casual menus and service converging over With plant-based alternatives becoming a huge trend, the fine-
time in many ways,” Switz says. That’s why the team is continuing to casual category is perfectly poised to take advantage. Jim Cannon,
further the restaurant’s hybrid model by adding brunch on weekends. chief culinary officer at 19-unit brand urban plates, sees even more
red Stix Street Food in Dallas also emphasizes top-quality food, vegetarian and vegan menu items in fine casual’s future. “Whether it’s
and chef and owner Uno Immanivong channels fine-dining-level inno- motivated by environmental factors, personal health, or just the fact
vation into the best ingredients she can find for her Asian-inspired that plant-based food is delicious, I think more and more consumers,
menu. For example, the restaurant exclusively uses beef tenderloin and in turn restaurants, will be leaning into items like this,” Cannon
for all beef dishes, and vegetables are hand-cut every day to main- says. In fact, due to a 14 percent increase in year-to-date sales of plant-
tain freshness. “My vision for creating Red Stix was that each menu based items, the brand decided to add even more plant-based bowl
item would be the best of its category,” Immanivong says. Standout options to the menu. Today, over half of the overall menu is or can be
dishes include the Crack’lin Fried Rice made with wok-seared beef made vegan or vegetarian.
tenderloin and shrimp, topped with a sunny-side-up egg and chicken Urban Plates is also redefining what a value menu is for limited-
fat that is infused with garlic and ginger—all finished with a sprinkling service restaurants. Instead of a burger for $1, guests can get a
of chicken skin. “The first spoonful is greeted with hot steam and the full-service-level meal for $10. On the brand’s $10 Everyday Menu,
savory aroma that can only come from the wok; the egg coats each guests choose meals like grilled cage-, hormone-, and antibiotic-free
morsel of rice, and then you get the crunch from the garlic chips and chicken served with a bright herb chimichurri sauce alongside aspara-
vegetables,” Immanivong says. “Every ingredient is intentional down gus and quinoa, or a vegan bowl including marinated red beets, sliced
to the Persian cucumbers, because the skin is thin and much more avocado, pickled red onions, walnuts, organic quinoa, hemp seeds,
crisp than other varietals.” and a miso-lemongrass dressing. “This is a wonderful example of our
Since inception, five-unit brand blue lemon has offered fine- commitment to providing honest value, brought to life via a menu of
dining presentations on each plate for a unique and pleasurable tasty, healthy meals,” Cannon says.
experience. President and CEO Aaron Day thinks menu items inspired Merging the fine-casual values of heightened food and service,
by global cultures will continue to dominate trends, specifically in the many restaurants also desire to go out of their way for customer
fine-casual segment. “Our chicken potstickers have become a wild requests. “We challenge ourselves to accommodate customers’
hit,” he says. This summer, the brand plans to turn up the heat with a dietary restrictions or entrée preferences in a way that reflects our
house-made green chile and corn queso dip. style of cooking,” Immanivong says. “It’s the extra step that makes
the little beet, which has 12 locations on the East Coast, takes the experience at Red Stix memorable.”
pride in the ingredients it’s sourcing and the playful, creative, and Looking to the future, leaders think this fine-casual movement is
chef-driven menu items it’s preparing for guests, from wild-caught here to stay. “Over the last 15 years, there has been a huge rush to get
Alaskan salmon to a Vegetable and Kelp Slaw. “We feel that our into the core fast-casual space,” Koenig at Heritage Eats says. “Our
menus should be constantly evolving to match the season and serve belief is that the fine-casual space will pick up steam as the consumer
an ingredient at its peak,” says director of culinary innovation Trevor tires a bit from the former.” q
reD stiX, aGra cULtUre, UrBaN PLates / JUstiN GaLLoWaY, LittLe Gem
these dishes from red Stix, agra culture, urban plates, and little gem (l–r) may seem like they belong in a white-tablecloth environment, but they’re offered over a counter.
Brand SpotLight/
Tocaya Organica
Instagram-ready in every sense, Tocaya’s vegan-based salads,
bowls, tacos, burritos, frescas, and six different kinds of mar-
garitas are served via china and glassware. After ordering at the
counter, guests are taken care of by food runners and servers
refilling drinks and offering dessert like the Sweet Corn Tamale.
Beyond taking the best
possible ingredients and pre-
paring them with a chef’s
Brand SpotLight/ nines (think minted Greek touch (hello shaved oven-
yogurt, fennel, navel oranges, roasted Brussels sprouts
Souvla and harissa-spiked yogurt). with fresh garlic and toma-
“Our limited menu sources toes), Tocaya’s commitment
products both locally from to a fine-casual approach is
A pioneer in the “fine-fast high-quality producers and reflected in how it goes above
movement,” as founder and directly from Greece,” Bililies and beyond for guests, says
CEO Charles Bililies describes says. Meanwhile, the ambi- Rich Sweeney, director of culi-
it, five-unit Greek concept ance—a product of dim lights, nary development. “In my
Souvla has been serving pre- real glass stemware, and high previous life in full service,
mium food and beverage in restaurant design—makes it’s always been, ‘Whatever
an upscale environment since the restaurants popular date the guest wants, we will find
2014. Its nimble fast-casual- spots in San Francisco. a way to make it happen for
at-its-core service model, While this upscale com- them.’ We really try to do that
however, allows the restau- ponent is a huge draw for the at Tocaya, as well,” he says.
rant to serve folks fast and brand, Souvla has also tran- “Whatever we have within our
translates to delivery avenues scended fine-fast to become tocaya walls, whether it be because
efficiently. a hip frozen yogurt spot. organica’s of an allergy or preference,
dishes are
The menu is easy to “Despite having ‘spit-fired instagram we will try to make it happen.”
ascertain, with four basic meats’ in our tagline,” Bililies friendly. That means that if a guest
mains—Pork, Chicken, Lamb, says, “so many people visit our just wants grilled chicken
and Veg—served in a sand- restaurants just to have our and it hasn’t yet been mari-
wich or salad. But the frozen Greek yogurt.” In fact, nated in the achiote sauce for
products and flavors are any- the sweet treat topped with the brand’s Tulum tacos with
thing but quick-service basic. sour cherry syrup, olive oil and queso cotija, grilled pineapple
soUVLa / kassie BorresoN
They are locally sourced sea salt, baklava crumbles, or salsa, charred red pepper, red
tocaYa orGaNica (3)
(pork shoulder from Snake honey has inspired its own leg onion, and arbol salsa, then
River Farm, for instance), of the business: the concept’s the guess can have that plain
spit-fired, and dressed to the new frozen yogurt truck. grilled chicken, Sweeney says.
84S6931
8416
8469S5842
69 585050
58S50
50S
S42 81
81S
8119
S50 77
772359
5941
+S +S
When selecting the fast casual you most recently visited, how important were the following factors? *
marBLe BackGroUND: istock.com / NattHaNim
84%
Speed of
69% 58%
Use of natural
50%
Use of better-for-you
81%
Use of high-quality
77%
Customization
59%
Unique condiments
service Atmosphere ingredients meats like antibiotic free ingredients menu options and toppings
and free range
* NUmBers reFLect PerceNtaGe oF coNsUmers WHo rePorteD tHat tHe Factors Were “someWHat” or “eXtremeLY” imPortaNt to tHem.
Well Plated
Three fine menu items redefining what can be served quickly over the counter.
fOunder
Winter citrus
Belgian endive
The Players:
Shaved carrots
Grass-fed steak The Players:
Roasted baby beets
House-made mashed potatoes Roasted duck Pickled mustard seeds
Brussels sprouts Bao buns Honey-citrus dressing
Turkey bacon Hoisin sauce
Artisan bread Pickled cucumbers
Green onion
Cilantro
Service Switching
By day, Dish Society is fast casual. By night, it’s full service. Here’s how founder
Aaron Lyons pulls it off.
bY l Aur A ZOlmAn KirK
ing dish across all our menus is Chicken & Biscuits, the Bris-
shrimp. A lot of people order it people who look lost and inter-
what’s called a Farmers Plate, ket n’ Eggs, French Toast, and
as an appetizer and share it. cept them immediately. q
where you pick a protein and Shrimp & Grits.
NO ANTIBIOTICS EVER,
ALL VEGETARIAN FED
CHICKEN AND TURKEY
Elevated Menu. Elevated Profit.
Increase your profit potential with every plate. 94% of consumers want
restaurants to be more transparent about food on their menus1, and 76%
are more likely to buy meat made with No Antibiotics Ever2. Elevate
your menu with these powerful clean-label attributes, and enhance your
signature recipes with chicken and turkey you can be proud to serve.
1. Proprietary consumer study, June 2017 2. Datassential, The New Healthy, April 2016 ©2019 Perdue
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department
franchise forward
B
urgerim may long serve as a cautionary
tale in the franchising industry mov-
ing forward.
The israel-based burger brand grew fast,
opening locations across the country with
striking swiftness. But this expansion came to
a screeching halt at the end of 2019.
ANDY
in December, the company served notice that WIEDERHORN
it was considering bankruptcy, and owner Oren
Loni fled the country. after many Burgerim
franchisees suffered financial calamity from
their investments in the chain, this February,
U.s. senator Dianne Feinstein requested that
the Federal Trade Commission investigate
Burgerim for deceptive sales practices.
The burger chain’s breakdown offers a host JOEL
LIBAVA
of lessons for prospective franchisees—partic-
ularly when looking for red flags in potential
brands.
“Rotten inside”
Burgerim heated up with
andy Wiederhorn, CeO of FaT Brands, says rapid expansion only to have
his company explored buying Burgerim a year that growth screech to a
ago but passed because of a variety of worrying BRADY
halt when its owner fled the
LEE country at the end of 2019.
factors. in particular, he says, Burgerim wasn’t
collecting royalties from franchisees and had “a huge list” of lease payback period? What’s your sales-to-investment ratio? all these
guarantee obligations and refund obligations. are key questions.”
in the face of such shortcomings, Wiederhorn says, the brand Joel Libava, a franchise consultant known as The Franchise
needed sky-high average unit volumes. That wasn’t the case. King, says franchisees should be wary of seemingly low barriers
instead, only a few stores were performing well, and even though to entry. For instance, Burgerim’s website didn’t list the necessary
certain units opened with eye-catching sales, those sales weren’t financial qualifications for potential franchisees, which is highly
being sustained. unusual, especially for a quick-service restaurant.
“The stores weren’t performing,” Wiederhorn says. “Out of “it’s like, ‘Wait a second, does that mean that, if i’m breathing,
about 200 … somewhere between 10 and 20 had any likelihood i can buy this franchise?’” Libava says.
of reasonable performance. There was a lot of hype, but when you
Fat BraNDs, JoeL LiBaVa, accUrate FraNcHisiNG, BUrGerim
peeled back the onion, it was just rotten inside.” Fast growth could be too good to be true
For potential franchisees doing their due diligence, Wiederhorn it’s been reported that Burgerim sold at least 1,200 licenses to
says Burgerim neglecting to collect a royalty from franchisees is a operators in 40 states, but many weren’t able to open a store or
red flag. The chain’s willingness to guarantee franchisees’ leases lost money if they did. Overall, Burgerim has more than 200
and offer of a refund should franchisees not find locations is also a locations, but around 100 locations have closed. The chain’s early
warning sign. To take precautions against hidden issues like these, explosive growth rate should have sounded a cautionary note for
prospective franchisees should investigate a brand’s already-open potential franchisees.
stores, he says, and speak with existing franchisees. “any company that would sell that many franchises that quickly
“What marketing is being done on behalf of the brand?” Wie- and not have a massive, massive team already [in place] is setting
derhorn says. “What are the average unit volumes? What’s the itself up to fail,” says Brady Lee, president of [continued on page 86]
www.rti-inc.com
1-888-796-4997
department
ones to watch
chicken sliders and tenders with increas- signature spice blends. investors. Like Phelps, shriver and Davis
ing spice (the top level of heat, reaper, The simple recipe paid off. soon after were also early investors in Blaze. The
requires guests to sign a waiver before eat- opening in 2017 as a parking lot pop-up, group’s involvement [contInued on page 86]
BiG idea
L
ike most restaurant industry execu- tor, specht says, Cousins ensures that the
tives, Christine specht had no plan whole system will know that any email they
in place for the crisis that resulted receive from him is an important update
from the coronavirus outbreak. The Cous- that is not to be missed.
ins subs CeO says the Wisconsin-based “When our franchisees or store oper-
sandwich chain prepares for things like ators may hear something in the news,
class-action lawsuits and sales downturns they’re going to hold tight because they’ll
of, say, 5–7 percent—not sales dives of 30 know that there’s going to be communi-
percent like the company saw in the imme- cation with more detail coming out from
diate aftermath of the outbreak. Jason,” she says.
still, specht says she was prepared to Cousins subs underwent a brand evo-
act because she knew her team well, and lution a few years ago that included not
she knew their strengths. only design and service upgrades, but
“For example, who likes process, who also a uniform POs system and total
likes clear communication,” specht says. alignment across the company’s back
“as i think about my leadership team end. specht says this allowed the brand
and creative decision making and cre- to more easily adjust business operations
ative budgeting, i’m really seeing the cousins when COviD-19 struck, like rolling out
strengths of my leadership team that i Subs ceo curbside pickup at locations that did not
knew they possessed, but now they’re christine have a drive thru.
Specht
really on fire for it.” “i’m glad that we had the foresight to
Communication in particular has W h At t O l e A R n A B O u t YO u R t e A M do it for the right reasons, but now that we
been a huge priority for specht and Cous- “You can get a sense of who’s going to have this situation, it makes it that much
ins—both communication to guests and handle the challenge well. Who likes pro- more impactful,” she says.
communication to franchisees. cess? Who likes clear communication?” While it’s impossible to know how long
For guests, specht says, the company WORD OF e nCOu R AG e M e nt
coronavirus will have an impact on indus-
is reminding them that Cousins is open “It’s difficult to see the forest for the try sales, specht says there is plenty that
trees, but we know the end of this
for business, whether through drive thru, crisis will come. We just don’t know restaurant operators can learn from the
curbside pickup, or delivery. and it’s push- when. We really have to hunker down, crisis in the meantime. For example, it
ing incentives through its loyalty program be diligent, methodical, and watch forces everyone to look at how their stores
every penny in the meantime until we
in an effort to drive sales. can get out of it. But we will get out of are operating and to make adjustments
“What we’re trying to do is just com- it, I’m very optimistic about that.” where necessary. it also is revealing a lot
municate clearly and effectively and about company culture and communica-
regularly—probably more so than we typically would in the past,” tion, she says, particularly for franchised systems that depend upon
she says. “There is so much information coming at people that we individual franchisees to drive guests in the doors (or around the
know some people are just going to check out. so we want to make drive thru or to the curbside).
sure that our emails to our gests aren’t getting missed, because she adds that Cousins is learning how to have a plan in place
they’ve probably been bombarded.” in the event of another major crisis.
For its franchisees, store operators, and other team members, “Do we have backups who can take over in the event that we
Cousins is relying on president Jason Westhoff to communicate lose half the labor? are there backups to the backups? What do
all necessary information. specht says Westhoff is communicat- those plans look like?” she says. “While not everything can be exe-
ing any operational changes to the system, as well as relaying any cuted according to a perfect plan, we can look at things differently.”
government regulations that might affect operators. For more from specht on how franchise brands can adapt to the
coUsiNs sUBs
she adds that communications have been very transparent growing crisis and communicate any changes throughout their sys-
and straightforward. By keeping Westhoff the main communica- tems, listen to the podcast at Qsrmagazine.com/coronavirus. q
play it safe.
Part of managing a successful business comes with taking risks. But
cash handling? That’s not an area to leave anything to chance. That’s
where SafePoint® by Loomis comes in. Pairing industry-leading
smart safe technology with Loomis’ unmatched support allows you
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loomis.us/SafePoint
© 2020 Loomis Armored US, LLC. All rights reserved.
department
StartUP
Under Construction
It’s easy to trip up on restaurant construction, especially when it comes to scheduling and
financial planning.
bY AmAndA bAltAZAr
W
hen building out your restaurant, meredith
wood Construction in Lemont, illinois. To
two big areas can trip you up: bud- ford opened stay on budget, he says, hiring the best pro-
get and time. cremalosa in fessional services possible is key. Operators
february after
ideally, you don’t want to exceed boundar- a months- should comb through reviews of companies
ies you’ve set in either area, but, realistically, long delay and their work, and take a look at past clients.
caused by
you will over-spend in one or both categories. landlord Paying more for a higher-quality contrac-
Facing issues in these areas is inevitable, and communication tor can sometimes curb later budget creep.
issues.
in-depth planning on the part of operators One common factor for budget creep is
can help ease the strain. But no amount of a client who doesn’t spend time in the due
prep will ensure a frictionless building pro- diligence phase making sure there are ade-
cess. Thus, operators should be prepared to quate utilities already in place or close by.
face challenges. “if utilities need to be modified, not know-
ing or anticipating what those costs will be
Staying on time is a big variable or unknown in the budget,”
Meridith Ford opened Cremalosa, a gelato Taylor says.
store, in Decatur, georgia, in February, more in leased spaces, unanticipated costs can
than six months after she’d hoped to start the pop up if the client doesn’t know for certain
business. The problem, she says, was poor what the landlord provides. “it’s important
communication and lack of care on the part of her landlord, which to define in detail a comprehensive responsibility schedule outlin-
caused the delay. To avoid this, she says it’s important to refuse ing who furnishes and/or installs what,” Taylor says.
to take no for an answer. she also advises tenants not to become Taylor also recommends operators ensure documents (draw-
too friendly with landlords. “Be amicable, and that’s it,” she says. ings, blueprints, and specifications) are accurate and consider
if she builds another restaurant, she says, she’ll also be far more value engineering. For example, instead of importing a costly tile
involved with her architect, making sure to ask for any and all from italy, operators should look at cheaper domestic alternatives.
required information.
“i’ll be asking very specific questions,” she says. “i’ll tell him Old or new?
to speak to me as if i’m a four-year-old, since he talks a different nate hybl has the seventh unit of his fast-casual bowls and wraps
language.” concept gusto! in the works for this summer. he’s opened restau-
To prevent delays, aurify Brands, a new york City–based com- rants in both second-generation spaces and brand-new locations,
pany that runs both a Five guys franchise as well as fast casuals but says the former often cause more problems. There are many
like The Little Beet, does a thorough site survey before it starts unknowns behind walls, in ceilings, and under floors. Further-
construction. “[ The surveys] find every possible condition. We more, codes change over time, so some elements may need to be
can then plan around it and come up with a really realistic cost,” completely redesigned.
director of store development noelle Perez says. “When we try to “it often seems like they have lower costs up front, but that eventu-
rush it, we find we’re held up in the long run.” ally comes back and bites you in the rear,” he says. “[ new buildings]
The company looks for items such as building violations, aDa tend to be cheaper because you know what you’re dealing with.”
compliance, building integrity, signage code restrictions, and equip- in the case of both second-gen spots and brand-new spaces,
ment, as well as any existent elements that can be used after the build-outs tend to take about four months, and construction costs
build-out. sometimes the aurify team uncovers huge hidden issues. are about the same. When he moves into a space that formerly
For example, signage size restrictions can be can be a deal killer, housed a similar concept, he typically rips everything out and
Perez says, because aurify restaurants need visibility. then starts fresh.
“new locations are heavier on the construction phase, and
Staying on budget second-gen locations take time fixing problems that are already
cremaLosa
Chuck Taylor has extensive experience working with quick-service there,” hybl says. “The memories of the place before it need to be
and fast-casual restaurants as the director of operations for engle- 100 percent gone to be successful.” q
Innovate Relevance
Install reliable, top-of-the-line display Use smart triggers to offer
hardware to revolutionize the way you intelligently-dayparted menus and
communicate with customers the most valid offers
Tasteful Design Connect
Create appealing digital menus through Streamline menu operations with
a partnership with layout and POS integrations
animation experts
Agility
Make updates instantly with the
Dynamic Menu Controller
Virtual
insanity
H
aving already jumped into the buzzy world of ghost
kitchens, Dog Haus decided it still needed to do more
to expand its foothold in the ever-important world of
mobile ordering and delivery. And its team had an idea:
What if they developed additional restaurant concepts out of
their existing menu, leveraging their ingredients and opera-
tions to widen their presence on delivery apps?
That idea became a reality recently as Dog Haus devel-
oped The Absolute Brands, a portfolio of eight virtual brands
istock.com / LeoPatrizi
to operate out of its kitchens—requiring only minimal changes investment in a landing page and some marketing.
to its food mix. now customers ordering food from Bad Mutha “We can add and drop these virtual restaurants with a click,”
Clucka and Bad ass Breakfast Burritos are actually ordering vener says. “you can just turn it on and off.”
from Dog haus, even if they might not realize it. at a time of upheaval in the restaurant industry, it’s no sur-
and while that idea was in development months ago— prise that brands have adopted new strategies to exploit the
intended for a soft launch in May and then wider system roll-out off-premises business. That’s what drove the development of
early next year—Dog haus expedited the launch in response ghost kitchens two or three years ago, too; they allowed oper-
to the coronavirus pandemic. indeed, restaurant brands were ators to concentrate efforts in a small, cost-effective kitchen at
already beginning to blur the lines between real and virtual a time of high rents.
concepts, maximizing kitchen space while also gaming the off- “you’ve got to be creative and try something,” says Dan
premises system. now that restaurants are relying almost entirely Flesichmann, vice president of Kitchen Fund, which invests in
on off-premises in the aftermath of the coronavirus outbreak, early-stage restaurant concepts. “you need to be owning the
this virtual innovation is all the more important. digital channel and the delivery piece.”
“i think of it like, ‘Do not break glass unless there’s an emer- While the ghost-kitchen concept has earned plenty of ink,
gency,’ and we grabbed the mallet and broke the glass,” says Flesichmann thinks the idea might have been overhyped. That’s
Dog haus cofounder andré vener. “We needed to find some- because the unit economics don’t always prove out. Labor costs
thing that would help franchisees at least recoup … part of their still quickly piled up in expensive cities like new york and san
losses from this coronavirus.” Francisco. Fleischmann says operators often need to offer mul-
The thinking behind The absolute Brands goes like this: tiple dayparts to recoup those investments in ghost kitchens. as
Platforms like DoorDash and Uber eats only allow restaurants evidence of the challenges, he pointed to Kitchen United’s first
to identify a few searchable keywords. Dog haus has selected ghost kitchen in Pasadena, California: a majority of the first
key terms like burgers, hot dogs, and Americana. Those are great for brands to open shop there didn’t last a year. Likewise, early
much of the menu, but they don’t do anything to draw a user ghost-kitchen pioneers Munchery, Maple, and spoonrocket
who’s looking for something like a chicken sandwich. By cre- collectively raised nearly a quarter of a billion dollars, “and
ating the Bad Mutha Clucka virtual brand around its chicken they’re all gone,” he says.
sandwiches, Dog haus maximizes the company’s exposure on in the last few years, Fleischmann says, he’s witnessed a
delivery apps with virtually the same amount of effort from wave of existing restaurants spinning off into virtual brands.
employees in the back of house. But existing only in the world of third-party apps isn’t neces-
some of Dog haus’s virtual concepts, including Bad ass sarily easy. With a traditional restaurant, the real estate helps
Breakfast Burritos, don’t serve existing menu items, and required build brand awareness, as customers might pass a space and
a few new sKUs. vener says customers won’t see these brands its signage multiple times per day. and once social-distancing
outside of the virtual world. “you will not be able to go into a restrictions are in the rearview mirror, people will likely be
Dog haus and get that food,” he says. “We don’t want to con- eager to dine in restaurants once again.
fuse people.” The ability to spin off new virtual concepts empowers oper-
The underlying premise behind the shift is reminiscent of ators to diversify their lineups. But it can be difficult to build
the evolution of food trucks, which allow chefs to test a concept credibility in a new cuisine. after all, how much does a sub shop
without the expense of a full brick-and-mortar restaurant. Dog know about making burritos?
haus will likewise experiment with its emerging brands. some Wow Bao developed a new off-premises platform that focuses
ideas may eventually evolve into standalone restaurants. Others on its core product offering. it recently launched a new plat-
could quickly fade away. But all require only a modest initial form where it signs resale agreements with other restaurants
and offers them a miniature concept built around its asian bao should produce margins of 30–40 percent. Wow Bao’s goal is
buns. With just a few pieces of equipment and a box of its fro- for operators to do $2,000 a week in sales.
zen product, just about any store with a kitchen can start selling “if you have a restaurant and you can make another $75,000
Wow Bao buns out the back door to third-party delivery driv- or $100,000 on the top line, you just paid for a manager,” alex-
ers, president geoff alexander says. ander says. “it’s a game changer we think we’ve created.”
“We believe that any kitchen can be a dark or ghost kitchen,” in 2018, FaT Brands, parent company of Fatburger, Bonanza
he says. steakhouse, and Buffalo’s Cafe, acquired the hurricane grill
similar to Dog haus, Wow Bao had been developing the & Wings chain. since then, Fatburger has started integrating
platform for several months, but it became even more impor- the hurricane grill concept into about 25 existing Fatburger
tant in the wake of the coronavirus. The brand established its stores—but only as a virtual option available on delivery apps.
first delivery-only presence in san Francisco in March after That allowed the company to introduce its predominantly
several weeks of testing in its home market of Chicago. east Coast hurricane’s concept into new markets without
“We saw this as an opportunity to help restaurants that sit investing heavily in new stores. and it instantly doubles the
on the breakeven threshold, and could assist them in gaining local market presence on third-party apps without introduc-
topline sales and strong bottom lines,” alexander says. “With ing an untested concept.
the rise in delivery due to COviD-19, we are prepared to help “it takes a lot of hard work to build a brand, build a repu-
restaurants now more than ever.” tation, and build loyalty with customers,” says Jake Berchtold,
With no need for a hood, even a doughnut or ice cream shop director of operations for FaT Brands’ fast casual division.
could dabble in the asian concept. While it’s operationally a Delivery has proven essential in recruiting new customers;
breeze—partners need only to steam the frozen product and Berchtold says about 70 percent of third-party app customers
package it—some were hesitant about the marketing required were new to the brand at the beginning of this year. and prior
to introduce a new brand. so the chain worked with third-party to COviD-19, some locations were doing as much as half of
apps to secure top rankings upon rollout and invested in tar- all sales through delivery. “it’s been a game changer,” he says.
geted social media advertising. Like with other delivery orders, the virtual brand delivers
Operators need only invest about $2,000 to participate. That incremental sales growth without substantially changing the
WoW Bao (2) / WHitNeY HsieH PHotoGraPHY
cost includes onboarding, training videos and reference manuals, basic operating costs of each unit. Fatburger is making similar
supply chain assistance, third-party assets, four pieces of equip- moves into multi-operator ghost-kitchen spaces, which Berch-
ment, and opening a packaging order. if the partner already told says will help expand into new high-profile markets without
has the equipment, the initial cost is much lower. a huge capital investment.
Wow Bao lets its partners set prices. in no time, a pizza or Traditional store designs continue to evolve. FaT Brands
burger joint could diversify its business—and add new incre- uses a modular design for both the front and back of house,
mental revenues. The company believes correctly operated units which will allow for easy reconfiguration down the road. “We
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oFF-PreMISeS creatIVItY
kind of joke internally: Today we’re designing restaurants to in tests, the move helped red robin drive higher returns per
meet these drivers for third-party apps,” he says. “Tomorrow square foot of kitchen space. The most expensive real estate in
or next year it could be drone delivery.” the kitchen is under the hood—a space that Muhtar says was
as ubiquitous as mobile delivery has become, the future underutilized in many stores. so red robin put its new pizza
of those technologies remains uncertain, says hetal Pandya, ovens there.
founder of edison Trends, an ecommerce intelligence com- The burger chain considered creating something like a new
pany that tracks food delivery sales. pizza line on its own, but decided to rely on a trusted brand
“stuff is getting really fluid and restaurants are getting really rather than spend months toiling in r&D for products that
smart,” she says. would then have to build awareness with customers. Donatos’
While restaurants must rethink their entire operations to stay preparation process and frozen dough made it easy to imple-
competitive with delivery, profitability for some of the biggest ment, and stores can use some of their existing sKUs for both
third-party apps remains elusive. Pandya expects more of the brands’ products—the same onions can top both burgers and
big quick-service chains to explore their own in-house delivery pizzas, for example.
models to avoid the steep fees charged by third-party providers. The partnership was working prior to the coronavirus
at casual-dining brand red robin, off-premises sales were outbreak. at stores with both pizza and burgers, the mix of
steadily rising through 2019—from about 6 percent of all sales off-premises was disproportionately higher than in stores with
in 2017 to about 12.4 percent last year. The company invested only the traditional menu. and while red robin expected to
in new packaging with better ventilation to preserve the integ- put pizza in nearly all its stores by 2022—and possibly consider
rity of tricky-to-deliver burgers and fries. other partnerships that further diversified the menu, too—the
But that wasn’t enough. Last summer, the brand started serv- company was forced to suspend the campaign in March as part
ing Donatos Pizza in select stores. The partnership promised of cost-cutting measures post-coronavirus.
benefits for both brands. it allowed Ohio-based quick serve For rise southern Biscuits & righteous Chicken, the bis-
Donatos to enter new markets by capitalizing on red robin’s cuits have always been king. That’s helped grow the breakfast
vast store footprint. and it gave the burger chain major menu and lunch concept to 16 locations in six states—but it’s come at
diversification, with a tried-and-true delivery product. a cost. “We’ve never been able to really incorporate the chicken
“There’s a strong trend of guests expecting to be able to get sandwich into the rise concept,” says founder and CeO Tom
product where, when, and how they want it in their homes,” says Ferguson, “because people have a preconceived notion that
Jonathan Muhtar, chief concept officer at red robin. “every we’re only about biscuits.”
restaurant brand is exploring different, innovative, unique ways That dynamic pushed rise to spin off a chicken-sandwich
to be able to increase access to guests wherever they may be. concept that lives only on delivery apps. it’s aimed at gaining
We are looking at all options.” more mobile exposure and building up the lunch daypart—all
while using existing menu items.
RISE SOUTHERN “With delivery, we’ve always known we had this space in
BISCUITS & RIGHTEOUS
CHICKEN SPUN OFF the afternoon to do something else,” Ferguson says. “so we
A BRAND CALLED
TACO CLOUD THAT’S thought we could put another brand there and piggyback.”
AVAILABLE FOR
DELIVERY ONLY. rise took the idea further with the introduction of a vir-
tual-only breakfast taco concept, Taco Cloud, that could
be added into existing kitchens with few additional ingre-
dients. Delivery can account for as much as half of all sales
at some stores, Ferguson says, but the fees charged by third-
party services can cut deep into margins. he hopes the
addition of virtual-only concepts can boost overall sales
without significantly increasing labor costs.
“We’re set up in a way for this,” he says. “you have to
combat the delivery fee; it’s a new line item that’s not really
been around awhile. That line was never there before and
rise soUtHerN BiscUits & riGHteoUs cHickeN / taco cLoUD,
Kevin Hardy is a regular contributor to Food news media and based in Kansas City.
As a provider of image solutions for leading restaurant operators, we know environments are
about more than physical graphic and display products. . . they’re about innovation,
customization, service and the advancement of your brand. We provide a collection of
services designed to develop insights, technologies and solutions that enhance both the visual
and functional aspects of the drive-thru and restaurant experience you offer, and we help you
bring that brand experience to your customers across the country and around the world.
www.lsi-industries.com • (800) 245.4624
PaPa JoHn’S tUrnaroUnd
Better Culture,
Better Plan, Better
Papa John’s?
New leadership at the pizza chain is doing its best to make sure the
sins of its founder are kept in the past.
/ BY BarneY WoLF
PaPa JoHN's / BUsiNess Wire
“B
etter ingredients, better pizza” may still be the tagline this year of 2.5–5 percent. And while that might be lower now
at papa John’s, but almost everything else at the com- post-pandemic, papa John’s remained in the black in Q1, even
pany has been changing as the pizza chain continues its with coronavirus striking mid-way through.
turnaround from a business slump that followed controversial “the reality is that what is happening here is amazing, and
statements and an exit from founder John Schnatter. the work going on to transform this company is something
Although this new course is in its early stages—and will everyone is proud of,” says lynch, a brand marketing expert
indelibly be affected by the coronavirus—the direction under who joined louisville, Kentucky–based papa John’s in August
new ceO rob lynch is unmistakable: three consecutive quar- after serving as president at Arby’s. Still, he says the turn-
ters of same-store sales growth, increased revenues, fewer around is in its “very early” stages.
store closings, streamlined management, and strong prod- At the heart of the turnaround is a multipronged effort
uct introductions. margins in the last quarter of 2019 recorded that includes repairing the company’s culture, boosting unit
their highest jump in more than a decade, and the compa- economics, focusing the brand’s positioning around better
ny’s stock price rebounded to its best level since 2017. prior ingredients, using technology more effectively, and, eventu-
to cOvid-19, the company projected same-store sales growth ally, growing the store base.
2019. “it takes time, but in a few short months has been to repair the culture of Papa John’s.
… i feel we have made a ton of progress,” Lynch CHIEF
COMMERCIAL some of that began before Lynch arrived, and
AND MARKETING OFFICER /
MAX WETZEL
46 may 2020 | QSR | www.qsrmagazine.com
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the intent is to create “a company we can all be proud of and brand to its “rightful place in the market,” Lynch says. The com-
that celebrates inclusiveness and diversity.” pany is working on more efficient brand positioning around the
Papa John’s received a financial boost last year when it gained “better ingredients, better pizza” slogan, “which has not been
an investment of up to $250 million from hedge fund starboard brought to life in a long time,” he says. That means emphasiz-
value, whose chief executive, Jeffrey smith, was appointed the ing the higher-quality, clean ingredients the company uses. it
pizza company’s chairman. and over the past 18 months, Papa also means focusing on creating new products and platforms,
John’s has built a mostly new leadership team at headquarters, a tactic largely eschewed previously. “We kind of pulled off the
starting with Lynch. guardrails,” Lynch says.
The culture change also extended to employees up and down at the end of 2019, Papa John’s slayed one sacred cow with
its system. in the wake of schnatter’s departure, the brand its first-ever innovation to its fresh, original dough; the garlic
image internally had soured. Chief people and diversity offi- Parmesan pizza crust had been in the pipeline for years but
cer Marvin Boakye says company surveys of employees found was never approved. Lynch says the team pulled the trigger on
that many workers were uncomfortable sporting the Papa John’s this product rather than a new value platform that had been
logo away from their jobs. “Over the past few years, not all of planned earlier. “i fundamentally believe you can’t win at that
our people were proud to wear it,” he says. “now, more do. game,” he says of value menus.
We want our 120,000 [worldwide] team members to be advo- The new crust proved to be a success, and the company earlier
cates for the brand.” this year introduced two additional items: jalapeño poppers and
Workers have established employee resource groups (ergs) Papadias. The latter is based on an italian piadina and uses the
for certain interests. One, for the LgBTQ community, “chal- chain’s existing ingredients to create a $6 sandwich-like prod-
lenged us to look at policies” in that area and work to make uct, allowing the company to build its lunchtime business. That
sure corporate practices and policies support all team mem- daypart previously amounted to only about 20 percent of sales.
bers, Boakye says. That led the company to participate in the “We have a pipeline full of new ideas that are going to
human rights Campaign’s Corporate equality index, which be brought forward throughout the year,” Lynch says. Pre-
rates workplaces on LgBTQ equality; Papa John’s scored higher COviD-19, plans called for a new product every two months.
than its pizza competitors. “you start on the inside and use that Contributions from menu innovations will be among the
to excite people on the outside,” Boakye says. most meaningful sales drivers this year, analyst silberman says.
Papa John’s also added Dough & Degrees, a partnership with
Purdue University offering full tuition for team members’ online
degree programs. Plus it added a low-cost fitness network and REACHING CUSTOMERS
additional health benefits. ( Papa John’s also vastly expanded its Papa John’s also plans to be creative and productive in its effort
workforce in March, committing to 20,000 new hires to sup- to expand and leverage technology, including using data ana-
port delivery after the coronavirus outbreak.) lytics and engaging better with its 14 million loyalty members.
Marketing is focused on products, and advertising is being bol-
stered by an $8.5 million deal with its new spokesman, retired
EMPHASIZING THE PRODUCT basketball star shaquille O’neal, who also joined the Papa John’s
another key to the turnaround is returning the Papa John’s board of directors and invested in several Papa John’s stores.
AS PART OF ITS
TURNAROUND,
PAPA JOHN’S IS
COMMITTING TO MORE
MENU INNOVATION,
INCLUDING THE ROLL
OUT OF PAPADIAS,
PaPa JoHN’s
BASKETBALL LEGEND
SHAQUILLE O’NEAL
JOINED PAPA JOHN’S
AS AN INVESTOR,
BOARD MEMBER,
AND SPOKESMAN IN
A MUCH-NEEDED JOLT
OF ENTHUSIASM FOR
THE BRAND.
replacing one spokesman with another does carry some nomics for franchisees.
risk, but marketing professor Calkins says Papa John’s didn’t “There is a lot of low-hanging fruit for management to
make the affable O’neal its sole promotional focal point. Much pick,” he adds.
of the advertising focuses on new products. Papa John’s brand positioning is the company’s most power-
Functions like product innovation, menu, marketing, order- ful step so far, silberman says. “They are being food-forward
ing, and digital technology have historically had separate senior with technology as an enabler,” she says. “By really leading
leaders, but Lynch’s streamlined management brought those with food, you allow customers to have a different view of the
together under Max Wetzel, chief commercial and market- company.” Measures like new product innovation, enhancing
ing officer. “The market is changing so quickly, and the way the marketing strategy, leveraging the loyalty program, and
that consumers engage—the way consumers make decisions, enhancing digital platforms and social media are actions Lynch
the tools they use—is changing so rapidly,” Wetzel says. “We also took at arby’s, silberman says, and were a big part of the
don’t want to put constraints on our thinking about where the success he achieved there.
consumer wants us to be.” all the initiatives so far are leading up to one final step: unit
The company is moving beyond legacy thinking, whether growth, especially in north america. “That is the true acid
with products, efficiencies, or partnering with others. Wetzel test,” Lynch says.
says that means turning over every rock to find new products in February he hired a top executive at Taco Bell, amanda
or a better way to do something. “There may not be an answer Clark, as chief development officer. Clark is now leading Papa
under every rock, but we’re looking,” he says. John’s north american and international franchise develop-
social media and advertising at Papa John’s are working ment and sales activity, building design and new concepts, and
together like never before, he adds. and O’neal is not being the programs supporting existing restaurants.
used as a traditional pitchman, but instead is seen in the com- she calls the ongoing efforts at Papa John’s “one of the great
pany’s “Better Day” Tv spots visiting his restaurants, engaging brand turnaround stories,” noting that opening new units is a
customers, and showing off the food. key metric defining the health of a restaurant brand.
For Lynch, all the actions being taken now are meant to
not only provide short-term positive results, but also to build
MAKING IT WORK sustainable, long-term value for Papa John’s and its many stake-
Thus far, Papa John’s is getting more efficiencies out of its mar- holders. “The world deserves better pizza,” he says, “and we
keting spending and an increase in media impressions, says deliver it.” q
PaPa JoHN’s
June
security and Cash Handling
July
pos solutions
August
payment security/ pCi compliance For more information, email
SmartChain@qsrmagazine.com
For advertising opportunities,
contact Eugene Drezner:
eugene@qsrmagazine.com
800-662-4834 ext. 126
coronaVIrUS recoVerY
Coronavirus
COVID-19 has upended the entire restaurant
industry in the worst crisis since at least the
/
/ / /
istock.com / sHaUNL
possible exposure because of their interactions with the public. robust delivery programs.
“We’re full at this point, but literally 5 minutes before i got as uncertain as these times are, many restaurants are try-
on the phone someone walked out and said, ‘i can’t do this any- ing to hold onto the staff they have.
more, i’m going home,’” Falato says. “One person had a child Washington, D.C–based fast casual &pizza expanded sick
that was susceptible, so he didn’t feel comfortable coming in. leave for employees and waived waiting periods for health care
People are generally just scared.” coverage for new employees. The company also increased hourly
Falato says his stores benefited during the great recession wages by a buck and promised unlimited pizza to employees
because of the brand’s affordable menu. he expects that may hold and their families.
true through the coronavirus downturn and resulting recession Likewise, Chicago’s Brown Bag seafood worked to support
as well, as workers across all industries suffer historic layoffs. and retain its 75 or so hourly employees. For the last two weeks
“We’re all going to be hurting for money,” he says. “Pizza in March, the company committed to paying 70 percent for
was always meant to be the working class’s solution to a dinner hours that workers lost from the business slowdown or for time
back in the day when it was created—the poor man’s dinner.” needed to care for themselves or family. (after that time period,
The national restaurant association predicted total U.s. the brand was forced to furlough hourly workers and apply for
sales may decline by as much as $225 billion in three months, a loan from the Paycheck Protection Program.)
costing as many as 7 million jobs. That grim forecast is all the CeO Donna Lee says the company has built a culture around
more noteworthy considering most operators struggled to hire open communication. During these times, leaders are working
earlier this year at a time of record-low unemployment rates. to calmly make and communicate decisions on how to proceed.
Jay Bandy, president of goliath Consulting group, says res- Brown Bag seafood has worked to be there for employees, “let-
taurant chains flattened their management ranks as they made ting them know exactly what the plan is going forward with the
cutbacks during the great recession. While many of those orga- information that we know and communicating that to them in
nizations are leaner now, he expects to see similar cutbacks in a very human way, not in a way that’s like, ‘here’s a piece of
home offices as companies respond to rapidly declining sales. paper on a window, here’s what’s going on with your life,’” Lee
“it’s going to wipe out some middle managers,” he says. This says. “We brought everybody together to tell them what the
has already come to pass; at the quick-serve level, FOCUs plan was and had something of a town hall, if you will. and i
Brands and shake shack are just two examples of companies think that it put a lot of people at ease.”
that have made many corporate cuts, while the full-service side Zach Flanzman, the company’s chief strategy officer, says
of the business has seen layoffs and furloughs left and right. the 70 percent commitment meant hourly workers could, for a
gary stibel, founder and CeO of the new england Con- time, count on making their next rent payment. “it’s going to
sulting group, says the question isn’t so much whether the U.s. be challenging for every single restaurant out there,” Flanzman
will experience a recession—generally defined as two consecu- says. “But a lot of times we don’t have a big challenge going on
tive quarters of declining gross domestic product—but rather and we’re lucky. so when it comes to figuring out what we do
how long the recession will last. his consultancy predicts the in these circumstances, it’s part of the job, too.” —Kevin Hardy
2020 recession will be deep, but maybe not particularly long
lasting. The nation may climb out of it as early as the fourth / / /
quarter of this year, he says.
“But we will feel a lot of pain between now and then,” sti- ONE KEY STRATEGY FOR LIFE AFTER CORONAVIRUS
bel says. “and unfortunately, the restaurant industry will feel The coronavirus outbreak—and the devastation it wreaked
more pain than most businesses.” on the restaurant business—revealed many things to restau-
While few will be spared, stibel says the quick-service space rant operators about how healthy their organizations were in
is well suited to survive this period. With dine-in service mostly normal times. Those companies that couldn’t quickly pivot to
banned, it became obvious that brands that already exceled at off- an exclusively off-premises business model and aggressive pro-
premises execution had a leg up in this environment that revolves motion strategy were the first to fade and even close up shop.
around carryout, delivery, and curbside pickup. One problem for many restaurant companies was they had
“[Quick service] is probably going to do the best because no easy way to communicate personally with their loyal custom-
they have done a better job of everything from drive thru to ers, and therefore couldn’t get the word out about any service
pickup to delivery,” he says. “so we think [quick service] is bet- changes, deals, or discounts. But one industry expert says opera-
ter positioned than fast casual or white tablecloth. But it is going tors still have time to enhance this part of their business so that
to require even for them a pivot.” they’re positioned to thrive once coronavirus subsides—and so
in the meantime, operators should focus on trimming costs that they’re prepared for any future crises.
and holding onto their teams. “People first, because they are Zachary goldstein is founder and CeO of customer rela-
what keeps you in business—not your customers, but your peo- tionship management (crm) platform Thanx, which works with
ple, your crews, your staff,” stibel says. several restaurant companies to personalize their loyalty and
in light of his projection of a short-lived downturn, stibel rec- ordering experiences. speaking in mid-March, goldstein was
ommends brands start preparing now for brighter days ahead. optimistic that restaurant traffic would bottom out and slowly
They can keep tipped workers by moving them to support more climb back to more regular levels as consumer trust in the food
Pictured above: Through-wall Outdoor Walk-in 9’ x 30’ Cooler / Freezer Combination Unit at a Pizza Hut in Garrett, IN
system was restored. But even after social distancing, sales likely “as hard as hard as it is to think about spending energy and
won’t include much dine-in business, at least for the short term. money focused on technology and digitization, we’re going
“That’s going to make off-premises consumption, digital, to see a new normal on the other side of this crisis,” he says.
and the ability to run personalized communications to your cus- “That’s a necessity now especially given that we don’t know
tomers that represent a large portion of your revenue … critical how long demand will be depressed or people will be hesitant
muscles for restaurants to be focused on,” he says. to walk into restaurants.”
The full-service category, of course, suffered more from the and restaurants especially shouldn’t make short-sighted
outbreak than did limited service, mostly because those res- decisions. goldstein points to one concept he frequents that
taurants were so dependent upon a dine-in experience. While put a temporary stop on customers using loyalty points they’d
some full-service brands got creative with meal kits, subscrip- already accrued—a decision, he says, that will likely cost it
tion services, and gift-card solutions as a way to bring dollars in loyal guests in the long-term, even if it might help it with cash
even while their dining rooms were closed, it was impossible for flow in the short-term.
many of them to communicate those special deals to custom- “you really need to focus on being positioned to gain on
ers because they hadn’t already built a robust CrM platform. that upswing, because that’s when winners and losers will be
There’s a lesson in that for restaurant operators who aren’t defined,” goldstein says.
prepared to talk directly and personally with their regular guests. There are silver linings to the challenges posed by corona-
“This is where the [ brands] that seemingly invested ahead virus. goldstein says the restaurant industry was already well
in customer databases, CrM, and loyalty are having a little on its way to a more digital reality, where customers have more
bit more success, because they have a direct channel to their options in purchasing food in ways other than visiting the res-
customers and can tell their customers, ‘hey, this is a totally taurant, and where brands have more data at their fingertips
different way of consuming our food than you’ve experienced available to help personalize promotions to guests.
before,’” goldstein says. “They are seeing more success than “This is just going to further accelerate some of that
the ones that have no direct channel to customers and previ- investment in modern technology and in the digitization of
ously relied on word of mouth, location, and consistency of restaurants,” he says. “and that’s not a bad thing long-term
experience. it’s a lot harder to communicate that you’re now for restaurants, even though this is a little bit—or a lot bit—of
open for pre-packaged meal pickups when the consumer has a more painful route to getting there than we would have liked
never thought of you that way.” to see.” —Sam Oches
Personalization is also key to strong communication with cus-
tomers. goldstein says the days of blanket, untargeted messages / / /
to thousands of consumers in your trade area are long gone.
instead, restaurants should carefully tailor their promotions THE IMPORTANCE OF STAYING POSITIVE
around what they already know about their regular guests— The news isn’t very cheerful these days. Coronavirus devas-
for example, they should send one message to guests who order tated the economy. restaurant sales immediately tanked. some
primarily via digital channels and another to those who more companies closed up shop. Many employees lost their jobs or
often dine in. Personalized offers have a four to 10 times higher were furloughed.
engagement rate than those that are generic, he adds. Despite all the doom and gloom, one fast-casual CeO is deter-
a perfect example of how this can save a business is Chipotle. mined to spread positivity to customers and other restaurant
The Mexican fast casual struggled mightily in the aftermath of professionals. anthony Pigliacampo is cofounder and co-CeO
an e. coli outbreak in late 2015, and the various messages and of Modern Market eatery, a fine-fast chain based in Denver
promotions it rolled out immediately after the food-safety inci- that, combined with sister brand Lemonade, has 50-plus loca-
dent failed to right the ship. goldstein recalls receiving a mailer tions in six states. he’s been leading the charge in promoting
from Chipotle that was addressed to “valued customer”—the the hashtag #saverestaurants, encouraging both consumers
opposite of a personalized message. and other restaurant professionals to double down on support-
But after Brian niccol was hired as CeO in early 2018, the ing restaurant businesses so the industry can collectively get
company redirected its efforts to be more focused on digital through the difficult season brought about by the coronavirus.
ordering and a loyalty and CrM program. “and over the last “We’re seeing consumer habits change at a pace that, frankly,
couple of years, those two initiatives have been the no. 1 driv- has never been observed,” he says. “There’s no precedent for
ers of their growth,” goldstein says. this. There’s no playbook. and so we’re just trying to adapt to
even though restaurant operators today are just trying to it. We keep telling our teams we’re an essential service. … Peo-
keep their heads above water, they should also be thinking ple need to be fed throughout all of this, and you can’t just do
about the long-term and what their companies will look like it with the grocery stores.”
in a post-coronavirus world. Brands should understand where he’s hoping people remember that takeout and delivery are
their revenue is coming from and capture data around it, he safe ways to eat—possibly even safer than grocery stores, which
says, and they should also own their digital channels rather are packed with people storing up supplies. he’s also asking
than be dependent on third-party platforms that won’t relin- people to spread positivity on social media and promote their
quish valuable data. local restaurant businesses, using the hashtag [continued on page 84]
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operations
L
oyalty programs have come a long way loyalty programs
since the days of the buy-10-get-one-free downloaded to users'
punch card. smartphones give
brands more access
nowadays, nearly every consumer has a to customer data than
smartphone. These devices are one of the easi- ever before.
est entry points for customers to start earning
rewards from brands, and apps have become
ubiquitous among most large fast casuals and
quick serves.
increasingly sophisticated technology also
means brands now have access to more cus-
tomer data than ever before, and are able to
integrate that information into every part of
their business.
Bobby greenberg, svP of consulting with
Kobie Marketing, says that in modern times,
customers want to be regularly and directly
rewarded for their patronage, and with rewards
that fit their tastes.
“With the punch-card concept, you were
constantly earning [points], but you never
really redeem, or redemptions are so few and
far between that it really doesn’t do anything,”
greenberg says. “We want people to redeem
and have that experience of, ‘i’m doing a lot of
business with you and getting commensurate benefits from that.’” into a tiered system in which if they spend more, they earn rewards
greenberg says there are serious perks that come along with more frequently.
offering rewards, mostly revolving around getting customers in “you’re able to incentivize the guest to come back, which in
the door. he says data he’s collected suggests a roughly 20 per- my opinion keeps them more loyal, and you set the reward levels
cent increase in a customer’s overall spending post-redemption based on what you believe to be the biggest drivers of increasing
of a reward. additionally, customers are providing their demo- frequency and traffic,” schulze says.
graphic information by adding their birthday and other data into greenberg and schulze both say that another way to use data
apps, which can be helpful to the brand’s overall marketing and to improve loyalty programs is to analyze visits—when custom-
product strategies. ers are visiting stores, how long they stay, and store location—and
steve schulze, CeO of nekter Juice Bar, says that one of the big then target offers at customers accordingly. greenberg also says
ways brands like his are using data collected from loyalty programs is that data can be used to do the opposite: Brands can target times
through customizing rewards to suit a customer’s purchasing habits. when there’s not much foot traffic in store and then offer rewards-
“Let’s say you like açaí bowls, but we keep sending you a green point boosts, deals, or other incentives to bring people in during
juice promotion … with data collection, i can find out [your tastes] those dead periods.
in a matter of seconds and categorize and put you into buckets as Daisy alvarez, director of marketing at Farmer Boys, a 95-unit
far as what you like,” schulze says. “i’ll specifically send out an quick-service breakfast and burger concept, says another way loy-
offering for a bowl and then usually we’ll add something onto it, alty programs help brands is by creating a two-way conversation
maybe something that might be new.” with customers. The main way this happens with Farmer Boys’ loy-
Farmer BoYs
nekter has taken that data usage to the next level with their alty program is through surveys that are pushed out over its app.
newly revamped rewards program where customers are entered “i think all of our new products come from [continued on page 84]
SoCiaL SaVVY
I
n February, just in time for val- With this year’s
cious taste, the amazing look, and
entine’s Day, Dunkin’ rolled out valentine’s day showing off their personal order,”
its Pink velvet Macchiato and drinks, dunkin’ Martin says. “We also saw fans use
worked to make
Pink velvet signature Latte. The the ltos not our instagram filter which turned
beverages—pretty, pink-tinted, only tasty, but [their] world pink, proving this
also visually
and begging for photos—are just appealing to new shade had great shareability.”
two of the Dunkin’ menu offerings push guests By debuting a filter simultane-
to post on
that are primed and ready for post- social media. ously with new products, Dunkin’
ing on social media. allowed even guests who had not
The instagrammable drinks yet sampled the blushing bev-
are not only tasty, but they also erages to engage with them on
provide a direct way for Dunkin’ their personal accounts, inspir-
to earn digital response from ing a wider social media reaction
fans. Many of today’s customers than the drinks alone might have
require little persuasion to pho- generated.
tograph their drink or snack for
social media, but a visually pleas- Monitor social media to get to know
ing treat can make online posts by your consumers
fans all the more certain. aside from direct interaction with
“We create products with fans and promotion of menu items,
both beauty and deliciousness in social media (and instagram in
drink form, to inspire all kinds of particular) is an excellent way to
self-expression, which is what we tap into your consumers’ likes
believe social media is made for,” and dislikes. Martin says that
says Drayton Martin, Dunkin’s Dunkin’ uses social media as a
vP of brand stewardship. way to appeal to audiences both
Martin gave QSR some tips on inspir- When crafting new food and beverage new and old.
ing fans to interact on social media through options, Dunkin keeps the potential insta- “We always want to appeal to our loyal
imaginative, instagram-friendly menu offer- grammability of such items in mind. The fans, while reaching new audiences with a
ings created to deserve a post of their own. resulting digitally savvy items lead not only fresh take on culture that turns heads,” he
to increased posts, but also to greater guest says. “That means meeting fans where they
When creating your menu, think about what your satisfaction. are—in messenger channels, across social,
fans want to order and working with influencers they trust.”
Dunkin’ releases several new food and bever- Plan social media efforts that correspond with new aside from listening to its fans on social
age offerings each year, and when generating items media, Dunkin’ strives to bring a fun,
the ideas for fresh items, Martin says the When Dunkin’ rolled out its Pink velvet authentic feel to instagram and other plat-
Dunkin’ team is inspired by the idea of what items, the chain also released an accom- forms. staying true to a few key brand
guests want to post. panying instagram augmented reality (Ar) characteristics, yet keeping an open mind
“social media is such an important piece filter. The filter allowed guests to turn their to fans’ wants, helps the chain’s digital pop-
of our brand, and we know our audience world the specific hue of the new valentine’s ularity.
loves to share instagram-worthy food and Day drinks. “at Dunkin’, we are all about bringing
drinks, so we’re inspired by that,” he says. “Many of our fans posted to instagram optimism, brightness, and energy to our
“Most importantly, find out what they’re and TikTok to express their excitement guests,” hall says. “[ This] helps to guide
already doing with your brand, and use that for the Pink velvet Macchiato and Pink and inspire our interactions and personal-
DUNkiN’
as inspiration to serve it up with a new twist.” velvet signature Latte, alluding to the deli- ity on social media.” q
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Our
Equipment
has Served
Millions.
And that’s only counting yesterday. EQUIPMENT
innoVate
Singled Out
As customers begin to expect sustainable processes from the brands they patronize,
restaurants are working to reduce single-use plastics.
bY AmAndA bAltAZAr
S
ustainability is so important to Just salad Honeybrains is one of
that the brand has its own chief sustain- the brands investing in
ability officer. eco-friendly packaging,
which is not only good
reducing single-use plastics across the for the earth, but can
44-unit chain is just one of chief sustainabil- also bring in the growing
ity officer sandra noonan’s many duties (read sector of eco-minded
consumers.
more on noonan’s commitment to waste-free
living on page 88). aside from being good for
the earth, veering away from single-use plas-
tics could also be a smart move for Just salad’s
business: Consumers, especially young ones,
are increasingly concerned about the waste of
the materials.
according to the “Colleges and Univer-
sities Keynote report” from Chicago-based
market research firm Datassential, 62 percent
of college students say reducing the amount of
single-use plastics is very important, and 59
percent are trying to decrease their personal
use of the goods.
Furthermore, 62 percent of the students said
they use a mixture of disposable and reusable
containers, showing this age group is prepared
to put in some effort to reduce their waste foot-
print. College students may not be the only
users of quick-serve and fast-casual restaurants, but they, along eliminated the need for a plastic lid, which the chain says will save
with the younger students a few years behind them, are the cus- more than 1,200 metric tons of plastic per year. McDonald’s ger-
tomers of tomorrow. many is piloting the reCup program, through which customers
recycling is not the savior it was once thought to be. in 2018, can request a reusable coffee cup. and KFC has also pledged that
China stopped receiving recyclable products from other nations. all plastic-based packaging will be recoverable or reusable by 2025.
The U.s. can’t handle the amount of recycling produced domesti- at Just salad, which is headquartered in new york City, the big
cally, so more and more plastics are ending up in the landfill. and push has been on its reusable bowl program, which saves around
numbers were already low: according to National Geographic in 2018, 75,000 pounds of plastic each year. Consumers purchase a bowl
only 9 percent of all plastic waste ever produced has been recycled. for $1 and bring it back for cleaning and sanitizing. The program
Customers are waking up to these facts and what habits they has an incentive beyond helping the environment: every time con-
can change. This is where restaurants come into play. according to sumers return a bowl, they receive a free salad topping on their
the Plastic Planet Coalition, americans use more than 100 million next order.
pieces of plastic utensils annually, and more than 1 million plas- noonan has big goals for the reusables even beyond bowls, and
tic drinking bottles are purchased every minute around the world. she wants to effect change quickly. “i want to do more than just
These plastics can take up to 1,000 years to decompose, leeching scratch the surface,” she says. “Our business is growing at a very
noxious products into the earth as they break down. rapid clip, so this is the time to do it, before we’re even bigger. The
restaurants are doing their part to reduce the waste. Last year, future is in reusables.”
Burger King announced it would no longer give away plastic toys The benefits of the salad bowl program are four-fold, she points
HoNeYBraiNs
in kids’ meals, saving 320 tons of plastic every year. McDonald’s out; guests feel they are doing the right thing, enjoy a healthy meal
is changing its packaging; its new McFlurry packaging in europe of Just salad’s fresh ingredients, earn a free [continued on page 84]
#saverestaurants. surveys,” alvarez says. topping, and also help reduce waste. “it’s
he’s asking everyone to order out as For example, the chain released a Bour- coupling the joy of eating with the joy of
much as possible, even if it’s from your bon Bacon Cheddar Burger in april, the doing the right thing,” she says.
competitors, and even if you’ve closed your idea for which rose to the top of customer The program has taken off, and in Feb-
restaurant. still have an email list? Use that preferences after several rounds of loyalty ruary, the chain announced usage of its
to promote ordering out. program surveys. another added bonus bowls had doubled year-over-year. noonan
“We need our food distributors to come Farmer Boys is seeing from its loyalty pro- says it’s been fairly easy to get customers
out of this in one piece. We need all the com- gram? Whenever new menu items are on board with the program.
panies that service our restaurants in a variety released, the brand can use the app to push The company talks up the benefits of the
of ways to come out of this in one piece,” he out that news to customers. bowls and the free topping reward on its
says. “and so anything we can do to educate “The last time we launched a new social media, and runs promotions through
all of our guests that … the industry needs burger, we gave the top users at each loca- the year. When it opens a new store, the
saving, that benefits all of us in the end.” tion a free burger as a ‘thank you’ for their concept also hands out free bowls. “it’s a
While there will certainly be a shake- loyalty,” alvarez says. constant drumbeat of communication,”
out in the restaurant industry and many More sophisticated technology in the noonan says.
will close because of this business down- area of loyalty programs has also improved To keep that drumbeat going, Just salad
turn, Pigliacampo says the industry will the integration of systems. Zaid ayoub, launched sustainability Champions, an
be stronger for what it goes through and founder of 13-unit Mediterranean con- employee engagement program. selected
the lessons learned. Brands are getting a cept saJJ Mediterranean, says that these sustainability Champions are employees
crash course in food safety that will pay improvements don’t matter as much to who are trained at company headquarters,
dividends in the future, he points out, and customers, but make a world of difference then placed in stores to keep colleagues
if they weren’t fully invested in off-prem- for operators. and guests informed about all sustainabil-
ises before, then they are now. “We’re launching a new platform that ity initiatives.
“This event is going to be a forcing func- will allow us to have the loyalty program stella Jean’s, an ice cream store with
tion to have people double down even more not only through the app, but also through locations in san Diego and Costa Mesa,
on all of those things,” he says. “They were our regular point-of-sale system and the California, uses only servingware made
the right trends to bet on two months ago, web,” he says. “it’s all coming under one from compostable materials. stores hand
and they’re even more so the right trends platform that we can track.” out samples of ice cream using metal spoons,
to bet on now. and i think the industry is That integration will allow saJJ to look which saves around a million plastic spoons
healthier because of that.” at a variety of metrics, such as what custom- a year, estimates cofounder and director of
and for those who have had to unfortu- ers ordered on their first visit, if and when operations steven Torres.
nately close their restaurants, they should they came back for a second visit, and what and while compostable materials do
take the time to consider how to make their they ordered when they returned. cost more—Torres says the price is about
businesses better when they turn the lights That data can also show customers who 10 percent more than any other material—
back on, he says. don’t return. For these guests, saJJ can it’s worth it.
For now, though, running a restaurant examine their experiences and determine “it’s our responsibility to take care of
operation can feel like surviving day-to-day. what to improve so those drop-offs don’t the environment, not just make great ice
But Pigliacampo says restaurant operators happen in the future. cream,” he says. “some of our customers
should go on the offensive, taking advan- ayoub says, for concepts of all sizes, he even bring their own containers, so reduc-
tage of knowledge, ideas, programs, and believes loyalty programs are the way of ing waste is definitely something they’re
other resources available to the industry. the future, despite the initial costs of get- interested in.”
Whatever it takes, he says, to get custom- ting those programs set up. it costs honeybrains, a three-location
ers through the proverbial doors. nekter’s schulze also thinks loyalty pro- fast-casual restaurant in new york City,
“get volume through your restaurant; grams and data collected through them are almost double to use packaging that’s made
that’s going to benefit the community at going to guide fast-casual and quick-service of recycled goods and compostable. “We see
large more than anything else,” he says. restaurants through many of the major deci- it as an investment in the future—not only
“short-term problems right now are irrele- sions they’ll be making in coming years. that of honeybrains, but also of the planet,”
vant. We are the support infrastructure here, “The whole industry is evolving, and says Marisa seifan, CeO and cofounder.
we’re the front lines. We’re giving people we’ll see where it pans out,” he says. it’s also a great educational tool, she
food that they need. so let’s keep doing it.” One potential direction? schulze points adds. some staff members were in the dark
For more on what Pigliacampo and Mod- to starbucks, which debuted its first pick- about composting and the environmen-
ern Market are doing to keep positive and up-only location in new york last year. tal value of collecting waste. now, seifan
stay open throughout the coronavirus out- That concept encourages customers to use says, several team members have a new
break, stream a podcast conversation with their phones, and specifically the starbucks understanding of the eco-friendliness of
him at Qsrmagazine.com/coronavirus. app, to order, bringing more and more users composting, and many are even compost-
—Sam Oches q into its loyalty program-system. q ing waste at home. q
accurate Franchising. “There’s no way that immediately raised the stakes for Dave’s,
you could support opening up that many and brought needed experience to the
Soups, sauces and salsa ! locations, because finding locations in itself brand.
is difficult. … it takes a long time to build This newly added experience will be
that team and that infrastructure.” bolstered by the franchisees joining the
Stick Blenders Libava seconds Lee’s advice, and says that
huge volume growth in the first two years
company. Phelps says the brand is look-
ing for franchising partners who already
is a warning sign. While the hype is under- have a considerable amount of experience.
#1 Selling standably alluring, inexperienced franchisees “We’ve set a very high bar. if you’re not a
are the ones most likely to get caught up in multiunit franchise operator, we won’t con-
fast-growing, “hot” brands. sider you as a candidate,” he says. “We’re
“When you see a brand that’s growing, gathering people who have a great track
it’s exciting, and us humans tend to let our record in this industry.”
emotions get in the way of things,” Libava The original founders are still on board
says. “it’s OK to be excited, but don’t skimp as franchisees and retain 50 percent own-
when you do the research.” ership of the company. This combination
Wiederhorn says the lack of restaurant of Dave’s creators plus a seasoned CeO
franchise experience in Burgerim’s owner- and experienced investors and franchi-
ship was a point of concern. sees results in a perfect balance for growth.
20 models available : “Clearly, their sales organization was Phelps says the founders bring a feel for
· Removable stainless steel blade and bell
for perfect sanitation
off the charts, but this thing was a sales locations and a gut instinct for Dave’s mar-
· Multipurpose : blade and whisk
machine without operational support and keting to the table, evidenced in the chicken
· Powerful motor for great performance
the financial wherewithal to support the chain’s large social media following.
· Compact and easy to handle appliance
franchisees,” he says. “you never know how it’s going to
· Patented Easy Plug system making it far
work out between founders, investors, and
easier to replace the power cord for MP Turning the disaster around experienced operators,” he says. “But the
Models during after-sales servicing after the dust settled on Burgerim’s recent relationship couldn’t be better for us.”
blow-up, franchisees were left to pick up Though the chicken space is a crowded
the pieces. Libava says that those who are and competitive category, the Dave’s team
still Burgerim franchisees—even those with has high hopes and little fear for the future.
successful stores—should consult a fran- Customers continue to seek out chicken, and
chise attorney to see what their options are hot chicken in particular has taken off as
going forward. of late. Plus, Dave’s offers customizability
Wiederhorn advises Burgerim franchi- and an upscale fast-casual experience—
sees with existing stores to consider seeking two factors that appeal to today’s diner.
out other franchisors. “you’ve already built The food also travels well; 45 minutes
a restaurant, you have a lease obligation, so to one hour after cooking, Dave’s chicken
see if there’s a direction you can pivot to that maintains its original moisture and heat,
works for you,” he says. Phelps says. right now, the brand primar-
FaT Brands has reached agreements with ily delivers via DoorDash and Postmates,
about six franchisees to convert their stores, but it plans to partner with various services
and is in discussions with approximately a as it grows across the U.s.
dozen more. Those select Burgerim locations While delivery is already popular for
will convert into one of FaT Brands’ con- Dave’s five locations, that doesn’t mean that
cepts—Fatburger, elevation Burger, yalla in-store traffic isn’t booming. in fact, Phelps
Mediterranean, hurricane grill & Wings, or says the chain has a “high-class problem”:
Buffalo’s express. The transformation pro- some stores are too small to accommodate
cess for the former Burgerim units is fairly their high customer volumes. newer restau-
straightforward, and Weiderhorn says other rants are being planned to accommodate
brands can do the same. the chain’s popularity both in-store and
“you just feel bad for the people affected,” off-premises as the concept plans to spread
he says. “These are all mom-and-pop oper- across the nation and the globe.
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Start to finiSH
Sandra Noonan
Chief Sustainability Officer
JUST SALAD
A
and head of Loop; and, of
course, Just Salad’s CEO Nick s a child, i read a book about saving the nient sustainability. in a year, americans use 41
Kenner. planet that inf luenced me very deeply. billion units of plastic cutlery. That’s about 137
What’s the best piece of That led me to recycling and thinking pieces for every american. We use about 10.6 bil-
advice that other industry about my waste footprint at a young age. in sixth lion disposable plates and bowls in a year, which
executives should hear? grade, i proposed a recycling program to my is a total of 150,000 tons of waste. so Just salad’s
The advice I give myself is to school principal and helped launch and operate it. reusable bowl program is a really well-established
be bold and think big, be-
as an adult, i have remained interested in how system that allows us to be part of the solution
cause we don’t have time to
waste in solving the climate waste is managed. i’ve also always been inter- to this single-use disposable waste. Our program
crisis. I think, within the res- ested in healthy eating. also delights our guests by offering an additional
taurant industry, sustainabil- Before Just salad, i worked at the institute topping when you bring in a reusable bowl. so
ity directors can play a big for sustainable investing at Morgan stanley and we’re combining a guest rewards program with
role in reducing our carbon
immersed myself in sustainability research and a waste reduction program; that’s the kind of leg-
footprint.
thought leadership. i became a superfan of Just acy we want to leave as a business.
What are some of your in- salad. i was such a fan that i connected with The most challenging and also the most
terests outside of work?
I spend a lot of time organiz-
the company and started having a conversation rewarding part of my job is figuring out pre-
ing events for Zero Waste with them about the significance of the reusable cisely how Just salad will realize its zero-waste
NYC, a Meetup group I bowl. Over time, the relationship developed into roadmap. We have set out to go zero-waste in
founded in 2019. I also a professional one. it was really a wonderful and the next couple of years, and there are a lot of
spend a lot of time living a natural progression from being a loyal customer challenges around foodservice ware, bioplastics,
zero-waste lifestyle. Fitness
and cooking are also two big
to the brand’s chief sustainability officer. and compostability. We’re really striving to get it
parts of my life. at Just salad, we’re trying to lead a paradigm right and only carry products that help us meet
shift toward less waste and what we call conve- our sustainability goals.
JUst saLaD
Your food gets diners in the door, but they expect In the next three years:
a seamless experience, too. They want friendly
service, plus digital services — like online ordering 90% ofto restaurants plan
offer mobile or
and pay-at-the-table options. contactless payments*
*According to the Boston Retail Partners 2019 “Restaurants of the Future” study.
All trademarks contained herein are the sole and exclusive property of their respective owners. Any such use of those marks without the express written permission of their owner is
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