1/7/2019
Chick-fil-A is the fast-food chain of the year, and things are only getting better.
It is a little bit scary how well Chick-fil-A did in 2018. The chicken chain is set to become the third-largest restaurant by sales by the end of this year, according to Kalinowski Equity Research. Doing so would mean catapulting up from No. 7, past competitors like Taco Bell, Subway, and Wendy’s.
To do so, Chick-fil-A’s system sales would need to grow the 12% to 15% that analyst Mark Kalinowski has predicted. That’s a massive figure, as most fast-food competitors would be thrilled to hit 8% growth in a year. Domino’s is the only chain that is even close, estimated to grow sales roughly 12% in 2018.
The past few years have seen Chick-fil-A go from a Southern cult favorite to one of the most dominant chains in America.
The chain is entering new markets at an unprecedented clip, including opening its first store outside the US. It is doing a delivery push. It rolled out a new app. New items are popping up on the menu. Chick-fil-A even tested a meal kit this year.\
Chick-fil-A is a private company, but according to industry estimates, things have never been better at the chain. Chick-fil-A is still the most profitable fast-food chain in the country on a per-unit basis, with a single Chick-fil-A making an average of $4.1 million in annual sales, according to QSR Magazine. By comparison, the average unit volume at a KFC location is $1.2 million.
11/1/2018
Panera is set to hit $2 billion in digital sales by the end of this year
Digital ordering is paying off for Panera Bread.
The soup and sandwich chain is slated to pass $2 billion in annualized digital sales this year, double that of last year, its CEO Blaine Hurst said at CNBC’s Productivity@Work event in New York City Tuesday.
Panera, which was sold to JAB Holdings in 2017 for $7.5 billion, started this journey in 2014 with the launch of a program called Panera 2.0. The goal was to make ordering and pick-up easier by installing self-order kiosks, updating its mobile app and laying the groundwork for delivery.
These initiatives were well ahead of what other restaurants were doing at the time. Only now are companies like McDonald’s and Chipotle beefing up their digital efforts.
Panera’s dive into expanding its online, mobile and delivery capabilities was about leveraging tech to make the customer experience better, Hurst said.
He said the company works on a two-year time table with these initiatives because of how quickly consumer expectations and technological innovations change, noting that both are getting harder to predict.
Still, Panera seems to have a finger on the pulse of what consumers want. In 2017, Hurst forecast that digital sales would be one-third of all sales within the next five years. The company hit that mark this year.
Currently, digital sales, which include online, mobile and kiosk orders, account for about 33 percent of the company’s sales. This is the highest rate in the industry, according to Panera, outside of the pizza segment, which typically sees digital transactions as 50 percent of total sales.
Chipotle last week said its digital orders were just over 11 percent of its sales.
Panera bolstered its digital sales by adding delivery in 2016 at select locations. A year ago, delivery was only in 15 percent of Panera’s restaurants. Today, it’s in 75 percent.
“Consumers want what they want, when they want it, where they want it and how they want it,” Hurst said.
CNBC
10/5/2018
McDonald’s removes artificial ingredients from most burgers
The Chicago-based fast-food chain announced Wednesday that it has removed artificial colors, flavors and preservatives from its top-selling burgers, the latest announcement in the company’s ongoing effort to improve the quality of its food. The pickles, which have artificial preservatives, are the exception.
Some other menu items will continue to have artificial ingredients, including the Signature Crafted sandwiches.
This latest incremental step in the Golden Arches’ food journey comes after the company announced in March that it would use fresh beef for its Quarter Pounders and Signature Crafted burgers. All other burgers, including the Big Mac, are still made with patties that are prepared in advance and then frozen. McDonald’s has also removed artificial preservatives from its McNuggets and plans to use only cage-free eggs by 2025.
In order to make this latest change, McDonald’s removed artificial ingredients from its American cheese, Big Mac sauce and burger buns.
Other menu items that will continue to have artificial ingredients include the Egg McMuffin, the Bacon, Egg & Cheese Biscuit, Bacon, Egg & Cheese McGriddles and the Filet-O-Fish sandwich.
As for the pickle, it will remain artificially preserved until further notice.
“There are different types of pickles available, but to keep the taste our customers know and love, we made no changes to our signature dill pickle,” spokeswoman Andrea Abate said in an email.
Chicago Tribune
9/5/2018
Chipotle offering free delivery
Chipotle Mexican Grill is expanding its delivery partnership with DoorDash.
The fast-casual restaurant’s largest delivery partnership rolled out nationwide in late April, but now consumers can order their burritos for delivery directly from the Chipotle app or chipotle.com.
To mark the launch of direct delivery with DoorDash, Chipotle is offering free delivery on orders of $10 or more through Sept. 12.
No coupon code is needed to get free delivery, and as with many companies’ promotions, the deal could end early at Chipotle’s discretion.
According to research firm The NPD Group, revenue from food deliveries jumped 20 percent in the past five years, and the overall number of deliveries increased 10 percent in the same period.
In May, Chipotle reported an increase of nearly 700 percent in delivery orders in the week after the DoorDash partnership began when it offered the same free delivery offer.
USA TODAY NETWORK
8/8/2018
Dunkin’ Donuts looks to branch outside of breakfast with new snacks
Having mastered the coffee-and-doughnut breakfast trade, Dunkin’ Donuts is looking to expand its appeal at other times of the day.
The chain is going to offer what it calls a Dunkin’ Run menu aimed at take-out customers. Part of its appeal will be price — $2 per item for five products like its Donut Fries, doughnut strips that mimic the look of french fries, and chicken tenders with a waffle-like coating.
In offering the items, Dunkin’ is following other chains looking to drum up business at other times of the day. Starbucks, for instance, has been trying to expand its lunchtime offerings. IHOP recently launched a promotion to try to get diners to think of it at lunch and dinner for hamburgers, not just at breakfast for pancakes.
Besides Donut Fries and chicken tenders, Dunkin’ will offer Ham and Cheese Roll-ups using flour tortillas. There also will be Pretzel Bites, which is pretzel pieces served with a spicy brown mustard. Lastly, a new fudge brownie that’s gluten-free.
7/4/2018
IHOP expanding urban markets in major cities.
IHOP is hoping to expand in Chicago and other urban markets as the chain continues to appeal to younger consumers, said Darren Rebelez, president of the Glendale, Calif.-based chain.
Currently, IHOP has about 40 restaurants in the Chicago area but only five in the city. In the Chicago area, as in other urban markets such as New York, Los Angeles and Washington, D.C., IHOP restaurants are mostly located in the suburbs. But contrary to what some may think, IHOP has a strong customer base of younger clientele and wants to expand its urban locations to be closer to those customers, Rebelez said in an interview.
“The big space for us is inside the city,” he said. “Our strategy is to be where the guests are.”
There have been other signs of IHOP changing with the times. Last year, IHOP rolled out a mobile ordering app and plans to continue to find ways to use technology to increase sales, Rebelez said.
And of course, IHOP is fresh off a viral marketing campaign in which it announced Monday that it was changing its name to IHOb — a stunt to draw attention to the company’s new focus on its reformulated burgers. The whole point was to draw attention to the fact that serves quality food for lunch and dinner, as well as breakfast, Rebelez said.
The hope is burgers will help lift sales during lunch and dinner, Rebelez said.
“We wouldn’t do this exercise just for fun,” Rebelez said of the marketing campaign. “We expect it to increase sales and traffic.”
As for the urban market expansion to come, Rebelez said he expects it will align with the life cycle of the company’s core customers.
“Millennials are having children, and they’re bringing their children to IHOP,” he said.
6/4/2018
Chipotle adding mobile order drive-thru lanes.
Chipotle Mexican Grill is systematically adding drive-thru lanes to some of its new locations, but you won’t be able to place an order at any of them.
The burrito chain has dealt with a very public three-year-long sales slump that crippled its stock price. To revitalize its sales and encourage diners to return, the brand has implemented strategies like digital ordering, delivery and adding new menu items that it hasn’t pursued aggressively in the past.
Drive-thru windows are cropping up at Chipotle restaurants across the country, allowing customers the option of staying in their cars to get their burritos and bowls.
However, these drive-thrus are a little different from the typical fast food order and pick-up lane. Here customers don’t order their food through a microphone, they do it ahead of time through Chipotle’s app or an online form.
Diners are provided with a pick-up time once they place their order and can drive through the mobile order lane to grab their meal without having to go inside the store.
5/2/2018
DOMINO’S DEBUTS OUTDOOR DELIVERY PROGRAM
NEW YORK (AP) — Domino’s, which has been bringing pizzas to doorsteps for more than half a century, will now deliver to the great outdoors.
The pizza chain said Monday that its drivers can meet customers at U.S. beaches, parks and landmarks to hand over pizza, cheesy bread and other food on its menu.
In all, Domino’s said it will deliver to 150,000 outdoor locations including under the Gateway Arch in St. Louis; by the Las Vegas welcome sign; or next to a statue of soul singer James Brown in Augusta, Georgia. The locations show up in the company’s app or website as “Domino’s Hotspots.”
Domino’s says it tested the service last fall in Miami, where customers ordered outside hotels and the zoo. Dennis Maloney, the company’s chief digital officer, wouldn’t say how many deliveries were made during the test, but said it was enough to decide to roll it out nationwide.
Franchisees chose the hotspots, including local dog parks and airports. Drivers will pull up to the curb to meet customers, Domino’s said, and people can tell the app what they’re wearing so they’re easier to spot.
4/4/2018
Dunkin’ rips page from McDonald’s value menu playbook
Dunkin’ Donuts is rolling out a national value menu of egg wraps and two different egg sandwiches priced at $2, $3 and $5 for two. The menu will be available all day.
The Canton, Mass.-based brand is calling the menu Dunkin’Go2s, and it includes two of their egg and cheese Wake-up Wrap for $2, two of their egg and cheese sandwich on an English Muffins for $3 and two of their egg, cheese and bacon sandwich on a croissant for $5.
Now customers can enjoy not one but two of their favorite breakfast sandwiched priced at $2, $3 or $5.
“Dunkin Donuts is committed to offering our guest quality products at compelling prices, and we are excited to introduce a new national value menu,” Tony Weisman, chief marketing officer, Dunkin’ Donuts U.S., said in a recent news release.
Dunkin’ Donuts has more than 12,500 restaurants in 46 countries worldwide.
3/6/2018
McDonald’s to roll out fresh beef burgers nationwide this spring.
McDonald’s plans to introduce fresh beef burgers in all U.S. restaurants by early May, the fast-food chain’s latest move aimed at drawing customers, boosting sales and propelling the business into the future.
Quarter Pounders and Signature Crafted burgers will be made with patties that are cooked upon ordering. All other burgers, including the Big Mac, will continue to be made with patties that are prepared in advance and then frozen. The announcement follows 18 months of testing in order to refine the cooking process so it doesn’t result in longer wait times for customers, said Chris Kempczinski, McDonald’s USA president.
2/6/2018
PANERA PETITIONS FDA TO DEFINE ‘EGG,’ AS BRAND INTROS NEW EGG SANDWICHES
Panera Bread is once again demonstrating its genius for earning free media exposure for new offerings through well-publicized initiatives relating to its “100% clean” brand promise.
This time, Panera has announced that it has petitioned the Food and Drug Administration to establish a clear definition of “egg.” And it’s making no bones about timing this move to coincide with its launch of a line of made-to-order breakfast sandwiches “featuring 100% real eggs.”
The restaurant brand points out that lack of a more specific FDA definition of egg has allowed food purveyors to use eggs that include additives such as butter flavors, gums and added color and sell them under the generic term “egg.” Panera says that its research found that half of the top 10 fast casual restaurants that sell breakfast have an “egg” made of five or more ingredients.
Panera says its goal in petitioning the FDA is to “better support and inform guests in the absence of a true definition for the word ‘egg.'”
Of course, it also provides an opportunity to get the word out through the press that Panera uses only “freshly prepared, cracked shell eggs and/or egg whites with no additives” in its new sandwiches and other egg-containing menu items.
1/8/2018
Wendy’s adds delivery with DoorDash deal
The Wendy’s Co. announced a new delivery partnership with third-party service DoorDash, which started delivering for the burger chain in 48 markets.
In so doing, the Dublin, Ohio-based chain becomes the latest to make a big push into delivery, which is arguably the biggest single trend in the restaurant industry today. Its rival, McDonald’s Corp., is also making a big national delivery push.
DoorDash’s delivery drivers, which the company calls “Dashers,” use thermal bags to keep food hot or cold and its limited delivery radius ensures an order “stays fresh” and is “as fast and efficient as possible.”
Wendy’s and DoorDash tested delivery in 135 restaurants in Columbus, Ohio, and in Dallas earlier this year.
The Baconator and Frosty, Wendy’s staples, proved popular menu items during the test. But customers can choose from a variety of items.
12/4/2017
Arby’s to acquire Buffalo Wild Wings
Fast-food chain Arby’s Restaurant Group said Tuesday it reached a deal to acquire Buffalo Wild Wings, which promotes the slogan “wings, beer, sports” in its advertisements, for $2.4 billion in cash.
The deal comes as the casual dining sector is ailing as Americans have rediscovered home meals amid low grocery prices and new food delivery options. Competition from fast-casual competitors and higher labor costs also are hurting.
11/7/2017
Middleby Buys Globe Food Equipment Company
Multiline foodservice equipment manufacturer Middleby Corporation has acquired Globe Food Equipment Company. Based in Dayton, Ohio, Globe manufactures slicers and mixers and has approximately $50 million in annual sales.
This is Middleby’ s second acquisition in recent weeks. In September Middleby bought QualServ.
10/11/2017
Panera begins offering voice orders via Google Assistant
Panera Bread customers can now place voice orders through Google Assistant at a handful of the company’s locations. Panera plans to expand the feature to all 2,000 of its US outlets by the end of the year.
9/6/2017
Domino’s, Ford Test Pizza Delivery Using Self-Driving Vehicle
Domino’s Pizza and Ford Motor Co. are partnering to try using a self-driving vehicle in pizza delivery. The testing will take place in Ann Arbor, Mich., home to Domino’s and close to Ford’s headquarters in Dearborn.
Over the next several weeks, randomly selected Domino’s customers will receive their delivery order from a Ford Fusion Hybrid Autonomous Research Vehicle, which will be manually driven by a Ford safety engineer and staffed with researchers. The appearance to consumers will be that it’s driverless.
Customers who agree to participate will be able to track the delivery vehicle through GPS using an upgraded version of Domino’s Tracker. They will also receive text messages that will guide them on how to retrieve their pizza using a unique code to unlock the Domino’s Heatwave Compartment inside the vehicle.
As part of the testing, researchers from both companies will observe customer reactions to interacting with a self-driving vehicle as a part of their delivery experience.
With a plan to begin production of self-driving vehicles in 2021, Ford is hoping to build a business to meet the needs of both partner companies and their customers.
8/2/2017
Panera’s digital menus narrow choices based on diet styles
Panera Bread launched three curated menus to make it easier for people who follow specific eating styles to order. Customers placing orders online or through the mobile app will be able to filter the menus by choosing one of three diet types — plant based, protein-rich or nutrient-packed–and each category will feature two newly created salads in addition to existing dishes.
7/7/2017
The Middleby Corporation Acquires Sveba Dahlen Group
Commercial cooking and processing equipment manufacturer The Middleby Corporation (Elgin, IL.) has acquired Sweden-based Sveba Dahlen Group, which develops and manufactures ovens and baking equipment for the commercial foodservice and industrial baking industries. Sveba Dahlen Group’s brands include Sveba Dahlen, Glimek, and Bear Varimixer.
6/2/2017
Vollrath Company Acquires Belleco, Inc.
The Vollrath Company, LLC (Sheboygan, WI), a leading manufacturer of equipment and smallwares for the foodservice industry, announced May 2017, the acquisition of Belleco, Inc. located in Saco, Maine. Belleco is a premier manufacturer of American-made conveyor toasters and ovens. This acquisition will expand Vollrath’s offering of countertop cooking, warming and preparation equipment.
5/2/2017
Manitowoc Foodservice, Inc. announced that it is rebranding the company, its logo and its brand identity to Welbilt. The change is part of the company’s strategic repositioning after it spun off from its former parent company, The Manitowoc Company, in March 2016.
