What the Q3 earnings tell us about the state of restaurants

How being a conscious business can pay off: Norman Wu isn’t just out to build a restaurant empire, he’s out to do it consciously. So much so that he even named his restaurant company, parent to his legacy brand Just Poké, Conscious Hospitality. “We are building out restaurant concepts that keep in mind an ethos outside of just kind of making money,” Wu said in a recent episode of Take-Away with Sam Oches. That includes the takeout containers, the building of the restaurant, the materials used for the build, the sourcing of products, and the career development of employees at the restaurant. The restaurant group is working toward “building a framework for the team that can really allow for people to have careers [at Just Poké], as opposed to just a job.” That’s just part of it. The team at Conscious Hospitality pays about 30% above minimum wage and has offered healthcare to workers since its inception. To offset those costs, Wu said that the costs of their fast-casual menu are a bit hig by First Bite

9 min listen

Peek behind the scenes of NRN’s top stories: Welcome to Nation’s Restaurant News’ newest podcast, First Bite. This podcast, hosted by digital editor Holly Petre, is your morning burst of news followed by a deep dive into one of the trending stories of the day. Delivered to your phone early every morning, this podcast is here to bring you the news alongside your first cup of coffee, plus some context from an NRN senior editor on one of their stories. Subscribe to First Bite now on Apple Podcasts, Spotify or wherever you get your podcasts. by First Bite

1 min listen

What does it mean that Starbucks is closing more stores?: Welcome to First Bite, a Nation’s Restaurant News podcast, your daily source of news from NRN. Last week, Starbucks announced it would be closing 16 stores due to health and safety concerns over alleged drug use in the stores in cities ranging from Los Angeles to Philadelphia. The stores, mostly on the West Coast with a few on the East Coast, were closed because of employee concerns. On Friday in a leaked video obtained by conservative Canadian blog Post Millennial, CEO Howard Schultz said that “this was just the beginning” and that many more stores would be closing, including profitable ones. A Starbucks spokesperson confirmed that the footage was real. NRN’s Joanna Fantozzi has more on the story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

7 min listen

Who's winning the pizza wars? by First Bite

8 min listen

What makes Chipotle Mexican Grill a ‘value leader’ among Mexican fast-casual restaurants: Welcome to First Bite, a Nation’s Restaurant News production. This daily news show, hosted by Holly Petre, offers you a daily dose of news along with a deeper dive into one of the trending stories of the day. On today’s episode, you’ll learn about why Chipotle is a “value leader,” plus hear the Top 5 stories of the day. by First Bite

7 min listen

Why KFC chose to add nuggets to the menu after almost 70 years: Kentucky Fried Chicken. The name brings up images of the colonel and fried buckets of chicken in the famous red and white bucket, maybe some finger lickin’ sides too. Now customers can get chicken nuggets. Well, not really the first time, since KFC has had Beyond Meat nuggets before, but this is the first time actual chicken nuggets will be offered on the chain’s menu in its 69-year history, with one exception in the ‘80’s. Previous similar menu items have included popcorn chicken bites and “original recipe bites.” These chicken nuggets will have the famous 11 herbs and spices and are 100% white meat. Joanna Fantozzi and Bret Thorn have more on this story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

6 min listen

Chipotle makes two tech investments: Chipotle announced Thursday it would be investing in two startup companies, Hyphen and Meati Foods, through its $50 million Cultivate Next Fund launched earlier this year. The first is a new robotics company designed to improve makelines with the use of, what else, robots. NRN senior editor Lisa Jennings sheds more light on Hyphen. Meati Foods is a mushroom-based plant food company that’s using the meaty substitute to counter the chemical-packed plant-based alternative world. Then we turn to our tech reporter, NRN senior editor Joanna Fantozzi, for more on how this impacts the tech sector and how these tools fit into that sphere. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

7 min listen

Analyzing what consumers think: From value to cleanliness to loyalty, our 2022 Consumer Picks Report in partnership with Datassential covers it all. Each year, Datassential surveys consumers on topics ranging from ambiance to take-out food to register which chains rank at the top. This year, we decided to pull apart the data in a way we never have before into individual galleries and analyze the data in separate deep dives, all done by managing editor Leigh Anne Zinsmeister. Hear more from her on her investigation ahead. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

10 min listen

Why operators are optimistic about the future of the industry: Welcome to First Bite, a Nation’s Restaurant News podcast, your daily source of news from NRN. Today, we're talking about the Restaurant Development and Finance Conference. A few overarching themes emerged, and none of them should be a surprise to anyone in the restaurant space. To summarize, things are challenging right now with across-the-board inflation, supply chain pressures, labor pressures, name it. One operator said he wouldn't recommend anyone open a restaurant until "things get better." That said, there is optimism things will get better. When, however, is the million-dollar question. Here to share her observations from the conference is executive editor Alicia Kelso. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. by First Bite

11 min listen

What the Q3 earnings tell us about the state of restaurants: Earnings time is like Christmas for financial analysts and for restaurant reporters as well. It’s a time when restaurants report their earnings, and we get to cover an endless stream of quarterly statements from brands who have either done well or not so well over the past three months. During the third quarter of this year, we saw trends emerge, like we previously talked about with Alicia Kelso about chains returning energy to the city, among others that I won’t spoil for you in this episode featuring managing editor Leigh Anne Zinsmeister. So, stick around for our learnings from the third quarter earnings report from restaurants. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

11 min listen

Why the crypto crash was a good thing: The recent crypto crash has impacted the burgeoning NFT market in the restaurant industry. Restaurants across the country have been picking up on the trend of NFTs, introducing food halls, exclusive clubs and membership programs – a new form of loyalty through this new token. But the recent crash has had people questioning crypto’s long-term viability. NRN’s own senior editor Joanna Fantozzi has more on the story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

7 min listen

Is Chipotle union-busting?: Last month, the first Chipotle store announced it would vote to unionize in Augusta, Maine. On Tuesday, that same store was shuttered by Chipotle, which is entirely company-owned. Employees were notified via email the day before and were told the reason for the store closure was understaffing, something Chipotle corporate had allegedly been trying to address in the previous month. Is this a case of union-busting? NRN’s own Joanna Fantozzi has more on this story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

6 min listen

A closer look at Starbucks' flashy new store: Starbucks announced Tuesday that another New York City Reserve store is opening on Nov. 16 inside the Empire State Building. Like many of the other Reserve locations, this 23,000-square-foot, three-floor store will feature cocktails, elevated bites from Princi and exclusive coffee drinks, as well as classes, workshops and tasting flights. While Starbucks has several Reserve stores and bars currently open in New York City, this upcoming Empire State Building store will be one of the largest — rivaling the flagship Reserve Roastery location in Chelsea. It will be the only store to feature Starbucks’ new brewing method, born out of the company’s R&D team: cold-pressed espresso, which “uses cold water and gentle, upward pressure to unlock a softer, sweeter espresso shot, similar to a slow-steeped cold brew" but will not have a coffee roaster on site. On the same day that Starbucks announced the opening of the new Reserve store, staff at the by First Bite

10 min listen

This is the future of ghost kitchens: At the height of the pandemic when dining rooms were closed, the phrase “ghost kitchen” entered the public lexicon and new “hot” delivery-only concepts opened their hidden doors almost every day. But as the post-pandemic dust settles, the off-premises restaurant industry is evolving beyond the rush of flash-in-the-pan celebrity-backed chicken nuggets concepts. Virtual restaurant companies are in it for the long-haul: they’re stepping out of the dark kitchen’s shadows to combine off-and-on-premises experiences, and many are avoiding the phrase “ghost kitchen” altogether. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

7 min listen

Restaurants are banking on the return to the office: Urban markets have long been an important lifeline for restaurants because they generate a consistent traffic flow, particularly during the critical lunch and dinner dayparts. Further, they tend to complement other urban businesses, creating a compelling destination for economic activity. Of course, that activity went away in 2020 and then stalled again in 2021 with the delta and omicron variants. But now a comeback seems to be underway, and restaurants with a strong urban presence are experiencing some momentum accordingly. Consider Shake Shack, for instance, which calls New York City its hometown. The city’s office occupancy rates increased by more than 10% in September – the highest point since the pandemic began – and that trend has played a major role in the chain’s continued recovery. Hear more about the urban revitalization from Alicia Kelso. by First Bite

10 min listen

The Starbucks labor saga continues by First Bite

7 min listen

How this fast casual acquisition came together during a looming recession: On Friday, we reported exclusively that Au Bon Pain’s owner Ampex Brands acquired the fast-casual brand Bellagreen from Bellagreen Holdings LLC, which also owns the Original ChopShop. Chopshop will remain its own entity now. Ampex Brands purchased Au Bon Pain in 2021 from Panera Bread and added it to its portfolio of quick-service and c-store franchises that include KFC, Pizza Hut, Taco Bell, Long John Silver’s and 7-Eleven. Terms of the Bellagreen deal were not disclosed, but it officially closed on July 18. NRN senior editor Ron Ruggless has more on the deal in this episode. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

5 min listen

There’s more money available for restaurant owners: The U.S. Small Business Administration has yet to disperse $180 million of unobligated funds that were set aside for the Restaurant Revitalization Fund as of June 2022, according to a July report published by the U.S. Government Accountability Office. The Government Accountability Office analyzed weakness and issues with the Restaurant Revitalization Fund program, which appropriated $28.6 billion to the foodservice industry in 2021. According to the report, 88% of applicants were eligible for funding, but only 40% ended up receiving Restaurant Revitalization Fund money. Here’s Joanna Fantozzi with more on the story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

5 min listen

Where's that RRF money going?: The Restaurant Revitalization Fund was all anyone could talk about for months when the pandemic started. It became a major lifeline for struggling restaurants who couldn’t receive Paycheck Protection Program loans. Then it ran out of funds. A second round of RRF funds were voted on and rejected by Congress, leaving struggling restaurants stranded without a lifeline. Turns out, that wasn’t the case. During an investigation this summer, an independent body found out that $180 million in funds hadn’t been distributed from the original RRF. While that may seem like a lot — and will make a substantial difference for many restaurants when and if it is eventually distributed — it’s only 1% of the money the fund held initially. Here’s Joanna Fantozzi with some breaking news on the RRF front and a much-needed update. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bit by First Bite

7 min listen

This is the next big restaurant trend: McDonald’s first started testing self-service kiosks in 2003 – an ice age ago in tech terms. But it took quite some time for the technology to prove its return. In fact, the McDonald’s U.S. system didn’t implement kiosks systemwide until 2020. Taco Bell also pressed the gas on kiosks in 2020 and even introduced a kiosk-only Cantina model last year. The technology is expected to play a big role as the chain works toward its 50% digital sales mix goal. Panera was a few years ahead on kiosk integration, and has since made them a focal point of its new digital-only formats. With heavyweights like McDonald’s, Taco Bell and Panera proving the value of self-order kiosks, the slow trickle that began in 2003 seems to be accelerating into a steady stream at larger chains. This is evidenced from the past few rounds of earnings calls, including Shake Shack’s Q3 call Thursday, in which CFO Katie Fogerty said kiosks are the chain’s most profitable channel, yiel by First Bite

12 min listen

Why we chose this company as NRN's Brand Icon: Get ready to meet our Brand Icon! This new annual title is given to a brand selected by the Nation's Restaurant News editors that is cementing its legacy even as it pushes the envelope in innovation. We tour their headquarters and provide a behind-the-scenes look at both the history and the present day life of the company. Meet this year's Brand Icon, White Castle, in this exclusive podcast. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

8 min listen

Restaurants are closing earlier — here's why: As suspected, restaurants have been responding to rising costs and staffing shortages by cutting hours, according to new data from Datassential. The new research surveyed restaurant hours nationally and found that the average restaurant is now open for 6.4 fewer hours per than it was three years prior, which points to a decline of roughly 7.5%. While this data might sound alarming, it is not particularly surprising given the challenges restaurants still face in a post-pandemic world and how the industry landscape has changed dramatically since the “before times.” According to Datassential, there are multiple factors even beyond dwindling employees that have forced the change in operating hours. Demand for in-person dining has declined since the pandemic and people are home more often than ever before, thanks to two years of lockdown habits and a shift to a work-from-home model. Plus, catch up on all the top news of the day with our daily ne by First Bite

8 min listen

How to handle food safety concerns: An E. coli outbreak linked to The Wendy’s Co. units in six states is over, according to the Centers for Disease Control and Prevention, but more than 40 of the 109 identified victims are being represented by lawyers. The Dublin, Ohio-based burger chain immediately removed romaine lettuce from its menus when the outbreak was initially reported. The incident began with three states and expanded eventually to six and spanned July 26 to Aug. 17. The outbreak involved 109 reported cases and 52 hospitalizations. The most cases were reported in Michigan, and the illnesses were identified in five other states: Indiana, Kentucky, Ohio, Pennsylvania and New York. The CDC declared the outbreak over on Oct. 4. Foodborne illness investigators could not confirm romaine lettuce as the source of the six-state outbreak. Let's hear more from senior editor Ron Ruggless. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each ep by First Bite

8 min listen

What should restaurants learn from the midterms?: While many Congressional races are still tight in some states, voters made major decisions on tip credits, minimum wages, and labor organization across the country. Here are the ballot measures results you should know about, and how the restaurant industry is reacting straight from senior editor Joanna Fantozzi. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

7 min listen

Why the coffee segment is so strong: 2021 was a great year for the coffee/bakery restaurant segment, with all of the 10 biggest chains seeing an increase in systemwide sales — some as high as 55.7%. In the annual Top 500 report, powered by Datassential, Nation’s Restaurant News breaks down the 500 biggest restaurant chains in the U.S. by systemwide sales, domestic units and average unit volumes. The full data also identifies chains by segment, so here we’ve broken out the 10 biggest coffee/bakery chains by U.S. systemwide sales, out of 24 that appear on the full list. Following the worst of the pandemic, the segment came roaring back in 2021 as consumers returned to their offices and, therefore, their routines. Of the 24 total coffee bakery chains in the Top 500, only five saw systemwide sales decline last year. Of the Top 10, only one chain differs from the 2020 list, with a growing brand swooping into the rankings at No. 8, replacing Daylight Donuts, which fell to No. 11. I sat down by First Bite

8 min listen

Kitchen United is coming to gas stations, shopping malls: On Monday, Kitchen United raised $100 million in its Series C funding round led by Kroger, Burger King parent Restaurant Brands International, shopping mall company Simon and convenience store brand Circle K. To date, ghost kitchen company Kitchen United has raised $175 million in funding. This diverse round of investors, including former football star Peyton Manning, proves that ghost kitchen and off-premises technology extends beyond strictly restaurant chains and can be useful within the retail and entertainment industries. NRN senior editor Joanna Fantozzi has more on the story. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Castos, Spotify, or Apple Podcasts. by First Bite

6 min listen

The latest restaurant TikTok trends: TikTok is no longer new. In fact, Nation’s Restaurant News wrote a piece in 2019 about how restaurants needed to pay attention to the social media platform for marketing and messaging purposes. Less than three years later, TikTok has become commonplace for chains and independent restaurants. You’re behind the times if you’re not on TikTok. We’ve seen the trends on TikTok with people commenting on the way food is prepared, with chefs like Gordon Ramsay getting in on the trend and millions of views. We spotted two new trends on TikTok recently. Listen to me explain what they are. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

7 min listen

The daypart is dead: The three-course meal and the three-meal day still have their part to play in nourishing Americans, but increasingly consumers are spreading out their eating to suit their evolving needs. A breakfast flatbread with a mimosa at 10 a.m. after the morning Zoom meetings, a 3 p.m. snack of cold cuts and cheese puffs while socializing with friends over beer after a short day working from home, and late-night tacos after a long day working from home to make up for that short one are increasingly replacing breakfast, lunch and dinner. The daypart is dead and Bret Thorn has more to say about it. Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode. Be sure to subscribe to First Bite wherever you get your podcasts or on Spotify, or Apple Podcasts. by First Bite

7 min listen

What all of this month's technology news means for the restaurant industry at large: Today, we’re back with part two of our Tech Tracker roundup on restaurant technology. Last month, Lunchbox and Thanx unveiled the latest version of their suite of tech capabilities for restaurants, with the former focusing on online ordering integration, and the latter focusing on the next wave of digital loyalty programs. Meanwhile, Pepsi is making its mark on the virtual restaurant industry more lately. PepsiCo Foodservice just announced that it will be rolling out a ghost kitchen tool for restaurants that will help operators be able to “seamlessly enter the ghost kitchen space,” leveraging the company’s resources, as well as its suite of Pepsi brands. Finally, a piece of news that broke too late to make our written roundup: Squarespace announced Wednesday that Tock founder and CEO Nick Kokonas will be stepping down from the reservations platform he built eight years ago. Kokonas — who sold Tock to by First Bite

10 min listen

Why Starbucks entered the metaverse so late by First Bite

8 min listen

Discover this podcast and so much more

What the Q3 earnings tell us about the state of restaurants

What the Q3 earnings tell us about the state of restaurants

Description

Titles in the series (100)

More Episodes from First Bite

Related podcast episodes