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| Yum! Brands is poised to achieve approximately $30 billion in digital sales by the end of the year, up from $12 billion four years ago. CEO David Gibbs reported a 20% year-over-year growth in the digital business, with a global Q3 digital mix exceeding 45% and over $7 billion in sales. “We like everything about those digital sales dollars,” Gibbs said. “Our customers have higher checks and higher frequency whenever we transition sales to digital, plus we get all of the benefits in terms of more efficient operations, which help our franchisees sustain strong unit economics.” |
Yum! Brands and McDonald’s CEOs say that their companies are well-positioned to withstand the impact of the National Labor Relations Board’s (NLRB) ruling to classify franchisors as joint employers of their franchisee’s workers. Yum! Brands CEO David Gibbs says that his company has experience navigating regulatory environments around the world and that it is accustomed to adapting to new regulations. McDonald's CEO Chris Kempczinski says that the ruling will affect the entire industry, but that McDonald's is better positioned than anyone else to withstand it because it is a large company with a level playing field.
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| Several major restaurant chains are investing in proprietary technology solutions, ranging from one-off applications to entire operating systems. Yum! Brands is rolling out an in-house automated inventory technology called AIM, which uses AI to predict product quantities. CEO David Gibbs noted the significant progress made in 2023 in building, testing and refining proprietary technology platforms. “In 2024, we will further scale these platforms and continue to realize the value of our owned tech ecosystem,” Gibbs said. |
| KFC South Africa has launched the Elizabedi bundle in South Africa, inspired by the Springboks’ Rugby World Cup victory and Eben Etzebeth, who is affectionately known as “Elizabedi.” The bundle includes a Krusher, Colonel Burger and chips for R44.44, in honor of Etzebeth’s number 4 jersey. It is exclusively available on Uber Eats. KFC’s Chief Marketing Officer, Grant Macpherson, emphasized the importance of starting such an event with South Africa’s most loved chicken. |
| The Habit Burger is opening its third restaurant in South Carolina, located in Easley and hosting a grand opening on November 15. To celebrate, the restaurant is hosting exclusive pre-opening VIP events for CharClub and mobile app members. The events include Free Charburger Day on November 11 and Free Habit Days on November 13 and 14, where the first 200 guests at specified times will receive free meals. |
| Yum! Brands employees know that collaboration is a key to innovation |
At Yum!, we know that our people are our biggest asset and that the power of collaboration across KFC, Pizza Hut, Taco Bell and The Habit Burger Grill creates a competitive advantage.
So, when 20-plus employees attended the three-day RED (Rapid Engineering Design) Innovation Experience in Plano, Texas, partnerships immediately brewed creative solutions. Attendees not only learned how to define problems, ideate on solutions and build prototypes, but also experienced Yum! Brands’ people-first culture of collaboration.
Check out what transpired. |
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| Premier Kings, a Burger King franchisee with 172 units, filed for bankruptcy in October. The company faced operational instability following the untimely death of its owner, Manraj “Patrick” Sidhu, who was the sole stakeholder and manager. This bankruptcy follows others in the Burger King franchisee community, including Meridian Restaurants Unlimited and Toms King. Restaurant Brands International, Burger King’s parent company, has been working to transition restaurant portfolios to other operators in distressed situations. |
| Chipotle has appointed two senior HR executives to support its growing workforce of over 110,000 employees. Ilene Eskenazi will become the Chief Human Resources Officer, starting on November 27, and Lois Alexis-Collins has been hired as the Chief People Officer, Field Operations. Eskenazi previously served as the Chief Legal and Human Resources Officer at Petco Health and Wellness, while Alexis-Collins worked as the VP of Human Resources at ABM. |
| In-N-Out Burger has announced its expansion into the New Mexico market by 2027, with the first restaurant in Albuquerque. CEO Lynsi Snyder expressed excitement about bringing the brand to New Mexico in a Facebook post. The initial development plans include opening locations in Albuquerque by 2027, with further expansion to other cities in the years to come. In-N-Out will use its distribution facility in Colorado Springs, Colorado, to supply its products to New Mexico, eliminating the need for customers to travel to nearby states for an In-N-Out Burger. |
| Chick-fil-A has introduced a new brand called “pennycake,” which focuses on promoting family playtime with board games, puzzles and activities. The brand is launching a collection on November 15, coinciding with the chain's broader holiday campaign launch. Pennycake was created by a group of Chick-fil-A parents who discovered that American families spend limited quality time together during weekdays. They developed games and activities, partnering with family and child experts to create products like ChatterTime conversation cards, Mix It Up activity boxes and JoinAround puzzles. |
According to a new study by As You Sow, seventeen major food manufacturers, including Mars and Nestlé, earned an average grade of F for their lack of progress in reducing pesticides in the products they sell. “Many companies set pesticide reduction goals of 2025 and 2030 that appeal to shareholders,” said Cailin Dendas, lead author for the report. “Now, we’re looking at the progress companies are making to achieve those goals, and finding little significant movement,” said Dendas.
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| Lower-income households are visiting restaurants less frequently as menu prices rise, with 19% of households expecting to spend less at restaurants by the end of 2023, citing higher prices as the reason, according to a survey by TransUnion. The survey found that 80% of respondents mentioned higher prices as a key factor affecting their spending. Many consumers are also opting for less expensive restaurants or menu items. However, higher earners, particularly those earning over $150,000 a year, appear less sensitive to price increases and continue to use restaurants frequently. |
| A survey reveals that many restaurant brands, despite their promises to improve diversity, have made limited progress in promoting diversity, equity and inclusion (DEI) within their organizations. While there was a surge in DEI efforts in response to the murder of George Floyd in 2020, “diversity fatigue” and a cost to being heard on DEI issues have emerged in the restaurant industry. Brands have faced pressure and criticism as they grapple with DEI challenges, and some have reduced DEI-focused positions and initiatives. |
| Catering programs are gaining traction in the restaurant industry this holiday season as companies seek to capitalize on off-premises dining opportunities. Larger and smaller restaurant brands are promoting their catering offerings as a continuation of a trend that emerged last year. Noodles & Company reported a 35% year-over-year growth in its catering business in the third quarter and believes there is further potential for expansion. |
| Wonder, a delivery-first restaurant startup founded by Marc Lore, has entered a strategic partnership with Nestlé to aid in the growth of Wonder’s B2B division, WonderWorks. The deal includes a $100 million investment in Wonder by Nestlé. WonderWorks offers a turnkey package of its virtual food hall concept, catering to hotels and stadiums. Nestlé will manufacture the food for WonderWorks clients, while Wonder supplies the equipment, including specially calibrated ovens, water baths and automated fryers. |
| According to the latest Lunch Report from ezCater, more workers are skipping lunch breaks than before. The data, collected from 1,000 full-time employees across the U.S., revealed a 40% increase in workers who never stop for lunch. Despite this trend, the benefits of taking a lunch break were noted, with 53% of employees saying it makes them happier, and 50% said it makes them less stressed. The report also highlighted that lunch breaks are linked to improved work, with 78% of employees stating that taking a break enhances their job performance. |
| A woman from Winnipeg is suing Tim Hortons for allegedly causing a severe allergic reaction that stopped her heart. The lawsuit claims that a staff member mistakenly added cream instead of almond milk to her tea. The lawsuit alleges that Tim Hortons and its operator failed to properly train employees on handling drink requests that require modifications or substitutions. It also claims that the company failed to advise the woman of the risks of ordering through the app, and staff at the location failed to properly check the order. |
| A food safety training program called Just.Safe.Food. developed by a union-backed group, One Fair Wage, as an alternative to ServSafe, has been criticized in its preliminary form by a former New York City health official. The curriculum was designed for restaurant employees to be trained in the fundamentals of food safety without paying the $15 fee for ServSafe, offered by the National Restaurant Association. |
| Target’s “Dream to Be” program offers tuition-free access to formal education for both full-time and part-time employees. Managed by education assistance company Guild, the program allows store associates to enroll in undergraduate or associate degree programs at over 40 colleges, universities and boot-camp programs. Target reports that participants in the program, 90% of whom are front-line team members, have experienced a 70% lower turnover rate and three times higher promotion rates. |
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