TABLE OF CONTENTS
Yum! Brands News
Nation’s Restaurant News: Taco Bell stays fresh and innovative as it builds on a six-decade legacy
The South African: OFFICIAL: South Africans can’t get enough fast chicken
Yahoo! Finance: Pizza Hut Indonesia unveils the Cheesy Marvel with Hokkaido Cheese Edition
TODAY: Taco Bell debuts new cheesy fry dish and subscription service
QSR Magazine: The Habit Burger Grill bringing new stores to Northern California
Yum!Now News
Sustainability served hot with ShariLee Rafferty
Competitor Intelligence
Bloomberg: A Wendy’s franchise operator Starboard files for Chapter 11
Restaurant Business: Why Burger King struggled, according to Patrick Doyle
Bloomberg: McDonald’s teenage staff in U.K. reveal frequent sexual harassment
Nation’s Restaurant News: Love that chicken? You'll love these points! Introducing Popeyes Rewards in Canada
Industry Trends
Restaurant Business: Inflation eases, but not at fast-food restaurants
Nation’s Restaurant News: October price index unchanged as restaurants outpace supermarkets
CNN: This iconic jingle is making a comeback, and you won’t be able to get it out of your head
Nation’s Restaurant News: Why IHOP’s Franchisee of the Year is focused on empowering women
Restaurant Dive: Report: 64% of diners to order holiday items from restaurants
Policy & Regulatory News
QSR Magazine: Expanded joint-employer rule could ‘upend’ franchise world
Restaurant Technology
Restaurant Business: POS provider Qu lands investment from Danny Meyer’s Enlightened Hospitality
 
Yum! Brands News
Nation’s Restaurant News: Taco Bell stays fresh and innovative as it builds on a six-decade legacy
Nation’s Restaurant News’ Sam Oches highlighted Taco Bell’s legacy of disruptive marketing and innovation, as well as its status as a cultural phenomenon. Oches visited the Taco Bell Irvine headquarters and spoke with executives Sean Tresvant, Rob Poetsch, Liz Matthews, Missy Schaaphok, Scott Mezvinsky, Kelly McCulloch and Nilesh Patel. “It’s about taking big swings to grow, and for us to be uncomfortable, because I think if you're going to have a big idea, of course you would be a little uncomfortable,” Tresvant said. “And we embrace that as a culture.”
 
The South African: OFFICIAL: South Africans can’t get enough fast chicken
South Africans are avid consumers of fast chicken, with KFC ranked as the most prolific fast-food brand in the country. With 1,052 stores, South Africa is fifth globally for the most KFC outlets. Globally, KFC boasts 27,000 restaurants in over 145 countries, opening a new branch every six hours. Of the 1,052 KFCs in South Africa, 49 are directly owned, while 1,003 are franchisee-owned, and 10 million South Africans eat KFC monthly.
 
Yahoo! Finance: Pizza Hut Indonesia unveils the Cheesy Marvel with Hokkaido Cheese Edition
Pizza Hut Indonesia introduces the Hokkaido Cheese Edition, featuring Hokkaido cheese in a fusion of Japanese flavors with tender Nanban chicken topping. The star of the menu is Chicken Nanban Pizza, showcasing succulent chicken karage with nanban and tartar sauce on Pizza Hut Indonesia’s Hokkaido cheese-filled crust topped with parmesan cheese. The new edition includes Melts Cheese Overload with Hokkaido Cheese, Chicken Nanban Donburi and combo deals.
 
TODAY: Taco Bell debuts new cheesy fry dish and subscription service
Taco Bell U.S. is spicing up the holiday season with Grilled Cheese Nacho Fries, a fusion of classic grilled cheese and nacho fries, featuring a blend of mozzarella, Monterey pepper jack, cheddar cheeses, grilled steak and Taco Bell’s Nacho Cheese and Chipotle sauces. Additionally, Taco Bell introduced the Nacho Fries Lover’s Pass, a subscription service allowing rewards members to enjoy regular Nacho Fries every day for 30 days at $10.
 
QSR Magazine: The Habit Burger Grill bringing new stores to Northern California
The Habit Burger Grill has signed a development agreement to open new restaurant locations in Northern California, particularly near Sonoma County. Grill Kitchen LLC, a California-based company, will be responsible for building and operating the new locations. Alia Ganem, a food service industry professional with over 20 years of experience, will oversee the operations. The expansion aims to meet the growing demand for quality quick-service offerings in Sonoma County.
 
Yum!Now News
Sustainability served hot with ShariLee Rafferty
Grab a slice of the latest #3Questions featuring Pizza Hut Global Design Manager ShariLee Rafferty. ShariLee talks with Yum! CEO David Gibbs about how she collaborates with a cross-brand sustainability dream team, including Robyn Lodge at KFC, Rachel Meyer and Emily True at Pizza Hut and Stephanie Zhu and Alyson Baynes at Yum! Corp. to shape the green buildings strategy for Pizza Hut globally. Learn firsthand from ShariLee how we can all work together to sustainably grow the business while minimizing our environmental footprint.
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Competitor Intelligence
Bloomberg: A Wendy’s franchise operator Starboard files for Chapter 11
Starboard Group of Alabama LLC, a Wendy’s restaurant franchise operator in the southern United States, has filed for Chapter 11 bankruptcy in Florida. The court filing indicates that the company’s estimated assets and liabilities fall in the range of $1 billion to $10 billion. This move comes as several companies with significant debt loads, such as Rite Aid Corp. and WeWork Inc., have also sought Chapter 11 protection. Starboard Group operates various fast-food and sandwich restaurants in states including Alabama, Florida, Illinois, Missouri, Louisiana, Wisconsin and Texas, encompassing 73 Wendy’s outlets and 15 Subway shops.
Restaurant Business: Why Burger King struggled, according to Patrick Doyle
Patrick Doyle, Chairman of Restaurant Brands International, the parent company of Burger King, spoke at the Restaurant Finance and Development Conference, addressing the challenges faced by Burger King franchisees. Doyle highlighted that the U.S. operations of Burger King had too much risk, citing three types of risks -- fundamental business risks, financial risks and structural or external risks. Doyle emphasized the brand’s commitment to franchisee success and noted positive developments in sales and profitability.
Bloomberg: McDonald’s teenage staff in U.K. reveal frequent sexual harassment
Staff at McDonald’s in the U.K. have reported widespread sexual misconduct, with workers as young as 16 facing harassment from senior colleagues, according to testimony provided to a committee of Members of Parliament. Whistleblowers revealed instances of inappropriate behavior, including requests for nude pictures, physical harassment and sexual conversations. McDonald’s U.K. and Ireland CEO, Alistair Macrow, called the testimonies “truly horrific” and expressed determination to address the problem.
Nation’s Restaurant News: Love that chicken? You'll love these points! Introducing Popeyes Rewards in Canada
Popeyes has introduced its new loyalty program, Popeyes Rewards, allowing customers to earn points and redeem rewards on various menu items. The program, accessible through the Popeyes Louisiana Kitchen app or popeyeschicken.ca, automatically grants ten points for every $1 spent. As a welcome offer until December 31, customers can earn an additional 1000 bonus points on their first eligible mobile purchase, equivalent to a free chicken sandwich.
 
Industry Trends
Restaurant Business: Inflation eases, but not at fast-food restaurants
While overall inflation in the U.S. appears to be cooling, fast-food restaurants are still experiencing aggressive price increases. Menu prices at restaurants and food service companies rose 0.4% last month and 5.4% for the year, according to data from the U.S. Bureau of Labor Statistics. Fast-food restaurants, in particular, saw prices rise by 0.5% last month and 6.2% over the past year. This elevated rate of price increases, higher than many other consumer prices, may pose a challenge if consumers perceive fast food as less of a bargain than before.
Nation’s Restaurant News: October price index unchanged as restaurants outpace supermarkets
The latest Consumer Price Index data shows that the increase in prices for food at home was 2.1% in October, down by 30 basis points from September’s 2.4% increase. On the other hand, prices for food-away-from-home increased by 5.4% year-over-year in October, sequentially down by 60 basis points from September’s increase of 6%. This marks the eighth consecutive month for which restaurant pricing outpaced grocery/supermarket pricing.
CNN: This iconic jingle is making a comeback, and you won’t be able to get it out of your head
Chili’s is reviving its famous “Baby Back Ribs” jingle for a new advertising campaign, featuring an updated version sung by Boyz II Men. The jingle, which became iconic in the 1990s, is being brought back to promote the dish that has been a staple on Chili’s menu since the late 1980s. The move is part of Chili’s broader efforts to boost sales and revitalize its brand. The new TV ad will be promoted on social media, and Chili’s is hoping the nostalgia associated with the jingle will attract renewed interest in the restaurant chain.
Nation’s Restaurant News: Why IHOP’s Franchisee of the Year is focused on empowering women
Susan Mendenhall, an IHOP franchisee, has been named IHOP’s 2022 Franchisee of the Year for the second time. Mendenhall, based in Tri-Cities, Wash., was recognized for her leadership, community involvement, training and mentoring commitment and results, including double-digit positive traffic and comp sales in 2022. Mendenhall is also involved in IHOP’s Women of IHOP program, aiming to support and encourage women in the industry.
Restaurant Dive: Report: 64% of diners to order holiday items from restaurants
According to a survey by HungerRush, 64% of respondents plan to order at least one food item from a restaurant for their holiday meals, and 37% plan to order their entire holiday meals from a restaurant. The survey, conducted in October with 1,000 U.S. adult consumers, also revealed that respondents are more likely to choose casual dining (64%) over fine dining, quick-service restaurants or drive-thru options for their holiday meals. However, younger generations (millennials and Generation Z) are more likely to dine out less frequently due to economic impacts.
 
Policy & Regulatory News
QSR Magazine: Expanded joint-employer rule could ‘upend’ franchise world
The National Labor Relations Board released a “final rule” that significantly alters the standards for determining joint employer status under the National Labor Relations Act. The rule expands the types of business relationships that could give rise to joint employer liability, stating that “possessing the authority to control” essential terms and conditions of employment is sufficient to establish joint employer status, even if control is never exercised. This means an entity is at risk of being found a joint employer by merely reserving the right to control some aspect of the employment relationship.
 
Restaurant Technology
Restaurant Business: POS provider Qu lands investment from Danny Meyer’s Enlightened Hospitality
Qu, a cloud-based point-of-sale system for limited-service restaurants, has received an investment from Enlightened Hospitality Investments (EHI), a fund managed by Danny Meyer, the founder and chairman of Union Square Hospitality Group. Qu offers a “unified commerce platform” designed to streamline restaurants’ tech infrastructure by capturing and relaying every order from any channel and centralizing menu management. This investment from EHI, which focuses on restaurant tech suppliers, will support Qu’s growth and enhance its position in the quick-service and fast-casual restaurant market.
 
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