NOTE: This is the final Daily News Brief of 2023. We will resume distribution on Tuesday, Jan. 2.
We wish everyone a happy holiday season! |
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| Yum! Brands News | |
| | Yum!Now News | |
| | Competitor Intelligence | |
| | Industry Trends | |
| | Policy & Regulatory News | |
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| KFC China is celebrating the opening of its 10,000th store in Hangzhou, marking a significant milestone in its 36-year growth journey. As China's largest QSR brand, KFC aims to target over half of the country’s population by 2026 by planning strategic expansion into untapped cities, offering innovative products, diversifying its menu and expanding its in-house coffee brand, KCOFFEE. KFC China is also focusing on revolutionizing delivery services and embracing technology for operational efficiency. |
| Taco Bell has redefined marketing and operations in the fast-food world since 1962. Known for audacious stunts like flying food trucks and floating targets, its disruptive legacy thrives by listening to fans and embracing creativity. With $13 billion in sales and 7,000+ locations, Taco Bell's innovation isn't slowing. The brand's success lies in daring ideas, inventive menus (Doritos Locos Tacos, Nacho Fries), and novel store designs. Amid global expansion, Taco Bell's quest remains: evolve while staying true to its rebellious spirit. |
| In Japan, KFC's Christmas tradition, starting around 1974, makes it the busiest season. The origin theories vary—one involves a Santa-dressed manager, another links it to turkey scarcity. KFC, once a date spot, shifted during Japan's recession to a family meal option. Annually from Dec. 23 to Christmas, KFC advertises and sells "Party Barrels" with chicken, gratin and cake since 1985. Last year, the festive period drew 2 million customers, generating $41 million, marking its peak sales time. |
| Yum! Brands is focusing on reducing greenhouse gas emissions in its food supply chain, setting targets to cut GHG intensity by 46% from core proteins by 2030, working with suppliers and investing in pilot programs. Partnerships with Dairy Farmers of America and Cargill aim to make dairy and beef production more sustainable. KFC in Europe aims to source soy sustainably by 2030 to combat deforestation. Yum! also engages suppliers through programs like Supplier LOCT to drive impactful changes and looks ahead to innovate in food system decarbonization. |
| How Yum! Brands is making its supply chain more sustainable |
| As global leaders and companies come together at COP28 to keep climate action front-and-center, Yum! and our brands are doing our part. But we know we can’t do it alone and is why we’re working alongside our suppliers to make the planet greener. |
| Pizza Hut ensures everyone gets an equal slice |
Around the world, Pizza Hut is fueling employability, entrepreneurship and educational programs through its Equal Slice for Everyone social purpose framework. In partnership with Yum!’s Unlocking Opportunity Initiative, they’re changing the future for people in Brazil, Canada, Indonesia, South Africa, Sri Lanka, the United Kingdom and the United States. |  | (For Yum! Eyes Only) |
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| Idaho's inaugural In-N-Out saw customers queue for up to eight hours, some camping overnight. The frenzy began Tuesday at 9 a.m., drawing hundreds in Meridian. Despite a couple waiting over two hours, excitement persisted. The 400th In-N-Out, managed by an "all-star team," prompted enthusiasts like Diego Lopez from California, who arrived at 5 a.m. Some locals, however, are choosing to wait for the frenzy to ease. Locals raised concerns about traffic impact. Two more Idaho locations are planned. |
| Tim Hortons and Telus will resume sponsorship for Hockey Canada after withdrawing support due to last year's scandal involving mishandled sexual assault complaints. Tim Hortons reinstates backing for Canada's men's teams upon regaining public confidence. They note Hockey Canada's substantial progress under new leadership. The renewed sponsorship coincides with the upcoming men's world junior hockey championship in Gothenburg, Sweden. |
| Wingstop has appointed Chris Fallon as its new Senior VP and CIO as they transition from Olo to an in-house online ordering system. With experience at Starbucks and Fortune Brands, Fallon will lead tech solutions, infrastructure and security for the 2,099-unit chain. CEO Michael Skipworth emphasizes a tech-forward approach aiming to digitize every transaction. Currently, nearly 67% of sales derive from digital channels. The shift from Olo to their $50 million proprietary system, "My Wingstop," aims to enhance operations. |
| Tennessee's conservative-leaning Beacon Center included In-N-Out Burger's $5 million government incentives for a new corporate hub in Franklin in its "Pork Report" of wasteful spending. Williamson County, Franklin and the state collectively offered the incentives. The report criticizes subsidizing profitable chains, listing 11 examples, including the Tennessee Performing Arts Center's $200 million state fund allocation for relocation. It questions spending akin to the new Titans stadium cost, stating taxpayers should not bear the burden of relocating entertainment venues they might never visit. |
| Tipping in the US is declining, hitting an average of $1.28/hour for leisure and hospitality workers (excluding restaurants), down 7%. Restaurant tips dipped to 19.4% from 19.9%. This slowdown follows a backlash against increased tipping requests, largely from automatic screens. Confusion lingers on tipping norms. Businesses are adjusting by increasing worker pay, while some states advocate for the full federal minimum wage for tipped workers. Younger generations see tipping more as an obligation, contrasting with older groups who view it as optional, per a Pew report surveying 12,000 Americans. |
| Between 1.5% and 3% of digital restaurant sales are lost weekly due to order cancellations by both customers and staff. Peak cancellations occur during 5-9 p.m. (29.9%), persisting through late hours (8.2% from 9-9:59 p.m.). Staff tend to cancel more during the final operational hour. Otter suggests providing buffer time for late orders. Pizzerias face the highest cancellation rate (2.6%) due to impatient customers awaiting deliveries, according to the tech supplier's analysis of digital transactions. |
| As input costs cool, 2024 could be the first normal year for the restaurant industry this decade. Of course, there are outliers. Extreme weather, from rain to heatwaves, impacted sales this year; climate change-fueled weather extremes are expected to persist, potentially worsened by El Niño. Property insurance hurdles, attributed to catastrophic weather events, pose a challenge. Rising general liability claims, fueled by staffing changes post-COVID, add to cost pressures. To mitigate, restaurants are advised to revamp kitchens for energy efficiency, alter menus, diversify sourcing and optimize operations to manage increasing insurance costs. |
| The California Restaurant Foundation and PG&E Foundation are awarding $5,000 grants to 77 restaurants across Central and Northern California. These grants, part of a $900,000 donation from PG&E earlier this year, aim to support equipment upgrades and workforce training for long-term success. This second round follows an initial round announced in June, targeting restaurant owners with fewer than five locations and $3 million in revenue. The PG&E Foundation's total contribution now stands at $2.3 million, benefiting 521 restaurants through CRF's Restaurants Care Resilience Fund. |
| Golden Corral opened its first location of Homeward Kitchen, a fast-casual concept separate from their buffet brand. Initial performance exceeded expectations with 20 franchisees expressing interest. Homeward Kitchen aims for high volume off-premise sales with technology integration. While maintaining a separate identity, the difference from Golden Corral lies in size, investment and target demographics. With Homeward Kitchen's success, plans involve potential franchising, aiming at 500 markets. |
| Seattle's Skillet diner chain has settled for $318,782.48, plus a $4,958.25 fine, over misallocated service fee proceeds and employee mistreatment. The chain allegedly diverted funds meant for staff compensation to cover broader expenses. Employees were dismissed for objecting to fee allocation or taking sick leave without finding a replacement, violating sick leave laws. The settlement reimburses 181 current and past employees. Amid wider service fee use by restaurants, some jurisdictions require fee usage disclosure, while others lack mandates, allowing flexible fund utilization. The FTC eyes monitoring fee usage as the industry defends its fee practices. |
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