TABLE OF CONTENTS
Yum! Brands News
Biz Community: Something's brewing in KFC kitchens
Yum!Now News
A new year, a new #3Questions
Competitor Intelligence
Bloomberg: At Burger King, good vibes are now mandatory
Fox Business: Ukraine adds sandwich franchise Subway to list of 'international war sponsors'
Restaurant Business: Once 'orphaned,' Qdoba's new parent sees much whitespace for growth
QSR Magazine: Sonic honors educators with week of free food and drinks
Industry Trends
Nation’s Restaurant News: Menu prices continued to decelerate in December
Restaurant Business: Key takeaways from the ICR Conference
Nation’s Restaurant News: Salad and Go is opening a store a week with plans to expand ‘into the thousands’
QSR Magazine: District Taco continues road to 150 locations
Restaurant Business: Vegan chain Next Level Burger buys Veggie Grill
Policy & Regulatory News
Nation’s Restaurant News: How will President Biden’s new federal labor rule affect delivery workers?
Restaurant Business: Boston Market owner's bankruptcy case is dismissed
Restaurant Technology
Restaurant Business: Miso Robotics believes it will put its Flippy robot everywhere
QSR Magazine: AI brings new era of fast-food dining
 
Yum! Brands News
Biz Community: Something's brewing in KFC kitchens
KFC Africa is poised for a new era in 2024, emphasizing taste innovations, environmental consciousness and sustainability. Grant Macpherson, CMO of KFC Africa, anticipates significant taste changes and exciting menu innovations. The expansion across Africa includes modern restaurant designs with high-tech environments for seamless customer service. KFC Africa has already made strides in eco-friendly packaging and aims to reduce carbon emissions by 46% by 2030. 
 
A new year, a new #3Questions
With the arrival of the new year comes a #3Questions that's as hot and fresh as a Pizza Hut Melt! Ashley Hull, the brand's associate manager of supply chain, dishes out the secret ingredients to her inspiration and enthusiasm for growth. Plus, Yum! CEO David Gibbs reveals what he is most looking forward to from Yum! and the brands in 2024 (will Digital & Tech please stand up?).
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(For Yum! Eyes Only)
Competitor Intelligence
Bloomberg: At Burger King, good vibes are now mandatory
Burger King is implementing mandatory “Good Vibes Only” zones in its restaurants, aiming to create a positive atmosphere by discouraging negative behavior. The initiative includes designated areas where customers commit to positive behavior and civility. Employees will promote the initiative, and signs will be displayed in participating locations. While Burger King recognizes it can’t control customers’ attitudes, the move aligns with the company’s commitment to fostering a welcoming environment.
Fox Business: Ukraine adds sandwich franchise Subway to list of 'international war sponsors'
Subway has been added to Ukraine’s list of “international war sponsors” for maintaining over 500 stores in Russia, aiding Moscow’s war efforts. The Ukrainian National Agency on Corruption Prevention (NACP) accused Subway of advertising through sanctioned Russian social networks and using Russia’s main search engine, Yandex, for deliveries. Despite facing controversy and calls to close operations amid Putin’s invasion in 2022, Subway has not reported a reduction in its Russian operations.
Restaurant Business: Once 'orphaned,' Qdoba's new parent sees much whitespace for growth
John Cywinski, CEO of Modern Restaurant Concepts, the parent company of Qdoba, has hinted at the possibility of taking the No. 2 Mexican fast-casual brand public. Speaking at the ICR Conference, Cywinski outlined Qdoba’s growth strategy, emphasizing plans to surpass 1,000 units by 2027, with about 90% being franchised. He highlighted strong franchise demand and the goal of starting national marketing in 2025.
QSR Magazine: Sonic honors educators with week of free food and drinks
Sonic is showing appreciation for educators with its Teachers’ Circle program, offering free food and drinks to teachers, faculty and staff at K-12 schools or degree-granting universities from January 16 to January 19. Participants in the program can recieve daily rewards through the Sonic App, including a free large drink or slush, free regular breakfast burrito, free small cold brew and free French toast sticks.
 
Industry Trends
Nation’s Restaurant News: Menu prices continued to decelerate in December
In December, restaurant prices in the United States remained elevated, showing a 5.2% increase compared to the same period in 2022, according to data from the Consumer Price Index released by the U.S. Bureau of Labor Statistics. While still high, these prices cooled slightly by 10 basis points from November’s 5.3% increase. The food-away-from-home index rose 0.3% in December, with full-service meals up 0.3% (4.5% year-over-year) and limited-service meals up 0.4% month-over-month (5.9% year-over-year).
Restaurant Business: Key takeaways from the ICR Conference
The ICR Conference in Orlando provided insights into the restaurant industry. Executives from Jack in the Box downplayed concerns about California’s minimum wage increase, saying they had a strong plan to address it. Salad concepts like Just Salad and Salad and Go emphasized the potential of the salad category, with Just Salad’s founder calling it the first new category creation since Starbucks revolutionized coffee. Several chains discussed the impact of small tweaks, such as Chicken Salad Chick’s introduction of a Chick Melt and Freddy’s reduction in drink cup sizes.
Nation’s Restaurant News: Salad and Go is opening a store a week with plans to expand ‘into the thousands’
Charlie Morrison, former CEO of Wingstop, has shifted to Salad and Go, a fast-food drive-thru concept founded in 2013. Despite the surprise move, Morrison, who sat on Salad and Go’s board, is passionate about the brand’s mission to provide affordable and accessible healthier food options through its drive-thru-only locations. Salad and Go achieves cost efficiency by having central kitchens for food preparation, streamlining the supply chain and offering a simplified menu.
QSR Magazine: District Taco continues road to 150 locations
In 2023, District Taco exceeded its franchise development goals by opening two units and signing three new franchise agreements for markets in New York, New Jersey and Florida. The chain also made QSR Magazine’s 40/40 list of America’s hottest startup fast-casual restaurants. District Taco focuses on operational achievements, such as completing its first financial audit with Deloitte and alpha testing a new proprietary data warehouse and analytics platform. The brand plans to open at least six locations in East Coast markets in 2024 and aims to reach a total of 150 units by 2030.
Restaurant Business: Vegan chain Next Level Burger buys Veggie Grill
Veggie Grill, a vegan fast-casual chain that closed around 40% of its stores in August due to declining lunch traffic, has been acquired by plant-based burger chain Next Level Burger. Veggie Grill was on the brink of bankruptcy last year, and VegInvest, a vegan investment fund, took ownership. Under Next Level Burger’s ownership, VegInvest will remain a “mission-aligned shareholder.” The acquisition creates a 27-unit plant-based restaurant company, and the post-acquisition valuation of Veggie Grill exceeds $80 million.
 
Policy & Regulatory News
Nation’s Restaurant News: How will President Biden’s new federal labor rule affect delivery workers?
The U.S. Department of Labor’s new rule on classifying workers as employees or independent contractors, effective from March 11, aims to clarify and tighten standards around worker classification. The six-factor test weighs economic factors, including the level of independence of the worker, opportunity for profit and loss, skill required, permanence of the working relationship, investment in tools and the extent to which services are integral to the company’s operations.
Restaurant Business: Boston Market owner's bankruptcy case is dismissed
A U.S. bankruptcy court judge has dismissed the personal bankruptcy filing of Jay Pandya, the owner of Boston Market, and his wife, Mital. The dismissal came at the request of a U.S. bankruptcy trustee who claimed Pandya had not provided insurance information on two properties he owned and had not responded to repeated requests for that information. The dismissal adds to the uncertainty surrounding Boston Market, which has faced closures and lawsuits over unpaid bills.
 
Restaurant Technology
Restaurant Business: Miso Robotics believes it will put its Flippy robot everywhere
Miso Robotics, the company behind the Flippy robot, is experiencing high demand for its automated kitchen solutions as the restaurant industry grapples with labor shortages. Rich Hull, CEO of Miso Robotics, revealed plans to launch a new version of Flippy called “Flippy Next Gen,” which will be smaller, faster, cheaper to manufacture and 100% reliable. The company aims to address the current labor crisis in the industry and meet the demand for its products.
QSR Magazine: AI brings new era of fast-food dining
The AI revolution is reshaping the quick-service restaurant industry by enhancing internal operations and customer service. Quick-service restaurants are leveraging AI applications to provide an omnichannel customer experience, streamline operations and offer personalized services. AI in drive-thru services, utilizing natural language processing and speech-to-text systems, automates order-taking, reducing errors and wait times. AI’s machine learning capabilities enable data analytics for personalization, forecasting and inventory management.
 
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