TABLE OF CONTENTS
Yum! Brands News
Restaurant Business: A season of promotions at Yum! Brands
Yahoo! Finance: Yum China leads the restaurant and leisure industry for the fourth consecutive year on the Dow Jones sustainability index
Nation’s Restaurant News: Thuthuka Nxumalo named COO for KFC U.S.
Brand Eating: Five KFC Fried Chicken flavors to try around the world in January 2024
Campaign Brief Asia: PUBG collabs with KFC’s Colonel Sanders to spice up the game for Gen Z gamers in Korea
QSR Magazine: DRG opens drive-thru-only Taco Bell in Missouri
KXLH: How to get Taco Bell and Uber Eats’ limited-time Cinnamon Twists Cereal
Brand Eating: Taco Bell launches new Veggie Build-Your-Own-Cravings Box
Yum!Now News
Yum! Brands leads in developing leaders
Competitor Intelligence
Restaurant Business: With a big wage hike coming, California Subway franchisees look for solutions
Nation’s Restaurant News: How Papa Johns plans to make its franchisees more profitable
Brand Eating: Shake Shack brings back Korean Fried Chicken as part of Korean BBQ Menu
Brand Eating: Wendy’s Vanilla Frosty returns for a limited time
Industry Trends
The Washington Post: Fast-food giants overwork teenagers, driving America’s child labor crisis
Restaurant Business: 7-Eleven broadens its restaurant footprint with a $1B acquisition
Nation’s Restaurant News: Denny’s expands agreement with Franklin Junction virtual restaurants
QSR Magazine: FAT Brands opens first co-branded Johnny Rockets and Hurricane Wings location
Policy & Regulatory News
Restaurant Dive: House votes to overturn NLRB’s joint employer rule
Restaurant Business: U.S. Supreme Court agrees to hear an appeal from Starbucks
Restaurant Technology
Restaurant Dive: Will Toast raise prices this year?
 
Yum! Brands News
Restaurant Business: A season of promotions at Yum! Brands
Yum! Brands has announced several key promotions, appointing Joe Park as Chief Digital and Technology Officer, effective March 1. Meanwhile, at The Habit Burger, Jason Triail was appointed Director of Culinary Innovation, bringing a fresh perspective to the culinary philosophy. Thuthuka Nxumalo has been appointed Chief Operations Officer for KFC U.S., joining from KFC Africa, where he served as COO. Christophe Poirier will be the Chief New Concept Officer for KFC U.S. in February.
 
Yahoo! Finance: Yum China leads the restaurant and leisure industry for the fourth consecutive year on the Dow Jones sustainability index
Yum China has secured the top global ranking in the S&P Global 2023 Corporate Sustainability Assessment (CSA) for the Restaurant & Leisure Facilities Industry. This marks the fourth consecutive year that Yum China has been included in both the Dow Jones Sustainability Indices: World Index and Emerging Market Index, showcasing its dedication to environmental, social and governance principles. Yum China achieved the highest score among industry peers in the S&P Global CSA, emphasizing its commitment to governance and economic, environmental and social dimensions.
 
Nation’s Restaurant News: Thuthuka Nxumalo named COO for KFC U.S.
KFC U.S. has appointed Thuthuka Nxumalo as Chief Operations Officer, effective Feb. 5, reporting to President Tarun Lal. Nxumalo, previously COO at KFC Africa, is praised for improving key operations metrics. With a background at Anheuser-Busch InBev and over 15 years with SABMiller, he holds degrees in mechanical and industrial engineering. Meanwhile, Christophe Poirier was appointed as the Chief New Concept Officer from Feb. 1, tasked with modernizing KFC’s concept.
 
Brand Eating: Five KFC Fried Chicken flavors to try around the world in January 2024
Brand Eating highlighted KFC’s global menu, which offers unique fried chicken variations beyond the standard options in the United States. In Taiwan, there’s Maple Garlic Chicken, featuring KFC fried chicken glazed with maple and seasoned with garlic. Australia serves Hot & Crispy boneless chicken, a spicy alternative to Extra Crispy. Hong Kong has introduced Spicy Seafood Fried Chicken and Hot Wings, seasoned with Nissin Cup Noodles Spicy Seafood flavor. Malaysia offers San-Thai Crunch fried chicken and a chicken sandwich with Thai-inspired flavors.
 
Campaign Brief Asia: PUBG collabs with KFC’s Colonel Sanders to spice up the game for Gen Z gamers in Korea
PUBG, the globally renowned battle game, has joined forces with KFC’s Colonel Sanders to enhance its appeal to Gen Z gamers in Korea. The collaboration featured a captivating live-streaming marketing campaign called the “Sanders’ Streamer Showdown.” The live event showcased Colonel Sanders alongside popular gaming influencers, engaging the audience with special missions. Offline engagement in 200 KFC stores further amplified the campaign’s success.
 
QSR Magazine: DRG opens drive-thru-only Taco Bell in Missouri
Diversified Restaurant Group has launched the first drive-thru-only Taco Bell in Missouri, prioritizing efficient service with no seating or lobby. Located at 3030 Van Brunt Blvd, the grand opening on January 16th offers a limited-time promotion of $5 off for online orders over $20 through Uber Eats or DoorDash until January 23rd. Featuring a dual-lane drive-thru, two ordering kiosks in a vestibule and a late-night pickup window, the new location amplifies the commitment to seamless service. Kara Ramirez, VP of Operations, expressed excitement about this venture connecting with the community, emphasizing Taco Bell’s signature offerings.
 
KXLH: How to get Taco Bell and Uber Eats’ limited-time Cinnamon Twists Cereal
Taco Bell and Uber Eats are collaborating to offer a limited release of Cinnamon Twists Cereal, a miniature version of Taco Bell’s classic treat, for free. Made with smaller versions of Taco Bell’s signature Cinnamon Twists, the cereal is sprinkled with cinnamon and sugar and can be enjoyed in a bowl with milk or straight from the box. The first 500 Taco Bell Rewards members can grab a free box on Jan. 23, with instructions to be provided that morning.
 
Brand Eating: Taco Bell launches new Veggie Build-Your-Own-Cravings Box
Taco Bell has unveiled the Veggie Build-Your-Own-Cravings Box, a vegetarian and flexitarian-friendly option priced at $5.99 (may vary) for online orders via the Taco Bell website or mobile app. The customizable combo includes a vegetarian specialty item, a vegetarian classic item, a side and a medium fountain drink. Exclusive to online orders, it joins the regular Build-Your-Own Cravings Box with different options at the same price point.
 
Yum!Now News
Yum! Brands leads in developing leaders

At Yum! Brands, our unrivaled talent is our greatest asset – one that we invest in heavily. That’s one of the reasons why TIME magazine ranked us No. 32 on its first “Best Companies for Future Leaders” list. The accolade is evidence of a continued effort to develop our company leaders. Watch to learn how we do this in the latest episode of “Quick Bite,” the video series that profiles innovative work in about a minute. 

Watch now
Competitor Intelligence
Restaurant Business: With a big wage hike coming, California Subway franchisees look for solutions
Subway franchisees in California are grappling with the impending $20-per-hour minimum wage for fast-food chain restaurants, forming a committee to devise strategies for adaptation. The task force is exploring beyond simple price increases, considering cost reductions and potential breaks from the franchisor. The $20 minimum wage, effective in April, has raised concerns among franchisees, fearing closures without a corresponding sales increase. Subway, with over 2,000 California locations, faces challenges due to its low unit volumes and has struggled, with about 7,000 locations closing since 2014.
Nation’s Restaurant News: How Papa Johns plans to make its franchisees more profitable
Papa John’s has unveiled its Back to Better 2.0 strategy, aiming to drive comp sales, average unit volumes, margins and net new unit growth. The plan includes a reduction in franchisees’ marketing expenditure from 8% to 6%, with no requirement for local marketing spending. This change is expected to enhance franchisees’ margins and increase the effectiveness of advertising spending. The company also introduced growth incentives for new stores in North America, offering a National Marketing Fund contribution waiver for the first five years of operations.
Brand Eating: Shake Shack brings back Korean Fried Chicken as part of Korean BBQ Menu
Shake Shack has reintroduced the Korean-Style Fried Chicken sandwich as part of its limited-time Korean BBQ-themed menu. The sandwich features a crispy-fried chicken breast filet coated with a spicy and sweet gochujang glaze, topped with sesame seeds and served with white kimchi slaw on a toasted potato bun, starting at $8.49. The menu also includes the Korean BBQ Burger with Angus beef cheeseburger, crispy-fried sweet onions, scallions and Korean BBQ sauce on a toasted bun, starting at $7.79.
Brand Eating: Wendy’s Vanilla Frosty returns for a limited time
Wendy’s has brought back its Vanilla Frosty for a limited time, rejoining the classic Chocolate Frosty on the menu. The Vanilla Frosty serves as the default flavor when Wendy’s is not offering seasonal options like Strawberry, Pumpkin Spice or Peppermint, as it acts as the base for these variations. While Chocolate has been a permanent item, Vanilla was introduced in 2006, became a permanent menu item for several years, and was periodically swapped out for seasonal flavors. The Vanilla Frosty is expected to be available until late spring 2024.
 
Industry Trends
The Washington Post: Fast-food giants overwork teenagers, driving America’s child labor crisis
A Washington Post analysis has revealed a surge in child labor violations in the U.S., with the fast-food industry, especially franchises like McDonald’s, Sonic and Chick-fil-A, implicated. Labor shortages during the pandemic led to illegal scheduling of teenagers for late and extended hours and exposing them to dangerous equipment. Violations have tripled in the past decade, with fast-food service violations increasing sixfold. Franchise-heavy models, including McDonald’s, exhibit higher violation rates, possibly due to cost pressures.
Restaurant Business: 7-Eleven broadens its restaurant footprint with a $1B acquisition
7-Eleven is set to become the sole owner of a 600-plus-unit Mexican restaurant chain after agreeing to pay Sunoco a reported $1 billion for 204 Stripes convenience stores and the Laredo Taco Co. fast-food restaurants they host. The deal will give 7-Eleven total ownership of both the Stripes and Laredo Taco brands. Sunoco had previously sold 7-Eleven most of the Stripes chain, about 1,000 locations, along with their onsite Laredo Taco restaurants in 2018.
Nation’s Restaurant News: Denny’s expands agreement with Franklin Junction virtual restaurants
Denny’s Corp., the parent company of the chain, is expanding its agreement with Franklin Junction, a virtual-restaurant company. Under the deal, Franklin Junction will partner with at least 250 domestic Denny’s restaurants to accelerate Denny’s market presence through its Host Kitchen platform. The Host Kitchen platform allows restaurant brands to access new markets as virtual restaurants, producing orders locally through Franklin Junction’s fulfillment partners.
QSR Magazine: FAT Brands opens first co-branded Johnny Rockets and Hurricane Wings location
FAT Brands has announced the grand opening of its first West Coast co-branded Johnny Rockets and Hurricane Wings restaurant. The new location in Alhambra, California, marks the expansion of the co-branded model that combines Johnny Rockets’ burgers with Hurricane Grill & Wings’ selection of wing flavors. The Alhambra restaurant follows the success of the first co-branded location in Washington D.C. The grand opening celebration included a ribbon-cutting ceremony with the Alhambra Chamber of Commerce and featured free single original burgers for the first 100 customers.
 
Policy & Regulatory News
Restaurant Dive: House votes to overturn NLRB’s joint employer rule
The U.S. House of Representatives has voted 206 to 177 in favor of a Congressional Review Act (CRA) disapproval resolution aimed at overturning the National Labor Relations Board rule that expanded the definition of joint employment. This move is seen as a significant victory for franchisors, and the CRA limits the time Congress has to consider rejecting a rule. The measure will now go to the Senate, where the vote is expected to be challenging. The National Restaurant Association praised the House’s decision, arguing that the joint employer rule would impose onerous regulatory burdens on restaurants.
Restaurant Business: U.S. Supreme Court agrees to hear an appeal from Starbucks
The U.S. Supreme Court has agreed to hear a challenge from Starbucks regarding an appeals court’s order to rehire baristas who were fired by a Tennessee unit. The employees claim they were terminated for attempting to unionize, leading to a wider effort to unionize Starbucks. The company disputes the claim, arguing the terminations were due to violations of corporate rules and personnel policies. Starbucks is seeking a ruling on the factors district courts should consider when evaluating the National Labor Relations Board’s request for an immediate injunction against an employer engaged in alleged illegal anti-union behavior.
 
Restaurant Technology
Restaurant Dive: Will Toast raise prices this year?
Toast, a restaurant point-of-sale company, is likely to implement price increases on its software services in 2024, according to analysts. The company is expected to introduce mid-single-digit increases on prices for its existing software services. Toast may give customers the option to pay more for current services or keep current prices and pay for additional services. The potential price adjustments follow Toast’s decision to add a 99-cent fee to orders of $10 or more placed through its online ordering channels last year, a move that was later reversed due to backlash.
 
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