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| Taco Bell is successfully retaining low-income customers despite industry concerns. Yum! Brands CEO David Gibbs noted that Taco Bell's outlets in low-income areas outperformed others, indicating strong customer loyalty. The chain's revamped $3-and-under value menu has exceeded expectations, providing a competitive edge while maintaining franchisee profitability. Despite rising fast-food prices nationwide, Taco Bell's digital sales surged, with 31% of US orders placed digitally. Overall, Taco Bell remains a key contributor to Yum! Brands' US sales and profits, showcasing resilience and adaptability in a competitive market. |
| In 2023, Yum! Brands significantly enhanced its technology deployment across its global restaurant network, achieving a 22% growth in digital sales, totaling nearly $30 billion. The company’s digital mix exceeded 45%, contributing to a 10% increase in global systemwide sales. Key technological advancements included expanding kiosk usage, implementing the Poseidon point-of-sale system and deploying AI-driven solutions like Dragontail for kitchen management. The brand’s SuperApp and AI-driven inventory management systems further streamlined operations. “2023 was a landmark year for successfully scaling our suite of proprietary technologies across our global restaurant base,” Yum CFO Chris Turner said Wednesday during the company’s earnings call. |
| Paul Booth, Jr., an accomplished builder and owner-operator of Ace Hardware, is deeply involved in fostering the next generation of franchise professionals through the Yum! Center for Global Franchise Excellence at the University of Louisville. Kathy Gosser, Yum! Assistant Professor of Franchise Management Practice and Director of Management and Entrepreneurship at the University of Louisville’s College of Business, noted that the addition of Booth as executive-in-residence of the Kentucky-based center dovetails with the center’s mission of unlocking opportunities in the franchising industry. |
| Pizza Hut U.S. will present two commercials during Super Bowl pre-game coverage showcasing the chain’s latest innovation: Hot Honey Pizza & Wings. The first spot, “Pizza wHut!?,” highlights people savoring the sweet heat of the new offerings, while the second spot, “Sweet and Heat,” features NY Giants QB Tommy Devito and Netflix’s Antonia Gentry, capturing the buzz around the sweet yet spicy flavor trend. |
| The Habit Burger has introduced The Habit Tours AZ, featuring The Charmobile, a food truck rolling through Arizona until April 30. The Charmobile visits various events, including the Phoenix Zoo and M3F Music Festival, donating 30% of proceeds to local charities. Led by Director of Culinary Innovation, Jason Triail, it offers Habit’s signature Charburgers and more, aiming to create joyful culinary experiences. Additionally, The Habit offers free visits to events for 100-300 people. |
| Spreading good fortune this Lunar New Year! |
According to the Chinese zodiac, 2024 is the Year of the Dragon, which symbolizes strength, good luck and power! Check out how the KFC and Pizza Hut APAC markets are putting their best foot forward in 2024 and celebrating with creative ads showing their Lunar New Year spirit. |  | (For Yum! Eyes Only) |
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| Chipotle achieved over $3 million average unit volumes (AUVs) in 2023, matching McDonald’s, aiming for $4 million AUVs. Operational enhancements, including improved throughput and lower staff turnover, drove this success. Initiatives like “Project Square One” and added benefits contributed to improved staffing. Digital enhancements and menu innovations, like chicken al pastor and carne asada, bolstered same-store sales growth by 8.4% quarterly and 7.9% annually. Future strategies include piloting automated makelines for labor efficiency and leveraging customer data for targeted marketing. |
| Sonic Drive-In has partnered with country singer Reba McEntire for a Valentine’s Day promotion, featuring her favorite meal -- a cheeseburger with all the fixings and potato tots -- paired with a new Chocolate Covered Strawberry Shake, dubbed “Reba’s Sweetheart Meal.” Priced at $10.39, the meal runs from Feb 12 to March 3. McEntire shares her personal connection to Sonic, where she and her boyfriend have fond memories, and encourages others to create special Valentine’s moments at Sonic. Sonic’s vice president expresses excitement for the exclusive collaboration, highlighting McEntire’s longstanding appreciation for the chain. |
| Papa John’s Canada raised $55,286 for Second Harvest, Canada’s largest food rescue organization, through sales of its Shaq-a-Roni pizza. For each Shaq-a-Roni sold between October 25th and December 31st, 2023, Papa John’s donated one dollar to Second Harvest, providing three healthy meals per dollar to those in need. The partnership, spanning four years, has raised over $200 thousand for Canadian communities. |
| Carl’s Jr. announced Free Burger Day on February 12, offering free Western Bacon Cheeseburgers to rewards members through their app. No purchase necessary; members simply need to join the My Rewards program on the app. Participating locations will offer the free burger while supplies last. |
| The National Restaurant Association’s State of the Industry report forecasts that U.S. restaurant sales will surpass $1.1 trillion in 2024, up over 10% from 2023. While operators are cautiously optimistic about sales, profitability remains pressured due to challenges like high food and labor costs. Technology adoption is seen as key for efficiency and enhancing the customer experience, particularly among younger demographics. Despite challenges, the industry is projected to grow, albeit at a slower pace. |
| Performance Food Group (PFG), the second-largest distributor in the restaurant industry, noted that it expects restaurant supply prices to continue moderating in the near term before gradually increasing towards June. Despite anticipating a slight uptick in inflation, PFG reported that food prices eased less than expected in the last quarter of 2023. While deflation can impact sales volumes negatively, PFG experienced an increase in demand, particularly from independent restaurants, leading to a 2.9% rise in sales for the second quarter. |
| Church’s Texas Chicken is reintroducing its seafood options this February. The offerings include Wild-caught Pacific Pollock Fish Filet, coated in signature seasoned panko breading, available as a Fish Sandwich starting at $3.99. Classic Shrimp, marinated and coated with Southern breading, is also back, with options like a Six-Piece Classic Shrimp meal starting at $3.99 or a Twenty-Piece Classic Shrimp and Six-Piece Tenders Combo starting at $15.99. |
| Whataburger has opened its first restaurant in Nevada, located on The Strip and co-located with Parry’s Pizzeria & Taphouse. The two-story restaurant marks Whataburger’s westernmost location and its expansion into its 15th state. Operated by franchisee Panda Restaurant Group, the restaurant will be open 24/7, offering breakfast, lunch and dinner. Parry’s Pizzeria & Taphouse offers a variety of menu items, including pizza, chicken wings, stromboli, cocktails and a wide selection of draft beers. |
| Three Popeyes restaurants in California have been accused of violating federal child labor laws by overworking teenage employees, including 13-year-olds who were too young to legally work. The franchisee responsible for the Oakland, Tracy and Newark locations, 14th St. Chicken Corp., has been fined over $100,000 by the U.S. Department of Labor following an investigation. In addition to the child labor violations, the franchisee failed to properly pay workers overtime. |
| Burger King has launched the Million Dollar Whopper Contest, allowing customers to create their own Whopper for a chance to win $1 million and see their burger sold for a limited time. Using generative AI, customers input up to eight ingredients to create their personalized Whopper, complete with a customized jingle. Developed by Media.Monks, the AI-powered experience took three to four months to complete, ensuring scalability, brand safety and privacy. While AI presents challenges, Burger King noted that it is prepared for the unexpected and sees it as a tool for enhancing guest experiences. |
| Denny’s Corp. is expanding its employee education program by partnering with Oakwood University in Huntsville, Ala., and Bay Path University in Longmeadow, Mass., offering college credits. The program, called GAIN, integrates the company’s manager-in-training program with specific courses, allowing participants to earn up to 30 college credits. The initiative aims to provide skills training and non-traditional paths to career growth for team members. |
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