March 11, 2024 
TABLE OF CONTENTS
Yum! Brands News
Louisville Business First: Building better boards
Nation’s Restaurant News: Why restaurant brands are seeking more ‘special trip’ traffic
SFGate: How America's most bizarre KFC ended up in California
Branding in Asia: The Heat is on with KFC’s Kai Jai Ded and Thailand’s Spicy Relief Hotline
CNN: Did your chef wash their hands? Handwashing ‘lie detectors’ could find out
Yum!Now News
Yum! Brands recognized for climate action and transparency
Competitor Intelligence
CNBC: McDonald’s and other restaurant chains look to the Sun Belt for growth as population soars
Restaurant Business: El Pollo Loco expects double-digit wage inflation
Brand Eating: Burger King debuts New Po's Panda Sundae
QSR Magazine: White Castle to host Whiting Appreciation Day on March 12
Brand Eating: Sonic introduces new Hickory BBQ and Cheesy Baja Wraps
Industry Trends
Nation’s Restaurant News: Restaurant turnover rates improve to pre-pandemic levels
Nation’s Restaurant News: Twin Peaks parent company FAT Brands wants to acquire salad, sandwich, or coffee brand next
Restaurant Business: Revamped loyalty program drives sales at Potbelly
QSR Magazine: Blaze Pizza to offer $3.14 pizzas on Pi Day
Policy & Regulatory News
Restaurant Dive: Subway franchisees pay $218K for allegedly pocketing employees’ tips
Restaruant Dive: DC bill mandates study of delivery worker conditions, pay
Restaurant Technology
QSR Magazine: How AI will evolve restaurant management fundamentals
 
Yum! Brands News
Louisville Business First: Building better boards
Louisville Business First reported that the increasing gender diversity trend in corporate boards, exemplified by Yum! Brands, reflects a broader shift in Louisville’s public companies. Yum! Brands’ board of directors includes four women, which is an increase since 2018. Tracy Skeans, a Yum! Brands employee serving on Brown-Forman Corp.’s board since 2018, highlighted what the position means to her. “I believe that if more leaders would mentor and advocate for up-and- coming female talent and help them with the things they should do to grow their careers, we would see more women advancing at faster rates into leadership and board positions,” she said.
 
Nation’s Restaurant News: Why restaurant brands are seeking more ‘special trip’ traffic
Various fast-food chains, including KFC and Taco Bell, are introducing new dessert options to attract customers. KFC recently introduced its new Colonel’s Homestyle Brownie, while Taco Bell is testing things like Churro Chillers shakes, Baja Blast pie and the Taco Bell x Salt & Straw Ice Cream Chocolate Taco. This trend responds to consumer interest in indulgent snacks, potentially challenging specialty dessert shops.
 
SFGate: How America's most bizarre KFC ended up in California
SFGate highlighted the unique architecture of a KFC location in Los Angeles’ Koreatown. Designed in the late 1980s by architects Grinstein/Daniels at the request of franchise owner Jack Wilke, it boasts a postmodernist style reminiscent of Googie architecture. Featuring a high-ceilinged second-floor dining area, balcony and elongated windows, it stands out as an “unexpected architectural landmark.” The design, influenced by constructivism and intended to draw attention, continues to intrigue passersby.
 
Branding in Asia: The Heat is on with KFC’s Kai Jai Ded and Thailand’s Spicy Relief Hotline
KFC Thailand celebrated its 40th Anniversary with the launch of Kai Jai Ded, a limited-edition fiery menu item. Recognizing the intensity, the chain introduced the Spicy Relief Hotline to aid spice lovers. With options to “Vent It Out” for interactive support or “Relax and Recharge” for calming sounds, the hotline aims to ease the burn. Kai Jai Ded offers two spice levels: Baby Hot Sauce and Angry Hot Sauce. The response was overwhelming, with the menu selling out in two weeks and positive feedback flooding the hotline.
 
CNN: Did your chef wash their hands? Handwashing ‘lie detectors’ could find out
A startup called PathSpot, led by Christine Schindler, has developed a hand hygiene device called the Handscanner to address poor handwashing practices in the food services industry. This technology, likened to a “handwashing lie detector,” uses light fluorescence spectroscopy to detect contaminants on employees’ hands in just two seconds. It is already being used in 10,000 food service locations worldwide, including franchised Taco Bell, Arby’s and Chopt restaurants.
 
Yum!Now News
Yum! Brands recognized for climate action and transparency

Yum! is best known for its RED (relevant, easy and distinctive) brands – KFC, Pizza Hut, Taco Bell and The Habit Burger Grill – but recent accolades in the sustainability space might make consumers see it as green. This month, CDP, released its rankings, and Yum!’s Climate Change score improved to an A- and all assessments achieved scores of a B or higher.

Read more about our latest recognition and climate action progress.

Read more
Competitor Intelligence
CNBC: McDonald’s and other restaurant chains look to the Sun Belt for growth as population soars
Restaurant chains like McDonald’s and Portillo’s are targeting the Sun Belt states, including Texas, Florida and North Carolina, for future sales growth due to population migration. Portillo’s CEO, Michael Osanloo, highlights the success of their Texas location, which generated $13 million in sales within its first year. McDonald’s aims to open 900 new restaurants in the U.S. by 2027, focusing on states like Florida and Texas. Other chains like Raising Cane’s and Chipotle have also recognized the opportunities in the Sun Belt.
Restaurant Business: El Pollo Loco expects double-digit wage inflation
El Pollo Loco noted it anticipates wage inflation of 12% to 14% due to California’s upcoming fast-food wage increase, with most of its units located in the state. To offset the impact, the chain plans mid- to high-single-digit pricing increases but acknowledges it won’t fully cover costs. Cost-cutting measures include reducing salsa offerings and streamlining processes. Despite a 6% menu price hike, fourth-quarter same-store sales at company-operated units dipped 0.2%, attributed to reduced consumer spending and shifting behaviors. Systemwide sales rose 0.9%.
Brand Eating: Burger King debuts New Po's Panda Sundae
Burger King has introduced the “new” Po’s Panda Sundae as a promotional tie-in for the release of Kung Fu Panda 4. The sundae features vanilla soft serve topped with chocolate syrup and Oreo cookie pieces, resembling the colors of a panda. Despite being marketed as new, it closely resembles Burger King’s previous Oreo Sundae from 2011. Prices vary, with the sundae costing $3.49 at a Los Angeles location.
QSR Magazine: White Castle to host Whiting Appreciation Day on March 12
White Castle is honoring Whiting, Indiana, as a Craver Hall of Fame inductee with Whiting Appreciation Day on March 12. Cravers visiting the Whiting Castle will receive a free Original Slider and can purchase exclusive commemorative T-shirts, with net proceeds going to GiGi’s Playhouse Tinley Park, supporting individuals with Down syndrome. Whiting, home to White Castle’s first Chicagoland Castle since 1935, was the first city inducted into the Hall of Fame.
Brand Eating: Sonic introduces new Hickory BBQ and Cheesy Baja Wraps
Sonic has introduced two new snack-sized wraps: the Hickory BBQ Crispy Tender Wrap and the Cheesy Baja Crispy Tender Wrap. The former features a crispy-fried chicken tender with hickory BBQ, shredded cheddar cheese and lettuce, while the latter includes a zesty cheese sauce instead of BBQ. Both wraps are priced at $1.99 for a limited time.
 
Industry Trends
Nation’s Restaurant News: Restaurant turnover rates improve to pre-pandemic levels
In February, the U.S. economy added 275,000 jobs, surpassing expectations, though the unemployment rate increased to 3.9%. The restaurant and bar sector saw a notable uptick, adding 41,600 jobs, signaling strong consumer demand. Despite this growth, the industry still has room to expand, with over 900,000 job openings reported in January. Operators are optimistic, with 88% planning to hire more staff in the coming months, expecting to add 200,000 jobs this year.
Nation’s Restaurant News: Twin Peaks parent company FAT Brands wants to acquire salad, sandwich, or coffee brand next
FAT Brands, the parent company of Twin Peaks and Fazoli’s, experienced a mixed fourth quarter with significant growth but also a net loss of $26.2 million. Despite ongoing legal and financial challenges, FAT Brands aims to expand aggressively through acquisitions and brand conversions. The company is eyeing potential acquisitions in new categories like salads, sandwiches or coffee brands. Despite a 0.6% decline in same-store sales, total revenue grew by 52.8%, reaching $158.6 million, with 29 new store openings reported in the fourth quarter.
Restaurant Business: Revamped loyalty program drives sales at Potbelly
Potbelly’s revamped loyalty program has contributed to robust sales growth, with same-store sales up 6.3% for the quarter and 12% for the year. Total revenues increased by 4.7% to $125.7 million in Q4 and by 8.7% to $491.4 million for the year. The updated Perks loyalty program, introduced in January, has seen an 87% increase in membership acquisition. Digital sales, now comprising 40% of total sales, have shifted towards Potbelly-owned channels. With plans for 10% unit growth in 2024, Potbelly remains optimistic, backed by increased marketing fund contributions and commitments for 188 new restaurants.
QSR Magazine: Blaze Pizza to offer $3.14 pizzas on Pi Day
Blaze Pizza is celebrating Pi Day on March 14th by offering pizzas for $3.14 at participating locations across the U.S. This marks the 11th consecutive year of the celebration. CEO Beto Guajardo invited guests to enjoy custom-made 11” pizzas with over 45 different ingredients to choose from, including classics like pepperoni and cheese or unique options like roasted garlic and plant-based chorizo.
 
Policy & Regulatory News
Restaurant Dive: Subway franchisees pay $218K for allegedly pocketing employees’ tips
Ten Subway franchise locations in Washington have settled with the U.S. Department of Labor (DOL) for $218,165 after allegedly participating in illegal employee tip pools. The franchisees, including Jani Enterprises Inc., Keeyarah Enterprises Inc., Kian Enterprises Inc. and Quantum Enterprises USA Inc., were accused of taking tips from 100 employees, manipulating timesheets and avoiding overtime pay obligations. Thomas Silva, DOL’s district director in Seattle, emphasized the importance of employers reviewing their practices to avoid costly consequences.
Restaruant Dive: DC bill mandates study of delivery worker conditions, pay
The restaurant reform bill passed in Washington, D.C., mandates a study on the working conditions and wages of app-based delivery workers by July 1, 2025. Similar to New York City’s legislation, which led to establishing a delivery worker wage, the D.C. bill initiates a process to potentially regulate pay and conditions for delivery drivers. However, unlike New York’s comprehensive protections, D.C.’s bill only requires a study without immediate regulatory action. The study will examine pay rates, working hours, expenses and the feasibility of portable benefits. DoorDash, a major delivery aggregator, hopes for a robust study methodology involving various stakeholders.
 
Restaurant Technology
QSR Magazine: How AI will evolve restaurant management fundamentals
Industry experts highlighted how, in the restaurant industry, the true impact of AI lies in its ability to revolutionize management processes, leading to increased efficiency and profitability. AI-powered technologies like invoice management streamline manual processes, while sales forecasting and employee scheduling tools provide accurate predictions and optimal staffing solutions. Inventory control systems leverage data to recommend precise ingredient purchases, minimizing waste and improving profitability.
 
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