March 22, 2024 
TABLE OF CONTENTS
Yum! Brands News
Restaurant Business: Welcome to the wrap battle
Forbes India: Fried & tested: KFC tops the pecking order
Jamaica Observer: KFC returns as exclusive fast-food partner for GenXS and Xodus during carnival
Economic Times: Pizza Hut's 'No Interruption, Only Satisfaction' campaign unveils Melts, a meal for on-the-go consumers
PEOPLE: Taco Bell has $1 fan-favorite menu items like Mexican Pizza for the next month
Yum!Now News
How Yum! and the University of Louisville are revolutionizing franchising education
Competitor Intelligence
CNBC: Shake Shack names Papa John’s chief as its CEO
CNN: 440,500 Starbucks-branded holiday mugs recalled due to burn and cut risks
Restaurant Dive: Subway faces $50M suit for sexual abuse at franchisee
Brand Eating: Hardee's adds new breakfast wraps
QSR Magazine: Zaxby’s rolls out Southern Fried Shrimp
Industry Trends
Bloomberg: Olive Garden owner Darden seeing lower-income diners spend less
QSR Magazine: Are multi-concept deals the future of franchising?
QSR Magazine: Slim Chickens inks seven-unit deal in Louisiana
Nation’s Restaurant News: GoTo Foods appoints new SVP of Franchise Development
Policy & Regulatory News
ABC News: Antitrust lawsuits accuse major U.S. sugar companies of conspiring to fix prices
Restaurant Technology
Nation’s Restaurant News: A Virginia Wendy's restaurant is testing drone delivery
Investing in People
NBC News: Target doubles bonuses for salaried employees as profits surge
 
Yum! Brands News
Restaurant Business: Welcome to the wrap battle
Restaurant Business reported that in the realm of quick-service eateries, the battleground has shifted from chicken sandwiches to wraps. Portable, affordable and versatile, wraps have become the latest craze for diners and operators alike. KFC has embraced wraps to cater to various dayparts, offering five flavor options priced at two for $5. “We launched the Classic Chicken Wrap and Spicy Slaw Chicken Wrap as an LTO. They were such a hit, we brought them back again in November, this time adding an all-new Mac & Cheese Wrap to the lineup,” said Vijay Sukumar, chief food innovation officer at KFC.
 
Forbes India: Fried & tested: KFC tops the pecking order
KFC India has revamped its strategy, securing strong franchise partners like Devyani International and Sapphire Foods. By 2024, KFC emerged as India’s fastest-growing QSR chain, expanding rapidly with over 1,000 stores nationwide. Its success reflects the growing demand for fried chicken, capitalizing on market gaps and shifting consumer preferences. Despite emerging competition, KFC’s brand legacy and taste remain unrivaled, promising continued growth if strategically managed.
 
Jamaica Observer: KFC returns as exclusive fast-food partner for GenXS and Xodus during carnival
KFC Jamaica has renewed its partnership with carnival bands GenXS and Xodus for Carnival in Jamaica 2024. Promising an enhanced experience, KFC plans giveaways of event tickets, costume packages and product offerings. Andrei Roper, Brand Manager at Restaurants of Jamaica, noted that he sees carnival as an ideal platform to engage and reward loyal customers. KFC will introduce a t-shirt costume section and feature hot wings at various events. Taylor Chung, Xodus Project Manager, and Kino Johnson, GenXS Director, expressed excitement, highlighting KFC’s integral role in Jamaican culture.
 
Economic Times: Pizza Hut's 'No Interruption, Only Satisfaction' campaign unveils Melts, a meal for on-the-go consumers
Pizza Hut India has introduced Melts, a new meal option catering to on-the-go consumers. Featuring a thin, crispy crust filled with abundant toppings and cheese, Melts is designed for multitaskers who want satisfaction without interruption. The ‘No Interruption, Only Satisfaction’ campaign showcases Melts seamlessly integrating into various activities like gaming, working and dancing. Aanandita Datta, CMO of Pizza Hut India, emphasized Melts’ suitability for busy lifestyles.
 
PEOPLE: Taco Bell has $1 fan-favorite menu items like Mexican Pizza for the next month
Starting March 26, Taco Bell U.S. is offering popular menu items for $1, each available for one hour only on Tuesdays. The Mexican Pizza kicks off the deal, followed by the Chalupa on April 9 and the Grilled Cheese Burrito on April 16.
 
How Yum! and the University of Louisville are revolutionizing franchising education
Did you know that the global franchising economy is set to surpass $4.5 trillion by 2025? The University of Louisville's Yum! Center for Global Franchising Excellence, with the support of Yum!'s Unlocking Opportunity Initiative, is paving the way for aspiring franchisees by offering multiple levels of education, from undergraduate to executive. With the recent expansion and addition of the "Accelerating Growth" executive education programs, the Center is impacting more students and professionals than ever before, empowering them with the skills and knowledge to thrive in franchising. Explore the infographic to learn more about how Yum! and the University of Louisville are unlocking opportunity for future franchisees around the world.
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Competitor Intelligence
CNBC: Shake Shack names Papa John’s chief as its CEO
Rob Lynch, the current president and CEO of Papa John’s pizza chain, is set to become the new CEO of Shake Shack on May 20, marking the first time an outsider will lead the company in its 20-year history. Lynch replaces Randy Garutti, who founded Shake Shack in 2001. Garutti will stay with the company until year-end for a smooth transition. Lynch’s appointment comes as Shake Shack eyes global expansion, with plans to open 80 more stores this year.
CNN: 440,500 Starbucks-branded holiday mugs recalled due to burn and cut risks
Nestlé USA has recalled over 440,000 metallic Starbucks-branded holiday mugs due to risks of overheating or breaking when microwaved or filled with hot liquid. The US Consumer Product Safety Commission reports 12 incidents, resulting in 10 injuries, including severe burns and blisters. Sold online and in Target, Walmart and Nexcom stores from November 2023 to January 2024 for $10-$20, the sets contained ceramic mugs with metallic coating in 11 oz and 16 oz sizes.
Restaurant Dive: Subway faces $50M suit for sexual abuse at franchisee
A former Subway franchisee employee has sued GRB Investments and Subway for $50 million, alleging repeated drugging and assault by her supervisor, Zeferino Carlos Rangel, a convicted sex offender. Filed in the U.S. District Court for North Dakota, the suit claims Subway acted as a joint employer. Subway motioned to dismiss, arguing lack of responsibility for working conditions. Plaintiff argues Subway’s control over franchisees makes it liable.
Brand Eating: Hardee's adds new breakfast wraps
Hardee’s has introduced four new Breakfast Wraps to their morning menu: Sausage Egg and Cheese, Bacon Egg and Cheese, Egg and Cheese and Sausage Egg and Gravy. Each wrap is priced at two for $5 and features ingredients like sausage, bacon, egg, cheese and sausage gravy wrapped in a soft flour tortilla.
QSR Magazine: Zaxby’s rolls out Southern Fried Shrimp
Zaxby’s has introduced Southern Fried Shrimp as a limited-time offer, marking its first foray into seafood after years of perfecting chicken. The crispy butterflied shrimp are seasoned with garlic, onion powder, pepper and buttermilk before being fried to perfection. They are served with Zaxtail Sauce, a blend of Zaxby’s Zax Sauce and cocktail sauce with hints of horseradish.
 
Industry Trends
Bloomberg: Olive Garden owner Darden seeing lower-income diners spend less
Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse, is facing a downturn in transactions from lower-income consumers, impacting its major brands’ revenue streams. Despite a sales miss attributed to adverse winter weather and consumer weakness in February, transactions from higher-income households rose. This aligns with broader industry trends, where low-and middle-income consumers struggle financially while high-income earners benefit from asset appreciation. Darden plans to maintain pricing below inflation to attract customers but aims to avoid heavy promotions.
QSR Magazine: Are multi-concept deals the future of franchising?
Multi-concept restaurant franchising is on the rise, appealing to growth-oriented operators and franchisors alike. Operators, like Jack in the Box, benefit from acquiring multiple chains under one umbrella, expanding their market reach and offering diverse opportunities to franchisees. However, successful multi-brand deals require careful consideration of brand compatibility, target demographics and market saturation. While some companies, like Next Brands, focus on distinct brand identities, others, like GoTo Foods, capitalize on co-branding to maximize efficiency and franchisee investment.
QSR Magazine: Slim Chickens inks seven-unit deal in Louisiana
Slim Chickens is expanding with seven new locations across Louisiana. AOM LLC, led by Brandon Thompson and his wife, experienced multi-unit operators, will spearhead this expansion. Impressed by Slim Chickens’ fresh food and welcoming atmosphere, the Thompsons decided to diversify their portfolio with the brand. With a background in operating Freddy’s Frozen Custard and Steakburgers and Walk-Ons locations, they are excited to bring Slim Chickens’ offerings to their community. The brand’s COO, Sam Rothschild, expressed enthusiasm for the partnership, highlighting Slim Chickens’ consistent growth and commitment to providing exceptional dining experiences.
Nation’s Restaurant News: GoTo Foods appoints new SVP of Franchise Development
GoTo Foods, the parent company of several brands, including Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s, has announced the promotion of Bobby Morena to Senior Vice President of Franchise Development. In his new role, Morena will oversee all aspects of franchise development, working closely with brand franchisees, real estate teams and brand management to drive growth in the United States and Canada. Brian Krause, Chief Development Officer at GoTo Foods, expressed confidence in Morena’s abilities, citing his successful track record and strategic skills.
 
Policy & Regulatory News
ABC News: Antitrust lawsuits accuse major U.S. sugar companies of conspiring to fix prices
Three antitrust lawsuits filed in federal court in Minnesota this week accuse major U.S. sugar-producing companies, including United Sugars (comprising American Crystal Sugar and Minn-Dak Farmers Cooperative), Domino Sugar and Cargill, of conspiring to fix prices. Plaintiffs, including Great Harvest Bread, Morelos Bakery and WNT restaurant group, allege that since at least 2019, these companies have engaged in price-fixing and exchanged competitively sensitive information. The lawsuits seek injunctions to stop illegal conduct and unspecified damages. Minnesota, a major sugar beet producer, has a history of antitrust scrutiny in the sugar industry.
 
Restaurant Technology
Nation’s Restaurant News: A Virginia Wendy's restaurant is testing drone delivery
Wendy’s is testing drone delivery services in Christiansburg, Virginia, partnering with DoorDash and Wing, a subsidiary of Alphabet. Customers can order eligible menu items through the DoorDash app, selecting drone delivery at checkout. Once ordered, items are prepared and delivered via Wing drone, typically within 30 minutes. The pilot will initially run in Christiansburg, with plans for expansion to other U.S. cities later this year.
 
Investing in People
NBC News: Target doubles bonuses for salaried employees as profits surge
Target is boosting bonuses for salaried employees, including store leaders and supply chain staff, following a surge in profits amounting to $2 billion in additional growth for 2023. The company’s stock rebounded in November after cost reductions offset a consumer spending slowdown, with shares climbing 54% since mid-November. Eligible employees received a full 2023 bonus, doubling from the previous year’s payout. The increased bonuses extend to in-store managers and supply chain leaders.
 
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