TABLE OF CONTENTS
Yum! Brands News
Parade: KFC fan-favorite menu item in the testing phase -- with a twist
Nation’s Restaurant News: In QSR, sauces start to command a bigger spotlight
Fox 5 Atlanta: Atlanta student wins $25K Taco Bell Foundation scholarship
Competitor Intelligence
QSR Magazine: Chipotle’s hourly turnover dropped 10 percent in 2023
QSR Magazine: Subway’s unit count takes another large hit
Brand Eating: Taco Grande Pizza returns to Papa Murphy's
CNBC: Starbucks, Workers United made ‘significant progress’ in this week’s contract talks
Brand Eating: Carl's Jr. brings back El Diablo Burger permanently
Industry Trends
Restaurant Business: After a long winter, spring brings signs of life to Applebee's and Outback
QSR Magazine: Angry Chickz experiences fast start to 2024
Restaurant Dive: Chicken tender chain Sticky’s Finger Joint files for Chapter 11
Restaurant Business: Atlanta fine-dining fixture Ray's Restaurants to be sold as founder retires
Policy & Regulatory News
The Wall Street Journal: California fast-food chains are now serving sticker shock
Nation’s Restaurant News: How the new Department of Labor overtime rule will affect businesses
Investing in People
Fast Company: Google announces a new $75 million fund to train workers in AI -- and a new $49 online AI course
 
Yum! Brands News
Parade: KFC fan-favorite menu item in the testing phase -- with a twist
KFC U.S. is reintroducing its fan-favorite Twister as the “KFC Twister Wrap” in Nashville, TN, with classic and spicy options. The updated version features two tenders wrapped in a tortilla with lettuce, tomato and pepper mayonnaise sauce – priced at $5.99. If successful, it may expand nationwide by summer or early fall. The original Twister was last on U.S. menus a decade ago, prompting fans to petition for its return.
 
Nation’s Restaurant News: In QSR, sauces start to command a bigger spotlight
Consumers, increasingly adventurous with flavors, see sauces as a key exploration avenue, influencing restaurant choices. Younger consumers especially love their sauces, or as KFC CMO Nick Chavez recently said, “they like to dip, drench, and sauce everything. Everything.” KFC is leading this evolving conversation about sauces. The company recently launched Saucy Nuggets, flavoring up its chicken nuggets with honey sriracha, Korean BBQ, Sticky Chicky Sweet ‘n Sour, Nashville Hot and Georgia Gold sauces. In other words, “sauces for every palate” Chavez said.
 
Fox 5 Atlanta: Atlanta student wins $25K Taco Bell Foundation scholarship
Ritisha Lingampally, a high school senior from Atlanta, has been awarded the Taco Bell Foundation’s $25,000 Live Más Scholarship for her dedication to mental health advocacy. Lingampally has volunteered at a local suicide prevention hotline and as a hospice companion, demonstrating her commitment to helping others. The Taco Bell Foundation annually awards over 1,000 students with scholarships totaling more than $10 million, empowering them to make a positive impact.
 
Competitor Intelligence
QSR Magazine: Chipotle’s hourly turnover dropped 10 percent in 2023
Chipotle saw a 10% decrease in hourly turnover in 2023, marking the first decline since the pandemic began. Despite challenges in the labor market, including high turnover rates in the quick-service industry, Chipotle’s efforts in compensation, benefits and workforce composition contributed to this improvement. The brand’s commitment to internal promotions, evidenced by an 87% promotion rate to apprentice positions, showcases its investment in employee development.
QSR Magazine: Subway’s unit count takes another large hit
Subway saw a decline of 443 restaurants in 2023, bringing its total count to 20,133 stores nationwide. While this marks a decrease, it’s at a slower rate compared to previous years. CEO John Chidsey noted the chain aims to boost average unit volumes (AUVs) through digital sales, catering, menu innovation and remodels. Subway’s partnership with Roark Capital signals a shift toward welcoming well-funded franchisees with multiple brands. Renovations under the “Fresh Forward” design have revitalized over 18,000 units globally, contributing to a 6.4% rise in global same-store sales in 2023.
Brand Eating: Taco Grande Pizza returns to Papa Murphy's
Papa Murphy’s is bringing back the Taco Grande Pizza for a limited time until May 19. This take-and-bake creation combines pizza with taco flavors, featuring ground beef or grilled chicken, Roma tomatoes, mixed onions, black olives, cheddar, taco seasoning, whole-milk mozzarella, refried beans and salsa.
CNBC: Starbucks, Workers United made ‘significant progress’ in this week’s contract talks
Starbucks and Workers United, representing around 400 cafes, reported “significant progress” in recent contract talks. Discussions in Atlanta covered grievance resolution and union representation for baristas. It marked the first bargaining session in nearly a year, following a prolonged stalemate since February. The union, linked with SEIU, has advocated for higher wages and consistent scheduling. While negotiations progress, individual stores will still need to ratify contracts. Further discussions are scheduled for late May to establish a framework for store-level agreements.
Brand Eating: Carl's Jr. brings back El Diablo Burger permanently
Carl’s Jr. is bringing back the El Diablo burger as a permanent menu item, along with new additions: the El Diablo Hand-Breaded Chicken Tender Wrap and El Diablo Loaded Fries. The El Diablo burger, first introduced in 2015, features charbroiled beef or Angus patties, bacon, Jalapeño Poppers Bites, pepper jack cheese, pickled jalapeños and habanero ranch sauce on a sesame seed or potato bun. The chicken wrap includes crispy-fried buttermilk chicken, lettuce, cheese and habanero sauce in a flour tortilla.
 
Industry Trends
Restaurant Business: After a long winter, spring brings signs of life to Applebee's and Outback
After a challenging end to 2023, major full-service restaurant chains like Applebee’s and Outback Steakhouse are experiencing a resurgence in customer traffic this spring. Despite previous declines, March saw a notable uptick in visits, attributed partly to improved weather conditions and aggressive marketing strategies. These efforts include enticing meal deals and promotions like all-you-can-eat offers and discounted menu items. While some chains are successfully drawing customers back, others, like Olive Garden, are facing continued traffic declines, potentially indicating broader trends in the full-service sector.
QSR Magazine: Angry Chickz experiences fast start to 2024
Angry Chickz, the Southern California-based Nashville hot chicken brand, experienced a winter with record-breaking numbers, extensive media coverage on National Hot Chicken Day and strategic tech partnerships to enhance operations. March marked the brand’s most successful month ever, contributing to its strongest quarter since its establishment in 2018. The expansion continued with the opening of the 25th location in Vacaville, California, on April 5. Celebrating National Hot Chicken Day on March 30, Angry Chickz offered $3 Chicken Sliders systemwide, garnering significant media attention.
Restaurant Dive: Chicken tender chain Sticky’s Finger Joint files for Chapter 11
Sticky’s Finger Joint, a chicken tender chain with 12 units in New York and New Jersey, filed for Chapter 11 bankruptcy protection due to increasing cost pressures from supply shocks and reliance on third-party delivery apps. Despite growing sales from $500,000 in 2013 to about $22 million in 2023, the chain faced challenges with menu price increases, decreased foot traffic in New York City and heightened reliance on delivery apps during the pandemic. The filing, led by CEO Jamie Greer, highlighted the closure of several locations, legal challenges and the need to right-size their balance sheets.
Restaurant Business: Atlanta fine-dining fixture Ray's Restaurants to be sold as founder retires
Atlanta’s iconic Ray’s Restaurants, founded by Ray Schoenbaum, will be sold to TEI Hospitality as Schoenbaum retires after four decades. The upscale dining spots, known for their steaks, seafood and warm lemon butter cake, will maintain their standards under the new ownership. TEI Hospitality, a family-owned business with 43 years of experience, plans to continue Ray’s legacy of excellence. Schoenbaum will assist in the transition for 30 days, with the sale expected to close in June.
 
Policy & Regulatory News
The Wall Street Journal: California fast-food chains are now serving sticker shock
According to market-research firm Datassential, since California announced last September that the state would require large fast-food chains to bump up their minimum hourly pay to $20 in April, fast-food and fast-casual restaurants in California have increased prices by 10% overall, outpacing all other states.
Nation’s Restaurant News: How the new Department of Labor overtime rule will affect businesses
The U.S. Department of Labor issued a final rule increasing overtime eligibility requirements under the Fair Labor Standards Act, effective July 1. The minimum salary for eligibility rises from $35,568 to $55,068 annually. Employees earning up to $21 per hour will be eligible for overtime. The rule exempts certain salaried employees meeting specific criteria. Critics, like the International Franchise Association, view it as burdensome for small businesses. The change affects an estimated four million workers, prompting financial considerations for employers, who may need legal guidance for compliance and navigating operational adjustments.
 
Investing in People
Fast Company: Google announces a new $75 million fund to train workers in AI -- and a new $49 online AI course
Google is launching a $75 million fund and a $49 online AI course aimed at training one million Americans in AI skills. Partnering with organizations like Goodwill and Miami Dade College, Google aims to address the high demand for AI expertise. According to Lisa Gevelber of “Grow with Google,” this initiative aims to make people savvy AI consumers and users, acknowledging potential biases. Goodwill CEO Steve Preston highlights the importance of digital skills for increasing income, especially for low-wage workers.
 
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