NORMS is elevating its menu while also staying true to the features and value that made it an icon . . . .

SoCal Legend NORMS Ready for Next Evolution THE BRAND IS LOOKING AT LAS VEGAS AS IT PREPARES FOR A BOLD FUTURE.

Eric Wyatt gathered NORMS managers at a leadership event in Arrowhead, California. This wasn’t just GMs: service managers, kitchen managers, and support center employees flocked to hear the legacy chain’s new executive. “You can’t just flip a coin and land on the other side,” says Wyatt, a former SVP of ops at CKE Restaurants who also held senior roles at Panera, Starbucks, and Yum! Brands. “It takes time. It takes focus. It takes making sure you understand the priorities, and you can’t have 50 of them.”

While Wyatt had a deep list of tasks to get started on following his February appointment as CEO, he began with the broader view. NORMS has been around 74 years. Los Angeles native Norm Roybark opened a small 24/7 diner—one of SoCal’s first—in 1949 near the famed Hollywood corner of Sunset and Vine. The brand’s vibe hasn’t changed all that much since: good, quality food at a reasonable price, served any time somebody needs it. That’s a common tale in family dining today. Wasn’t so much so in 1949. For perspective, IHOP was founded (also in L.A.) nine years later. NORMS predates Denny’s 1953 inception, which likewise sprung to life in the Golden State (L.A’s Lakewood community).

A big part of Wyatt’s presentation, he recalls, was to let NORMS leadership group, at every rung of the ladder, understand the brand was about to evolve, grow, and develop into an organization nimble enough to find a new generation of loyalists. “I think it’s also super important for us to make sure that we retain the legacy of the brand with some of our familiar menu items,” he says. “But we have to evolve and change it, too, because we’re trying to attract new customers.”

The effort at NORMS—to modernize its concept while also honoring it—goes well beyond the plate.

Wyatt says he likes to talk about brand building as a three-legged stool where each part is interdependent, yet holds up the entity itself. And it starts with people. This past year, NORMS brought in Wyatt, but also VP of operations Leo Thomas, who was Wyatt’s first leadership hire. Thomas’ 40-year foodservice career included stops at Starbucks, Denny’s, and Taco Cabana owner and Jack in the Box franchisee Yadev Enterprises, where he oversaw 54 TGI Fridays locations and three Marco’s Pizzas. His tenure at Denny’s, as VP of ops, included managing 225 locations.

Additionally, NORMS added a third district manager. Wyatt says, before the ball could roll, the company had to get to the right number of above-store leadership in place to support a 23-unit chain with designs to scale.

Then began the process of better deciphering and tracking performance, as well as the customer. NORMS linked with feedback management platform Tattle to complement its Black Box Intelligence data. It added Steritech for quarterly third-party audits in addition to in-house ones. “These might sound like fundamentals, blocking and tackling things,” Wyatt says, “but these are the things that we’ve accomplished in the last seven months, which is a fairly significant pace.”

Wyatt adds he’s mindful of going too quickly. But the results speak for themselves. NORMS is having what he’d call one of its best years—even pre-COVID measures—in terms of financial performance. “And while it might not all be coming from sales, we’re getting super smart around managing the middle of the P&L,” Wyatt says. “Chef [David Cox] has done a nice job in purchasing and providing a menu that really complements what our food costs should be.”

P6 might just have been NORMS best period to date in terms of beating the budget. Regardless of specifics, though, strong underlying trends are giving the company confidence to think bigger.

Alongside opening another California store, NORMS is taking aim at Las Vegas. Wyatt predicts the brand will arrive in early summer 2024 or so. It’s going to be a “significant change,” he continues, and perhaps a signal of things to come. The unit will be 24/7, of course, but there will also be beer and wine and maybe liquor. Also, potential gaming at the counter, like video poker or slots. “We’re just really looking to put NORMS Restaurants on steroids out there, in a positive way,” he says, “because we believe that’s what will resonate with locals and tourists.”

“And I think there’s room for at least four or five more locations when this one does well as we know it’s going to do,” Wyatt adds.

Gambling at the counter feels like a chance to redraw the diner playbook. Generally, counter seats are relatively sparse. This would solve that and potentially lift traffic throughout the night. “It’ll truly provide a 24/7 experience in the café or in the dining room. It’s not going to be a casino; it’s going to be a diner,” Wyatt says. “But we want to give a nod to where we’re at.”

The store will take NORMS famed Googie architecture (dramatic angles, bright colors, and futuristic touches) and amplify it. New lighting. Even bolder palates.

But going back to the notion of “blocking and tackling,” Wyatt came to NORMS with a long track record in building blocks. In addition to the posts mentioned earlier, he clocked time at Corner Bakery Café, Boston Market, L. Brands, and Mobil Oil Corporation. He got right to bolstering NORMS’ training structure.

And one thing you’ll see now, too, is technology out front. Wyatt says he was asked recently whether, like some of his peers, he plans to invest in “invisible technology,” so the customer doesn’t see what’s going on. NORMS wants the opposite effect. “We’re just getting caught up,” Wyatt says. “I want people to see that we’ve got tableside payment available, if we’re going to go that route, or we’re going to have a waitlist leaderboard where today we’re doing it on paper.”

Wyatt came to NORMS with a deep background in operations.

It’s a mindset that circles back to the manager conference. Wyatt’s goal for NORMS’ is a melding of core equities and buzz. The same brand, but something worth checking in on to see what’s changed.

This all comes together in front of guests. NORMS, no matter what, Wyatt says, won’t walk away from its bigger, better, breakfast positioning. But it launched a B.F.D. option (budget-friendly deal) that runs $6.99 or $7.99. “People go, ‘whoa, what’s that,’” he says.

Ingrid Martinez, NORMS VP of marketing, says the value lever will always be there for the brand. Yet it’s started to work on the other end of the barbell to give loyal and new guests a reason to ladder up, options like new benedicts and other premium offerings that start at roughly $13.49. One example is the Cali-Cado Benny—two toasted English muffins, grilled tomato, fresh avocado, two poached eggs topped with hollandaise, bacon and green onion. Served with a choice of hash browns, black beans or fresh fruit. Or the El Benedicto—two sope shells, chorizo, mixed cheese, two poached eggs topped with salsa verde, hollandaise, green onion, and cilantro. The brand is testing wagyu burgers and enchiladas, and just keeps turning the innovation calendar, Wyatt says.

As the above menu names suggest, NORMS is digging further into its core base, which is the Hispanic customer. It added Horchata and Jamaica (free refills) as part of an Aguas Frescas beverage lineup. “But we still have lemonades and milkshakes and we’re promoting that to our loyalty app and doing some discounting,” Wyatt says. “And I do think, if you’re going to see something that’s really underutilized today that we’re going to blow up it’s our loyalty app.”

NORMS’ updated 24/7 Rewards program offers a point for every $1 spent (100 points equals $10 back). There’s instant payback where a guest gets a free SoCal breakfast sent within 24 hours of signing up. Exclusive offers are pulsed throughout the year and NORMS enabled order and pay from the app, as well as the ability to redeem coupon codes on orders and receive 25 bonus points when somebody refers a friend. For those not ready to take the rewards leap, the NORMS National Email club gives away a stack of three hotcakes for joining.

Either way, how NORMS leverages data is key, Wyatt says. It hasn’t marketed one-to-one in the past and had a tendency to surprise users with deals that didn’t reflect their spending habits. “Send them something that they actually get,” Wyatt says.

“It’s really about simplicity,” Martinez adds. “How do you execute things a lot easier for the guest, where it’s a lot easier for them to utilize or earn points? Nut now there is a word in the industry called gamification, which has become how often do you come instead of waiting the usual loyalty programs where, oh I have to spend $100 and I receive this. What are some of the things that you’re able to get way before that still gets you to come in more frequently?”

Martinez says NORMS conducted a brand assessment to get a sense of its customer base after COVID. Did it shift? Who was lost and gained? Furthermore, who is NORMS core diner in the wake? “And who do we want to go after?” she adds. “That study really gave us very good pillars for us to work on. One of the things we’re talking about is what is the NORMS voice. Because NORMS will continue to be NORMS, but how do we fit into a new territory? So if you think about it, In-N-Out is In-N-Out, even when they go to Texas, they are still a SoCal brand. How do we make sure people know the voice and the persona that NORMS is, and really focus on our pillars: Great food. Great value. Great service.”

NORMS connected with El Segundo-based Moontide on the agency side, a company with roots in the Hispanic community, to solidify its approach.

Speaking more broadly, however, Wyatt says coming to NORMS introduced him to a unicorn culture within the space. They just recognized an employee with 40 years on the job. There are GMs and system managers with three-plus decades of experience. At the conference, NORMS handed out special pens as tokens for tenure, which, Wyatt says, played volumes “in terms of how loud we are about how important it is for people to be stay with us.”

One of his tenets of leadership is to enable divisions to run their functions and grow through trial versus being micro-managed. “The people side continues to be the most important piece,” he says. “Without people you can’t get the customer, and without customers, you can’t drive the business results. That always has been, always will be, my priority.”

 

How Restaurant Kitchen Automation Can Optimize Labor and Improve Customer Service One of the biggest challenges since the global pandemic began has been the lack of available workforce, particularly in the restaurant and hospitality industry. According to the US Bureau of Labor Statistics for the Leisure and Hospitality space, businesses have had to make up for this by increasing hourly wages by nearly 24 percent, or up to $5/hour, since July of 2020. According to most experts, however, there’s still a considerable lack of available labor as restaurants are faced with constant turnover.

While some foodservice businesses are adjusting by adding more automated solutions like self-serve ordering stations or robotic servers, it creates an inherent problem— hospitality is about human interaction and making customers feel like they are cared for. Implementing these programs takes away from that experience. Some of the most recognizable brands in the industry, whether it’s quick service and Chick-fil-A, full service and Ruth’s Chris, or hospitality and the Four Seasons, are all about the personalized interaction that only the human experience can provide.

By implementing back-of-the-house solutions that take away tedious and menial tasks, it can allow the staff to focus on more customer-centric tasks. Automating cooking oil and hood and flue cleaning can be two of the best ways to help optimize labor by reallocating talent and providing a better customer experience. It can also boost employee morale and, in turn, increase employee retention, and maximize efficiency in your restaurant.

Labor Satisfaction – Employee Retention Now more than ever, business owners and managers are putting employee satisfaction at the forefront of their goals and values, and one of the keys to business success has always been about finding the right people and keeping them, but it’s even more amplified now in the current labor market.

As a matter of fact, the National Restaurant Association reported that 78 percent of restaurant operators do not have enough employees with the industry having more than 1 million unfilled jobs (as of 2022), with 75 percent of employees planning to leave their job in the next year.

An unhappy employee means that one foot is practically out the door but eliminating some of the dirtiest jobs through kitchen automation, such as cooking oil or hood and flue cleaning, can increase employee satisfaction and keep them in-house. The implementation of such solutions is two-fold: increase job satisfaction and boost employee morale by sending a message that you’re an owner or manager (or corporation) who cares about them.

In an industry that is bleeding for good talent, every piece of the puzzle, no matter how big or small it may seem, can make all the difference—and that difference can often mean thousands of dollars.

Labor Availability – Safer Workplaces Mean Employees can keep working There’s a common saying that the best ability is availability. Eliminating tough and dirty jobs like cooking oil management or hood and flue cleaning can, in most cases, also eliminate the most dangerous jobs which reduces the amount of workers’ compensation claims. This keeps your employees safer, can help lower insurance costs by reducing risk, and optimize efficiency by  keeping the employees you have working.

The National Safety Council estimates that more than 25,000 slip-and-fall accidents occur every day in the U.S., with most occurring due to oil or a type of liquid substance on the floor. On average, there are four workers’ compensation claims per restaurant every year with the average claim costing nearly $60,000 (adjusted for inflation from a 2016 study). That’s a total of $240K per year, and that’s not even accounting for the loss of the employee while he or she is out on medical leave.

Additional risks to cooking oil management also include oil burns, which can be one of the biggest hazards in the kitchen and one of the worst injuries that can happen in the foodservice industry. By automating cooking oil management, business owners can all but eliminate the risk of employees receiving burns from handling cooking oil.

In addition, nearly 6,000 restaurant fires are reported annually to the US Fire Administration with cooking equipment accounting for 61 percent of those fires. With the power of hood & flue cleaning automation, foodservice businesses can eliminate the need for additional hood cleaning labor while also keeping your employees, customers, and restaurant space safer from fires.

In an industry where margins can often be razor thin, every dollar matters, and automating back-of-the-house tasks can add up to a lot of dollars both seen and unseen.

The Power of Kitchen Automation

Those who have gone to a recent National Restaurant Association show in Chicago will quickly come to realize that the industry trends are heading towards automation if they haven’t already. While automation can optimize efficiency with shortages in the labor market, it can also mean the loss of human interaction.

With back-of-the-house solutions, business owners and managers can allocate staff to customer-centric tasks and elevate service levels without it feeling like other responsibilities are falling by the wayside. Always remember the most important part of your business when looking at solutions for your business—your customers Source: FSR.

 

 

Diving deep into restaurants’ estimated sales per unit

Every year, Nation’s Restaurant News and Datassential partner to present The Top 500, the definitive sales ranking of restaurants in America.

We also look at unit and estimated sales per unit (ESPU) data in this report.Three of the restaurants with the fastest-growing ESPUs in 2022 were also among the 10 biggest brands by this metric, but many chains grew without hitting the very top rankings. The highest ESPU among the bunch is $12.1 million, and the lowest is $1.2 million — showing that a chain of truly any size or type can achieve huge growth on the unit level.

Meanwhile, in 2022, the ten restaurant chains with the highest ESPU in the U.S. also all saw year-over-year growth — two grew ESPU by more than 51%, but each grew by at least 1.9% and had ESPU of at least $8.1 million. —  Source:  NRN.

 

Farmer Boys

Why this U.K. McDonald’s franchisee came to the U.S. to open a Farmer Boys with her daughter

In the U.K., McDonald’s franchisees are almost guaranteed success, but Leeza Brazier sold her stores and is starting anew with the California-based fast-casual brand If founders, chefs and other creatives are the beating heart of the restaurant industry, then franchisees are the veins delivering their ideas to all corners of the globe. Franchising is critical to the success of the industry, allowing brands to quickly scale their big ideas using other people’s capital. And whether it’s a mom-and-pop restaurant owner with one or two franchised restaurants or a seasoned veteran whose influence in the industry is well-known, franchisees — with all their individual attributes, styles and personalities — make a huge impact on the success of a business.

In this week’s installment of Franchisee Spotlight, we spoke with Leeza Brazier, a former McDonald’s franchisee in the U.K. who sold her restaurants, came to the U.S. and bought a Farmer Boys franchise in Gardena, Calif. with her daughter Leila. We spoke about her transition from the U.K. to the U.S., why she sold off her successful McDonald’s stores, and what it’s like operating a restaurant with her daughter.

How she got into franchising

I first started working in Belgium where my husband’s brother-in-law was. We went over to start up a fish business that was supposed to be for my brother-in-law and his wife to run…but after a few weeks they didn’t like it…so we bought the business. Our neighbors were so shocked. They thought we weren’t gonna make it, but we were there for 14 years and we started selling poultry as well as fish. Then our daughter was born in 1994….Then as the Euro started to come in, the markets changed and we experienced a 30% loss overnight…. Then we went to America on vacation and was introduced to Farmer Boys, even before I got involved with McDonald’s….Then in 2000, we decided to apply [to be franchisees for] McDonald’s and within two days, they got on the phone to me and said ‘we need to see you in London.’

Career with McDonald’s

I ended up [training at] one of the busiest McDonald’s stores in the UK. They were already using digital communications in the store so it was a little bit of a shock. We were making a million pounds a week…. I did my training and I enjoyed it and I just got sucked in, although I thought, ‘What’s the point of doing all this?’ So I worked really hard that week…Then at the last exit interview before the end of training, I said ‘You know what’s really interesting? You don’t even have a knife in the kitchen.’ Back in the fish shop, we had a wall of knives. The majority of the food was ready to go and that just blew my mind…. We took over a store in June when my daughter was around four or five. Then, later on, when we got into Farmer Boys in 2018, she was quite a bit older at 24. I ended up selling my McDonald’s restaurants and using that cash to start our business. It actually took us two years to get our Visas.

Mother and daughter franchisee team

We’re extremely close and always have been. At work, I don’t want her calling me mom because we’re colleagues and I don’t call her my daughter either. Because of employees, I’m called Louisa, I say that you have to be professional…. Driving to work in the car, we will have a discussion about something and if I’m not happy about it, I’ll call into the office and say, ‘We can’t let that happen’  She’s had quite a long five-year learning curve on how to run the business. Although she was in McDonald’s with me she only saw the outside of it all and she wasn’t in the art of running financial side and the accounting side of things. She loves all of this.

U.K. McDonald’s vs. U.S. Farmer Boys

The change from the UK system to the American system was quite an upheaval: changing from Centigrade to Fahrenheit… And the whole HR system is similar but different. The accounting side of things is what I’m used to, obviously computer work, and similar money in the restaurant. It’s no longer everything out of the bag from the freezer: it’s prepping, taking stock, making sure you’re not over-ordering or under-ordering….. Knowing what we were getting into for quite a number of years helped us adapt. But you know, when I first started my training, it was a bit of a shock. Having someone prep [all of the vegetables] is just so different to what they used to do with McDonald’s because everything was ‘open the bag and put it on the table.’

With McDonald’s, we were number one. We had very few competitors. Success was guaranteed….I will never manage to do the same capacity again. That’s what the difference is to be over here where there’s a lot of competition. Your customer service is the number one thing you have to take care of here. No one’s gonna forgive you here like they would in the UK. That’s one of the biggest things that I found.

Farmer Boys goals started, we had this dream of seven Farmer Boys restaurants. McDonald’s is a lease you own on license for 10 years. You don’t actually own anything apart from that lease and secondhand equipment. Here though, you have the option to buy everything. So for me, it was a good way of investing in the brands. For Leila to take over my business in England, it wasn’t a good investment. However, because she’s joined me here, she’s part of the business. She’s a franchisee in her own right. We have a second one coming that we signed up for in May, and that will be a new build….We’re trying to bring Farmer Boys into the 21st century with technology and a drive-thru. We don’t have an opening date yet, but that one’s been signed up. If it wasn’t for COVID, we’d probably be in store three by now. I think if I can open three, four, or five in the Gardena area, that’d be great, but we’ll see how it goes. It all comes down to financing. – Source: NRN.

 

Krispy Kreme is relying more and more on retail partnerships to spread omnichannel access.

Krispy Kreme’s revenue grew by 9% for the second quarter, thanks to 462 new points of access, with help from burgeoning restaurant and retail relationships like McDonald’s, Amazon, and Costco . . . .

Krispy Kreme grows with a boost from partnerships like McDonald’s and now Amazon Fresh Krispy Kreme’s revenue grew by 9% for the second quarter, thanks to 462 new points of access, with help from burgeoning restaurant and retail relationships like McDonald’s, Amazon, and Costco.

Under Krispy Kreme’s omnichannel strategy, the doughnut brand is growing and relying on strong retail partnerships to increase global points of access, from grocery stores to convenience stores– the most famous of which is the regional test with McDonald’s in Kentucky. For the second quarter that ended July 2, the continued push for more “DFD” (Delivered Fresh Daily) doors (462 added last quarter) led to 9% revenue growth and positive net income, compared to a reported loss the same quarter in 2022.

Here are some key highlights from the Krispy Kreme second-quarter earnings call:

Krispy Kreme thinks the McDonald’s partnership could be expanded Right now, Krispy Kreme doughnuts are available at 160 McDonald’s stores and drive-thrus in Kentucky after the partnership was initially announced last fall. Results of the beta test have been positive, and according to Krispy Kreme CEO Mike Tattersfield, have been incremental to DFD sales in the region.

“We love that the test has allowed us to really get deep knowledge of how the QSR channel is going to actually work,” Tattersfield said during Thursday’s earnings call. “This unlocks the opportunity from that need state that the customer is looking for…. It really unlocks the convenience of the drive-thru. We can do that. So, what we really started to look at is ‘what’s the opportunity in that channel within our existing footprint As for if the partnership with McDonald’s could expand nationally, Tattersfield said it would “be up to them” and that while Krispy Kreme is enjoying the partnership, the McDonald’s sales act as regular DFD doors with a limited selection of doughnuts, though with no cannibalization effect.

“We’ve taken a lot of the learnings from McDonald’s and realized that by making changes to operating hours, donut processing and packing layouts, and delivery windows, we can get even more from our existing hubs than we even thought was possible before,” Krispy Kreme CFO Josh Charlesworth said.

Amazon Fresh is the latest new retail partner

 

During the second quarter earnings call, Krispy Kreme discussed a newly-announced partnership with Amazon to add Krispy Kreme doughnuts to Amazon Fresh stores. This small line pilot is already in test in two Amazon Fresh locations in Chicago.

Krispy Kreme keeps increasing the number of high-profile retail partners, which also includes Walmart, and will be ramping up partnerships with convenience stores and “club” stores with a partnership with Costco in Canada, to increase the number of points of access for the brand even more.

“Our continued momentum driven by the expansion of our DFD strategy gives us confidence in our plan to expand into new channels like QSR, drug, and club while building out our existing customer base,” Tattersfield said Thursday.

Increasing prices was an important growth driver While many foodservice companies grapple with balancing the need to increase prices with the financial limits of their customers, Krispy Kreme acknowledged that increasing prices played a significant role in quarterly performance, which helped bolster sales even while Krispy Kreme-owned Insomnia Cookies had a more challenging quarter.

“We’re always looking at pricing as a strategic piece because we want to be an affordable indulgent treat in all the markets that we serve,” Tattersfield reiterated. “The premiumization of the brand is really sticking… as customers continue to migrate towards a better product and premium partnerships like with M&M’s.”

Krispy Kreme is getting a loyalty makeover Krispy Kreme is looking to give its loyalty program a makeover this year, Josh Charlesworth said, to make it more intuitive and easier to track for customers. Krispy Kreme U.S. will also be taking notes from its loyalty program in the U.K. where customers can add Krispy Kreme purchases to their grocery store’s loyalty program.

Traditional doughnut shops will not be phased out While Krispy Kreme is closing or converting many of its traditional theater and hot light doughnut shops in favor of this omnichannel strategy, Tattersfield confirmed that these traditional bakeries won’t be going away anytime soon.

“Some of these stores are just not in great locations to support DFD rollout but still play a role in the local communities, particularly in the Southeast,” Tattersfield said. “So the legacy of the hubs without spokes will likely be with us for a long time to come because they are profitable.” –. Source NRN

 

Flynn has signed a master franchise agreement to develop 200 Wendy’s restaurants in Australia by 2034 . . . . .

Flynn Restaurant Group adds Wendy’s to its fledging international portfolio

During Wendy’s Q2 earnings call Wednesday, Todd Penegor noted the company’s international success as evidenced by a 7.2% increase in the division’s same-store sales. These numbers, he said, are driving interest in development “from both new and existing franchisees and bolsters our confidence and international growth plans.”

One of those franchisees may sound more familiar than others. The company signed a new master franchise agreement with Flynn Restaurant Group – the largest franchise operator in the world with more than 2,600 restaurants and about $4.5 billion in sales – to develop 200 restaurants in the Australian market by 2034. Flynn will manage and operate the brand’s restaurants across the market and will also own development rights.

Through its Wendy’s franchise organization, Wend American, Flynn already operates nearly 200 Wendy’s restaurants domestically, so the expansion into global territory could be construed as a vote of confidence. It also fits tidily into Flynn’s growing international portfolio, as the company recently acquired nearly 260 Pizza Hut restaurants in Australia, adding to its existing portfolio of 945 Pizza Huts in the U.S.

At the time of the Pizza Hut Australia acquisition, Flynn said the company is entering its next chapter, in which it layers “on international expansion,” adding that “the growth potential is essentially unlimited.”

“We are excited to expand our international business, and developing Wendy’s in Australia allows us not only to grow abroad with a valued U.S. partner but also to leverage the skills and resources of our team on the ground in Australia,” Flynn founder/CEO Greg Flynn said in a statement. “We look forward to bringing one of America’s most iconic brands to the people of Oz.”

Wendy’s held a popup event in Sydney, Australia, in 2021, which garnered a positive response and led the company to explore expansion opportunities in the market, the company said.

“Australia is a strategic market for long-term growth for Wendy’s. Flynn Restaurant Group has incredible experience in the restaurant space, and we are thrilled to expand our relationship with them. They have a strong leadership team, great culture, vast industry knowledge, and success with our brand in the U.S., and we are confident that Flynn Restaurant Group is the right partner to unlock growth for Wendy’s in Australia,” Abigail Pringle, Wendy’s president, international and chief development officer, said in a statement.

Wendy’s development ambitions extend beyond Australia, however. In Q2, Wendy’s experienced net unit growth in Canada, the United Kingdom, India, and the Philippines, and opened 41 new restaurants in Q2, totaling 80 new openings year-to-date. The company expects global net unit growth of approximately 2% in 2023, a number that would likely be higher if it weren’t for persistent permitting delays in the U.S. market. Penegor said these delays have “intensified and are pressuring our new restaurant opening timelines.”

“All U.S. restaurants facing permitting delays in 2023 have fully secured sites, so to the extent that restaurants cannot open in 2023 due to permitting, it will be a timing shift into 2024,” he said. “Our 2023 outlook continues to include a significant step-up in traditional net unit growth as we have transitioned our development focus into higher AUV formats.”

That said, Wendy’s long-term global net unit targets are expected to be a steady 2-to-3% in 2024 and then an uptick to 3-to-4% in 2024. Approximately 60% of Wendy’s development pipeline through 2025 is committed under a development agreement.

“We know there’s a substantial runway for Wendy’s brand and continue delivering meaningful global growth …” Penegor said. “So, we’re feeling good that those things are lining us up. The economics make sense. We’ve got a strong suite of tools. We’re going to continue to utilize all of those while at the same time, continuing to enhance and improve our restaurant economic model so the returns are there.   – -: Source: NRN.

 

QDOBA is Planning a major expansion of restaurants.

The Mexican restaurant brand is planning to open 40 new restaurants this year, 60 in 2024, and 80 plus annually beginning in 2025, according to the company.

“QDOBA is an exceptionally well positioned brand in one of the most attractive restaurant categories,” said John Cywinski, chief executive officer of Modern Restaurant Concepts, QDOBA’s parent company. “We possess long-standing momentum, strong unit economics, a compelling operating model, an extraordinarily passionate guest following, and significant untapped geographic potential.”

QDOBA recently sold 77 restaurants to its franchise partner, North Fork Fresh Mex. North Fork Fresh Mex also plans to build 73 new restaurants over the next seven years.  . . . .  Food Business News

 

More than 10% of all dining dollars are spent from 8 a.m. to 1 p.m. on Saturdays, which has replaced Friday lunch as the industry’s peak period, according to new data from Square z.z.

 

Saturday Brunch  in Now Busiest Restaurants’ Daypart

Like many of us 9-to-5-ers, the restaurant industry lives for the weekend—and Saturday mornings in particular.

According to a new report from Square, Saturday brunch is now restaurants’ busiest daypart by sales, replacing Friday lunch as the industry’s most lucrative period. More than 10% of all dining dollars were spent between 8 a.m. and 1 p.m. on Saturdays in the second quarter, compared to 8.5% in 2019, Square found in its analysis of data from about 800,000 restaurants.

It’s part of a bigger shift in restaurant traffic from weekdays to weekends coming out of the pandemic. In 2019, restaurants were busiest during lunch on weekdays and peaked around midday Friday. But with more people working remotely, combined with pent-up demand for dining out, weekends are now the prime time to visit restaurants, according to Square.

 

“With many people continuing to work from home, they’re not going to be spending their money on a soup or salad from the cafe around the corner from the office,” said Ara Kharazian, research and data lead at Square, in a statement. “At the same time, people are still excited about returning to indoor dining, and they’re choosing to spend their dining dollars on weekend mornings instead.”

Brunch is in a unique position to benefit from this shift, being as much of an activity as it is a meal. It caters to large groups looking to celebrate and socialize, often doubling as the capital-E Experience many consumers are after. Booze is usually involved, adding to the fun atmosphere and boosting sales. And it would have been nearly impossible to replicate at home amid pandemic lockdowns, giving it an extra tailwind when restrictions were lifted.

Restaurants themselves are adding to that momentum by rehashing their brunch menus and even offering brunch as an option for the first time, as fast casual Curry Up Now and full-service Bonefish Grill have done.

And its growth has been reflected in the success of daytime-dining chains like First Watch and Snooze, an A.M. Eatery, which serve breakfast and lunch only. Snooze’s total sales rose 38% last year, while First Watch’s increased 22%, according to Technomic data. Eggs Up Grill, another competitor in that segment, grew sales by 31.6% in 2022.

On the flip side of that coin is the decline of weekday lunch. While Square’s data shows that it’s still the busiest daypart during the week, sales are significantly lower than they were in 2019, when more people worked in downtown office buildings and depended on nearby restaurants for lunch.

Today, many of those people have not returned to on-site work—at least not every day. According to data from Kastle Systems, the average office occupancy across 10 metro areas at the end of July was about 50%.  – Source: Restaurant Business.