Hobson has served as the Starbucks board’s vice chair since 2018 and will be the only Black woman chairing a Fortune 500 company starting in March . . . .

Starbucks Appoints Mellody Hobson as Non-Executive Chair of the Board of Directors

Mellody Hobson — the co-chief executive officer of Ariel Investments LLC who has served as the Starbucks vice-chair of the executive board since 2018 — has been appointed as the coffee company’s next non-executive chair of the board of directors starting in March 2021, Starbucks announced Wednesday. When she assumes the board chair position, she will be the only Black woman chairing a Fortune 500 company.  Hobson first joined the board as an independent director in 2005 and will succeed Myron (Mike) E. Ullman, III., who is retiring in March. She will assume the board chair position in conjunction with the Starbucks annual shareholders’ meeting in March.  “Mellody has been a trusted advisor to me and the company for more than 20 years,” Howard Schultz, former Starbucks CEO and chairman emeritus said in a statement. “She is a fearless leader defined by her grace and wisdom. She has long embraced the purpose of Starbucks and along with the leadership team, will continue to reimagine Starbucks future through the foundation of its past. My heart is full and thankful that Starbucks will have Mellody’s leadership as chair.” Hobson currently serves as chair of Chicago nonprofit for teens, After School Matters, and she is vice-chair of World Business Chicago, co-chair of the Lucas Museum of Narrative Art, and a board member of the George Lucas Education Foundation and the Los Angeles County Museum of Art. She is also a member of the Rockefeller Foundation Board of Trustees and serves on the executive committee of the Investment Company Institute. In 2015, Time Magazine named her one of the “100 Most Influential People” in the world. “Over nearly two decades, I have seen the company continue to elevate and transform its business – adapting to various market environments and evolving consumer trends,” Hobson said in a statement. “I look forward to working with the board and talented leadership team on accelerating our strategy, supporting our valued partners, and continuing to create significant value for all of our stakeholders.” – Source: NRN.

The Cheesecake Factory agreed to pay the fine without admitting or denying guilt . . . .

Cheesecake Factory Ordered to Pay $125K for Misleading Investors 

The SEC and The Cheesecake Factory reached a $125,000 settlement after the brand was accused of misleading investors about the condition of the company early into the COVID pandemic. In filings dated March 23 and April 3, The Cheesecake Factory said units were “operating sustainably,” but the SEC described the messaging as “materially false and misleading.” The brand omitted that it was losing roughly $6 million in cash per week and that it only had 16 weeks of cash remaining. While The Cheesecake Factory didn’t publicize the information, it did disclose the numbers to investors and lenders during its pursuit of additional liquidity. In April, the chain announced a $200 million investment deal with Roark Capital, a private equity firm with a portfolio that includes Buffalo Wild Wings, Sonic Drive-In, Arby’s, Jimmy John’s, Cinnabon, Moe’s Southwestern Grill, Auntie Anne’s, Hardee’s, and Carl’s Jr. The Cheesecake Factory sold 200,000 shares of convertible preferred stock to Roark Capital affiliate RC Cake Holdings. Additionally, in the March 23 filing, The Cheesecake Factory said it was undergoing actions to create financial flexibility, but did not reveal that it had already told landlords that it would not pay rent in April. The brand later noted the move in a March 27 filing. “During the pandemic, many public companies have discharged their disclosure obligations in a commendable manner, working proactively to keep investors informed of the current and anticipated material impacts of COVID-19 on their operations and financial condition,” said SEC Chairman Jay Clayton in a statement. “As our local and national response to the pandemic evolves, it is important that issuers continue their proactive, principles-based approach to disclosure, tailoring these disclosures to the firm and industry-specific effects of the pandemic on their business and operations. It is also important that issuers who make materially false or misleading statements regarding the pandemic’s impact on their business and operations be held accountable.” The Cheesecake Factory said in a filing Friday that it “fully cooperated with the SEC” and that—without admitting to denying guilt—it agreed to the $125,000 penalty and a cease and desist from further violations. “When public companies describe for investors the impact of COVID-19 on their business, they must speak accurately,” said Stephanie Avakian, director of the Division of Enforcement, in a statement. “The Enforcement Division, including the Coronavirus Steering Committee, will continue to scrutinize COVID-related disclosures to ensure that investors receive accurate, timely information, while also giving appropriate credit for prompt and substantial cooperation in investigations.” The Cheesecake Factory said that in October, units with indoor dining captured about 90 percent of prior year annualized sales volumes, with off-premises accounting for 40 percent. Including stores operating with patios and an off-premises model, sales were down 7 percent. – FSR.

The Halifax Group invests a majority stake in the largest Papa John’s franchisee, PJU Holdings . . . .

The Private-Equity Firm Rejoins the Company after Having Previously Invested from 2007 to 2013

Private-equity firm Halifax Group announced that they will be investing once again in Papa John’s largest franchisee, PJU Holdings, Inc. (Papa John’s United), which has 194 locations across 10 states. Halifax Group had previously invested in the Birmingham, Ala.-based franchisee from 2007 to 2013 and is now reinvesting a majority stake in the company for an undisclosed amount. Papa John’s United has been a franchisee for 29 years and was previously a portfolio company of TPG Growth. “We are appreciative for the support that TPG Growth has provided us over the past years and are excited to partner again with Halifax to execute on our strategy for joint success,” Doug Stephens, CEO of Papa John’s United, said in a statement. “Halifax shares our passion for operational excellence and has demonstrated that it can be a valuable strategic partner that will allow us to continue to build our business.” The Halifax Group, meanwhile, specializes in equity recapitalizations, corporate carve-outs and management buyouts. “We are honored to be chosen again by the PJ United management team as their partner, and to rejoin the Papa John’s family,” Scott Plumridge, managing partner at Halifax, said in a statement. “We have a tremendous amount of respect for the business that Doug and his team have built over the last three decades and continue to believe that Papa John’s is the premier national brand in delivery pizza.” Source: NRN.

COVID Emergency Relief Framework lacks support from party leaders

Republican and Democratic Senators Propose Compromise Stimulus Package

A bipartisan group of senators has put forth a compromise economic stimulus proposal totaling $908 billion, including $288 billion for small businesses such as restaurants in the form of Paycheck Protection Program loans among other funding, but it doesn’t have support from Congressional leaders, the White House, the left-wing of the Democratic party or the right-wing of the Republican party, according to published reports. The COVID Emergency Relief Framework, backed by Republican senators including Bill Cassidy of Louisiana, Mitt Romney of Utah and Susan Collins of Maine, and Democratic senators including Joe Manchin of West Virginia and Mark Warner of Virginia, also includes $160 billion for state and local governments, $180 billion in unemployment insurance benefits in the form of an additional $300 per week — half of what was provided shortly after the outset of the pandemic, and which Democrats proposed should be renewed — as well as smaller sums for education, transportation, rental assistance, nutrition & agriculture, vaccine development & distribution and other sectors.  The bill falls far short of the $2.2 trillion HEROES Act that the House of Representatives, controlled by Democrats, passed in early October, which itself was a trimmed-down version of the $3.4 trillion act passed in May. Both bills have been ignored by the Republican-controlled Senate, as majority leader Mitch McConnell has not allowed them to be introduced to the Senate floor. According to The Washington Post, the new bill also lacks support from Congressional leaders including McConnell and House Speaker Nancy Pelosi, as well as liberals such as Congresswoman Rashida Tlaib, a Democrat from Michigan and member of the Congressional Progressive Caucus. Senators such as Republicans Mike Lee of Utah and Rand Paul of Kentucky have resisted further spending, the Post said. It also said that the details of the bill are subject to change. The liberals oppose the bill’s “liability shield,” which protects companies and schools from legal blame if workers contract COVID-19 on the job. The National Restaurant Association said the bill was a good start, but the Independent Restaurant Coalition was less generous in its appraisal. “Today’s compromise plan offers an excellent starting point,” NRA executive vice president for public affairs Sean Kennedy said in a statement.  “The $908 billion stimulus proposal includes some much-needed short-term stopgaps that will help restaurants continue to serve their communities during the holiday season. The bill provides several of the tools that we proposed in our Blueprint for Restaurant Revival  [sent to Congress in July], including a second round of the Paycheck Protection Program (PPP) and temporary liability protections for operators.  “The restaurant industry has been the hardest hit by the pandemic and recent limitations in dozens of states are pushing operators beyond their limits to survive. We hope that after the holiday, Congress will be ready to discuss industry-specific solutions – including the Senate version of the RESTAURANTS Act – that will help the nation’s second-largest private-sector employer contribute to its economic revival in 2021.” The Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act would provide $120 billion in funding for grants to restaurants in need. The IRC, which has been a vocal supporter of the RESTAURANTS Act, criticized the compromise bill for not providing direct relief for restaurants. “The … proposal will not solve anything for the hundreds of thousands of neighborhood restaurants facing permanent closure this winter,” said IRC co-founder Kevin Boehm, who is also co-founder of Boka Restaurant Group in Chicago. “The first round of Paycheck Protection Program loans did not work as advertised for restaurants and bars. … Today, the situation for restaurants is worse than it was when PPP was first passed in the spring — the virus is surging in new communities, limits on indoor dining are back, and colder temperatures are preventing outdoor dining. A few weeks of payroll is not the best solution to ensure our industry can fully reopen and reemploy millions of Americans. This proposal is a Band-aid on a bullet wound until restaurants and bars can generate more revenue. “Any member of Congress serious about helping neighborhood restaurants and bars should join the growing group of bipartisan lawmakers who support the RESTAURANTS Act, a commonsense relief plan written by neighborhood restaurants that would guarantee the industry can survive the reduced revenue this winter.” – Source: Restaurant Hospitality.

DoorDash sold shares at $102 apiece in its IPO, above its range of $90 to $95, according to people familiar with the matter . . . .

DoorDash Sells Shares at $102 in IPO, Pricing above Range

DoorDash, the food delivery provider that’s seen a surge in demand during the coronavirus pandemic, sold shares in its IPO at $102 apiece, pricing above its range, according to people familiar with the matter. The offering on Tuesday values the company at $32.4 billion, based on common stock outstanding and $38.7 billion on a fully-diluted basis. The company previously said it expected to sell shares at between $90 and $95. The sources asked not to be named because the pricing is still confidential. DoorDash is the first IPO in a late-year consumer technology wave that includes the expected debut of Airbnb later this week, followed by e-retailer Wish next week and fin-tech company Affirm and kids’ game maker Roblox this month. The companies are taking advantage of a post-election stock rally and a clear indication of investor demand for high-growth tech, which has led the market this year. While a wide swath of software and internet companies have gotten swept up in the Covid-19 rally, few have experienced the kind of growth seen by DoorDash. Revenue in the third quarter surged 268% from a year earlier to $879 million, following growth in the second quarter of 214%. Through the first nine months of 2020, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion a year earlier. DoorDash, based in San Francisco, makes money by charging a commission to participating restaurants that can reach 30% of an order as well as a fee of a few dollars per order from consumers. DoorDash said in its prospectus that 390,000 merchants are now on the platform. That includes everything from fast-food chains like Chick-Fil-A, Chipotle, and McDonald’s to upscale restaurants that were forced to close their doors earlier this year and switch to takeout and delivery. The company, which ranked 12th on CNBC’Disruptor 50 list for 2020, has been able to cut its losses this year, but still reported a net loss for the first three-quarters of $149 million, down from $534 million in the same period of 2019. DoorDash at least makes money on every order now, recording a so-called contribution margin of 23% through September, compared with a negative margin of 32% a year earlier. DoorDash controls about 50% of the U.S. food delivery market, well ahead of rivals Uber Eats and GrubHub. The biggest overhang for the company may be uncertainty about what the business looks like in a post-Covid world, especially with a widespread vaccine rollout expected by mid-2021. Should consumers return to eating out instead of relying on delivery, DoorDash could see business deteriorate. Meanwhile, restaurants, which tend to operate on very low margins, are constantly seeking ways to keep their costs down, and there’s technology on the market to help them accomplish that without relying on third-party apps. As DoorDash warns in its prospectus, “The circumstances that have accelerated the growth of our business stemming from the effects of the COVID-19 pandemic may not continue in the future, and we expect the growth rates in revenue, Total Orders, and Marketplace GOV to decline in future periods.” DoorDash CEO Tony Xu co-founded the company in 2013, in Palo Alto, California, where the service reached its first customers. Xu currently owns just under 5% of the company’s outstanding shares. Soft$ Bank, which led a $535 million investment in 2018, is the largest shareholder with about 20% stake, followed by Sequoia, which owns 16%. – Source: CNBC.

Grubhub unveiled new tools that allow customers to order food straight from restaurants without requiring the eateries to pay commission fees . . . .

Grubhub Offers Restaurants new Ways to Receive Orders—Without Paying Commission Fees

GrubHub is giving restaurants new tools for commission-free orders as more states and cities force eateries to turn once again to delivery and takeout for survival. In the wake of the coronavirus pandemic, Grubhub has seen its orders soar, growing revenue 36% during the first three quarters of the year. In the same time, it has processed $6.31 billion worth of food orders. Third-party delivery companies make the bulk of their revenue through commission fees, charging restaurants anywhere from 15% to 30% on every order they fulfill to pay for the technology and connecting them with hungry customers. In recent years, bigger restaurant chains have used growing competition between food-delivery companies to negotiate smaller commission fees, but smaller establishments don’t have the same leverage. In the past, they have had to choose between partnering with Grubhub and paying commission fees or not being able to use its delivery service. The company’s latest move provides them with another option. With Grubhub’s new direct order links, restaurants won’t have to pay commission fees as long as customers buy their food via the link, rather than on the delivery company’s app. The links are meant for restaurants to use in their own marketing, such as in emails or on social media. A customizable “order now” button for direct ordering can be added to an eatery’s website, while a unique QR code can be included in mailers or signs on their doors. “Even though we may fulfill the order and be the back-end technology because we’re not providing the marketing service there, we’re not taking a commission,” said Chief Revenue Officer Seth Priebatsch. Eateries will still be on the hook for delivery and payment processing fees, but those are typically smaller than a commission fee. The health crisis has forced restaurants to rely more heavily on the likes of Grubhub and DoorDash, which is expected to hold its initial public offering. In an effort to keep more independent eateries afloat, San Francisco, New York, and other cities have moved to cap commission fees during the crisis. Restaurants have also brought new awareness to the commission fees through posts on social media and even telling customers to order directly through them rather than on delivery apps.

The New York City landmark Katz’s Delicatessen is among the restaurants that have chosen to move away from third-party delivery services and deliver its own food. Owner Jake Dell said in an interview that it’s hard to argue against Grubhub’s new zero-commission tools but expressed skepticism that the company would actually follow through on its promises. “For the majority of restaurants that don’t have the ability to build their own websites, then it’s good if it’s real and if it lasts,” he said. Priebatsch said Grubhub is trying to take a longer-term perspective on restaurants, prioritizing the health of the industry over the next three to five years. The National Restaurant Association estimates that 110,000 establishments have shut down, either permanently or long term, due to the pandemic. Without restaurants, Grubhub won’t have any food to sell to customers. “This is one of the ways where we know we can help them monetize better traffic that they’re already getting, that’s already visiting their website or on their email list, and we want to be their partner in turning that traffic into orders,” Priebatsch said. Shares of Grubhub, which has a market value of $6.34 billion, have risen 40% this year, as of Monday’s close. Netherlands-based Just Eat Takeaway.com agreed to buy Grubhub in June for $7.3 billion. The deal is expected to close next year. – Source: CNBC.

Halifax Group invests in Papa John’s biggest franchisee . . . .

The Private Equity Firm Partnered with Management to Invest in the 194-unit PJ United

The Halifax Group, a Washington, D.C.-based private equity group, has invested along with company management in PJ United, the largest operator of Papa John’s restaurants. Terms of the deal were not disclosed. Halifax is a previous investor in PJ, which operates 194 units in 10 states. The firm was an investor between 2007 and 2013 before it was sold to TPG Growth. “Halifax shares our passion for operational excellence and has demonstrated that it can be a valuable strategic partner that will allow us to continue to build our business,” PJ United CEO Doug Stephens said in a statement. Halifax gets a piece of the largest franchisee in a system that has been buoyed by strong sales growth, particularly since the quarantine led to skyrocketing demand for delivered food. Same-store sales at the chain soared 24% in the third quarter ended Sept. 27. PJ United has been an operator in the business for 29 years. The company primarily operates restaurants in the South, including Alabama, Florida, Georgia, Louisiana, Mississippi, Ohio, Tennessee, Texas, Utah and Virginia. “We have a tremendous amount of respect for the business that Doug and his team have built over the last three decades and continue to believe that Papa John’s is the premier national brand in delivery pizza,” Halifax Managing Partner Scott Plumridge said in a statement. – Source: Restaurant Business.

The city of Atlanta will allow restaurants to serve food and drinks in dining areas on the streets outside of their establishments . . . .

Atlanta to Allow Restaurants to offer on-Street Dining

Restaurants must apply for a permit before operating on the city’s public right-of-way, according to regulations passed Monday by the Atlanta City Council. Atlanta already allows restaurants to serve food and drinks on sidewalks, with a permit. Since the coronavirus pandemic began, large cities around the country have given restaurants the ability to expand and set up tables on the sidewalk or in parking spaces outside their businesses, to allow for social distancing and open-air dining. Local restaurants must submit an application to the Atlanta Department of Transportation for a temporary permit through the end of 2021, along with a site plan for the area where the on-street dining would be offered. Struggling restaurant owners turn to cities for help in surviving the pandemic. For now, the city will not charge a fee for the permit to encourage restaurants to take part, though that could change in the future. Across metro Atlanta, local governments have loosened restrictions to help restaurants stay afloat and keep diners safe during the pandemic, including allowing dining in parking lots or on sidewalks. Atlanta’s ordinance states on-street dining would promote public health, “add character to the streetscape environment, and encourage pedestrian activity.” – Source: The Atlanta Journal-Constitution.

The founder of casual-dining brands Tommy’s Tavern + Tap and Tio Taco + Tequila Bar in New York and New Jersey shares how their values have helped them survive . . . .

Thomas Bonfiglio, CEO of Triple T Hospitality Group, on Redefining the Art of ‘Mom & Pop’ Hospitality During the COVID-19 Pandemic

What a time we are in right now. If someone would’ve told me back in March that the COVID-19 pandemic would still be going on nine months later, I would’ve thought they were crazy. This has been one of the most challenging and detrimental times for the hospitality industry and the world as we once knew it. From takeout only to indoor dining, occupancy restrictions, and rigid curfews, our world and community of restaurants, nightclubs, cocktail bars, and watering holes has been turned into a truly new normal that’s beyond anything we could have ever imagined. As a restaurant group owner and someone who has maintained a successful operation amid this pandemic, I can’t stress enough the importance of working together as a community, learning to pivot on a daily basis, and becoming extremely flexible and adaptable during setbacks that are completely out of our control. One cannot be in the restaurant and bar business without thick skin and a strategic business plan in place, but when emergencies happen, like a global pandemic, we must learn to temporarily drop all of the traditional systems we’ve put in place and be ready to act as entrepreneurial as possible to deal with situations as they come. It is absolutely critical to be prepared for the worst, even during a calendar year that started off extremely well and appeared to be groundbreaking for our organization. There may be a lot that is out of our control right now (limited seating, curfews, and weather restrictions related to outdoor dining), but what we, as restauranteurs, must control right now is our capital and team preservation: the secret sauce for success amid setback. We must get creative and adapt to a new set of rules to keep things moving forward while preserving our customer base, our incredible employees, and the revenue we are bringing in from every part of the business. We find silver linings every day in the restaurant industry; there are always good days and bad days and I know that if we learn to adapt and pivot, under pressure, there will be many wins around the globe. COVID-19 has been eye-opening for all of us in the business world and I knew that my group (Triple T Hospitality Group) and the restaurants within our portfolio, Tommy’s Tavern + Tap and Tio Taco + Tequila Bar, were too important to give up on, not only to my family and the tremendous businesses we have built from the ground up but to the local communities that depend on us for quality fare, good value and the staff that has created a warm and family-friendly service culture. Without our team, we’d be tables and chairs in an empty room. We’d lack growth and development. We’d lack extraordinary talent that helps with the revenue, at the end of the day. The key to maintaining your employees during times like these is focusing on the business financials and capital preservation. If it weren’t for my team and I working to restructure our budget, immediately, once we got word of COVID-19 and getting creative with limited menus, food and beverage variety, and tighter inventory (reduced food and beverage inventory that is not selling right now), we would be in deep trouble.

We would not be able to maintain the dynamic service culture and multi-generational atmosphere that has worked so well over the years if it wasn’t for making some big, critical decisions at the moment. Cutting costs is not a sign of weakness; instead, I see it as a form of triumph during these times, as it’s not the amount of food one orders that makes a restaurant operation a win, it’s the company values, consistent food, and beverage quality and overall service experience that makes the difference for the customer. Six months from now, if the lights go back on at 100% occupancy and we don’t have our service culture and a majority of our team in place, then we are missing an integral part of what makes us “us” and the ability to be a successful operation. Additionally, when I think of service culture and maintaining the quality and values of a restaurant, I can’t help but think back to the family-first and “mom and pop meet corporate in a blender” foundation we set as our business model from the get-go. I don’t know if we’d be as successful as we continue to be if it wasn’t for branding our business as a family-first operation. At Tommy’s Tavern + Tap and Tio Taco + Tequila Bar, our employees are not just the chefs, servers, bartenders, and hostesses who collect a paycheck from us; instead, they are part of the “Bonfiglio” family and we hire people who fit that mold. The shining personalities of our team and the quality of our food doesn’t go away amid COVID-19; instead, we preach safety and believe that the mask mandate will help stop the spread. When people first meet me, they say, “We love Tommy’s Tavern + Tap. We love Tio Taco + Tequila Bar. You must have started very young in the business to be this successful,” and the ironic thing is that I didn’t start in the restaurant business until I was well into my forties. My wife, Yvette, and I were successful already (I’m an attorney and CPA by trade) and provided a beautiful life to our two daughters, Andrea and Christina.

At the same time, Yvette and I come from humble beginnings and an old-school Brooklyn background, where “at home hospitality” was always inherent within our family identity. When Yvette, an incredible cook, came to me and thought it would be interesting for us to try to delve into the restaurant business, given our love of the industry and the need for more restaurants that evoked a “big city” atmosphere with suburban charm, I can’t help but admit I was initially hesitant. However, once my mind changed and I seriously dived into the business, I saw that there are not enough people who believe in the traditional “family” values that are critical to the restaurant industry more than ever right now. I believe in coaching and mentoring, the same way I taught my own family. We may be businesspeople with high standards, but we were raised with integrity and treating our staff the way we would treat our own families. With hard times come silver linings, and I can’t stress enough the importance of finding your own silver lining, whether you are an owner of one small restaurant in small-town America or fifteen restaurants in a big mass-market city. For Triple T Hospitality Group, the pandemic gave us two opportunities we never thought we would have: 1) obtaining bullseye real-estate properties that haven’t been available in over twenty years and will give us the opportunity to open four new restaurants by early 2021, and 2) bringing new talent on board, who were previously employed by big-city celebrity chef restaurants. The mass exodus of people from the city to the suburbs will add a new pool of restaurant talent for smaller town businesses to bring onboard their company and gain fresh perspective and new ideas. I encourage all of you in the hospitality industry to find the light at the end of the tunnel because this too shall pass and the lights will soon go back on. This is a short-term setback, but a long-term opportunity. Once you learn to pivot quickly and efficiently, stay committed to your organizational objectives, live by your brand’s inherent values and focus on the necessary preservation of company capital and team members, you will see that success is possible and the doors can remain open. Thomas Bonfiglio is the founder and CEO of Triple T Hospitality Group, which has Tio Taco + Tequila bar in Edison, N.J., and four-unit Tommy’s Tavern + Tap in New Jersey and New York. Read his story below of managing casual-dining brands throughout the global COVID-19 pandemic. – Source: Restaurant Hospitality.

Starbucks said at an investor event that it plans to increase its store count to about 55,000 by 2030 . . . .

Starbucks Plans to Open about 22,000 Stores in the Next Ten Years

It may seem like there’s already a Starbucks on every corner. But the company is still planning on adding tens of thousands more locations in the coming decade. Starbucks said at an investor event that it plans to increase its store count to about 55,000 by 2030, up from roughly 33,000 today. The company is betting that by flooding the market with new types of stores, including smaller locations and ones with drive-thru and curbside pickup, it will be able to steal more customers from the competition. “Though we are growing off a large base, there is ample room to expand in regions where the Starbucks brand is less penetrated,” said Roz Brewer, the company’s chief operating officer, on Wednesday. She noted that Starbucks has a “particular focus on high volume, high margin, suburban drive-thrus.” New formats can help reduce congestion in certain stores, said Roz Brewer, the company’s chief operating officer. “As we introduce more efficient formats, we’re reducing the long lines that sometimes occur in metro locations, unlocking more sales,” she said. The company has been struggling to regain the business lost during the pandemic when commuting routines were disrupted as many office employees worked from home. Globally, sales at Starbucks stores open for at least 13 months fell 9% in the three months that ended on September 27, compared to the same period last year. Some locations have fared better than others. Though overall sales fell in the quarter, sales at Starbucks’ suburban locations and drive-thru restaurants grew. Meanwhile, competitors like Dunkin’ have been better able to hold onto customers. Dunkin’s same-store sales ticked up 0.9% in the third quarter. Starbucks’ expansion plan is coupled with efforts to encourage people to visit those locations, including better rewards in its loyalty program as well as new drinks and food.
Better rewards and more oat milk. Companies like Starbucks use loyalty programs to learn more about their customers and spur repeat purchases. This year, in order to motivate more people to join the program, the company broadened the payment options for its reward program. Previously, members had to load a Starbucks card to earn points. Rewards members account for about 50% of Starbucks revenue. Trendy menu offerings also help. The company said Wednesday that it is planning to roll out its line of oat milk beverages nationally in the spring, after launching in the Midwest early this year. The new line includes a shaken iced espresso beverage, made with brown sugar and oat milk. The news comes after the chain introduced an Impossible breakfast sandwich this summer, about a year after Dunkin’ launched its Beyond sandwich, made with plant-based sausage. The company reaffirmed its projection for 2021. – Source: CNN Business.

The five wind and solar projects are equivalent to planting 40 million trees . . . .

McDonald’s Invests in Clean Energy that Could Power 8,000 Restaurants

McDonald’s is energizing its fight against climate change by investing in wind and solar projects across the country that has enough power to operate 8,000 restaurants. In 2020, the fast-food chain finished three new virtual power purchase agreements (VPPAs)—two wind farms and one portfolio of solar projects—that will be constructed in Illinois, Oklahoma, North Carolina, and Ohio. In 2019, McDonald’s signed two VPPAs, which involved a wind and solar project in Texas. “The COVID 19 pandemic has intensified McDonald’s focus on strengthening the resilience of our communities and the planet,” said Jenny McColloch, vice president, sustainability, in a statement. “As one of the world’s largest restaurant companies, we have a unique opportunity to strengthen climate resiliency with our network of franchisees and supplier partners.” The company’s share of the five renewable energy projects will total 1,130 megawatts. It will also prevent roughly 2.5 million metric tons of greenhouse gases per year, which is equal to planting 40 million trees or removing 500,000 cars from the road in a year. According to McDonald’s, the number of solar panels would cover the surface area of Central Park seven times over or cover 4,400 football fields. “The addition of these VPPA transactions demonstrates McDonald’s continued leadership in the renewable energy space, as well as their commitment to supporting local communities where they serve,” said Miranda Ballentine, CEO of Renewable Energy Buyers Alliance, in a statement. “These projects will not only provide more U.S. communities greater access to clean energy, but they will also stimulate local economies through job creation. As one of the nation’s leading corporate buyers of renewable energy in 2020, McDonald’s level of investment in clean energy serves as an inspiration to the entire REBA community.” The new deals represent a giant leap toward McDonald’s goal of reducing greenhouse gas emissions by 36 percent by 2030, based on 2015 data. The brand said the five VPPAs will cut emissions by 16 percent once they’re online, which is almost halfway toward the brand’s 15-year goal. McDonald’s has further demonstrated its commitment by co-signing a letter to Congress urging legislators to include renewable energy provisions in a future COVID relief package. Locally, the projects will result in 3,400 short-term positions, 135 long-term jobs, and approximately $360 million in tax revenue. “The impressive volume of renewable energy deals McDonald’s has committed to—despite the challenges COVID-19 has placed on many organizations—further elevates McDonald’s as a leader within the industry,” said Tim Juliani, director, Corporate Climate Engagement, World Wildlife Fund, in a statement. “In a year like 2020, with so many other crises at the fore, McDonald’s has remained strikingly steadfast in its commitment to climate action.” – Source: QSR.

The pandemic allowed time to refocus . . . .

5 Ways Coronavirus Changed My Restaurant for the Better

The coronavirus pandemic has undoubtedly devastated the restaurant industry, resulting in $120 billion loss in sales between March and May, according to research from the National Restaurant Association. It has caused massive unemployment of hospitality workers and shut down tens of thousands of restaurants across the country. While it may take a long time for the industry to recover, it is important to note that as the pandemic swept the nation, some restaurant owners were able to utilize the crisis, take a step back and transform their restaurant concept for the better. Luckily, I was among this group of individuals. As an owner of Green Market Cafe, a local Tampa Bay restaurant group, I knew the industry would be completely transformed, and I had the option to either call it quits or make the best out of the situation and give it my all. Shockingly, along the way I discovered a few positive ways that the pandemic impacted my business:

• I found the time to renovate and refresh the interior of the restaurants.
• I took the time to improve our operations systems, updated our manuals, itemized our prep sheets, and streamlined our processes.
• I simplified our menus, refocusing on core items.
• I found new respect for third-party delivery companies, such as UberEats and DoorDash. I started a number of ghost kitchens offered through UberEats and found better ways to repurpose our ingredients. Without them, we’d be severely limited in our efforts.
• I now take a day off weekly to recharge and spend time with my family.

 

Tampa-based restaurateur and founder of Green Market Cafe, Andrew Koumi, opened his first storefront in 2010, while still completing his business degree from The University of Florida. The idea behind Green Market Cafe came to Andrew as he struggled to find healthy, fresh, and affordable food readily available in his college days—hence the concept of Green Market Cafe was born. From humbly opening his first location in Oldsmar, Florida, in July of 2010, to currently operating a multi-store venture he has built since, his food philosophy is composed of three simple concepts: sustainability, balanced nutrition, and always-fresh—never frozen or processed—ingredients. In addition to building a successful four-store restaurant concept in Tampa Bay, Koumi has managed to fight through the heavy competition and build up his catering operation, currently ranked as the most popular corporate caterer in the greater Tampa Bay area, outperforming both local and national chains. Most recently, Koumi’s vision has expanded onto the retail world, making Green Market Cafe dressings available at Sprouts Farmers Markets and other various grocers—bringing the Green Market Cafe brand to consumers on a national scale. – Source: FastCasual.

The self-proclaimed “super-premium fast food” chain plans to have nine locations open by first quarter of 2021 . . . .

Starbird Chicken raises $4 million in funding

Starbird Chicken has raised $4 million in funding, the largest equity fundraising round from current investors and industry insiders, the four-year-old brand announced. “This landmark financing reflects the industry’s belief in our vision that we’ve had for Starbird since day one – that the fast-food landscape was primed for an upgrade in quality and convenience in user experience through menu items designed with customers’ evolving tastes in mind and a modern technology platform.” CEO Aaron Noveshen said in a statement. The self-proclaimed “super-premium fast-food” concept was created in 2016 by Noveshen, also the founder of San Francisco-based consultancy The Culinary Edge. The emerging brand plans to have nine locations open in the Bay Area by the first quarter of 2021. The San Francisco-based concept recently opened a cloud kitchen in Oakland, Calif. The lead investor for the recent round is Greg Dollarhyde, founder of Dollarhyde Enterprise Group. “I am extremely excited to have the opportunity to work with Aaron and his capable team in this phenomenal opportunity with their newly-evolving premium fast food offering,” he said in a statement. “It’s timely, multi-faceted technology platform along with the positioning of this absolutely craveable food concept makes Starbird the concept to watch.” Starbird’s fresh chicken offerings include sandwiches, salads, tacos, chicken tenders, and wings. The company said it’s brick and mortar restaurants have performed well during the pandemic. “Streetside restaurants have seen positive comparable store sales of up to 50% in the last six months, and have proven their leadership in the marketplace through strong top-line sales of more than $1,300 per foot,” the company said. Starbird currently has seven locations with two more openings planned in 2021. – Source: Restaurant Hospitality.

AMorgan Stanley’s bankers scattered from Manhattan’s Times Square to their home offices during the pandemic, some asked: How are the coffee-cart vendors doing?

NYC’s Coffee-Cart Woes Spur $2 Million Morgan Stanley Grant

The answer: terribly. Earnings for New York’s iconic street vendors have plunged as much as 90% during the coronavirus outbreak. So the bank is giving $2 million to 2,000 vendors in coordination with the Robin Hood Foundation, which is contributing $375,000 more and will work with the Street Vendor Project of the Urban Justice Center to distribute the cash. The funds are aimed at helping the largely minority- and immigrant-run businesses that have been left out of government stimulus programs because they don’t qualify for employee or small-business relief. There are about 20,000 vendors selling food and merchandise on sidewalks throughout New York who embody the city’s image in films and on television. “It wasn’t just our coffee-cart people — it was the vendors all across the city” facing hardship, Joan Steinberg, president of the Morgan Stanley Foundation, said in an interview. She’s calling on other corporations and individuals to follow suit and help the city’s quintessential businesses. “When I was little, I used to beg my parents to buy me a hot dog or one of those giant pretzels. It’s just very classic New York.” The thousands of street vendors contribute an estimated$293 million annually to the city’s economy, according to a statement from Morgan Stanley and Robin Hood. As federal and state governments enacted unprecedented emergency stimulus programs, about three-fourths of vendors were excluded from disaster relief or unemployment insurance, often because of their immigration status or the informal nature of their work. “These are people who we know and we see every single day — people who are just trying to forge a way for both themselves and for their children,” said Wes Moore, chief executive officer of Robin Hood. Vendors have resorted to borrowing money, drawing down savings, seeking help from friends and family or pawning belongings to cover expenses including permits and garage rentals. And almost one in four vendors reported having household members with Covid-19 or symptoms of the virus, Morgan Stanley and Robin Hood said. “Vendors come from communities that have been disproportionately impacted by the Covid-19 pandemic,” Mohamed Attia, director of the Street Vendor Project, who sold food and drinks as a vendor for almost a decade, said in the statement. “They have lost the majority of their income during the pandemic, and despite their critical role in our city’s culture and economy, every level of government has left them out in the cold.” – Source: Bloomberg Business.

The return of Taco Bell’s Loaded Nacho Taco . . . .

Taco Bell Is Bringing Back This $1 Menu Item

The older you get, the less interesting your Christmas list becomes. Boom. You hit 25 and suddenly you’re asking Santa for a Dyson vacuum, Bombas socks, and an air fryer. But here’s the good news, you’re getting at least one thing you would’ve loved at any age: the return of Taco Bell’s Loaded Nacho Taco. Following a year of tragic menu cuts (may the Mexican Pizza RIP), the Chalupa slinger is bringing back an old fave in time for the holiday season. On Wednesday, Taco Bell announced the Loaded Nacho Taco’s triumphant (though limited) return, slated for December 24. And ICYMI, these cheesy meat boats are part of the chain’s value menu and will only run you $1, which basically just means you have enough cash for a larger order. ICYMI, the Loaded Nacho Taco made its official debut back in April 2019. Each comes wrapped in a flour tortilla filled with, well, nachos. It’s got seasoned beef, nacho cheese, lettuce, Cheddar cheese, and mini southwest-seasoned chips. Of course, if you’re looking to play Santa yourself and send a pal, boyfriend, parent, whoever some food for the holiday, you’re in luck. The company launched an E-gifting site in October so you can deliver wrapped up tacos—choose between hard- and soft-shell—to whoever. “For years, Taco Bell has been a part of our fans’ milestone moments—from proposals and weddings to graduations and proms—and we’re excited to introduce a fun and convenient service to help celebrate any occasion in between,” chief global brand officer Nikki Lawson said in a statement. “As we continue to innovate and identify new ways to deliver engaging brand experiences with consumers, our focus on our digital infrastructure has allowed us to surprise and delight fans with unexpected offerings. We’re excited to keep exceeding expectations.” – Source: thrillist/National Restaurant News.

Leadership principles are like core values specifically for the leaders in your company, and they should be memorable, meaningful, coherent with other expectations and unique . . . .

Get Ready for 2021 with Leadership Principles

Leadership will be critical in the year to come, as you navigate uncertainty, fierce competition and resource constraints. One way to get your organization ready for these challenges is to establish leadership principles for your organization.

Transcript

With 2021 just around the corner, now is the time to lay the foundation for a successful year. One way to do that is to establish leadership principles for your organization. Leadership principles are like core values specifically for the leaders in your company. And they’re more important now than ever before, since leadership ability is critical when operating in times of uncertainty, fierce competition, or resource constraints — or all of the above, as the case is for most of us today. Some companies operate under the premise that everyone is a leader, so they use one set of values for the entire company and provide training or target messaging about them to their leaders. But I recommend developing principles specifically for the leaders in your organization since their roles and responsibilities require distinct attitudes and behaviors. Plus, explicit leadership principles will facilitate greater alignment among your leaders. In setting leadership principles, Camille Inge, a consultant at the Neuroleadership Institute, recommends three criteria:

They should be sticky. Meaning, leaders can remember them.

They should be meaningful. Leaders should care about them, presumably because they enable them to do their jobs better. They should be coherent. Leaders should see that the principles fit with what they’re asked to do. They can’t be disconnected from the goals they’re expected to achieve or the priorities they’ve been given. I would add one more requirement: Your leadership principles should be unique. If you use generic platitudes, they will be meaningless. Your leadership principles should define the unique ways your leaders should think and act to achieve the unique goals of your organization. For example, one of Amazon’s leadership principles is “Frugality.” The company explains frugality by saying “Accomplish more with less. Constraints breed resourcefulness, self-sufficiency, and invention.” You can see how this distinctive principle is in part why Amazon is able to offer such low prices. Or consider how the Marine Corps uses the leadership principle “Employ your command within its capabilities.” They elaborate on this with the instructions, “Have a thorough knowledge of the tactical and technical capabilities. Seek out challenging tasks for your unit, but be sure that your unit is prepared.” It’s a unique principle for a unique organization. I also like the Marine Corps example because it shows how your leadership principles need to be fleshed out with definitions and examples. At the Neuroleadership Institute’s 2020 summit, a representative from a public utility company explained how her organization made its leadership principles explicit. For the principle “Create clarity,” they provided a definition – “Ensure shared understanding of what needs to be achieved.” And they included a sample behavior: “Before I talk about the ‘what’ of a change or task, I will create clarity by starting with the ‘why.’” Once you’ve articulated your leadership principles, you should provide training on them just as you would for leadership skills. And make them part of your performance review and planning process for leaders, so they have a real impact. Now is the perfect time to get ready for 2021 with leadership principles.

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