Quick-service restaurant brand has ‘bright future . . . .
Subway sells to Affiliates of Arby’s investor Roark Capital Group
Subway restaurants Thursday said it has entered into an agreement to sell to private-equity firm Roark Capital Group, moving the franchisor into new ownership for the first time since its founding 58 years ago.
Subway, which has headquarters in both Milford, Conn., and Miami, said, “The transaction is a major milestone in Subway’s multi-year transformation journey, combining Subway’s global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models.”
The price of the deal was not disclosed, but the Wall Street Journal reported earlier that it was about $9.6 billion and other sources have said it includes an earn-out provision. The deal is subject to regulatory and other conditions.
Roark, based in Atlanta, has $37 billion in assets. It has invested in a number of franchised restaurant brands. Its portfolio includes Inspire Brands (which owns and franchises Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy Johns and Sonic Drive-In) and Focus Brands (which owns and franchises Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s) as well as Carl’s Jr. and Hardee’s, Miller’s Ale House, and the franchisor of Seattle’s Best Coffee.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” said John Chidsey, CEO of Subway, in a statement. “Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests, and our employees.”
Subway was founded by Fred DeLuca and financed by Peter Buck in 1965 as Pete’s Super Submarines in Bridgeport, Conn. It was renamed Subway in 1972, and a franchise operation began in 1974 with a second restaurant in Wallingford, Conn. Both of the founders have died.
Subway had about 20,810 U.S. locations last year, and about 37,000 restaurants globally.
J.P. Morgan is serving as financial adviser and Sullivan & Cromwell LLP is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.   – Source: NRN.

Haynes will be replaced by Douglas Fry; Carrie Walsh named president of Europe, Middle East & Africa; Mike Kehoe named global chief development officer . . . .
Subway President of North America Trevor Haynes to Leave Restaurant Company at the end of the Year
Subway announced Wednesday that the president of North America Trevor Haynes will be leaving at the end of the year.
“Trevor has played a pivotal role in shaping the brand’s vision, strengthening our position in the market, and enriching the lives of our guests, franchisees, and employees,” said John Chidsey, Subway CEO, in a statement. “We’re immensely grateful for his numerous contributions to accelerate our brand transformation strategy in North America and know the positive impact of his leadership will continue to shape Subway for many years to come.”
Haynes joined Subway in 2006 as territory manager in Australia and has held many roles at the company, including chief business development officer and interim CEO.
He will be replaced by Douglas Fry, currently country director of Subway Canada, who will take on his role as of Sept. 5. Fry and Haynes will then spend the remainder of 2023 “working closely together to ensure a smooth transition, with Haynes in a strategic advisory role,” according to a company statement.
Fry has been with the company for two years, and in that time the company said Canada has achieved record-breaking average unit volumes and positive traffic trends. Prior to joining Subway, Fry worked at restaurant and foodservice companies including McDonald’s, Recipe Brands, and Kraft Heinz.
“Doug’s impact in Canada has been nothing short of remarkable, and I’m excited to see him continue building on our growth and progress in North America as he steps into this new role,” Haynes said in a statement. “I was honored to play a role in selecting Doug as my successor and I’m confident that he will make a meaningful impact on the brand’s future.”
Subway has not yet named a new leader for the Canada region.
Elsewhere in the company, global chief marketing officer Carrie Walsh has transitioned into a new role as president of Europe, Middle East & Africa (EMEA) after four years at Subway; former EMEA president Mike Kehoe has been named global chief development officer (a new role for the company); and Cristina Wells has been promoted to senior vice president of U.S. marketing.
Subway, which has been looking for a buyer, is in its third phase of a multiyear brand transformation. The company in July rolled out in-store meat slicers as part of that effort. In the first half of the year, Subway reported a North American same-store sales increase of 9.3%.  – Source: NRN.

Chick-fil-A is launching a Honey Pepper Pimento . . . .
Trending this week: Chick-fil-A is launching a Honey Pepper Pimento Chicken Sandwich nationwide

This week on Nation’s Restaurant News the top story was America’s Top 25 restaurant groups. To discover those restaurant groups across the U.S. that are blending the creative spirit of independents with the operational and financial scale of chains, NRN partnered with Technomic for this look at the 25 largest restaurant groups by unit count.
In other news,  Chicken Sandwich nationwide beginning Aug. 28, marking the first time the chain has provided a seasonal twist on its signature offering. The sandwich is available while supplies last and includes an original filet topped with custom-made creamy pimento cheese and mild pickled jalapeños. It is served on a toasted bun drizzled with honey.
Also, Wendy’s franchisees have opened the first of the chain’s “Global Next Gen” restaurants, in Oklahoma and Kansas, The Wendy’s Co. announced on Tuesday. Meritage Hospitality Group opened a unit in Edmond, Okla., and Wenspok Companies opened one in Great Bend, Kan.  – Source NRN.

Rick Lenny joined the McDonald’s board in 2005 and has served as chair of the compensation committee since 2019 … .
Rick Lenny Retiring from McDonald’s Board After 18 Years
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Richard “Rick” Lenny is retiring from the McDonald’s board of directors, effective Oct. 31. He joined the board in 2005 and has served as chair of the compensation committee since 2019.
In a statement, McDonald’s CEO Chris Kempczinski said, “Rick is a civic-minded leader with a keen understanding of the challenges facing people and businesses today, and his counsel has been instrumental in helping position the company and our system for long-term growth.”
In a statement, McDonald’s Chair Enrique Hernandez Jr. said, Lenny’s business acumen and extensive experience leading major consumer brands enabled the chain to advance “countless strategic objectives.”
“He has cultivated a lasting culture of decorum and camaraderie within our board,” Hernandez said. “As chairman of the compensation committee, Rick has helped oversee several important initiatives, including the evolution of the company’s executive compensation program to more fully encompass our business and social impact.”
In addition to serving as chair of the compensation committee, Lenny is also a founding member of McDonald’s sustainability and corporate responsibility committee.
Lenny’s retirement comes shortly after the retirement of two other long-serving board members for the chain. In March, Robert Eckert and John Rogers Jr. announced their retirement from McDonald’s board after each serving 20 years. At the time, McDonald’s said their retirements are “consistent with the board’s commitment to ongoing refreshment that maintains an appropriate balance of continuity and institutional knowledge with fresh perspectives among directors.”
Last year, McDonald’s board elected four new independent directors – Tony Capuano, Jennifer Taubert, Amy Weaver and Kareem Daniel – and announced another retirement from Sheila Penrose. – Source: NRN.

Delaware bans polystyrene food containers, automatic giveaway of plastic straws . . . .
The state becomes the eleventh in the nation to outlaw the material.

Restaurants in Delaware will have until July 1, 2025, to phase out their use of polystyrene takeout containers under a bill signed into law Tuesday by Gov. John Carney.
The measure also prohibits foodservice operations from providing plastic coffee or cocktail stirrers and using plastic versions of the toothpick-like spears that hold together sandwiches or drink garnishes.
The new rules apply to restaurants, and on-site foodservice operations like cafeterias, grocery stores, and caterers. Convenience stores are not among the businesses listed as being affected.
Healthcare facilities are exempted from the ban on providing single-use straws, and other types of foodservice operations can provide drinking aids upon request.
The measure makes Delaware the eleventh state to ban the use of single-use polystyrene clamshells, cups and other pieces of to-go packaging. Proponents of the new law noted that the neighboring states of Maryland and New Jersey have already outlawed the items.
Supporters say the law is needed because discarded polystyrene and plastic constitute much of Delaware’s roadside and seaside litter. They also note that recycling deflects only a small stream of materials from landfills.
The law was initially opposed vehemently by the Delaware Restaurant Association, but the trade group softened its resistance after the bill was amended. Initially, an establishment that failed to comply with the rules stood a chance of losing its operating license, but lawmakers dropped that provision at the association’s urging.
The law takes effect on July 1, 2025, and specifies that violators won’t be fined until the start of 2026. The penalties were not specified in the legislation. – Source: Restaurant Business.

Modular companies are seeing an uptick in demand as executives cite cost efficiencies, real estate availability, and speed-to-market as major benefit .  . . . .
Why more restaurant brands are embracing modular buildings

During a conversation with Smalls Sliders CEO Maria Rivera earlier this year, she said she believes that “modular is the future.”
Indeed, the reason her company is targeting ambitious growth is because it’s leveraging 800-square-foot modular shipping container units manufactured elsewhere and then shipped to their location. Once a plot is prepared, Smalls can open a restaurant on top of it in as little as eight weeks. It takes less than a half hour to get the restaurant from the truck to be fully built.
Speed-to-market is an attractive benefit to modular development, especially given construction and permitting delays hindering much of the industry. Sticky Bird President Brandon Howard said his company’s recently opened modular location in Wichita, Kansas – through a partnership with Lange company’s ModuAll – allowed his team to move quickly and bring the product to a new city faster.
“This makes it easier to experiment in different markets and bring a taste of something different to new communities like Wichita,” he said.
Domino’s franchisee Ty Turner also recently opened two such units in Arkansas through a partnership with Safe & Green Holdings subsidiary SG Echo.
“I’m impressed with how fast we were able to get up and running with Safe & Green Holdings’ modular solutions,” Turner said in a statement. “The process was efficient and cost-effective, and I appreciate the speed at which a store can evolve from an idea on paper to fully functioning and operating.”
In a release, Domino’s stated Turner’s two single-module stores are serving as a proof of concept for future stores and, since then another Domino’s franchisee – Noble Food Group – has teamed up with SG Echo subsidiary with plans to open three single-module units in Oregon.
That said, speed-to-market is just one of the benefits cited from those adding modular to their portfolios. In a statement, Kenneth Guevara, Domino’s senior manager of U.S. development,  touted modular builds’ affordability and lower environmental impact than a typical build, for instance. Meanwhile, Rivera said the unit economics are “ridiculous” (in a good way).
“It’s very efficient because you don’t have a lot of labor overhead and you have controlled food costs,” Rivera said.
Blenderz, a relatively new acai concept from NextBrands, is targeting expansion in part through modular formats. NextBrands Chief Development Officer Megan Rosen said the company is embracing the model for several reasons, including cost efficiencies. A Blenderz modular unit’s labor line runs between 17-20% of gross sales, versus brick and mortar, where labor tends to run between 21-25%, she said.
“Also, the cost of utilities is significantly less, not only because of the smaller footprint of the building itself but because the size of the equipment is smaller. You can expect your utilities in a container to be 35-40% lower than a traditional building,” Rosen said.
Because of these cost efficiencies, Rosen said the concept better allows franchisees with lower net worth the opportunity to invest in themselves and their own business.
“Additionally, real estate is more prevalent,” she adds. “Traditional brick and mortar real estate is hard to find, often comes with an expensive lease that would reduce our profit margin greatly, and costs associated with bringing the space up to brand standards. Our modular concepts can go in undeveloped parcels, parcels of big box retailers, and territories where expansion is usually overlooked.”
To be sure, modular stores built from shipping containers are certainly not a new concept in this industry. Taco Bell built a shipping container store at SXSW in 2015, for instance, while Starbucks has been embracing the model since around 2018. That said, more companies are starting to embrace modular models because the list of benefits has become more attractive in this persistently pressured and unpredictable environment.
Checkers/Rally’s has started to experiment with modular formats, for example, while Biggby Coffee and Quiznos have also tested the waters. Even independents like Kao Bar and Grill in Miami and Cargo House Pizza in Ashland, Kentucky, are embracing the model.
We’re likely to see more of these types of restaurant formats across the board – from pizza, burger, and chicken to acai and coffee – as the demand for modular buildings has noticeably increased, according to Joe Robertson, brand manager at Lange. Roxbox, a modular construction company specializing in shipping containers and modular structures, is also experiencing a “huge amount of interest,” Chief Growth Officer Davin Burkhart said at the recent Texas Restaurant Association Show.
“Speed is the biggest ‘why’ we’re seeing, especially now with delays to get to market. (Modular) is 20-to-50% less construction time because we can build the site concurrently with the factory build. That efficiency appeals to a lot of QSR brands and we’re seeing an increase in demand because of it,” he said.
Roxbox CEO/founder Anthony Halsch added that such builds are “lower cost and lower risk,” which is also appealing.
“If it doesn’t work, we just unhook it and exit the site,” he said. “Otherwise, it’s all the same – same product, same equipment, we’re still in code. It still includes everything you need to run the business; the building just shrunk.”
Rosen adds that consumers don’t notice a difference other than the absence of indoor dining, which is becoming more common anyway, regardless of format.
“In fact, customers may notice a faster speed of service given the streamlined efficient kitchen layout and smaller footprint,” she said.
Blenderz recently opened its first modular format, located in Mio, Mich., with many more to come as the company targets ambitious growth via franchising. Based on her experience so far, Rosen echoes Rivera’s prediction that modular is the future.
“The real estate needed for modular restaurants is more plentiful and flexible,” she said. “Restaurants now need to cater to convenience, whether that be delivery, pick-up, drive-thru or walk-up. End cap units with a drive-thru come at a heightened rental price and other areas where you would go in-line are hard to find. I absolutely agree (this is the future).”  — Source: Restaurant News.

The FSR 30: Unveiling the Full-Service Restaurant Titans
OUR NEW REPORT THIS YEAR RANKS THE LARGEST BRANDS IN THE SECTOR, OFFERING A GLIMPSE WHAT THE FUTURE HOLDS.
AUGUST 1, 2023 FSR STAFF
Our new report this year highlights the powerhouse brands making legendary status in restaurant chain history. Though varied by cuisine type, these full-service restaurants all showcase recent growth rooted in culinary and technological innovation and have not only stood the test of time but also survived the pandemic and come out stronger on the other side.
GO STRAIGHT TO THE DATA
The below powerhouses have mastered the art of crafting unforgettable dining experiences at affordable, everyday prices, capturing customers’ attention and loyalty. In this comprehensive report, we delve into the captivating world of these full-serve, casual dining titans.
1.      Olive Garden
Heading into fiscal 2023, guest satisfaction metrics at Olive Garden were at an all-time high, thanks in large part to improved staffing levels, along with ongoing efforts to streamline operations and reduce complexity in the kitchen. Parent company Darden Restaurants has underpriced inflation by more than 400 basis points and underpriced the full-service segment by more than 600 basis points in the past three years, and consumers have responded by staying put. At the same time, the company has committed to stopping deep discounting. The closest it came to a promotional deal was the return of Olive Garden’s Never-Ending Pasta Bowl in Q2. The item, which is likely to be the chain’s only LTO this year, was priced $3 higher than its previous rollout but still delivered a sizable lift to traffic and sales during its seven-week run.
2.      Texas Roadhouse
To gain perspective on the run Texas Roadhouse has put down, it helps to look back. In 2017, this was a $2 billion company with 549 locations across its footprint. Five years later, pandemic and all, the chain doubled to about $4 billion in revenue as it spread to 697 venues (including 652 Texas Roadhouses, 40 Bubba’s 33 units, and five Jaggers, the company’s fast-casual offshoot). But beyond material growth, Texas Roadhouse’s story is one of resiliency and reemergence, and in both cases, the brand leaving the pandemic behind is more dynamic than ever. It opened 2023 generating weekly sales north of $146,000. Texas Roadhouse averaged more guests in the calendar’s first seven weeks than any period in its history. On the doorstep of COVID, the brand generated roughly $113,777. One of the big kickers has been to-go sales—off-premises accounted for $8,741 pre-virus. Today, it’s closer to $19,000. And the momentum isn’t tailing off. Texas Roadhouse grew its same-store sales 12.9 percent at company units in Q1 2023 and hit a record weekly figure of $148,437, besting a high mark set the previous quarter.
3.      Chili’s
Chili’s CEO Kevin Hochman began his tenure in June 2022, and his impact was immediate. The industry veteran entered the brand with big initiatives, like the reduction of deep discounting, cutting costs in the back of the house, and rethinking the company’s approach to virtual brands and technological initiatives. When Hochman joined last year, Chili’s discounted items mixed 37 percent. By November, that decreased to 30 percent. Now the chain is around 29 percent. Also, Chili’s discontinued virtual concept Maggiano’s Italian Classics to focus more on dine-in and suspended testing of “Rita the Robot,” a machine that could host, wait on guests, and clear tables. Cost savings cleared the way for Chili’s to implement TV advertising for the first time in three years. The brand drove traffic and frequency by highlighting its 3 for Me value platform during prime-time TV and March Madness basketball games and on major streaming sites like Hulu and Paramount+.
4.      Applebee’s
Tony Moralejo, after three years as president of Dine Brands’ international segment, assumed the president role in January when John Cywinski headed to QDOBA. He stepped into a rocky operating environment. On the positive side, the chain closed 2022 with same-store sales growth of 1.7 percent—its eighth straight period of positive gains. It also lapped the previous year’s result of 9.1 percent over 2019. However, Applebee’s, which closed about 300 underperforming U.S. units across a five-year stretch, had to scale back previous plans to hit net unit growth in 2023. Yet it still believes it’ll open more stores than last year, only with a net loss of 10–20 outlets. But even with macroeconomic pressures stalling development, the brand continues to serve a resilient guest. The eight-quarter streak stretched into nine to begin 2023, with comps rising 5.1 percent. Applebee’s told investors it held its No. 1 ranking across key consumer metrics like convenience and variety, per the company’s proprietary third-party tracker. Brand awareness was at an all-time high thanks to affordability and menu breadth. Sales rode promotions and abundant value programs, like the Two for $25 and $14.99 all-you-can-eat boneless wings, riblets, and shrimp. It gave management reason to not only be optimistic going forward but to feel insulated against whatever challenge comes next.
5.      Buffalo Wild Wings
Within the past year, Buffalo Wild Wings has been no stranger to menu innovation. In June 2022, the sit-down sports bar chain launched Happy Hour and its new Bird Dawgs—hand-breaded chicken tenders on a brioche bun, loaded with sauces and toppings. The chain followed that up a month later with its Saucy Chicken Sandwich, taking a page out of the quick-service playbook. The major difference is that the chicken can be covered in any of Buffalo Wild Wings’ 26 signature sauces. Then, in August 2022, the casual-dining chain entered the pizza category with its Boneless Bar Pizza, an item featuring a thin-crust base topped with boneless wings. In terms of sauces, Buffalo Wild Wings partnered with New York Jets cornerback Ahmad Gardner to release a limited-time “Sauce Sauce,” and it rolled out new General Tso’s and Sweet Chili Lime sauces ahead of the summer.
6.      IHOP
Though IHOP recently decided to pull the plug on its fast-casual spinoff pilot program ‘Flip’d,’ the casual-dining breakfast chain opened 19 locations systemwide in the first quarter of 2023, ending Q1 with 1,790 stores. Driven by internal brand research, IHOP launched its largest menu evolution to date in March, with a lineup stretching across dayparts and categories and a goal of highlighting quality ingredients, and options that meet the indulgent and lighter side of cravings, choice, and value. The revamp featured a fresh take on Sweet & Savory Crepes, Eggs Benedicts, Ultimate Steakburgers, a new Four-Cheese Crisp, fish and shrimp, and the return of Cinn-A-Stack Pancakes. Additionally, the brand enrolled 5.5 million members in the first year of its loyalty program launch, which drives frequency, share of wallet, and average check, and allows IHOP to better engage with guests through targeted promotions and differentiated in-restaurant experiences.
7.      Cracker Barrel
Despite the threat of recession and decreased foot traffic, Cracker Barrel finished the 2022 fiscal year strong with an estimated $2.6 billion in sales and an AUV of $3.92 million. The family-style restaurant leaned into both menu strength and value proposition with programs like Build Your Own Homestyle Breakfast, 20 meals under $12, $5 take-home meals, and a growing beer and wine menu. The company also rolled out a new app later in the year that will serve as the foundation for a loyalty program and boost interest with a younger customer base. Efforts to improve technology didn’t stop there; the chain also introduced Apply Pay and Google Pay later in Q4. Overall, Cracker Barrel’s performance amidst a questionable economic background can be credited to its dedication to deploying strategies for every guest, young and old.
8.      Outback Steakhouse
Outback’s growth trajectory is becoming larger by focusing on a smaller prototype. The store design is 5,000 square feet—a reduction of 16 percent—thanks to restructuring in the kitchen and dining room. However, it was done without impacting the guest experience or cutting the number of tables. In addition to a new size, the prototype brings a bright ambiance, a reimagined bar, and an elevated décor package that modernizes “the look and feel while also highlighting Outback’s Aussie heritage,” according to CFO Chris Meyer. The new asset costs 20 percent less than a traditionally sized outlet. New technology, like advanced grills and ovens, kitchen display systems, and handheld tablets for servers will be incorporated into the new building, as well as a space carved out for off-premises business. Outback believes there’s room for 75-100 more units in the U.S. in markets such as Austin, Texas; Miami; and Nashville, Tennessee.
9.      LongHorn Steakhouse
Like its sister concept Olive Garden, LongHorn continues to reap benefits from Darden’s decision to underprice inflation (400 basis points over the past three years, industry-wide). LongHorn set weekly sales records multiple times in its most recent quarter. The brand’s average weekly sales of $96,905 pulled out to annualized volumes of $5.01 million. That’s a major jump from 2020 when it was $76,101. LongHorn’s total sales of $1.9 billion represented a company record as well. Comps rose 10.8 percent and the chain enjoyed 17.4 percent margin, 80 basis points higher, year-over-year. When Darden acquired LongHorn, it closed the following year (2008) with 305 locations. That would balloon to 514 by 2019 and now sits at 554.
10.      Denny’s
The casual breakfast dining chain recently invested more than $25 million to improve and upgrade kitchen equipment, propelling the development of menu innovation while increasing efficiency and reducing waste. After completing the initiative, the brand launched a new menu featuring a custom augmented reality (AR) experience. Recent additions like Mac N’ Brisket Sizzlin’ Skillet, Oven-Baked Lasagna, and Caramel Apple Pie Crisp are resonating with guests and outperforming expectations, leading to an 8.4 percent increase in systemwide same-store sales in the first quarter of 2023—the strongest new dinner product launch since prior to the pandemic. Plus, a new conversion to a common network service provider will improve kitchen verification systems, server tablets, and QR pay. Denny’s is also making progress on its “big three” near-term initiatives, which include staffing, 24/7 operations, and value.
11.     The Cheesecake Factory
With a new Cheesecake Rewards loyalty program set to launch nationwide this summer, the casual dining concept considers itself a leader in the experiential dining category, differentiated by its 235 menu items made fresh from scratch, plus an integrated bakery that produces more than 60 cheesecakes and other baked goods. Same-store sales at the Calabasas Hills, California-based company rose 5.7 percent in the first quarter of 2023 year-over-year, and revenues reached $866.1 million.
12.     Golden Corral
COVID hit Golden Corral hard, with the buffet chain losing a net of 124 restaurants across 2020 and 2021, but the bounce back is already underway. Last year, the brand grew by a net of three stores. Also, Golden Corral has solidified plans to open Homeward Kitchen, a new fast-casual spinoff set to debut in Southern Pines, North Carolina, later this year. It will have a drive-thru, along with a mixture of classic and modern menu items.
13.     Red Lobster
Sales at Red Lobster still haven’t returned to their pre-pandemic benchmark. The 644-unit chain also has shrunk its footprint over the past several years, and it’s faced a series of turnover in its executive ranks. Still, parent company Thai Union is confident in the seafood chain’s strategy for a turnaround, which includes a focus on menu enhancements, value deals, and operational improvements.
14.     Red Robin
The casual burger brand is another full-serve forging ahead with fresh leadership. Industry vet GJ Hart, the former Texas Roadhouse, CPK, and Torchy’s Taco CEO, assumed the reins last July. He got to work quickly. Red Robin revealed a five-point “North Star” plan in January that covered everything from staffing to food quality to removing costs and complexity. While a journey in motion, results flashed brightly in Q1 2023 as Red Robin posted more than 700 new sales records. More updates are on deck this year, including flat-top grills and ample menu innovation.
15.     Waffle House
At over 1,900 locations across the United States, it can’t be denied that Waffle House has become a beacon of breakfast since 1955. The family-style restaurant continues to serve guests 24/7, 365, so much so that the Federal Emergency Management Agency uses the “Waffle House Index” to measure the seriousness of an incoming hurricane or tropical storm. Even when faced with rising food costs, namely eggs, Waffle House holds onto its cheap prices to keep its cult-like following alive.
16.     B.J’s Restaurant
Sales at BJ’s Restaurants grew 18.1 percent to $1.3 billion in fiscal 2022, with comps up 14 percent. The momentum is giving CEO Greg Levin confidence in the company’s long-term ability to double its footprint and become a $2 billion business, even as it slows down the pace of new builds in the near-term. Soaring costs for construction have pushed BJ’s to prioritize its remodel program, which centers around an updated bar statement and expanded seating capacity.
17.     First Watch
The breakfast leader is simply one of the nation’s hottest chains. It jumped out of 2023 with same-store sales growth of 12.9 percent, year-over-year, lapping 21.9 percent growth in 2022. Perhaps most impressive, though, First Watch reported same-restaurant traffic growth of 5.1 percent, which was 11.7 percent better than Q1 2019. Same-store sales are 42 percent higher on a three-year view. After opening 10 restaurants in Q1, First Watch finished the quarter with 484 stores, including 370 company-owned and 114 franchises across 29 states.
18.     TGI Fridays
CEO Ray Blanchette departed TGI Fridays in May after leading the 301-unit brand since October 2018. Rohit Manocha, chairman of the board and cofounder of TGI Fridays’ lead investor TriArtisan Capital Advisors, took over as the chain searched for a replacement. The brand said it was entering “a new phase of revitalization.” TGI Fridays’ same-store sales last year grew 8 percent against 2019. It also recently introduced a fresh rewards platform that offers daily options and makes it simpler for guests to engage.
19.     P.F. Chang’s
P.F Chang’s off-premises concept is thriving, but that doesn’t mean it’s veering away from the dining room experience. The P.F. Chang’s To Go concept has expanded to roughly 20 locations since launching in 2020, but executives at the 219-unit chain see plenty of runway for both the off-premises-only and full-service bistro models. The company is embarking on a brand refresh across the U.S., and all of its domestic restaurants are receiving renovations, including new decor and menu presentations.
20.     Hooters
Hooters is celebrating its 40th anniversary this year by encouraging more growth beyond its current 288-unit footprint. The brand revealed in March that it was giving away 40 weeks of free royalties for any new franchisee who signs on for a franchise in 2023. The initiative is part of the brand’s long-term goal “to make bold and innovative moves in the full-service restaurant category, strengthen its core, and enhance the entertainment draw of its in-person dining experience.
21.     Dave & Busters
Dave & Buster’s is looking to own the eatertainment category—for both young adults and families—with its $835 million acquisition of Main Event. Strategies are now underway to create an environment where the guest flow becomes more efficient and complexities in operations are removed from the back of the house. Both companies are working to develop the right staffing model, reporting tools, and management approach to maximize throughput.
22.     Carrabba’s Italian Grill
Carrabba’s opened a restaurant in Tampa in Q3 of 2022, marking its first new location since 2015. Bloomin’ Brands CEO David Deno said the 218-unit Italian chain earned the right to expand after landing among the company’s top performers for the past several years. In addition to traditional stores, Carraba’s is exploring a takeout/delivery-focused model because of its robust off-premises business, which now accounts for more than a third of its total sales.
23.     Bob Evans
Despite inflationary pressures, Bob Evans Restaurants has managed to fulfill its brand promise of “keeping the entire family full and happy for less.” Under its “American Values” menu, Bob Evans offers multiple meals for less than $9, with pick-two lunch combos starting at $6.99. The New Albany, Ohio-based American casual dining chain has 443 locations in 18 states, primarily in the Midwest, mid-Atlantic, and Southeast regions of the U.S.
24.     California Pizza Kitchen
Jeff Warne took the helm at California Pizza Kitchen (CPK) in December 2022. He succeeded Jim Hyatt, who ran the company for nearly five years. The leadership shakeup followed an up-and-down pandemic journey. CPK filed for bankruptcy in mid-2020, citing COVID and increased competition from fast casuals. By the time Warne was promoted to CEO, the 146-unit pizza chain had returned to pre-pandemic sales levels, thanks to investments in CPK Rewards, menu innovation, and improvements to the digital guest experience.
25.     Perkins Restaurant & Bakery
The 65-year-old classic diner chain shook up its traditional operating model recently with a refreshed prototype, virtual partnerships, and new labor-saving technology, which lowers development costs for franchise owners. In March, the restaurant and bakery chain announced the signing of a new franchise agreement to grow its presence across Ohio and has 276 locations in 32 states, plus two Canadian provinces.
26.     The Capital Grille
At 61 locations, The Capital Grille represents the fine-dining side of Darden Concept’s portfolio. The steakhouse seeks to draw in customers through its extensive wine menu and private dining experiences. Its virtual service, a mobile app called Concierge, allows guests to save their favorite wines and make reservations. Overall, Capital Grille performed well during the fiscal year of 2022, sharing an 11.7 percent same-store sales growth in Q3 with Cheddar’s Scratch Kitchen.
27.     Bonefish Grill
The “Big City Bar and Restaurant” has weathered lower traffic and tightened wallets but shows no sign of wear. The casual-dining seafood concept, helmed by Bloomin’ Brands, saw a 5.2 percent rise in same-store sales in Q1, with 180 locations and counting. With the addition of a Sunday brunch to the menu, a rotating array of seasonal favorites, and an emphasis on catering, Bonefish Grill is doubling down on growth trajectories.
28.     Cheddar’s Scratch Kitchen
Since Darden acquired Cheddar’s in 2017, it has grown to be the third-largest brand in the group’s portfolio, behind Olive Garden and LongHorn Steakhouse. The scratch kitchen saw growth in store footprint of four percent, with 183 stores and counting. Overall, same-store sales increased by 11.7 percent in Q3, accounting for a record $1.56 billion. Cheddar’s is growing at a calculated pace, and Darden’s CEO Rick Cardenas believes the brand’s strong leadership team will catapult it to success.
29.      Fogo de Chão
The Brazilian all-you-can-experience steakhouse chain is expanding its footprint across the world to Ecuador, Turkey, Rhode Island, and more. In May, Fogo de Chão signed a lease to open its third Bay Area location in California, supporting the brand’s continued 15 percent annual restaurant growth across the U.S. In 2023, Fogo de Chão signed 12 new domestic and international leases and opened in key markets in Washington, Maryland, California, and New Jersey.
30.     Ruby Tuesday
Following tumultuous challenges during the pandemic, Ruby Tuesday filed for bankruptcy in late 2020. The classic bar & grill chain shuttered 185 company-owned restaurants, a far cry from 724 units in May 2016. Despite this, Ruby Tuesday has rebounded by reducing liabilities and restructuring its organization.  With the help of a “Daily Deals” program and a reenergized focus on off-premises business, the classic bar & grill chain continues to make a promising comeback.  – Source: FSR.

Black Angus Steakhouse to Offer Free Delivery During Labor Day Weekend
Labor Day weekend around the corner and for the ones who decide to take advantage of the three-day weekend by staying home, Black Angus Steakhouse will cover the food portion of the holiday weekend with delicious eats and will literally cover the delivery costs with no delivery fees. The original American steakhouse is giving customers a hassle free delivery experience without the need to leave home by offering free delivery fees and delivering fresh cuts of steak and seafood directly to the customer.
Free Delivery
Just in time for Labor Day weekend, Black Angus Steakhouse recently eliminated all delivery fees from their 32 west coast locations. Stretching back to nearly 60 years of operation, the longstanding steakhouse is listening to what the customers want, so all can enjoy a satisfying Black Angus Steakhouse meal without the headache of delivery fees. For instance, order the popular Campfire Feast for Two ($68) and forget worrying about the extra delivery fee as Black Angus Steakhouse will take care of it. To order delivery this Labor Day Weekend, visit www.blackangus.com and select a preferred location.

Meat Market
Planning ahead? Grill masters can purchase fresh cuts of Black Angus Steakhouse’s meats and seafood at the steakhouse’s Meat Market for a backyard grill-out this Labor Day Weekend. Black Angus Steakhouse’s Meat Market provides high quality and fresh meat with an added bonus of all meat being Certified Angus Beef. Choices from the steakhouse’s steaks, burgers and seafood, Black Angus will have the protein portion of a meal covered; plus the Meat Market sells Black Angus seasoning and sauces so it will taste just how it does at the steakhouse. Either pick up directly from a Black Angus Steakhouse location or ship to the desired address nationwide.

What is pinsa? Pizza’s hipper, fresher little sibling is now stepping into the spotlight

The cloud-like flatbread is easy to make at home and is popping up on menus across the country

Pizza is more than just a food. It’s a moment unto itself.
It can represent something different for every person: A deep, resonant love for Italian culture and uber-thin crust Neapolitan style pies; an adoration (like mine) for enormous, American style pies piled high with extra, extra cheese; a flippant DoorDash order on a particularly busy night; a celebratory meal a la a “pizza party. The list goes on and on. No matter your own opinion, pizza has arguably made its mark as much as any other food item.
But for those who may not be as enamored with the iconic staple, perhaps pinsa is more up your alley.
Pinsa allows for a bit more flexibility than pizza, if you will. Think of it as a younger relative with a slightly different vibe but with familial similarities all the same. And, per food industry experts, you’re likely going to start seeing it pop up on menus near you.
“Pinsa is definitely a trend,” said Johan Coppens, master baker and culinary/technical adviser for Vandemoortele Europe NV during the recent 2023 International Dairy Deli Bakery Association’s show, per Food Business News. “I see more pinsa being made both here in America and throughout Europe, and that’s because it’s naturally delicious. It’s just water, salt, flour, olive oil, and biga, instead of yeast.”
Fine Dining Lovers notes that the name comes form the Latin term pinsere, which means “dough pushed by hand.” It has been eaten for centuries throughout Rome and Italy at large, but is now beginning to make its mark in the United States. Pinsa is also shaped differently: typically longer and more oval-esque than the perfectly rounded circles of pizza. (If you’ve ever heard of or been to Blaze Pizza, pinsa is much more similar to that sort of shape).  — : Source: Travel On.

For the growing movement of eaters looking to align their values with their plates, what does it mean when you purchase regenerative certified food? And can global certification systems find common ground in their definitions? . . . .
Regenerative Food Certification: Gold Standard or Greenwashing?

Since the resurgence of regenerative agriculture, farming has never been sexier. The star-studded film Kiss the Ground, featuring celebrities Woody Harrelson and Tom Brady, put the movement on the map in 2020, claiming that regenerative farming could be the solution to, not the cause of, climate change, biodiversity loss, and soil erosion.
But what does regenerative agriculture mean? There is still no hard and fast definition despite this excitement and celebrity endorsement. Now, 60 percent of the biggest agribusinesses in the world use the term, all in different ways. It’s official: Regenerative agriculture has been hijacked.
Two organizations want to put an end to the Wild West of claims and prove, through certification, that food labeled regenerative is genuinely the gold standard of sustainability and not just another marketing buzzword.
But it’s not quite that simple. Even these two organizations—Regenerative Organic Certified (ROC) and the Land to Market—can’t agree on what, exactly, regenerative farming means. They have different approaches to certification, according to Peter Newton, associate professor of environmental studies at the University of Colorado Boulder.
“This distinction,” says Newton, “raises interesting implications about how you define regenerative agriculture.”

For some, the term is a step beyond simply organic farming. Elizabeth Whitlow, executive director of Regenerative Organic Alliance, the non-profit that governs ROC, says its new standards came into existence because “organic isn’t enough.”
The certification, funded by the Rodale Institute, Patagonia and Dr Bronner’s, insists on five practices to improve soil health: integrating livestock, keeping the soil covered, minimizing soil disturbance, incorporating diversity and zero chemicals, as well as a soil test every three years. Plus, there are rigorous worker and animal welfare standards, such as paying staff a living wage and ensuring animals can display natural habitats.
“A lot of those principles are missing from the federal organic program,” says Whitlow, who views the social and animal welfare outcomes as just as important as the carbon these practices should, in theory, store.
But she maintains that “organic is still really important,” and that’s why USDA organic standards, food grown without most pesticides and synthetic fertilizers, is the minimum baseline for the ROC certification.
“Doing no-till while using [glyphosate] is not going to regenerate the planet,” says Whitlow, who points to the spectrum of regenerative farmers, some who prefer not to plow but still spray herbicides.

Nut farmer Benina Montes of Burroughs Family Farms in California says she chose to certify her almonds with ROC because of the environmental and economic benefits of ROC’s practices and brand.
“By having some diversity and building soil health, we will be more resilient to drought and major rain,” says Montes. As a result of the ROC standards, livestock now graze the cover crops in the almond orchards, fertilizing the soil with their manure and providing space for beneficial insects.
Plus, the buzz of regenerative farming has provided ample commercial opportunities for Montes and the farm’s almond butter, with contracts with major retailers such as Whole Foods and Amazon.
“It’s all tied together,” says Montes, who sees strong synergies between soil health, staff well-being and profit. Her family farm has been organically certified since 2006, but it only adopted the ROC standards in June 2022.  She is excited to see if the new regenerative organic practices improve soil health, having tested it at the start of the certification process, with planned tests every three years to track progress.
But whether the soil will show changes or indeed lead to ROC’s promised outcomes of “mitigating climate change and restoring communities” has yet to be seen. And the assumption that it will work is a bone of contention for Newton and what distinguishes the two sets of standards.
“What scientists, researchers and also consumers might reasonably ask is, ‘What is the evidence that shows these practices will reliably lead to these outcomes?’” asks Newton.

In contrast to this practice-based certification, the Savory Institute’s Land to Market certification is verified through outcomes. In theory, this means the standard directly measures and rewards a farmer’s tangible progress on carbon storage, biodiversity, soil health and water, but it doesn’t matter what practices a farmer employs to get there.
In the words of Land to Market’s co-CEO, Chris Kerston, “We’re letting the outcomes speak for themselves.”
“Just by removing chemicals doesn’t mean that the land is healing,” says Kerston. “You can feed an animal grass and still overgraze the hell out of the land.”
Land to Market brand certifies land through its third-party Ecological Outcomes Verification (EOV) methodology developed by Savory Institution founder and TED Talk phenomenon Allan Savory more than 20 years ago as a management tool for graziers.
While ROC certifies a wide spectrum of crops, livestock and fibre, Land to Market only covers animal products: meat, dairy and leather.
Land to Market frames its products as coming “from land that is regenerating.” If farmers, through an independent EOV test, show that the ecology—based on soil health, carbon storage, biodiversity and water—is improving, then their land can be certified and they can sell their animals for a premium to brands that increasingly want to reduce the impact of the products, such as EPIC Provisions, Timberland and Applegate.

For livestock farmer and Land to Market certified producer Reuben Hendricks of Cabriejo Ranch, good ecology is good for business. The higher prices he can justify are “just the gravy on top” of focusing on land quality.
“[We] make more money by improving the land management,” says Hendricks. At his ranch, they perform short-term monitoring of data points such as species diversity and the amount of bare soil. The results have impressed Hendricks, too. In a carbon test, the organic matter in the sample has increased from one percent in 2018 to slightly less than five percent in 2023.
“This holds and stores water for longer, increases the fertility of the soil and diversifies plant species, which increases nutrition to the animals,” says Hendricks. It also means “more carbon in the ground.”
Instead of prescribing practices that farmers can or can’t do, Kerston says it’s a “model of continuous improvement,” which is accessible to any farmer, whether they are on degraded land or a top-performing producer, as long as they are improving the state of the land.
Newton suggests this model could be “more open to innovation” than practice-based certifications because an outcome such as carbon sequestration could be achieved through any number of mechanisms.
Meanwhile, Whitlow from ROC maintains that it matters what practices you use to get to the outcome.
“I can load my truck up with coal dust and spread it all over my fields. What’s that going to do to my carbon?” asks Whitlow. “You can totally game the system.”
Kerston, however, insists that bad practices such as using synthetic fertilizer consistently show up in the data. “If you’re using the wrong tools, we’re going to see it in the outcomes.”

But outcomes of the land don’t show the whole picture in a globalized food system. Although feedlots are banned, Land to Market doesn’t yet monitor animal feed. This means that a farmer’s land could be verified to be regenerative, but they could still feed their animals soy and corn sprayed with chemicals from deforested sources.
That’s why the product itself is not regenerative, only the land on which the animal is raised.
The Land to Market community is growing at an impressive rate, with five million acres and 1,152 farms being monitored through EOV and “doubling every six months,” according to Kerston.
ROC currently certifies more than one million acres of land globally, 142 certified farms and nearly 50,000 smallholders (farms between one and four acres) but is limited because producers have to be organic certified first, a process that takes three years. During this transition period, farmers have to adhere to organic regulations without benefiting from the price premium. There are currently 8.3 million acres of organic certified land in the US.
Newton highlights that exclusivity isn’t necessarily a bad thing. “Certification programs encourage the high-performing producers to push the boundaries of what’s possible.”
“The role of government and regulation can be to push up the bottom,” says Newton.
Ultimately, the aim for these certifiers is for all farming to be regenerative. But for the government, brands and consumers to support it, they need to know what that means first. While questions remain around who gets to define regenerative agriculture, at least there are two clear criteria and definitions. That much is a start.  –: Source: Modern Farmer/Jack Thompson.

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