To Our Valued Subscribers:

Well, here we are in June. Was it just me, or was this years Memorial Day unlike any other? On behalf of myself and all of us at American Recruiters we want to THANK and REMEMBER all those (and their families) that have made the ultimate sacrifice to allow us the freedoms we have. We also want to THANK those Currently serving and All who have served defending our country. We are forever in your debt. I think another reason this year’s celebration was different is, I usually celebrate having just seen so many colleagues, friends and associates during the “Big Show” here in Chicago. I really missed the face to face interaction and the industry comradery during this time. Oh Well, hopefully. by this time next year, we will all be able to share our survival stories. I for one am looking forward to 2021. I hope you all read my letter announcing American Recruiters newest opportunity for your company, American Recruiters Outplacement Gateway Services. American Recruiters is committed to assisting you during these difficult times and as States reopen, we have several COST SAVING concepts that can really benefit your firm in the process. If you have not contacted me or any of my Associates regrading our Outplacement Gateway Service , contact us Now. There are certain benefits which have time restraints, that if you want to receive, you must Act now. It will be well worth a call. I know that this has been a difficult period for all of us in the industry, according to the May 22 Hotel & Lodging Smart Brief, travel related Hospitality Unemployment rate has hit 50%. This is even worse that the great depression. There are brighter days ahead; however, recovery will be slow. That’s another reason why me and my Associates can help you in securing the full time or contract talent you will need to get back to capacity. While you are getting ready to dial us regarding our New Gateway Service, enjoy the latest edition of American Recruiters Global Foodservice News. It won’t have the usual “Big Show Recap” but it will keep you informed on our Industry’s current updates. Stay Safe and Good Luck!!

Craig Wilson

President

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Popeyes and its Chicken Sandwich are Still Soaring

Popeyes took a slight dip in the second half of March, as sales ran flat, year-over-year. But the COVID-19-fueled slowdown didn’t last. The brand’s wildly popular chicken sandwich proved to be pandemic proof. Parent company Restaurant Brands International revealed in a securities filing Thursday that the chicken chain’s comparable sales jumped into the “positive low-40s” from the end of March to the third full week of May. To illustrate just how brief the lull was for, Popeyes still reported comps growth of 26.2 percent in Q1—a three-month period that ended March 31. The chicken sandwich debuted in August and promptly led to comps hikes of 10.2 percent and 37.9 percent in Q3 and Q4 of fiscal 2019, respectively. Until results start to lap each other next year, expect to see similar robust performance, crisis or not. In terms of COVID-19 trends, Popeyes’ surge is also likely buoyed by a heavy drive-thru footprint and lack of breakfast service— a daypart that has struggled mightily in recent weeks as daily work routines get tossed aside. The same can’t be said for Tim Hortons and Burger King, RBI’s other, larger concepts. The company said Tim Hortons’ Canada same-store sales were trending in “negative mid-20s” up from the “negative mid-40s” in the second half of March. Burger King’s U.S. comps were running in “negative mid-single digits” up from “negative low-30s.” “We are encouraged by the continued sales improvement in our home markets for Burger King, Tim Hortons and Popeyes,” RBI CEO Jose Cil said in a statement. “All three of our brands have benefitted from guests who have increased their usage of our thousands of drive thrus across North America as a safe, quick and convenient option to feed themselves and their families” RBI said “substantially” all of its restaurants in home markets were open. In Europe, the Middle East, and Africa, roughly 60 percent of the company’s restaurants are running. It’s north of 85 percent in the Asia Pacific, including 98 percent of RBI’s China locations—up from about 50 percent at the peak of the crisis. In Latin America, about half of RBI’s stores are operational. For reporting purposes, the company is not including restaurants “closed for a significant portion of a month” in its comps base. RBI said “many” of its restaurants continue to operate with limited-service models. However, it’s in the process “of fully reopening restaurants where appropriate with extensive safety precautions and in accordance with local and government guidance.” “We expect to continue our reopening process very carefully and with guest and team member safety as our top priority,” the company added. Cil noted RBI rapidly accelerated its digital platforms in recent months and witnessed significant growth in home delivery. “We have seen growth in our average order value, driven by group orders and family bundles that our guests are recognizing as both convenient and affordable,” he said. “And I am very proud of our teams that have widely communicated all of the efforts we are undertaking to work with our restaurant owners, protect their team members and ultimately ensure a safe and welcoming environment at all our restaurants as we have remained open to serve our guests and now begin to reopen dine-in options as well.” Burger King’s U.S. same-store sales declined 6.5 percent in Q1, while Tim Hortons’ global figure dropped 10.3 percent. The two brands closed 2019 with Q4 results of 0.6 percent and negative 4.3 percent, respectively. – Source: QSR.

Papa John’s Continues to Reach Unprecedented Sales

Papa John’s North American same-store sales skyrocketed 33.5 percent in May, eclipsing a company record it just set in April. The figure is more than four times higher than what the company captured in January and more than six times higher than what it reached in February. The pizza chain is coming off a month in which North American restaurants systemwide grew 27 percent, domestic company-run units rose 22 percent and North American franchises lifted 28.4 percent. Not only did the systemwide numbers increase to 33.5 percent from April 27 to May 24, but U.S. company stores soared to 28.3 percent and U.S. franchises grew to 35.1 percent. International stores went from 1.4 percent in April to 7 percent in May. Papa John’s has proven to be a much different company than it was last year. In Q2 2019, systemwide North American restaurants saw a 5.7 percent drop in sales—a far cry from what the pizza chain will report later in August during its earnings call. “Our teams continue to meet the needs of new and returning customers and their communities, while making health and safety our top priority,” said CEO Rob Lynch in a statement. “We entered the pandemic with strong growth and momentum, and are fortunate that our delivery and carry-out model has enabled us to meet an essential need for high quality food, safely delivered to consumers’ homes. Everyone at Papa John’s takes this responsibility seriously, and is committed to supporting our neighbors in their time of need.” About 320 of the brand’s 2,100 international franchised stores are temporarily closed due to government mandates—120 in the Middle East, 105 in Latin America, and 90 in Europe. Some of those markets are open mostly for delivery only, like in the U.K. Excluding these closures, comp sales at international units would have grown 12 percent in April and 15 percent in May. In North America, virtually all traditional locations remain open while a handful of nontraditional spots—like in universities and stadiums—are temporarily closed. Throughout the pandemic, Papa John’s launched contactless delivery and hired thousands of workers to meet an increase in demand, which appears to still be growing. “As states and communities slowly reopen, we continue to show strong performance,” Lynch said. “The success of ‘No Contact Delivery’ and new products like Papadias—both examples of a new culture of innovation at Papa John’s—continue to drive results. We wish for a speedy recovery and return to normal, and are optimistic about Papa John’s long-term future given the strong foundation that we have continued to build during these challenging times.” – Source: QSR.

Home Delivery Slowly Driving Tim Hortons’ Sales in the Right Direction

A major expansion of home delivery is helping Tim Hortons slowly inch its way out of a months-long sales slump. Tim Hortons’ parent Restaurant Brands International Inc. on Thursday reported that the coffee chain’s comparable sales are now showing declines of around 25 per cent, an improvement on the early days of the pandemic. The focus on “comparable sales” is common for major retail chains since the metric excludes newly opened stores to make for a clearer year-over-year comparison. Tim Hortons’ comparable sales were already in decline in recent, pre-pandemic quarters, but they sank even further in late March, hovering around “the negative mid-forties.” In April, comparable sales dropped in the 30-per-cent range, and Thursday’s update from RBI showed more progress, with declines now trending in the “negative mid-twenties” as of the third week in May. – Source: Financial Post, Canada.

‘In Sprinkles We Trust,’ one Slogan Suggests with Levity, Months before the Presidential Election

Dunkin’ is getting into the electoral spirit more than five months ahead of the U.S. presidential election with a campaign that turns selecting a favorite donut into a bit of a patriotic play. Dunkin’ is celebrating National Donut Day by introducing the six candidates in the Donut Party. “This year, for obvious reasons, we thought it would be fun to play into the election,” says Drayton Martin, VP of brand stewardship at Dunkin’. While brands may still be debating whether to play on political themes as the Nov. 3 general election looms, Dunkin’ is out with its election-themed campaign, which will only run through early June. Meanwhile, there is some more consequential voting set to occur, with primaries scheduled for June 2 in Indiana, Iowa, Maryland, Montana, New Mexico, Pennsylvania, Rhode Island, South Dakota and the District of Columbia. Dunkin’s effort, to be clear, is separate from any of the campaigning taking place in those races. Still, there are clear nods at real political races, including a 15-second spot that spoofs candidate debates. The two candidates—or as Dunkin’ calls them, canDOUGHdates—with speaking roles in the spot are chocolate frosted with sprinkles and glazed, who are two of the three female candidate characters. Dunkin’ insists it isn’t getting political. “We don’t pick sides, we’re on your side,” says Martin. The campaign idea came from Jones Knowles Ritchie. Arc Worlwide, also worked on the effort.  – Source: AdAge.

CDC Updates Guidelines for Restaurants

The new directives stress the importance of social distancing. “The more an individual interacts with others, and the longer that interaction, the higher the risk of COVID-19 spread,” the CDC said, noting that the lowest risk is in restaurants that only offer drive-thru, delivery, takeout and curbside pickup. Operators should designate one staff person each shift to be responsible for responding for COVID-19 concerns. Employees should notify the establishment’s contact if they have symptoms of or tested positive for COVID-19, or if they were exposed to someone with COVID-19 in the past two weeks. Restaurant layouts should be modified to allow for at least six-foot social distancing by marking tables that are not in use. Physical guides, such as tape on floors or sidewalks and signage, should also be used. Crowds should be discouraged through the use of phone apps, text technology, or signs to alert patrons when their table is ready. Buzzers and other shared objects should not be used, and self-serve food and drink options such as buffets, salad bars and drink stations should be avoided. The CDC also encouraged operators to consider options for dine-in customers to order ahead of time to limit the amount of time in the establishment. Physical barriers like sneeze guards and partitions should be used in areas where six-foot social distancing is difficult. This includes kitchens, cash registers, host stands and food pickup areas. Shared spaces, like break rooms, should be closed or their usage staggered. Restaurants also should offer options for employees who are at a higher risk for severe illness from COVID-19 to limit their risk of exposure. Potential options include jobs with limited person-to-person contact, such as inventory management or administrative work. All employees should be discouraged from using public transit when possible, and all staff should be provided with cloth face coverings such as masks. Operators also should supply adequate hand sanitizer with at least 60% alcohol, on every table if possible. The CDC provided links to signs, which it recommends posting in highly visible areas such as entrances and restrooms. The signs offer information on protection measures, including handwashing and how to effectively use face coverings. Single-use menus, condiments and food containers are encouraged along with disposable utensils, dishes, napkins and tablecloths. If that is not possible, operators should ensure employees handle those items with gloves. Containers and utensils brought in by customers should not be used. Contact-free payment options should be encouraged, and cash and cards should be placed on a tray or other surface rather than hand-to-hand contact. Operators should ensure ventilation systems operate properly and increase circulation of outdoor air as much as possible by opening windows and doors and prioritizing outdoor seating, the CDC said. – Source: Food Business News.

FDA Grants Flexibility for Food Labeling Requirements

The Food and Drug Administration is allowing temporary flexibility in food labeling requirements for manufacturers experiencing difficulty sourcing some ingredients during the COVID-19 pandemic. “Our goal is to provide regulatory flexibility, where fitting, to help minimize the impact of supply chain disruptions associated with the current COVID-19 pandemic on product availability,” the agency said. Changes should be consistent with several factors: Safety: The ingredient being substituted for the labeled ingredient does not cause any adverse health effect, including food allergens, gluten, sulfites or other ingredients known to cause sensitivities in some people;

Quantity: Generally present at 2% or less by weight of the finished food;

Prominence: The ingredient being substituted or omitted for the labeled ingredient is not a major ingredient (for example, replacing rice flour with wheat flour in a muffin) or an ingredient that is the subject of a label statement (for example, butter in a cookie with a ‘made with real butter’ claim);

Characterizing or ingredient in name: The ingredient being omitted or substituted for the labeled ingredient is not a characterizing ingredient (for example, omitting raisin in a raisin bread), where the presence of the ingredient has a material bearing on consumer purchasing;

Claims: An omission or substitution of the ingredient does not affect any voluntary nutrient content or health claims on the label; and

Nutrition/function: An omission or substitution of the labeled ingredient does not have a significant impact on the finished product, including nutritional differences or functionality.

Examples of permissible formulation changes include reducing or omitting a vegetable, like green peppers, from a vegetable quiche that contains small amount of multiple vegetables, replacing bleached flour with unbleached flour, substituting canola oil for sunflower oil, or substituting malic and citric acid for one another. Other examples include substituting an artificial raspberry flavor for an artificial berry flavor, using colors that are not subject to certification in place of certified colors, or using different varieties of the same ingredient. The FDA also lifted some front-of-package calorie information requirements for vending machine operators. – Source: Food Business News.

Strong Takeout Sales Push Chili’s into Delivery

Concerns over profitability and food quality for years kept the restaurant from expanding into delivery. This summer, however, Brinker announced it will offer the service nationwide through an exclusive deal with third-party platform DoorDash. Sales in the fourth quarter ended June 26 increased 2% to $701.9 million from $688.2 million in the same period last year, driven by strong comparable restaurant sales, which were bolstered by an increase in to go sales. “Through our e-commerce platform, guests can order Chili’s takeout easier and faster than anyone else in the category,” said Wyman T. Roberts, chief executive officer and president of Brinker International, during an Aug. 13 call with analysts. “And that technology has supported growth of our takeout business in the solid teens throughout fiscal ‘19.” Value proposition and improved operational execution also are points of focus for the company. Chili’s launched its 3 for $10 offer this year. Mr. Roberts said the offer is more flexible than the previous 2 for $20 deal and easier for operators to execute consistently. The platform, which allows customers to choose a non-alcoholic beverage, an appetizer and an entree for $10, works well across both dayparts. “It is an offer that works well for both dining in and to-go,” added Joseph G. Taylor, senior vice-president and chief financial officer at Brinker International. “It’s helping drive both of those businesses. As we see more and more commentary around the off-premise preferences of our guests, having a value platform that plays well on that side of the equation is playing right into the strengths of where we see the consumer going.” The 3 for $10 offer will not be available through Chili’s delivery service, which will appeal to a different, less value-driven customer, said Mr. Roberts. “The to-go customer has a higher preference for value, which I think basically equates the fact that if I’m a value-oriented guest looking for that strong of an offer, there’s probably some willingness to get it on a to-go basis,” he said. “I think playing to delivery is probably playing to a less value-oriented customer, which we have significant numbers of. I think there’s a lot of responsiveness to the ability to get that from a delivery and less sensitivity to some of those charges that go with it.” For the fiscal year ended June 26, net income at Brinker was $154.9 million, equal to $3.96 per share on the common stock, up 19% from $125.9 million, or $2.72 per share, last year. Revenues totaled $3,217,900,000, up from $3,135,400,000. Fourth-quarter net income was $46.7 million, or $1.22 per share, up 6% from $43.8 million, or $1.01 per share, in the same period last year. Total revenues of $834.1 million were up 2% from $817.1 million. – Source: Food Business News.

Denny’s Franchisee Feast American Diners Closes 15 Restaurants in New York

The impact of the coronavirus pandemic has led a Denny’s franchisee in New York to close 15 restaurants in the central and Finger Lakes areas of the state. The franchisee, Feast American Diners LLC, filed Worker Adjustment and Retraining Notifications, or WARN notices, for 15 restaurant closures, citing “unforeseeable business circumstances prompted by COVID-19. “Due to the severe financial environment caused by the COVID-19 pandemic, our franchisee in this area has regrettably decided to close these locations,” a Denny’s spokesperson said Tuesday in an emailed statement. “Denny’s has been working with its franchise owners to assist in helping them through this crisis, but the final decision to close is in the hands of each franchise business owner and their particular circumstances,” the spokesperson for the Spartanburg, S.C.-based family-dining brand said. In an earnings call earlier in May, John Miller, Denny’s CEO, said the company had been working with franchisees, securing rent relief, deferring remodels and extending royalty and advertising abatements.  “Most of our franchisees are small, locally owned businesses that have actually felt the economic burden of this crisis that’s been caused,” Miller said at the time. “In fact, over 70% of our franchisees operate five or fewer restaurants and we still have 80 franchisees operating a single restaurant.” During the May 15 earnings call, Miller noted that 82% of domestic franchise restaurants had received funding under the Paycheck Protection Program and another 7% had been approved and were awaiting funding. In several WARN notices filed last week Feast American Diners said it was permanently closing units in the communities of Auburn, Camillus, Canandaigua, Cicero, Geneseo, Geneva, Horseheads, Painted Post, Rochester, Syracuse and Watertown. The locations were first outlined in a report at Business Insider. For the first ended March 25, Denny’s net income was $9 million, or 16 cents a share, down from $15.5 million, or 24 cents a share, in the same period last year. Revenues fell to $96.7 million from $151.4 million in the prior-year quarter. As of March 25, Denny’s had 1,695 franchised, licensed and company restaurants around the world including 147 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, the United Kingdom, El Salvador, Indonesia and Aruba. – Source: NRN.

Bankrupt FoodFirst Global Agrees to $30 Million Deal with GP Investments, Owner of Planet Hollywood

Bankrupt FoodFirst Global Restaurants is seeking approval to sell at least 45 of its stores to GPEE Lender in the form of a $25 million credit bid, $50,000 in cash, and $4.5 million in assumed liabilities. GPEE is an entity formed by GP Investments, the ultimate owner of FoodFirst, and Earl Enterprises, which owns and operates more than 200 locations under brands like Planet Hollywood, Bucca di Beppo, Bertucci’s, and Earl of Sandwich. FoodFirst oversees Brio Tuscan Grille, which was renamed Brio Italian Mediterranean, and Bravo Cucina Italiana, which was renamed Bravo Fresh Italian. Brio is classified as an upscale casual-dining brand while Bravo is defined as a core casual-dining restaurant. When FoodFirst filed bankruptcy on April 10, it had nearly 100 units in the U.S., but only 21 were in operation due to the COVID-19 pandemic. Government-mandated closures led to 6,000 furloughs. Since then, the company has reopened seven more units. Fifty-three units are still under lease. According to court documents, FoodFirst started negotiations with Earl Enterprises shortly before filing bankruptcy. The two sides preliminarily agreed to a management agreement and debtor-in-possession loan with the assumption that a sale would have to go through a Chapter 11 bankruptcy proceeding. While FoodFirst sought court approval of the management agreement and DIP loan during bankruptcy proceedings, two other parties showed interested. The restaurant created a data room for all interested parties with the understanding that whichever party was chosen as the manager and lender under the DIP loan would likely purchase the assets. When GPEE was approved to extend the DIP loan, the other parties dropped out of the running. After the bankruptcy filing, PHL Holdings, an entity jointly owned by GP Investments and Earl Enterprises, purchased $30 million in prepetition secured debt from two of FoodFirst’s lenders. GPEE can credit bid up to $40 million, but the filing stated that “it is highly unlikely that any other potential buyers will submit an offer approaching, let alone exceeding, the amount of the Purchaser’s offer.” When FoodFirst took the reins in 2018, Bravo and Brio operated a combined 110 locations in 32 states and had sales in excess of $400 million in 2017 with around 10,000 employees. As part of the changes, headquarters moved from Columbus, Ohio, to Orlando, Florida, and new Italian Mediterranean menus were implemented. The changes did not have the intended effect as sales dropped to $307 million in 2019. According to court documents, customer satisfaction increased, but labor costs, employee turnover, and a large number of underperforming restaurants sank sales volume and profitability. CEO Steve Layt, a former Pizza Hut executive, took over in late January to lead a turnaround, but the COVID-19 pandemic exacerbated FoodFirst’s struggles. FoodFirst is the latest in a string of companies that have been recently bought out of bankruptcy. Belgian bakery chain Le Pain Quotidien agreed to sell its U.S. assets to restaurant operator Aurify Brands for $3 million  Southern fast-food chain Krystal agreed to a nearly $50 million offer from Fortress Investment Group. A week later, Fortress agreed to purchase Craftworks Holdings, parent of Logan’s Roadhouse and Old Chicago, for $93 million after originally offering $138 million. – Source: fsrmagazine.

5 Factors That Can Affect Your Restaurant’s Reopening

An inability to reopen at 100 percent capacity may not even be worth it for some dining establishments. Some states across the country have reopened their dining rooms and bars to various degrees while others are still waiting for relaxed guidelines from their state. But while restaurant operators and staff members might be looking forward to the reopening of the industry, everyone involved should keep in mind that things will likely never go back to the way they were prior to COVID-19. Even if a city or state gives the go-ahead to reopen dining establishments, continued social distancing guidelines and the cost of heightened sanitation and personal protective equipment (PPE) will determine just how profitable they can be. For this reason, restaurant operators need to be strategic when it comes to their reopening strategies. Here are five things restaurant operators should keep in mind as they consider reopening their establishments.

Restaurants may not open at full capacity based on local guidelines.

Continued social distancing guidelines will have a direct impact on restaurant re-openings. Local and state ordinances might impose reopening phases that, for example, only allow restaurants to open seating at 50 percent or even as low as 25 percent capacity and keep the restaurant bar closed in order to ensure that customers can follow social distancing guidelines. What’s more is that restaurants may not have enough of a customer base to reopen at 100 percent. The general population might be eager to return to the status quo; however, continued fears over COVID-19 infection will likely prevent many customers from dining in. Instead, customers might opt to continue taking advantage of takeout and delivery options. Restaurant operators need to check the guidelines in their areas and get a feel for customer demand to make sure they are prepared to comply with social distancing rules and budget for menu and labor costs accordingly.

An open restaurant could signal the end of rent concessions.

Restaurant operators who benefitted from rent concessions while their establishments were closed may no longer enjoy that option if they reopen. Landlords might consider any open restaurant fair game for rent payment, even if the restaurant has reopened at a lower capacity and is generating less revenue. For this reason, restaurant owners should be prepared to pay the full cost of rent even if they are not generating the same amount of revenue as before COVID-19 due to limited capacity or decreased customer demand.

Operators might need to shift employee schedules in order to limit contact.

In addition to taking measures to protect customers, restaurant operators must also take steps to protect their employees. For this reason, restaurants might consider splitting their employees into groups in order to prevent the spread of infection. If there are two groups, for example, one group can work Monday through Wednesday and the other can work Thursday through Sunday. The two groups can switch days the following week in order to ensure everyone has equal access to the same amount of hours and pay. Grouping employees together will also limit their collective exposure to other staff members.

Restaurant operators should market their re-openings very carefully if they are unprepared for a flood of business. 

While everyone in the restaurant industry is eager to make money again, operators should consider their markets and determine whether they are truly ready for a large amount of business, or whether a lower demand will even justify reopening costs. To that end, restaurant operators should carefully determine how to advertise their reopenings. They can do soft openings and simply open their doors on a Monday without any fanfare or, if they are eager to conquer large crowds, including the weekend rush, they can launch social media campaigns around their reopenings. Either way, operators should keep their staff members in the loop and be prepared for a variety of scenarios.

Contactless experiences are here to stay.

People have learned a lot these past few months about infectious diseases and how easily they can spread, which is why restaurant operators will need to do everything they can to limit physical contact at their establishments. Kiosks, for example, are a relatively new addition to the restaurant scene, but since they still require physical contact they might be made obsolete by COVID-19. Instead, restaurants may consider incorporating apps that customers can use on their own devices to request and pay for their meals. Operators can also make sure bathroom doors are easy to open and close with minimal effort. Restaurant operators will need to make visible efforts to keep physical contact to a minimum and implement sanitation tracking to show customers the measures they are taking to protect everyone in their restaurant.

COVID-19 has prompted many changes within the restaurant industry and will continue to do so over the next few months at the very least. Restaurant brands and operators will need to embrace change with open arms if they want their businesses to thrive. By making adjustments to ensure customer and employee safety and checking the demand in their markets, restaurant operators can have a safe reopening experience. – Source: fsrmagazine/Jim Balis.

Hubworks Offering HACCP Compliance Software Free to Restaurants

As a response to the current hardship faced by the restaurant industry Hubworks, powered by Altametrics, is now offering their HACCP compliance software, Zip HACCP, free to all restaurants for life. This decision came as a result of Altametrics seeking a way to give back to the community that supports the company. As restaurants continue to find innovative new ways to adapt to the pandemic-induced disruptions to the economy, Hubworks seeks to deliver a practical solution to help restaurants ensure they are meeting food safety and cleanliness regulations. Though the program’s primary purpose is to ensure restaurants are HACCP compliant, restaurateurs will find that the application is full of valuable information. Zip HACCP allows managers to assign tasks to individual employees, create checklists with assigned deadlines, enable employees to reference training documents from a cloud-based library, and enables managers to receive notifications if a job is left incomplete. The application also allows managers to require photographic evidence that an employee has completed a task, and because it’s a cloud-based program, updates are in real-time. Zip HACCP empowers managers to make informed business decisions by allowing them to track trends in the restaurants with trend reports so they can pin-point critical areas that need more attention. Altametrics’ primary focus is to contribute to the restaurant community by empowering their operations so they can thrive beyond the current circumstances. Altametrics’ CEO and employees are committed to helping those who provide service to others by offering advanced back-office software solutions. Any interested restaurants should contact the sales team at sales@altametrics.com or 1-800-676-1281. – Source: fsrmagazine.

John Fuller, a former Johnny Rockets CEO, Joins the Company Owned by the Wahlberg Brothers

The new CEO of the Wahlburgers restaurant chain isn’t letting the pandemic get in the way of ambitious expansion plans. As John Fuller researched the company before interviewing for the CEO job at the Hingham-based group, he was surprised to learn it only had 37 locations, given its widespread name recognition. There’s a good reason for that brand awareness: Wahlburgers is owned by the celebrity Wahlberg brothers Mark and Donnie, alongside their brother, Paul, a chef who became a celebrity in his own right, thanks in part to the A&E series about the company. The show ended after 10 seasons last year, but Fuller still hopes to capitalize on all the related publicity. Fuller, who became the Wahlburgers president and CEO earlier this month, said he envisions growing the business to 300 locations within five years, including as many as 30 corporate-managed restaurants. The split today is 31 franchise restaurants and six corporate ones. It has been a slow but steady rise since the brothers launched the concept in 2011, starting with the Hingham spot; one particularly large franchising deal to expand in Asia, announced in 2017, has since fallen through. – Source: The Boston Globe.

U.S. Arm of Le Pain Quotidien Files Bankruptcy, Agrees to Sell Units to Aurify Brands LLC

The parent of Le Pain Quotidien agreed to sell its U.S. locations of the bakery-cafe chain to New York-based multiconcept operator Aurify Brands LLC for about $3 million. The agreement came as PQ New York Inc., operator of 98 Le Pain Quotidien restaurants across the U.S. before the pandemic, filed for Chapter 11 reorganization. As part of the filing, PQ NY requested approval for the asset purchase agreement with Aurify, which has committed to provide the cash portion of the purchase price upfront in the form of debtor-in-possession financing. The agreement is subject to court approval. Belgium-based Le Pain Quotidien was struggling even before the pandemic, moving recently to spin off both its American and British subsidiaries to avoid liquidation. At its peak, the chain operated nearly 300 units worldwide. According to The Brussels Times, the British operation of the chain has been unable to find a buyer and has gone into administration, which in Europe means the company is under management of an administrator as it works out protection from creditors. Remaining in Belgium is a holding company, renamed Brunchoco21, will include Le Pain Quotidien Belgium and France, with a production facility, branding rights and contracts for the American and British operations. Majority ownership will be held by investment firm M80, which reportedly has plans to relaunch the brand in Europe. In the U.S., PQ NY blamed a sales decline in recent years on increased competition, a lack of investment in digital platforms and a consumer movement toward more convenient grab-and-go concepts. The pandemic-related shutdown became a last-straw event for the chain, forcing it to close all 98 domestic locations — including restaurants in New York, Connecticut, California, Philadelphia, Washington, D.C., Virginia, Chicago and Miami — and lay off about 2,500 employees. Aurify Brands operates several original concepts, including Melt Shop, The Little Beet and Fields Good Chicken, and manages New York franchised locations of Five Guys Burgers and Fries. If the deal is approved, Aurify plans to reopen at least 35 Le Pain Quotidien units, creating about 1,000 jobs and potentially rehiring former workers, the company said. Presumably the remaining 63 locations would remain closed permanently, unless Aurify decides to reopen more of the Le Pain Quotidien units. Andy Stern, Aurify’s co-CEO, declined to comment on the agreement, beyond court filings. Under the deal, Aurify will provide $522,000 in bridge financing to continue the restructuring process as part of the acquisition of assets for $3 million, plus the assumption of certain liabilities. Aurify will also assume the franchising rights to the brand in the U.S. – Source: nrn.

McDonald’s to Reopen 975 more UK Branches for Drive-Through or Delivery

The news means every drive-through restaurant in the UK and Ireland will reopen between Tuesday and Thursday next week. Customers face a £25 cap on their orders, while each franchise has been asked to make sure its staff are fit and able to work. A McDonald’s spokesperson said: “We can today announce that by 4th June, 1019 of our restaurants will have reopened, either for Drive Thru or McDelivery. “This means every Drive Thru in the UK and Ireland will reopen between Tuesday and Thursday next week and we will start to expand the availability of McDelivery too.” The spokesperson said this move was “only possible following the hard work of the teams in our 44 pilot restaurants”. “Over the last fortnight, our employees, franchisees and suppliers have worked tirelessly to implement new procedures to enable safe working so that we can now help all parts of the UK and Ireland to enjoy the return of the Big Mac,” they stated. The McDonald’s spokesperson added that the fast food chain still has fewer employers working in its kitchens and service areas. “Our teams will still need your patience and support as they continue to adjust to the new ways of working,” they said. McDonald’s stated that 924 restaurants are due to be reopened between Tuesday 2 June and Thursday 4 June for drive-through only, with 51 restaurants being opened for delivery only. “Our teams are adjusting to new safety and hygiene procedures, which will help them to work safely and social distance; we appreciate your continued patience,” the restaurant said. “We are delighted to be returning to communities across the UK and Ireland, but it will look different and will take a little longer. Please bear with us.” The fast food chain will confirm the locations of the reopening restaurants on its website and social media channels on the morning of Tuesday 2 June. – Source: The Independent, London.

Launches of LTOs and New Menu Items Accelerate

As restaurants reopen across the country, operators are tempting consumers with new menu items and limited time offers. Some chains did release LTOs during the quarantine, but most of those products were in the pipeline before the spread of COVID-19. Now that chefs and menu developers are back in the kitchen, the pace of launches is accelerating. Here are five innovative items that tap into current trends. Two operators introduced new riffs on the ever-popular chicken sandwich.

Einstein Bros. Bagels debuted the French Toast Chicken Egg Sandwich that can satisfy both breakfast and lunch meal occasions. The limited-time option features eggs, crispy chicken, cheddar cheese and a honey-almond shmear on a French toast bagel.

Golden Chick announced the addition of its first-ever chicken breast sandwich, The Big & Golden. The sandwich is composed of a 5-ounce hand-breaded, deep-fried chicken breast layered with pickles and the chain’s signature Lotta Zing sauce on a house-baked sandwich bun. Golden Chick had been dropping hints about the launch on digital billboards around the Dallas area, and this week, it’s on the menu at all 190 locations.

The bowl trend continues strong, and Cava is capitalizing on it with its new Lamb Nacho Bowl. Lamb is not a typical protein on a fast-casual menu, but it’s a natural with Cava’s focus on Mediterranean food. The bowl features braised lamb, brown rice, super greens, harissa, pita crisps, feta cheese and pickled onions. Skhug, the spicy green condiment from the Mediterranean region, and harissa yogurt add another layer of flavor.

Pei Wei is also going for the heat with the introduction of its Spicy Thai Basil Cashew Chicken. The dish includes chicken breast, red bell peppers, onions, snap peas, garlic, Thai basil and cashews tossed in a spicy hoisin sauce. Family meals have skyrocketed on menus to appeal to households sheltering in place. With large gatherings still on hold, chains continue to put together these packages for small group and family dinners at home. The Habit Burger Grill is differentiating its new offering by calling it a Variety Meal “that satisfies everyone in the family.” The $30 deal includes an assortment of fan favorites: Two burgers with cheese, two chargrilled chicken sandwiches, two sides each of french fries and onion rings and an entree-size garden salad. Source: Restaurant Business.

What Covid-19 Social Distancing Measures Will Mean for Restaurant Dining Room Design

As restaurants tiptoe towards reopening, it’s clear that it will be a very different dining experience in the aftermath of the pandemic. The intimate, cheek-to-cheek conviviality of the 30-seat neighborhood joint, assuming that it is one of the fortunate few that reopens, may be a fond memory rather than a reality. Larger chain restaurants with sprawling footprints may have more options, with corporate support and more physical space to distance, although they, too, will not remain unscathed with a predicted 12 to 17 per cent decrease in sales this year. At a time when so many operators are in dire straits, let alone much of America, it is difficult to discern what the restaurant of the future will look like. As consumers have spent months relying on their own cooking and takeout/delivery options to eat in their own homes, experts are torn as to whether these habits will drive increased restaurant visits or whether people will continue to feast from their own couches in front of the television.

According to research firm Technomic, consumers are more willing to adhere to some social distancing measures than others. In a survey done in mid-May, potential diners were asked how far tables would need to be in order to feel comfortable eating out in a restaurant, and although half of the respondents said that the CDC-recommended six feet would suffice, a further 25 per cent said that they would prefer nine to 15 feet between tables. These findings fall in line with the National Restaurant Association’s recommendations to foodservice establishments, which suggests relying on a reservations-only model or a call ahead seating method. In pre-pandemic times, however, these measures would have been anathema to many smaller restaurants that, due to no-shows causing chaos on bottom lines, had been gradually moving away from traditional reservations. Furthermore, in terms of restaurant design of the front of house, each seat represents hundreds, if not thousands of dollars a year depending on the style of restaurant (which partially accounts for the tightness of the restaurant kitchen space, comparatively). Washington Post food critic Tom Sietsma took a tape measure to some area restaurants in 2017, finding some with a mere eight inches between them. Only the high end restaurants that Sietsema visited measured up in terms of space — and that was a relatively spacious four to five feet at the time. According to a sample floor plan by TouchBistro, the average full service restaurant requires 12 to 15 feet per customer; however, a dining room must also include service stations for cutlery and POS stations, a host area, a waiting room, and enough room between tables for servers and customers to navigate, often with bulky coats or trays of dishes and glasses.

These elements take up considerable space: for example, according to TotalFood Service, small wait stations range from 6 to 10 feet per 20 diners, or 25 to 40 feet for 60 diners. For restaurants post-pandemic, these measures don’t just mean shoving a few seats around — operators will have to consider considerable design changes in their dining rooms. Although much attention has been paid to the idea of physical barriers (more on that topic in a later article), there are other areas that will need to be rethought.  “Try not to allow guests to congregate in waiting areas or bar areas,” reads the National Restaurant Association’s reopening guide. “Design a process to ensure guests stay separate while waiting to be seated. The process can include floor markings, outdoor distancing, waiting in cars, etc. Consider an exit from the facility separate from the entrance. Determine ingress/egress to and from restrooms to establish paths that mitigate proximity for guests and staff.” These marking recommendations also include tape on floors or sidewalks to guide customers through the restaurant space, and prominent signage asking diners about waiting protocols. And although the mind boggles at these measures in the gilded dining rooms of Joël Robuchon or Per Se, they may represent a necessary trade-off between safety and aesthetic in our future restaurant visits. – Source: Forbes.

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