The Middleby Corporation announced the acquisition of Imperial Commercial Cooking Equipment . . . .

Middleby Acquires Imperial Commercial Cooking Equipment

Based in Corona, Calif., the company manufactures ranges, fryers, ovens, countertop equipment, and other specialty cooking products for the commercial kitchen. Imperial has annual revenues of approximately $40 million. “Imperial is a leading, highly-respected commercial foodservice brand with products that complement the existing Middleby core cooking category. While we are enhancing our current brand portfolio, this acquisition also expands our west coast footprint and allows us to provide broader capabilities and support to our domestic customers,” said Tim FitzGerald, Middleby CEO. “We are excited to realize the many synergies between the companies. Imperial has impressive manufacturing capabilities, which will provide the potential for greater efficiencies and flexibility to our commercial foodservice platform. Working with our long-standing international distribution partners, Imperial has a prime opportunity to expand its global reach. Imperial also has an established presence in the quickly growing fast-casual chain restaurant segment, which will be a benefit to the Middleby brands as well.” Mr. FitzGerald commented. Since its inception in 1957, the Imperial mission has been to be the preferred global supplier of high-quality, top-value cooking equipment to the foodservice industry. – Source: The Middleby Corporation.

NBA great’s sandwich brand rolls out broadly, including virtual outlets in Walmart to outlets on cruise ships and in arenas . . . .

Shaquille O’Neal’s Big Chicken Begins Franchising in a Big Way

NBA great’s sandwich brand rolls out broadly, including virtual outlets in Walmart to outlets on cruise ships and in arenas. Big Chicken, with the creative and financial backing of Shaquille O’Neal, is starting to cast a franchise-concept shadow as long as the basketball great’s 7-foot-1 frame. The Las Vegas, Nev.-based brand, with three stand-alone locations, has a wide range of deals, from a just-debuted Walmart presence with Canada-based Ghost Kitchen Brands to an expanding deal with Carnival Cruise ships. And now more traditional franchising is on the serving tray. “We’re about to expand quickly, swiftly, and correctly,” said O’Neal in an interview earlier this month at the first Big Chicken location opened in 2018 in a strip mall a few blocks east of the Las Vegas strip. The brand also has a restaurant opened in February 2020 in Glendale, Calif., and a third recently debuted on Carnival’s Mardi Gras ship. A recently announced virtual brand deal with Toronto-based Ghost Kitchen Brands for a presence with other brands at Walmarts in Canada and the United States. Big Chicken is owned by O’Neal, as majority partner, and two other companies: Authentic Brands (ABG), a brand development, marketing, and entertainment firm that owns a portfolio of iconic brands including Sports Illustrated, Elvis Presley and Forever 21, and JRS Hospitality, an events and catering company in Las Vegas that operates such venues as Cabo Wabo, Hexx  Kitchen + Bar and Beer Park. Chefs Matt Silverman, the “S” in JRS Hospitality, and Matthew Piekarski created the Big Chicken menu of crispy chicken sandwiches and milkshakes that incorporate many of O’Neal’s childhood favorites. “You basically have Shaquille O’Neal with two world-class culinary chefs, guys that have a stellar reputation throughout Las Vegas who worked together to create a menu that was rooted in Shaquille O’Neal’s passion,” said Josh Halpern, the CEO of Big Chicken who has a background in projects like Budweiser’s Beer Park. Halpern said the company already has plans to open restaurants in sports arenas, including the Climate Pledge Arena in Seattle, Wash., UBS Arena in New York, and the Moody Center in Austin, Texas. Big Chicken is looking for existing restaurant owners and operator groups in its new franchising push. O’Neal himself is no stranger to franchising. He is a franchisee and on the board of Papa John’s International Inc. and has Krispy Kreme units.

He once franchised Five Guys but has sold that business. Those experiences have led O’Neal to appreciate the structure and direction provided in the franchise system, he said. Big Chicken has targeted multi-unit investors with restaurant development operating experience. To help provide that structure, Big Chicken hired CEO Halpern, who had experience with Anheuser-Busch InBev (which developed Beer Park) and other Fortune 500 companies. “People come to Big Chicken because they want to be attached to Shaquille O’Neal, who is one of the most popular celebrities in the world with over 20 million social media followers and whatnot,” Halpern said, “but they keep coming back because the quality of the food is really, really great.” Many menu items are named after important individuals from O’Neal’s family and career. The best-selling menu item is the Uncle Jerome, named for a childhood friend, which features Nashville hot chicken, lettuce, mayonnaise, and pickles for $8.79. Fries and beverages can be added for $3.99. O’Neal was raised in New Jersey but his mother is from Dublin, Ga., and that has influenced the fried chicken theme of the menu. The Charles Barkley — which O’Neal said he instructed Silverman to make “big and sloppy,” as an inspiration from the former NBA-star-turned-analyst himself — features mac and cheese, crispy fried onions, and roasted garlic barbecue aioli. Halpern said he sees his role as not only developing Big Chicken but protecting founder O’Neal’s image in the culinary world. “My No. 1 job is protecting the legacy and reputation of Shaquille O’Neal,” Halpern said. O’Neal has a 100% E-Score, a measure of a celebrity’s marketability, and he said he is intent on maintaining that. As part of the marketing strategy, O’Neal is featured prominently in a series of videos on the Big Chicken Facebook page, showing some of the behind-the-scenes work and fun at the brand. O’Neal said that Big Chicken is part of his dream. “When I was growing up, mother really stressed education, having things to fall back on, and following your dreams,” he said. “I always wanted to own franchises. I remember me and [fellow professional basketball player] Magic Johnson, when I was 18, said, ‘It’s OK to be famous but at some point, you want to start owning businesses.’” O’Neal said he regrets not investing early in such projects as inner-city Starbucks, a franchise that served Johnson well. But Big Chicken’s large portions and creative menu items, like mac and cheese on a sandwich, set the brand apart, O’Neal says. “I want to serve as the Ambassador of Fun,” he said. — Source: NRN.

The pizza chain, eager to add more locations after years of decline, has an agreement with Sun Holdings to develop 100 locations by 2029 . . . .

Papa John’s Signs a Big Development Deal in Texas

Papa John’s on Wednesday announced the largest domestic franchise deal in the company’s history, a 100-unit development agreement with the Dallas-based operator Sun Holdings that will expand the chain’s presence across Texas over the next eight years. Sun Holdings is one of the largest franchisees in the U.S., with more than 1,000 locations in several brands, including Burger King, Popeyes, Krispy Kreme, and Arby’s. According to the deal with Papa John’s, Sun will open the locations by 2029. “Papa John’s development flywheel has started to take off,” Amanda Clark, Papa John’s chief development officer, said in a statement. “With industry-leading paybacks and our key strategy of making it easy for franchisees to say yes to developing, we can attract great new partners to our brand.” The deal is a major victory for Papa John’s, highlighting the brand’s remarkable turnaround over the past two years. The company was stagnant for several years despite operating the fewest number of locations of the four big pizza chains and has declined by 200 units since 2017 amid sales challenges. But the company’s sales began improving in 2019 and then took off during the pandemic. In the meantime, Papa John’s began changing its growth strategy, hiring Clark away from Taco Bell to lead its development efforts. The company has started focusing on larger development deals in a bid to spur its growth. The chain currently operates about 3,100 U.S. locations. The efforts have been paying off. The company had record net unit growth in the first half of the year. Sun Holdings is exactly the type of operator Papa John’s is targeting. The company was founded by Guillermo Perales and has operations in 12 states. “Since its founding, Sun Holdings has taken a long-term, disciplined approach when making growth investments,” Perales said in a statement. He cited the company’s premium brand, culture, and unit economics. “We know Texas well and see an immense opportunity to grow Papa John’s across this dynamic region,” Perales said.  – Source: Restaurant Business.

America’s favorite pizza company to host the first-ever “Pizza Hut: Pathways to Possibility” conference open to the public on Sept. 29 . . . .

Pizza Hut System Working to Hire 40,000 New Team Members by the End of 2021

Pizza Hut and its franchisees are working to hire 40,000 new permanent team members to work in restaurants across the country by the end of 2021. Positions are available at both corporate and franchised restaurants at multiple levels with the majority of open jobs focused on cook and driver roles as Pizza Hut continues its momentum, seeing high demand through contactless delivery and pickup occasions. To help develop current employees across the system and spotlight the Pizza Hut brand’s culture for new applicants, Pizza Hut and its franchisees are hosting a free virtual “Pizza Hut: Pathways to Possibility” conference on Sept. 29 beginning at 1 p.m. CST. Open to all pizza lovers, the conference will feature snackable sessions that will highlight Pizza Hut’s inclusive culture, franchise organizations, the resume-building opportunities that come with a job at a Pizza Hut branded restaurant, and how current or new employees can advance their career within the brand. The free virtual conference will run on Sept. 29 from 1 p.m. CST – 5 p.m. CST and registration is now open at the site, where you will also be able to access the full “Pizza Hut: Pathways to Possibility” conference agenda. Notable speakers include Tre Wilcox, Professional Chef, past Top Chef participant and two-time James Beard Foundation nominee (“Rising Star Chef”); Michael Wigge, Author, Motivational Speaker, and Challenge Coach; Chequan Lewis, Pizza Hut’s Chief Equity Officer; Cristi Lockett, Pizza Hut’s Chief People Officer; Mike Quinn, Pizza Hut franchisee and JJB Brands President; and Carri Haller, Talent Acquisition and Training Manager for Pizza Hut of Fort Wayne. Throughout the conference, attendees will also be able to hear from many other franchises and corporate employees in the Pizza Hut family, ranging from drivers to restaurant and multi-unit managers, regional directors, and franchise owners, about their experiences with the brand and the benefits of becoming part of the Pizza Hut team. “Pizza Hut has continued to see explosive growth over the past few months, with the business performing extremely well as a result of increased demand,” said Cristi Lockett, chief people officer, Pizza Hut. “As we continue to grow in an especially tight labor market, it’s more important than ever to highlight our best-in-class brand culture as we strive to keep delivering America’s favorite pizza.” Employees at a Pizza Hut branded restaurant may enjoy a number of attractive benefits including access to Life Unboxed EDU, an educational program through which team members can earn college credits through on-the-job experience and training, as well as reduced tuition for college courses A clear career path that encourages growth and promotion within the organization Career recognition through programs like the Pizza Hut Proud Awards that honor restaurant teams and managers who go above and beyond while serving their customers, team members and communities Those interested in learning more about the opportunities and available jobs in the Pizza Hut system can visit and apply at Jobs.PizzaHut.com.  Most Pizza Hut restaurants are owned and operated by independent franchisees. Franchisees are the exclusive employer of their employees and as such are solely responsible for all employment-related matters in their restaurants. The benefits referenced herein may not be available at all Pizza Hut restaurants. Pizza Hut and its franchisees are equal opportunity employers committed to a diverse and inclusive workforce.

About Pizza Hut®

Pizza Hut, a subsidiary of Yum! Brands, Inc., was founded in 1958 in Wichita, Kan. and operates nearly 18,000 restaurants in more than 100 countries. With easy order options including the Pizza Hut app, mobile site, and Amazon and Google devices, Pizza Hut is committed to providing an easy pizza experience – from order to delivery – and has Hut Rewards, the Pizza Hut loyalty program that offers points for every dollar spent on food any way you order.

Now more than ever, restaurants have an important role in helping to safely feed families. As one of the largest pizza brands in the U.S. by store count, Pizza Hut is committed to doing its part. To help keep team members and customers safe, customers can get their favorite Pizza Hut pizza via three contactless offerings: curbside pickup, delivery, or carryout.

Pizza Hut is also the proprietor of The Literacy Project, an initiative designed to enable access, empower teachers and inspire a lifelong love of reading. The program is rooted in the foundation set by the Pizza Hut BOOK IT! The program, which is the longest-running corporate-supported literacy program, impacting more than 14 million students each year. Pizza Hut is the Official and Only Pizza Sponsor of the NFL. – Source: NRN.

Goodbye plastic! McDonald’s will Start Providing More Sustainable Toys

This transformation will help them reduce 90% use of fossil fuel-based plastic in toys. By Entrepreneur en Español September 22, 2021. This article was translated from our Spanish Spanish edition. Opinions expressed by Entrepreneur contributors are their own. Do you like to collect McDonald’s toys for yourself or your children? Everything seems to indicate that the fast-food chain wants to be a more sustainable company by 2025 since it reported that by that date it would reduce the use of plastic in its toys.

McDonald’s vía web

“From now on, and gradually around the world by the end of 2025, our ambition is that every toy sold at a Happy Meal is sustainable, made with more renewable, recycled or certified materials such as materials. bio-based and plant derivatives and certified fiber ”, the company explains in a statement. The idea of the golden arches company is to deliver toys made with recycled, renewable, or certified materials. This transformation will help them reduce their use of fossil fuel-based plastics in toys by 90%. According to the fast-food company, that is similar to the entire population of Washington DC eliminating plastics from their lives for one year or 650,000 people eliminating plastics from their lives each year. The firm had already started this transition in 2018 in countries such as the United Kingdom, Ireland, and France. Now he plans to expand it globally. According to their data, efforts around the world and in the places mentioned above have already managed to reduce the use of virgin fossil-fuel-based plastics in their gifts for children by 30%. – Source: Entrepreneur en Español.

The flagship stores include real mesquite wood throughout its footprint . . . .

Logan’s Roadhouse Unveils Revamped Prototype in Houston

A couple of months after moving its headquarters to Houston, Logan’s Roadhouse parent SPB Hospitality unveiled the steakhouse’s latest prototype in the same city, featuring upgraded décor, lighting, and signage. The flagship store includes real mesquite wood throughout its footprint and signage that honors Logan’s made-from-scratch rolls. Other special features include oversized beer can flags and license plate artwork and homage to Texas, such as longhorn wall décor and neon Texas-themed bar signs. SPB CEO Jim Mazany and other executives will join the Houston Northwest Chamber of Commerce for a grand opening celebration and ribbon cutting on Thursday. The design elements and remodel additions will be applied to future Logan’s restaurants. “With our headquarters recently moving to Houston, this restaurant was the perfect location for us to develop a flagship prototype,” said Deanna Parr, SPB’s vice president of marketing, in a statement. “People come to Logan’s and expect an authentic Roadhouse experience that brings a sense of warmth and individual pride. Our remodeled restaurant exudes this feeling throughout, and we look forward to sharing it – along with plenty of mesquite wood-grilled steaks and made-from-scratch rolls – with our community for decades to come.” The prototype is yet another sign of progress for Logan’s, which fell into bankruptcy in August 2016, back when the chain had 250 restaurants across 26 states. The steakhouse turned to the bankruptcy process again in March 2020. The chain’s previous parent CraftWorks Holdings—which also owned Old Chicago, Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurants, and more—planned to sell its 261 company-owned stores after shuttering 37 underperforming units, referring to “a devastating collapse in consumer activity and restrictions from state and local authorities on business operations and public gatherings.” At one point, the company was down to fewer than 25 employees after furloughing 18,000. Fortress Investment Group purchased the company for $93 million. well below its original bid of $138 million. Since then, Logan’s has appeared to thrive, with AUVs rising from $2.1-$2.2 million pre-COVID to north of $3 million. The chain also benefits from a suite of virtual brands, including Ember Smoked BBQ, Twisted Tenders, Roadies, and Logan’s on the Road. In June, SPB moved its U.S. headquarters from Nashville to Houston as part of an effort to hire more employees and to bolster unit development.  “We’ve seen great growth and market share within the segment that [Logan’s] operate,” Mazany told FSR in July. “And we have been able to layer in some sales channels and growth vehicles that have really helped grow that average-unit volume. So you take a platform like Logan’s and you grow it at that number—that is absolutely something that has been really good for us as far as from a profitability perspective and return on investment.” – Source: FSR.

The company’s fine-dining concepts increased sales 24 percent versus pre-covid . . . .

Darden CEO: Fine-Dining Sales Are Beyond ‘Wildest Dreams’

The fine-dining segment was crippled by the onset of the COVID-19 pandemic in March 2020. High-margin desserts and starters, beverage add-ons, multi-layered meals, and the overall experiential atmosphere were stripped away in favor of an unfamiliar off-premises model. Upscale concepts found it difficult to adjust. In the spring of 2020, a Datassential survey of 400-plus operators found only 56 percent of fine-dining brands were open for delivery and carryout, compared to casual dining (64 percent), midscale (75 percent), fast-casual (87 percent), and fast food (90 percent). In the week ending March 27, 2020, average guest checks dropped 43 percent, according to Black Box Intelligence. Datassential also found that on average, sales decline 82 percent among fine-dining operators and 72 percent had to lay off 75 percent or more. A year and a half later, COVID remains present with the spread of the Delta variant, and staffing shortages place pressure on breadth of service, but the crucial fact is that restaurants across the country have flung their doors open, and fine dining is witnessing a resurgence as consumers rush in. Fine-dining concepts under Darden Restaurants—The Capital Grille, Eddie V’s, and Seasons 52— captured $168.8 million in Q1 sales (May 31 through August 29), a 24 percent increase versus pre-COVID despite this period traditionally being the slowest all year. Average weekly sales were $148,372, up from $79,223 in 2021 and $131,757 in 2020. These concepts also saw a profit of $33.5 million in the quarter, versus $10.2 million and $20.3 million in 2021 and 2020, respectively. Fine dining had the largest sales outperformance versus Darden’s expectations, along with LongHorn, which saw sales lift 20.6 percent against pre-COVID. “I never thought in my wildest dreams I’d see the kind of absolute numbers that we saw this summer in fine dining, which has been fantastic,” Darden CEO Gene Lee said during the company’s Q1 earnings call. Mobile location analytics platform Placer.ai found that all of Darden’s upscale brands increased their guest visits compared to pre-pandemic figures. In July, visits soared 32.5 percent at Eddie V’s, 29.7 percent at the Capital Grille, and 17.1 percent at Seasons 52. Even with the rapid rise of COVID, visits remained positive in August. The Capital Grille grew visits 15 percent during the month versus two years ago, while Eddie V’s saw a 12 percent rise and Seasons 52 witnessed a 1.4 percent bump. The only other Darden brand experiencing similar success is LongHorn, which saw visits skyrocket 34.1 percent in July compared to 2019, and 17.1 percent in August. Bahama Breeze also saw a 4.2 percent uptick in August. Olive Garden’s visits dropped 5.3 percent during the month and Yard House and Cheddar’s Scratch Kitchen saw decreases of 9.5 percent and 10.2 percent, respectively. Lee noted there’s still a heavy drag on fine dining in major cities—the company is still down 40 percent in three Manhattan stores—but the uptick in suburban locales has accelerated. The executive attributed the increase to business travelers stuck at home using fine dining more on the weekend. Lee also said Darden has seen a lot of cancellations of larger parties or gatherings inside fine-dining restaurants in the past six to eight weeks because of customer hesitancy, but he added that he expects a robust holiday season if the Delta variant is under control. “Sunday has become a legitimate sales day in fine dining, which was really pre-COVID kind of a throwaway day unless you’re in a convention city and a convention starts on Sunday,” Lee said. “But Sundays are real legitimate day now.” Sales lifts at Darden’s are reflective of the entire sector. Fine dining has remained the best-performing segment for sales growth for several weeks in a row, according to Black Box Intelligence. Other brands within the casual-dining industry have recognized the shift.

Cracker Barrel noted during its recent call with analysts that sales fell below expectations in its fourth quarter, with comps sinking 6.8 percent compared to 2019. CEO Sandy Cochran gave several reasons for the slowed pace, with staffing shortages and the Delta variant being obvious scapegoats. But she also pointed toward “a general consumer preference coming out of the pandemic for more celebratory higher check occasions than we are known for.” Although the consumer trend hasn’t helped Cracker Barrel, upscale chains have reaped the benefits. J. Alexander’s, which was sold to Logan’s Roadhouse parent SPB Hospitality for $220 million, saw net sales increase 6 percent, 7 percent, and 15 percent in April, May, and June compared to 2019. For the entire second quarter, the company earned $68.1 million in net sales, up from $27.6 million in 2020. During a call with analysts in early August, Ruth’s Chris Steak House CEO Cheryl Henry described it as a pent-up celebratory occasion that people have been missing for months. For Ruth’s, Q2 same-store sales lifted 7.5 percent for franchises and 17.5 percent for company-run restaurants compared to pre-COVID numbers. In July, systemwide comps increased 17 percent versus 2019. “They’ve known Ruth’s,” Henry said during the company’s earnings call in August. “It hasn’t necessarily been in their lives during the pandemic. So, when they’re coming in, they’re making that decision to truly celebrate and build check.” For Darden in particular, one key to fine dining’s growth has been adequate staffing. The company recently launched a new talent acquisition system that helps increase the number of candidates by allowing them to apply and schedule interviews in five minutes or less. Darden is netting more than 1,000 new team members per week, and employment is at roughly 90 percent of pre-COVID levels. The company has leveraged competitive pay to attract workers. At the ICR Conference in January, Lee said a server at The Capital Grille makes well over $40 per hour. Our team members are the heart and soul of our business, and we are constantly focused on our employment proposition,” Lee said. “The investments we have made and continue to make in our people are helping us retain and attract top talent, and I’m confident in our ability to address our staffing needs.” – Source: FSR.

Olive Garden, Red Lobster Face Sizable Sales Declines

Sales at Darden grew to $8.76 billion in fiscal 2014, which ended May 25, 2014, up 2.4 percent from 2013. While LongHorn Steakhouse, Yard House, and the Specialty Restaurants group posted sales gains, cornerstone brand Olive Garden saw a 3.4 percent sales decline from 2013, while recently-cut Red Lobster saw a 6 percent sales slide. Darden’s Specialty Restaurant Group, which includes The Capital Grille and Yard House, posted strong gains.

Fiscal 2014

For fiscal year 2014, total sales from continuing and discontinued operations were $8.76 billion, a 2.4 percent increase from $8.55 billion last year. As a result of the pending sale of Red Lobster, operating results for Red Lobster are included in discontinued operations for all periods presented.

Total sales for fiscal 2014 include sales of $6.29 billion from continuing operations and sales of $2.47 billion from discontinued operations, which includes Red Lobster. Total sales for fiscal 2013 include sales of $5.92 billion from continuing operations and sales of $2.63 billion from discontinued operations.

The increase reflects 5.6 percent of growth in sales for the year due to new restaurants (including incremental operating weeks this year compared to last year, as a result of the acquisition of 40 Yard House restaurants in Q2 2013), same-restaurant sales growth of 2.7 percent for LongHorn Steakhouse, and 1.6 percent for Darden’s Specialty Restaurants, offset partially by same-restaurant sales declines of 3.4 percent for Olive Garden and 6 percent for Red Lobster.

Olive Garden

For the full fiscal year, total sales were $3.64 billion, a 1.1 percent decline from last year; average annual sales per restaurant were $4.4 million, and U.S. same-restaurant sales declined 3.4 percent.

The fourth-quarter sales of $926 million were 2.7 percent lower than the prior-year due to its U.S. same-restaurant sales decline of 3.5 percent, partially offset by revenue from nine net new restaurants. For the quarter, on a percentage of sales basis, food and beverage expenses and restaurant labor expenses were higher. This resulted in a decline for the quarter in both operating profit and operating profit as a percentage of sales.

Red Lobster

For the full fiscal year, total sales were $2.46 billion, a 6.2 percent decrease compared to last year, average annual sales per restaurant were $3.5 million and U.S. same-restaurant sales decreased 6 percent. Red Lobster’s fourth-quarter sales of $664 million were 5.6 percent lower than the prior year, which reflected its U.S. same-restaurant sales decline of 5.6 percent.

For the quarter, on a percentage of sales basis, food and beverage expenses, restaurant expenses, and depreciation and amortization expenses were higher compared to the fourth quarter of last year, while selling, general, and administrative expenses were lower. The net result is that operating profit and operating profit as a percentage of sales were below last year.

Darden expects to receive net cash proceeds from the sale of Red Lobster, after tax and transaction costs, of approximately $1.6 billion, of which approximately $1 billion will be used to retire outstanding debt. The remaining net proceeds of approximately $500 million to $600 million will be deployed in fiscal 2015 for a new share repurchase program of up to $700 million. The transaction is expected to close in Darden’s first quarter of fiscal 2015.

Longhorn Steakhouse

For the full fiscal year, total sales were $1.38 billion, a 12.4 percent increase from last year, average annual sales per restaurant were $3.1 million and U.S. same-restaurant sales increased 2.7 percent.

The fourth-quarter sales of $376 million were 10.8 percent higher than the prior year, driven by revenue from 34 net new restaurants and its U.S. same-restaurant sales increase of 2.4 percent. For the quarter, on a percentage of sales basis, higher food and beverage expenses, restaurant expenses and selling, and general and administrative expenses were slightly offset by lower restaurant labor expenses. This resulted in a decline in both in operating profit and operating profit as a percentage of sales.

Specialty Restaurant Group

For the full fiscal year, total sales for the Specialty Restaurants were $1.23 billion, a 25 percent increase from last year.

At The Capital Grille, average annual sales per restaurant were $7.1 million and same-restaurant sales increased 3.4 percent for the fiscal year. At Bahama Breeze, average annual sales per restaurant were $5.6 million and same-restaurant sales increased 4.1 percent for the fiscal year. At Seasons 52, average annual sales per restaurant were $5.7 million and same-restaurant sales declined 2.2 percent for the fiscal year. At Eddie V’s, average annual sales per restaurant were $6 million and same-restaurant sales increased 1.1 percent for the fiscal year. And, at Yard House, average annual sales per restaurant were $8.2 million and same-restaurant sales increased 0.3 percent for the fiscal year.

Fourth-quarter sales of $342 million were 15.9 percent higher than the prior year, driven by same-restaurant sales increases of 4.1 percent at Bahama Breeze, 4 percent at The Capital Grille, 0.8 percent at Yard House, 0.3 percent at Eddie Vs partially offset by a same-restaurant sale decline of 1.6 percent at Seasons 52.  Sales growth for the group also reflected revenue from five new restaurants at The Capital Grille, four at Bahama Breeze, seven at Seasons 52, three at Eddie V’s, and eight at Yard House.

Fourth Quarter Earnings 

Fourth-quarter total sales from continuing and discontinued operations were $2.32 billion, which compares to $2.3 billion in the fourth quarter last year. (As a result of the pending sale of Red Lobster, operating results for Red Lobster are included in discontinued operations for all periods presented.) In the fourth quarter, U.S. same-restaurant sales increased 2.4 percent at LongHorn Steakhouse and 2 percent at the Specialty Restaurant Group and declined 3.5 percent at Olive Garden and 5.6 percent at Red Lobster.

Total sales for the fourth quarter of this year include sales of $1.65 billion from continuing operations and sales of $666.2 million from discontinued operations. Total sales in the fourth quarter of last year include sales of $1.59 billion from continuing operations and sales of $706.5 million from discontinued operations. The increase in total sales for the fourth quarter of this year reflects the operation of 69 net new restaurants compared to the fourth quarter last year and same restaurant-sales increases for LongHorn Steakhouse and Darden’s Specialty Restaurants, offset by same-restaurant sales declines for Olive Garden and Red Lobster.

In the fourth quarter, U.S. same-restaurant sales increased 2.4 percent at LongHorn Steakhouse and 2 percent at the Specialty Restaurant Group and declined 3.5 percent at Olive Garden and 5.6 percent at Red Lobster.  – Source: FSR.

PizzaHQ’s Founders Are Building a Robot-Powered Pizza Chain of the Future . . . .

Darryl Dueltgen and Jason Udrija had a choice: Expand their successful New Jersey pizza restaurant brand called Pizza Love, or start a tech-powered pizza concept that could change the pizza industry. They decided to start a revolution. “We’ve put a lot of time into building a labor-reduced, tech-driven concept that we believe will revolutionize the pizza industry,” said Udrija, who cofounded PizzaHQ alongside partners Dueltgen and Matt Bassil. According to Udrija, PizzaHQ will utilize robotics and other technology to create a more affordable pizza (“almost a 50% lower price point”) while using the same recipe and high-quality ingredients of the pies made at their dine-in restaurant. “Our POS will directly inject the customer order into the Picnic system,” said Udrija. “The Picnic conveyer feeds straight into our ovens and then gets cut and boxed before pick up for delivery.” Once the pizza is boxed, it’s loaded into delivery vans and distributed to heated pickup lockers around Totowa, New Jersey, a borough about thirty minutes north of Newark. Customers will be able to track their delivery and will scan a QR code to pick up the pizza waiting for them in a locker. Third-party delivery partners like UberEats will also be able to pick up orders from the pickup lockers and deliver to customers. To reach a wider swath of customers over time, Udrija and his co-founders plan to use a hub and spoke model that creates enough production volume to blanket a metro area with coverage for their pizza. Udrija says the company plans to surround the central production facility, or hub, with five fulfillment centers over the next five years. The raw ingredients for the pizzas will be prepared at the hub each day and delivered to the fulfillment centers. The plan is for the hub to grow up to four Picnic pizza robots and 50 employees, while each distribution center will have two Picnic pizza bots and about ten employees each. Udrija says once they work out the kinks in their northern New Jersey system, they plan to replicate the model in other cities across the country. To fund its growth, the company has raised $1.3 million through private investors and a bank loan, and plan on closing out the first round of funding at $1.7 million in the next few months. If PizzaHQ takes off, it would be a big win for Picnic. PizzaHQ’s entire system is built around Picnic pizza robots, so each city the company builds out at a similar scale to its northern New Jersey market would translate to more than a dozen Picnic pizza machines. PizzaHQ’s rethink of the pizza restaurant is part of a broader trend in the restaurant industry to adapt to the rapid rise in digital ordering. In markets like China, hub and spoke production models optimized for delivery have grown rapidly in recent years. In the US, digital ordering and delivery have given rise to new operating models, including online-only restaurant concepts powered by ghost kitchens. With PizzaHQ, the company is combining the hub and spoke with the dark kitchen model along with a few extra toppings of automation and other technology on top. It may be too soon to tell if PizzaHQ will revolutionize the industry, but the company has a few things working in its favor. For one, the pizza industry is massive and is already largely built around delivery. The founders also have experience building a pizza restaurant business, which gives them both an existing customer base to market into as well as a sense of legitimacy in an industry that is bloating up quickly with digital-only concepts. For those who live in or around Totowa, New Jersey and want to try PizzaHQ out, the company expects to start service in the first quarter of 2022 – Source: PizzaHQ.

Daytime-dining concept prices shares at $17-$20 for debut on Nasdaq . . . .

First Watch Sets IPO Share Price, Could Raise $218 Million

First Watch Restaurant Group Inc. will likely debut its initial public offering on the Nasdaq market late next week, raising as much as $218 million in two grants of stock. The Bradenton, Fla.-based company proposed offering 9.5 million shares, in a range of $17 to $20 each, which could raise more than $189.1 million, and it intended to grant underwriters a 30-day option to buy an additional 1.4 million shares, which could raise as much as $28.4 million. “First Watch intends to use the proceeds from the proposed offering to repay borrowings outstanding under its credit facilities,” the company said in a statement. First Watch intends to list its shares on the NASDAQ Global Select Market under the ticker symbol “FWRG.” BofA Securities, Goldman Sachs & Co. LLC, and Jefferies LLC are acting as lead book-running managers in the proposed offering. A wide variety of restaurant companies this year have filed for or announced they are considering public offerings, including Dutch Bros. Coffee., Krispy Kreme, Portillo’s, and Sweetgreen. First Watch, a daytime-dining concept, was founded in 1983 in Pacific Grove, Calif. The menu ranges from pancakes, omelets, sandwiches, and salads to specialty items. “Our one shift, from 7 a.m. to 2:30 p.m., and one main menu enable us to optimize restaurant operations and attract and retain employees who are passionate about hospitality and drawn to our ‘No Night Shifts Ever’ approach,” the company said in its prospectus filed with Securities and ExchangeCommission. As of June 27, First Watch had 423 restaurants in 28 states. Of those, 335 were company-owned restaurants and 88 were franchised. In fiscal 2020, First Watch opened 23 company-owned restaurants and its franchisees opened 19 net new locations. First Watch expects 32 net new openings in fiscal 2021. The private equity firm Advent International in August 2017 acquired a majority stake in First Watch from Freeman Spogli & Co. At the time, the chain had more than 300 locations in 26 states. – Source: NRN.

“Netflix for Tacos” . . . .

How Subscriptions Became Quick Service Restaurants’ Hottest Marketing Trend

This month, Taco Bell became the latest restaurant chain to launch a subscription service, by testing a “Netflix for Tacos” pass. The pilot program, which launched at Tucson, Arizona locations, allows customers to get one taco a day for a monthly fee. The Taco Lover’s Pass pilot will run between September 9 and November 24, and costs between $5 and $10 for a 30-day pass. The stunt is the latest attempt by a chain restaurant to drive digital sales and foot traffic, especially as locations reliant on the office lunch hour rush continue to take a hit as not all workers have returned to the office. Quick service restaurants have reason to drive digital sales — for example, a precipitous drop in foot traffic over the last year-plus as well as the rise of delivery services. Now, these companies are looking to build on the digital strategies that had been paying off. Yum Brands, Taco Bell’s parent company, has seen loyalty programs help its recovery this year. After launching its rewards program in 2020, Taco Bell saw spending increase by 35% per visit, compared to customers in the past, said Yum Brands’ CEO David Gibbs during the company’s last earnings call. Yum Brands isn’t the only company testing out the model. Panera is one of the most well-known quick-service restaurants to test out subscriptions, debuting a monthly coffee and tea subscription service, called MyPanera+ which launched in February 2020. According to the company, the service just surpassed over 500,000 subscribers. In the second half of 2020, quick service chain Pret a Manger also launched a similar service called YourPret Barista. The program is one way the U.K.-based restaurant — whose restaurants are primarily located near downtown offices — is looking to serve customers who might only be coming into the office a few days a week. YourPret Barista costs about $26.60 a month and allows members to order up to five made-to-order drinks a day, including coffee, tea, and smoothies.

The plan is currently available at U.K. locations, with the company planning to launch it in the U.S. soon. Similarly, Burger King tested a $5-a-month unlimited coffee order service to promote its breakfast items. Recurring revenue is becoming increasingly important for quick-service restaurants. In the past year, fast-food chains have also started to roll out loyalty programs. McDonald’s and Burger King, for instance, both launched points-based rewards after testing the concept over the past few years. Mary Pilecki, a Forrester analyst who covers loyalty marketing, said that subscriptions are yet another extension of rewards programs. “Subscriptions combine several loyalty tactics, including recurring revenue and brand engagement,” she said. Much like streaming services, they also help prolong the customer life cycle, Pilecki explained. “Paying a monthly cost encourages customers to go in as often as possible.” These days, brands of all types are using digital apps to collect first-party data. “With the demise of the cookie and increase in digital privacy updates, [brands] have to find new ways to figure out who their customers are.” With app-based subscriptions, this can be done through a range of tactics — from the occasional free food item to digital games that reward users.  Eli Chapman, CMO at marketing data platform Celtra, said that subscriptions make sense given that restaurant apps and accompanying loyalty programs are gaining momentum among consumers. According to a recent Celtra survey, 52% of consumers said they’ve downloaded a new restaurant app in the last six months, with 45% saying that personalized offers or discounts would entice them to increase the amount spent on food orders or increasing restaurant visits. Meanwhile, 32% said that loyalty programs would increase their spending. “These programs aren’t just avenues to drive revenue, but are also incremental consumer touchpoints,” said Chapman. The challenge in running a successful subscription service is providing constant relevance, value, and effective messaging, he said. Visit frequency and order sizes are some of the biggest benefits of subscriptions. Panera’s service, which first launched in February 2020 and costs $8.99 a month for the first three, has helped boost average order sizes. According to the company, MyPanera+ subscribers tend to tack on other breakfast items, such as bagels, sandwiches or muffins when ordering their coffee or tea. By July 2020, the behavior had resulted in a 70% increase in food add-ons among subscribers, Panera CEO Niren Chaudhary previously told Restaurant Business. With subscriptions that offer deals on daily purchases, fast service chains are looking to acquire customers beyond their enthusiastic cohorts. “They’re trying to cast a wider net and accommodate new consumer behaviors,” Pilecki said. – Source: Modern Retail.

Gene & Georgetti Celebrates 80 Years

Gene & Georgetti, Chicago’s original steakhouse since 1941 is celebrating. “We are celebrating making it this far through this pandemic, we are celebrating our team and all of the tireless work that they have done the last year and a half, and we are celebrating reaching 80 years of business this year,” says Michelle Durpetti, third-generation, and daughter of owners, Marion & Tony Durpetti. After suffering a kitchen fire in October 2019 at its downtown location in the heart of River North (500 N. Franklin St.), the Durpetti family – who owns the iconic destination – was planning a symbolic reopening, “That would have paid homage to a rich past while celebrating the future of the Gene & Georgetti name.” “Instead,” says Michelle, “we opened for delivery and carry out that very same day, which was something we had not done much of before this pandemic.” Having calibrated quickly, albeit somewhat painfully, “we definitely had some bumps in the road when we started. Processing what was happening while trying to stay focused on preserving the brand and being mindful of employees, all while navigating the constantly evolving health and safety protocols, required time- which was something we just did not have when things were changing so fast.” These days, embracing the uncertain comes with the territory of running a restaurant more than ever, but focusing on what never changes is what provides the foundation that anchors the team when things really start to feel stressful. Gene & Georgetti continues to offer its customers quality, affordable options to feed their families and loved ones. From seasonal menu offerings to a constantly evolving wine and cocktail list, to the ever-present and all-important prime-aged steaks, the menu is now an homage to the family’s Italian heritage led by head chef, Cristiano Bassani, who hails from Bergamo, Italy. “I love this job, it is a passion for me, and here, together with Michelle and Collin (Pierson, Durpetti’s husband), we focus on the very best ingredients. That is such a major part of what I love about this job; bringing the freshest ingredients to the dishes that we create. We make our desserts in-house, we are beginning to make all of our own pasta now (coming this fall). We make everything that we can, and we offer a variety of Italian dishes that complement our steaks and chops,” says Bassani. “This menu is equal parts quality, creativity, and passion. I am very proud of that.”

For Michelle, this anniversary would typically include a swanky party and a lot of celebrating. The third-generation restaurateur is by trade an event and wedding planner, so marking milestone anniversaries for the restaurant has always been right in her wheelhouse. But these days, the focus is more on the team than parties. “While we love celebrating our customers with a great soiree, we know how hard our team is working now, and one of our biggest focuses is their quality of life while they are here, and making sure that they have time away with their families and loved ones. I love a good party, don’t get me wrong! But we have had so much to focus on and dedicate ourselves to, so for now, the party will wait- but, not forever, because nobody throws a party like Gene & Georgetti,” says Durpetti. Instead of that party, G&G has revitalized their little corner of River North. Michelle and Collin have lead projects to truly show how young 80 years can look. A major re-painting of their 3-story building that dates to 1874 has truly been a massive difference to every employee, customer, and neighbor in the community. In addition, a new version of their iconic window has been created out of necessity, as a result of the civil unrest last summer that irreparably damaged the old window. “This pandemic has taught us now more than ever, that necessity is the mother of invention,” says Tony, and “like every restaurant out there, we have had to think on our feet and be creative while staying true to our core brand values, and rediscovering those values. There have been so many silver linings to this pandemic and one of the main ones has been the opportunity to really spend time together as a team and fine tune everything that we do internally, including how we care for and about one another.” While the family may plan a celebration for next summer, right now the main way they are celebrating, “is by being open, working really hard to honor the legacy that both Georgetti and Gene left us, and making sure that we take nothing for granted. We came very close, more than once, to going right over that cliff we were dangling from. It is the tenacity of this team, this family and the love we all have for this brand that has kept us going. We are so looking forward to this fourth quarter and being here for people as we move into the Holiday Season. We remain cautious, but we feel really proud of what we have accomplished thus far and that is now what keeps us going. That, and each other.” – Source: FSR.

KFC to get new leader in 2022 . .  . .

Sabir Sami, New Chief Executive Officer of Yum! Brands’ KFC Division

When KFC rings in the new year it will do so with a new leader. KFC’s parent, Yum! Brands, Inc., announced on Sept. 22 that Sabir Sami has been promoted to chief executive officer of the KFC Division, effective Jan. 1, 2022. Mr. Sami will succeed Tony Lowings, who will step down as CEO at the end of 2021 in advance of retirement in early 2022. Mr. Sami currently is chief operating officer of the KFC Division and managing director of KFC Asia. In his new role, he will assume global responsibility for driving the brand strategy and performance of KFC. “Sabir is an exceptional leader with deep expertise and knowledge of our business and has a strong, proven track record of growing KFC’s physical and brand presence in markets around the world,” said David Gibbs, CEO of Yum! Brands. “As a highly-respected strategic brand builder, operations expert, and heart-led leader, Sabir is a natural choice to continue successfully executing KFC’s long-term global growth strategies in close partnership with our franchisees and further elevate KFC as a relevant, easy and distinctive (R.E.D.) brand.” Prior to his most recent role, Mr. Sami was managing director for the Middle East, North Africa, Pakistan, and Turkey markets. He also has worked as general manager for the KFC Canada and Turkey businesses. Prior to Yum!, he held various leadership roles at Procter & Gamble, the Coca-Cola Co., and Reckitt Benckiser. “I’m incredibly privileged and excited to continue working with our talented and dedicated KFC leaders and amazing franchise partners around the world to keep strengthening and accelerating the development of our powerful, iconic brand,” Mr. Sami said. “KFC is uniquely positioned around the world as a well-loved, well-trusted brand with millions of fans — the future is certainly bright.” Yum! Brands also announced Dyke Shipp has been promoted to president of the KFC Division, effective Jan. 1, 2022. Mr. Shipp currently is chief development officer and chief people officer for the KFC Division. In his new role, Mr. Shipp will partner with Mr. Sami on KFC’s global people and growth agenda and support the general managers of its businesses in the Americas, including Canada, the United States, and Latin America, and the Caribbean. Mr. Shipp has more than 30 years of experience with Yum! Brands. “Dyke brings a wealth of knowledge, expertise, and strategic acumen to this role, along with a commitment to nurturing an inclusive, high-performing culture,” Mr. Sami said. “Dyke is a seasoned leader with a strong track record of delivering impactful results. I look forward to partnering with Dyke as we work toward the next chapter of growth for KFC.” Mr. Lowings has been with Yum! Brands and KFC for more than 27 years, leading the KFC brand since 2019. Throughout his career with the company, he has held a number of leadership positions, including president and COO of the KFC Division, managing director of KFC Asia-Pacific, and managing director of KFC SOPAC (Australia and New Zealand), among others. He will remain CEO of the KFC Division through the end of 2021 to ensure a smooth and seamless transition. He will remain with the company in another capacity supporting transition needs into the first quarter of 2022, the company said.  “I want to thank Tony, a trusted colleague and dear friend to many, for his decades of service, commitment to excellence, and significant contributions to our business,” Mr. Gibbs said. “Tony’s unwavering focus on ensuring restaurant excellence, building a R.E.D., Always Original brand, and winning on KFC’s delicious taste and quality will leave a long and lasting imprint on our company. While we will miss Tony, we wish him well as he enjoys this new phase of life with his family.” – Source: Food Business News.

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