Sesame joins eight other allergens on the Food and Drug Administration’s list

Now a Major food allergen, sesame should be on restaurants’ radar

Following the enactment of the Food Allergy Safety, Treatment, Education and Research (FASTER) Act in April 2021, the Food and Drug Administration added sesame to its list of major food allergens(Opens in a new window).

Effective Jan. 1 of this year, packaged foods in the United States must label the presence of sesame “in plain language,” according to FARE, a consumer advocacy group that raises awareness and expands education on food allergies.

The plant, which is turned into seeds, oils, and pastes is commonly found in bakery items, Asian cuisine, snack foods, and marinades, to name a few. The FASTER Act changed how food allergens were defined in the previous Food, Drug, and Cosmetic Act, and sesame now joins milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, and soybeans.

While allergens found in restaurant foods are regulated at the state level, the FDA enforces regulations that mandate companies to list ingredients on packaged foods and beverages. Although restaurants are not required to list sesame, their suppliers are.

Some states, including Mass., Md., Mich., RI, and Va., have laws designed to make it safer for individuals with food allergies to dine in restaurants.

Additionally, the Food Code(Opens in a new window) – a federal resource for local/state food control jurisdictions with regulatory authority over retail and food service establishments – contains requirements for food allergens. Updated last year, it serves up guidelines for food safety(Opens in a new window) to reduce the risk of foodborne illness. For more details on recent changes to the Food Code, join the Association for a webinar(Opens in a new window) on Jan. 25, 2023, at 1 p.m. CT.

The total number of Americans that are allergic to sesame is not known. Research estimates from FARE and the American Academy of Allergy, Asthma, and Immunology (AAAI) place the number between 1.5-6M.

Influenced by the federal declaration, it’s possible that state governments would set regulations that would directly impact restaurants. Committed to educating owners and operators on how individuals with food allergies can safely dine in restaurants, the Association will continue to monitor state-level regulatory activity, and in the meantime has developed the following resources:

Allergy Alerts: Identifying Sesame(Opens in a new window)

FDA drafts guidance on new allergen identification(Opens in a new window)

ServSafe Allergens

Qdoba Seeks to Double Its Store Count Under Ex-Applebee’s CEO

Qdoba, the Mexican-themed restaurant chain recently acquired by Butterfly Equity, named former Applebee’s head John Cywinski as its chief executive officer on Thursday.

Cywinski, whose appointment is effective immediately, will be leading growth plans for the chain that competes with Chipotle Mexican Grill Inc. and other fast-casual eateries. Cywinski will lead a group of brands under the Modern Restaurant Concepts name, which includes Qdoba, along with Modern Market Eatery and Lemonade.

Qdoba, which has about 730 locations in North America, was purchased in August by Beverly Hills, California-based Butterfly Equity for an undisclosed amount. Cywinski said it’s “realistic and achievable” to expand to around 2,000 stores over the next decade.

“We plan to think big and bold with Qdoba,” he said in an interview.

Cywinski plans to grow through franchising, while also selling some company locations to independent operators. Right now, about 62% of Qdoba locations are franchised, but Cywinski said that will rise to around 90% or more in the near future.

“My goal is to re-franchise a meaningful percentage of this business,” he said. “I believe in an asset-light model. And that’s not just because of uncertainty and volatility in the marketplace, I just believe in franchisees.”

Many big restaurant brands are increasingly relying on franchisees for growth while limiting their tally of company-operated locations. The parent companies can then focus on revenue from royalty fees and development while being relatively sheltered from rising labor and food costs.

Cywinski, who’d previously been president of the heavily franchised Applebee’s chain for six years, helped expand sales at the casual-dining brand. He revamped marketing and menus with items such as skillet entrees, along with discounted appetizers and bar drinks. Applebee’s has also recently started operating drive-thru windows.

Parent company Dine Brands Global Inc. said last week that Cywinski, 57, was leaving Applebee’s to become CEO of another restaurant company. He’s also served as president of KFC, owned by Yum! Brands Inc., and was a franchisee himself, owning Dunkin’ and Sonic restaurants in the past.

The restaurant industry has been heavily hit by ingredient and wage inflation in recent years. Meanwhile, there are signs that US consumers are pulling back on spending as economic conditions worsen.

Cywinski said that higher costs will persist this year, although the rate of increase will be lower than in 2022. “I see a gradual deceleration of inflation really in the back half of 2023, and most certainly in 2024,” he said.

“It’s been a tough two years for the industry,” Cywinski said. “The good news is that it will improve and it will get better. I don’t see us reverting back to the peak of inflation.”  Source: ©2023 Bloomberg L.P.

Prices for restaurant meals rose 8.3% year over year in December as full-service operators slowed their price increases. Inflation as a whole also slowed down in the month.

Restaurant Menu Prices Slowed in December

Their prices are up 8.2% over the past year. Limited-service restaurant prices rose 0.5% in the month and 6.6% in the year, both numbers lower than recent trends.

Food-away-from-home prices were up at a higher rate due largely to the end of free school lunch programs across the country.

The slowdown in menu prices came as the overall consumer price index showed continued signs of a slowdown as gas prices continued to fall. Overall, the CPI was down 0.1% in December and is up 6.5% over the past 12 months.

Gas prices declined 9.4% in December, according to BLS. Lower gas prices could help keep sales at restaurants stable as many particularly lower-income consumers pay close attention to those prices in making spending decisions.

Grocery prices also slowed down, but retail food inflation remains considerably higher than menu price inflation. Food at home prices rose 0.2% monthly in December and 11.8% over the past year. The pricing gap between grocers and restaurants was 3.5 percentage points, the same level it was in November.

The gap in inflation between restaurants and retail food companies is important, as a wide gap will sometimes shift demand from one industry to the other, depending on where inflation is lowest.

Prices have soared for more than a year as labor challenges hurt numerous industries and led to soaring food costs. Those prices appear to be easing. Several operators said at the ICR Conference this week that their food cost inflation is expected to be lower. One, Noodles & Co., even said it expects food cost deflation.

Labor costs, which have also contributed to menu price inflation, have slowed their increase as more operators say they are fully staffed or close to it.  Source: Restaurant Business  . . . .travel, food, and culture in Franc . . . .

Popeyes Targets 300 Restaurants in France By 2030

Popeyes Louisiana Kitchen is about to open its first Paris restaurant as part of an ambitious investment in France over the next decade.

The American fried chicken brand signed a deal in 2021 with franchise partner, Napaqaro, to develop an aggressive expansion plan for the French market. It’s the latest sign of just how rapidly tastes and eating habits are evolving in a nation famous for its culinary excellence and long-held eating traditions.

Those values may not have vanished, but they’re having to learn how to coexist with an American-inspired approach that emphasizes speed and cost. Indeed, France has become one of the world’s fastest-growing markets for fast food.

To seize that opportunity, Napaqaro said it will open 20 restaurants in France in 2023. These will be a combination of physical restaurants and so-called “dark kitchens,” places where food is prepared exclusively for delivery or takeout. By 2030, the goal is to have 300 Popeyes in France, according to Les Echos. “Popeyes is not only a brand of fast food,” Xavier Expilly, director of operations for Popeyes France, told Les Echos. “It’s also a sit-down restaurant and digital catering.”

The first of these will be a Popeyes facing the Gare du Nord train station in Paris which plans to open its doors on February 1.

As is the case with other fast food brands that have succeeded here, Popeyes is adapting to the market by purchasing ingredients that originate in France. Rather than cheddar, Popeyes will offer Cantal cheese.

Popeyes had previously opened a restaurant near Toulouse, France but the experiment was not successful and the store later changed its name.  Source: Forbes.

Celebrated Chicago Chef Donald Young Offers A Unique Dining Concept

Michelin Star Chef Donald Young launched Duck Sel in 2021. Just as athletes hope to one day receive the MVP award in their respective sport, so do chefs who aspire to be awarded a coveted Michelin Star. After all, receiving a star is an honor of the highest degree within the culinary world and signifies that a chef has met or exceeded stringent criteria.

A Michelin Star is awarded to restaurants offering outstanding cooking. Michelin Star inspectors take into account five universal criteria: the quality of the ingredients, the harmony of flavors, the mastery of techniques, the personality of the chef as expressed through their cuisine, and, just as importantly, consistency both across the entire menu and over time.

One of the youngest chefs to receive a Michelin Star in the US, Chef Donald Young has achieved great success on Chicago’s famed dining scene. However, as restaurants continue to feel the strain of labor shortages, supply chain issues, and high overheads, Young stepped outside the brick-and-mortar restaurant kitchen and launched his solo business venture, Duck Sel, in 2021. An immersive culinary concept, Duck Sel presents Michelin-caliber cuisine to food lovers in intimate culinary experiences including exclusive ticketed pop-up events, private dinners, passed bites at swanky cocktail affairs and personalized cooking classes. This unconventional approach to fine dining allows Young to push the boundaries creatively while avoiding many of the challenges facing today’s restaurant industry.  Source: Forbes.

Accelerating the Arches 2.0 strategy unveiled earlier this month . . . .

McDonald’s Unveils Accelerating the Arches 2.0

New leadership and doubling down on the four Ds of delivery, digital, drive-thru, and development are part of McDonald’s Corp.’s

As part of the strategy kick-off, the company has created four new leadership roles. As of Feb. 1, Morgan Flatley will be promoted to executive vice president, global chief marketing officer; Skye Anderson will be promoted to president, of global business services; Andrew Gregory will become senior vice president, of global franchising and development and new business ventures; and Spero Droulias will assume the role of senior vice president, chief transformation officer.

The company plans its future growth around M-C-D, maximizing marketing, committing to the core products and doubling down on the four Ds of delivery, digital, drive-thru and development.

In a Jan. 6 message to McDonald’s global employees, Chris Kempczinski, president and chief executive officer, said, “As we begin 2023 from a position of strength, we cannot stand still. As Ray Kroc used to say, ‘If you’re not green and growing, you’re ripe and rotting.’ Fortunately, there remains so much growth potential within our ‘M-C-D’ pillars,” he said. “However, to realize the full potential of our strategy, we must also objectively assess areas we can do better.”

McDonald’s said it plans to elevate its marketing with more emphasis on campaigns like Famous Orders since they drive growth and promote its brand.

“We will continue leaning into that strategy and scale platforms across markets to find new ways to tap into the zeitgeist and have fun with our customers,” the company said.

McDonald’s also plans to find new ways to improve on classic items on its menus like the Big Mac, french fries, and Chicken McNuggets. The company noted that chicken would continue to be a growth driver as it looks to increase its global market share.

A focus on digital, delivery, and drive-thru during 2023 continue to be a focus for the quick-service restaurant. McDonald’s said that in its top six markets, digital ordering represents over one-third of systemwide sales, including ordering McDelivery or at restaurant kiosks.

The company plans to continue to make new strides as demand increases. A new testing concept recently was developed for the order ahead lane at a McDonald’s restaurant in Fort Worth, Texas.  Source: Food Business News.

A TGI Fridays alum, Eggs Up Grill CEO Ricky Richardson came on board in 2018 ….

2022’s Breakout Brand of the Year: Eggs Up Grill Takes Flight

If ever a restaurant dining room embodied the overall brand spirit, it would be Eggs Up Grill. The cheery interior, with its robin egg blues, yolk yellows, gingham tiles, and blonde hardwoods, is at once inviting and homey. In so many ways, the design speaks to what makes the restaurant different from others in the breakfast category, both legacy chains, and fellow NextGen Casuals. Eggs Up Grill has the relaxed vibe of a diner but with a decidedly more polished look. At the same time, the restaurant boasts offerings and price points that fall below other emerging breakfast brands.

“The breakfast space has gotten really active over the last decade. The category had a lot of legacy players in it,” says CEO Ricky Richardson. “There’s a sense of sameness across all of those. … So it created the opportunity for people to come in and do a similar type of cuisine with one of those dayparts—breakfast and lunch—and be a specialist in that and do it better from a quality standpoint, a value perspective, [and] a friendliness standpoint.”

A TGI Fridays alum, Richardson came on board in 2018, shortly after WJ Partners acquired the then 26-unit brand and moved its headquarters to Spartanburg, South Carolina (which also happens to be the home base for Denny’s). With the combination of Richardson’s experience, private equity funds, and an established brand reputation, Eggs Up Grill has swelled to nearly 60 locations with another dozen in construction.

And that’s just the beginning. The company plans to open 20–25 units this year, pushing its footprint as far north as Richmond, Virginia, as far south as central Florida, and as far west as Texas. Covid may have delayed its expansion timeline, but not by much. Richardson estimates Eggs Up Grill will hit 200 locations by the end of 2026, bringing the unit count to seven times the pre-acquisition amount in less than a decade.

“Growth is always a lot of fun; there’s just an energy and excitement that comes from growth. [It’s] a lot of work, but a lot of fun times,” Richardson says.

A go for growth

The origin story of Eggs Up Grill begins on Pawleys Island, a popular vacation spot along the South Carolina coast. In 1997, after about a decade working in his family’s restaurants, Chris Skodras struck out on his own to open a breakfast-driven restaurant. From there, growth was organic and measured. The first franchisee agreement was informal at best, with Skodras’s brother as the operator.

But friends who were McDonald’s franchisees turned Skodras onto the idea of a more formal structure, and a few years after his brother signed on, the brand began to take a more proactive approach. Though, Richardson specifies, it was proactive in that Skodras “would entertain people who were interested in doing that,” he says “There was never any active franchise outreach. So it would have historically been guests of Eggs Up Grill that had been attracted to the brand and wanted to bring it to their community.”

Under WJ Partners, the approach is more aggressive, but not overly so. For one, the brand wants to, at least for the foreseeable future, stay in the Southeast, where Richardson believes it could easily reach 400 units without becoming oversaturated. Secondly, it’s still connecting with potential partners the way it did under Skodras’s direction: through word of mouth and in-person interactions.

That’s how Ron Donaldson first became acquainted with Eggs Up Grill. Now, he’s on track to be the largest franchisee in the system, planting outposts in the virgin soil of Texas.

While working the graveyard shift at Subway as a teen, Donaldson promised himself he’d one day own his own—and he made good on that promise. For about 14 years, he operated multiple concepts, including Subway units and some regional brands in both quick and full service. Eventually, he sold the business and switched to buying and building apartment buildings. It was on a work trip to Charleston, South Carolina, that Donaldson happened to dine at what he assumed was a local institution.

“The atmosphere was great; the people were great. Whenever I go into a restaurant, I’m always assessing things just because of my history, and I assumed it was a local concept. The more I ate there, the more I enjoyed it. Then I found out it was a franchise brand,” Donaldson says. He started doing some research and eventually connected with Richardson and WJ Partners. “We were just smitten. We were very pleased with the culture, with the brand, and the great opportunities,” he adds.

So last summer, Donaldson, along with his brother and son, signed a deal to develop 30 Eggs Up Grill locations in the greater Dallas-Fort Worth market. The first Texas store, slated to open early this year in Carrollton, clocks in just shy of 8,000 square feet and includes a training kitchen that will be used for onboarding as more locations open.

Face-to-face interactions between senior executives and boots-on-the-ground operators are at the heart of Eggs Up Grill. And company leaders are betting on these strong franchisee ties to not only fuel growth but also ensure the brand personality is maintained across the entire system. After all, it’s one of the first things guests and operators like Donaldson notice when they visit.

“It’s been a breath of fresh air. When we were with some of our other brands—and I can’t say names—we just felt boxed in with a lot of things, and it made it difficult to interject things that we felt would improve the overall brand image and sales,” Donaldson says. “We’ve been doing this for a little while, so we understand the temperament of folks who are in the industry. We felt the ownership was very genuine in terms of working with the franchisees to be true partners in the growth of the brand.”

This same intentionality was present when WJ Partners took the reins. Richardson recalls sitting down with multiple players who had a pivotal role in shaping the Eggs Up Grill family, including Skodras and the brand’s longest-tenured franchisee.

“We spent a couple of hundred man-hours over about a three-month period getting down on paper what I call the DNA or the soul of the brand, and what those points of differentiation are that have made it successful to this point in time,” Richardson says. WJ Partners and the new leadership wanted to accelerate growth, but they wanted to do it the right way and make sure they didn’t “lose sight of what it had been that made it successful so that all the work that we did was complimentary versus creating confusion or disconnects or murkiness about what Eggs Up Grill is really about,” he adds.

One of the first changes to come out of these meetings was the new store design, which can be found in about half the system, due to new locations entering the system and legacy operators updating their spaces. While this new look might differ from the original (think: old-school diner), it reflects brand values that have remained unchanged.

“It’s about being light, bright, and it kind of helps put a smile on your face,” Richardson says. “It has some design elements and color schemes that remind you of the sun coming up in the morning. It reminds you a little bit of our heritage from the beach area.”

Not a chain

Richardson and his team have brought infrastructure and streamlined practices to Eggs Up Grill, positioning it for big growth, but at the root, it remains a hands-on, heritage brand. This was a perk for Richardson, who had spent seven years at TGI Fridays, half of which he served as brand president.

Part of the appeal of leading Eggs Up Grill was the opportunity to be at the forefront of a smaller operation with a runway ahead and less distance between the corporate offices and the operators. Richardson wasn’t the only one to have these sentiments.

Before joining Eggs Up Grill, Nate Young had spent many years climbing the corporate ladder at Red Lobster. He graduated right as the dotcom bubble burst, and although he’d never aspired to a career in foodservice, that’s where he landed. At age 23, he was promoted to general manager before eventually ascending to director of operations in South Carolina, a position he held for about a decade until shortly after Golden Gate Capital acquired the brand in 2016.

“The culture was kind of deteriorating, and the brand itself was doing what brands that age typically do after a run like that. I wasn’t loving life; I had four small kids, so getting home late at night was not a great thing for my wife or for me as a father and husband,” Young says.

He took some time off to do consulting work in the franchise world, collaborating with brands like Raising Cane’s. Eventually, Ryan Gripper, who would one day be his business partner, introduced him to Eggs Up Grill. After some digging, the pair along with two other partners filed their Franchise Disclosure Document for northeast Columbia, South Carolina. They were up and running by late 2018.

A second store in Camden followed in February 2020, and in 2021, the quartet purchased an existing location in Rock Hill. Then late last year, Young and his partners acquired three more units, which made them the largest franchisee in the Eggs Up Grill system. On top of that, their first unit in northeast Columbia posted the highest first-year sales of any location. The second store, which had the misfortune of opening just a month before Covid began, still managed to beat the rest of the system in terms of its first two weeks of sales.

While Young and his partners might seem aggressive in their growth, it’s worth mentioning they won’t expand without a solid system in place. For example, when another store became available for purchase about two months after the Rock Hill deal, they decided to pass.

“We declined the opportunity because we didn’t feel that, from a personnel standpoint, we were in a position where we could do the right thing by the people at Rock Hill,” Young says. “So we very much try to keep that front and center when we make these choices. We don’t want to get blinded by dollar signs and lose the team in the process.”

Like Richardson, Young’s experience at a much larger brand gives him an edge in creating standards and best practices. It also helps him appreciate—and protect—the human element that’s so crucial to success at Eggs Up Grill.

“If I were to say the biggest advantage Eggs Up Grill has over large corporate brands, it’s the footprint to start with. We’re not operating a behemoth of restaurants, like a lot of these casual-dining restaurants,” Richardson says. “Our footprint is part of what makes us feel a little bit more quaint, a little bit more local. If you walk in, we get the ‘it’s a diner without feeling like a diner’ comments all the time. It’s Waffle House without feeling like a Waffle House.”

A winning trifecta

NextGen Casual breakfast brands are all the rage of the moment. (Need proof? Look no further than First Watch’s billion-dollar valuation in 2021.) Besides legacy brands like IHOP and Denny’s, most breakfast-centric full-service restaurants have, until recently, been regional players. But as breakfast booms, many, like Eggs Up Grill, are blooming into newer territory. At present, the category has plenty of white space, but it still raises the question of differentiation further down the line.

When asked, Richardson can point to three distinct features that separate the brand from the pack. The first is approachability. While many growing breakfast players push the envelope in terms of culinary innovation, Eggs Up Grill prides itself on serving high-quality yet familiar dishes.

“Eggs Up Grill really appeals to a much broader guest base than our competitors,” he says. “Our products are very approachable; you’re going to see menu offerings that you’re very familiar with. Our No. 1 selling dish is what we call the Classic, and it’s two eggs any way that you’d like them, some great-tasting breakfast meats, a side of our proprietary home fries, and your choice of toast or biscuit or bagel. It’s pretty standard fare, [like] waffles and pancakes. Now, we do them in fun and unique ways, but you’re not going to come to Eggs Up Grill for a flavor adventure in the context of ‘I want to try ingredients I’ve never heard of before.’”

Second, on that list of differentiators is the friendliness of the staff, Richardson says. He credits the welcoming nature of the restaurant and team members to a combination of company-wide culture and local ownership. That’s why it’s so important for Eggs Up Grill to work with the right partners.

“We would spend a lot of time during the prospect and selection process making sure there was an understanding of the new franchise prospect’s part of what the DNA of this brand is about and how you deliver those experiences that put smiles on guests’ faces,” Richardson says.

Potential operators who were excited by the brand were the best fit in terms of culture. They were also the most likely to be successful, he notes.

The final piece, Richardson says, is affordability. Eggs Up Grill has a check average of about $12.50, which is anywhere from $2 to $5 less than others in the category. As skyrocketing inflation leads more and more price-sensitive consumers to rethink their away-from-home meal occasions, Eggs Up Grill has a significant advantage. Its prices aren’t much higher than those at more established breakfast chains. At the same time, the NextGen brand boasts arguably better quality food and a personal touch that edges out legacy players.

From the franchisee and employee side, there’s a lot to like about Eggs Up Grill, too. After working late nights as a regional manager, Young was happy to take a job where the workday ended by mid-afternoon. It’s an attractive perk across the board. With one shift each day, staff have the flexibility to pick up kids from school, schedule appointments, etc.

As Donaldson points out, “We won’t be getting in at 11 o’clock or [getting]  one o’clock calls with this concept.”

The work-life balance is a major selling point for Eggs Up Grill, but that’s not to say the job is a cakewalk. After all, maintaining its warm, local vibe and quality standards will become increasingly difficult as the concept fills existing markets and expands into new ones.

“Big brands have had a hard time getting that culture boiled down to the hourly level. I don’t have that issue,” Young says. “As we grow, will it be harder to do? I expect that it will be. … It will be interesting to see how many deals like the Donaldsons’ in Dallas come about. Those are huge opportunities.”

For those larger operators, Young says it will be especially critical for franchisees to install and empower leaders with roots in the communities they serve.

As a seasoned operator, Donaldson is well aware of the sweat equity this undertaking will require. But then again, he has no reservations about diving in.

“We work extremely hard, but we know signing is the easy part,” he says. “But we love it. It’s going to be great.”  Source: FSR.

Foodservice veteran joins C.H. Guenther as an adviser . . . .

Lawrence “Larry” Oberkfell, new senior adviser at C.H. Guenther & Son LLC.

Lawrence “Larry” Oberkfell has joined C.H. Guenther & Son LLC as a senior adviser. In his new role, Mr. Oberkfell will advise C.H. Guenther & Son’s management team on identifying growth opportunities and strategic initiatives.

An experienced foodservice and industry leader, Mr. Oberkfell has held executive roles in the foodservice and manufacturing industries for the past three decades. Most recently, he was president and chief executive officer of the International Foodservice Manufacturers Association. Earlier, he held executive leadership roles at Schwan Food Co., Surebeam Corp., and Anchor Food Products. He also was an operating partner at GESD Capital Partners, where he oversaw the firm’s bakery portfolio.

Mr. Oberkfell has held numerous board positions, including with the National Restaurant Association, and remains active in many industry-related groups such as the GS-1 Executive Committee.

“With Larry’s past experience working with family-owned businesses, he has the necessary skill set to drive growth while upholding CHG’s deeply held family values and legacy,” said John Buckles, president, and CEO of C.H. Guenther & Son. “In our efforts to be a trusted partner for our customers, we will look to Larry’s guidance to identify new ways to enhance our product offering and deliver exceptional value.”

Terry Sutter, an operating partner at Pritzker Private Capital, added, “Larry will play a pivotal role in identifying growth opportunities that further cement CHG’s leadership position, including through strategic add-on acquisitions. Larry’s decades of leadership in the foodservice industry and extensive industry relationships make him ideally suited for this role. PPC looks forward to continuing our successful partnership with CHG as we innovate across the product portfolio.”

C.H. Guenther & Sonis is owned by Pritzker Private Capital. The company has a global footprint, employs more than 3,700, and has 27 manufacturing locations in the United States, Canada, and Europe. The company manufactures value-added grain-based and frozen food products for foodservice and retail. Brands owned by the company include Pioneer, White Wings, Sun-Bird, and Cuisine Adventures. The company’s roots date to 1851 when Carl H. Guenther built a flour mill near Fredericksburg, Texas. The business moved to San Antonio in 1859 and was renamed Pioneer Flour Mills in 1898. The original name was readopted in 1999. – Source: Food Business News.

The announcement comes a week after Applebee’s announced that Cywinski had left the company . . . .

John Cywinski Newest Restaurant Group’s CEO, Effective Immediately

Modern Restaurant Concepts — the parent company of Qdoba, Modern Market Eatery, and Lemonade brands — announced Thursday the appointment of John Cywinski as the restaurant group’s newest CEO, effective immediately. Cywinski was most recently at Applebee’s, where he served as president for six years until the casual-dining chain announced his departure a week ago.

“The Butterfly team has a compelling and ambitious vision within the restaurant industry that holds great appeal for me,” Cywinski said in a statement.  “Qdoba is exceptionally well-positioned, as the number two brand in the Mexican fast-casual category, with positive comp sales for 11 of the past 13 years, very attractive restaurant-level margins, broad consumer appeal, and the capacity to double in size over the next decade.”

During his time at Applebee’s, Cywinski led his team in a “dramatic transformation” of the brand. Before that, he served as president of KFC for four years where he led a turnaround of the business under Yum Brands. Prior to Yum Brands, Cywinski was a successful franchisee of Dunkin’ Donuts and Sonic restaurants in Chicago (now sold), and also has experience in the entertainment industry.

“John is an exceptional operator and executive with a track record of success in the restaurant space,” Adam Waglay, cofounder and co-CEO of Modern Restaurant Concepts majority owner, Butterfly, said in a statement. “His expertise and leadership will be invaluable as we accelerate the company’s growth, and we’re incredibly honored to have someone of his caliber join the team.”

Keith Guilbault, prior Co-CEO of Modern Restaurant Concepts for seven years, is leaving the company for other unspecified opportunities. The company’s other former co-CEO, Rob McColgan, will remain on as the new president of Modern Market and Lemonade.  Source: NRN.

The hot dog and Italian beef chain are opening most of its new locations in Southern states like Florida, Arizona, and Texas, where its restaurants have performed well . . . .

Chicago Brand Portillo’s Gets a Warm Welcome in the South

Portillo’s recently did a soft open for one location in The Colony, Tex., a suburb of Dallas. The company did not say a word about the opening, not even on social media, and it still had a line of customers waiting when the doors were unlocked.

“We did $20,000 the first four hours,” CEO Michael Osanloo told investors at the ICR Conference on Tuesday. “Once they saw people coming to the restaurant, they lined up. I’ve never experienced that in a restaurant. It’s insane.”

But it also confirms the company’s current growth strategy, which is focused mostly on the South. While Portillo’s is a Chicago brand, featuring Chicago dogs and Italian beef, 70% of its new unit openings this year are planned for Southern states and the company seems intent on keeping it that way.

There is a simple reason for this. “It’s easy,” Osanloo said in an interview. “Our restaurants take off right out of the gate. And I’ll take every advantage I can get.”

The population is growing rapidly throughout the South. Florida, Texas, and Arizona are three of the fastest-growing states in the country. Texas, for instance, is expected to add another 5 million people between 2020 and 2030. Put another way, Texas will add to the population of Alabama over that period.

Restaurants as a rule need people and the best way to find them is to add locations where said people live. And those people increasingly live in the South—easily the hottest area for restaurant development.

The result: Its stores do better in the South than they do in the Midwest, outside of Chicago, that is. “The restaurants outside the Midwest generally perform better than in the Midwest,” CFO Michelle Hook told investors.

Portillo’s has generated steady growth with its large, high-volume locations—its locations average $8.4 million in revenue per year. The company operates 74 locations, up from 46 units in 2016.

More than half of its locations are in Illinois. And the company continues to add locations in its core Chicago market. “We are definitely Chicago street food,” Osanloo said.

“Our goal is to eventually become a national brand,” he added. “But we will always have roots in Chicago. We plan to keep building in Chicago.”

Its growth in recent years has concentrated in two categories—contiguous states near its home market, and warm-weather states where Chicago residents move to get better weather. The company has 17 locations in the Midwest outside of Illinois, and 13 in California, Arizona, Texas, and Florida.

Portillo’s has traditionally used orders of its Italian beef and hot dogs online to determine the demand for its products and help guide its growth strategy. “Texas, Florida and Arizona are three of the fastest growing states in the U.S.,” Osanloo said. “We have strong aided and unaided awareness there.”

The restaurants are opening so strong, in fact, that the company actually worries about providing proper service. “Our restaurants come out of the gate hot,” Osanloo said. “It comes out so hot that it’s hard to execute.”

And, well, if the restaurants do well, it makes sense to open more of them. So the company plans to open three to five locations in both Florida and Texas this year and another one or two in Arizona. Portillo’s is planning to open one or two each in Michigan and the Chicago area.

But just watch out for those “soft” opens. — Source: Restaurant Business.

Red Robin CEO G.J. Hart said the Donatos partnership has been successful, but the company will focus on Red Robin’s comeback this year . . . .

Red Robin has put its Donatos Expansion Plan on Hold for Now

Red Robin added Donatos’ Pizza to its Menus at a Few Dozen restaurants in 2018, generating incremental sales while also ensuring the brand operated autonomously on third-party marketplaces. Donatos essentially functioned as a virtual restaurant out of Red Robin locations well before the pandemic put such concepts on the map.

The partnership was such a success, Red Robin added another 120 restaurants to the mix, bringing the total to more than 200 locations throughout the gourmet burger brand’s system in 2021. Six months ago, then-CEO Paul Murphy noted that the Donatos pizza product “continued to exceed expectations,” adding that the company was “particularly encouraged by the incremental sales” generated through the partnership. Murphy said Donatos pizza generated approximately $6.2 million in sales during the second quarter, with a mix of about 60% dine-in and 40% off-premises.

“Restaurants serving Donatos outperformed restaurants without Donatos by 8.4 percentage points in terms of comparable restaurant revenues versus 2019 in the second quarter,” Murphy said during Red Robin’s Q2 call. “Additionally, guest checks that include Donatos pizza are on average $10 higher than those that do not.”

Incremental sales, higher checks, what’s not to like?

Shortly after that call, G.J. Hart was named president and CEO of Red Robin and, though he noted there is indeed plenty to like about the Donatos partnership, his priorities have shifted squarely to the implementation of an extensive turnaround plan for the flagship brand. Hart laid out that plan earlier this week during the ICR Conference in Orlando, including five focus areas like elevating the guest experience and transforming into an operations-focused company.

Because of that focus shift, a further Donatos rollout has been put on hold for now. On Murphy’s watch, the plan was to add Donatos to the remaining 150 Red Robin restaurants throughout 2023. Now, it’ll “probably be into 2024,” Hart said.

“We will move it into all of the systems, but we are taking a little bit of a step back so we can invest back in our current assets. After all, the flagship is Red Robin, so we need to do first things first. We do plan to roll it out to the rest of the system, we just don’t have the exact timeframe,” he said.

Delay aside, Red Robin remains bullish on the partnership. Hart said Donatos is “an incredibly good product that we have had great success with,” adding that restaurants that serve Donatos are close to achieving a double-digit revenue gap versus those that do not.

“It gives us an additional offering. Candidly, from a positioning perspective, we think about Red Robin and its offerings and it’s true Americana,” he said, adding that it complements pizza, which is also an “iconic American” staple. “It’s been a seamless execution. We do think it has merit and we will roll it out to the rest of the system.” – Source: NRN.

5 Food and Beverage Trends to Watch for 2023

Consumers’ efforts to balance health and wellness with their desire to seek comfort and enjoyment from foods and beverages will drive many of the trends showing up in restaurants and on grocery shelves in 2023, according to experts’ predictions about the coming year. Here are five of the top food and beverage trends to watch for 2023, including a beverage category that will continue to gain popularity and the social media platform that experts think will most influence where and what consumers want to eat.

Fermented and pickled foods and drinks

The tangy, funky flavors of fermented and pickled foods and beverages have gained mainstream popularity over the last several years, and several trend forecasts predict they are among the top food and beverage trends to watch for 2023. Searches for pickle-flavored foods on Yelp increased 55% this year, according to the review site’s 2023 trend predictions.

“The difference now is in the flavor base, the ingredients, the approach, and the focus chefs and even bartenders are applying to it. A shared appreciation for the fermentation process is spreading across cultures, cuisines, and service categories,” AF&Co and Carbonate write in their 2023 Trend Report. The report, which credits Noma’s new Nordic cuisine – specifically the restaurant’s use of the fermented rice called koji – for spurring the popularity of fermented foods on modern menus, noted the trend at restaurants including Aedean Koji Kitchen in San Francisco and The Charter Oak in St. Helena, Calif., which serves vegetables with a fermented soy dip.

Technomic also included pickled and fermented foods and beverages in its 2023 trend forecast, predicting that menus will start to include names of specific preservation methods, such as Lacto-fermentation, now that consumers are becoming more familiar with the processes. “Expect pickling to extend to everything from proteins and french fries to herbs and nuts, while pickled ingredients, themselves, will top unexpected dishes,” the report says. “At the bar, pucker up with sour cocktails containing fermented, gut-healthy ingredients, such as kombucha, miso and sake.”

Fermented beverages are also on the radar of Total Foodservice, which called out kefir as one of the drinks to watch in the coming years.

Low- and no-alcohol beverages

Kefir and kombucha can be used to create beverages that don’t rely on alcohol to achieve complex flavor profiles, a trend that has been growing for several years and will continue into 2023. Searches for mocktails were up 59% this year, according to Yelp, which also included cream-enriched “dirty sodas” and alcohol-free micheladas called michelaguas in its roundup of food and beverage trends to watch for 2023.

As more people explore their relationship with alcohol and its effects on their physical and mental health, demand for sophisticated zero-proof beverages is growing at retail and across restaurant segments – no liquor license required. “No-alcohol products can be sold anywhere with no restrictions, including online through major retailers like Amazon. By contrast, the sale of traditional-strength spirits remains largely limited in major online retailers,” according to Adam Rogers, research director for North America at beverage alcohol research firm IWSR.

Bars, restaurants, and retailers will have even more alcohol-free options to stock in the coming year. “The wide array of products replicating actual spirits gives bartenders something exciting to work with when crafting delicious, non-alcoholic drinks with diverse flavor profiles,” AF&Co and Carbonate wrote in their trend report.

The growing booze-free movement is also inspiring bartenders to brew up their own branded beverages and ingredients. Karl Franz Williams, the owner of 67 Orange Street in New York City, created Uncle Waithley’s Vincy Brew Ginger Beer that he uses as an ingredient in alcohol-free cocktails, Delish reported in its 2023 trend forecast.

Throwback favorites

Another trend that is growing in beverages and beyond is the nostalgic appeal of dishes and drinks resurrected from the past. Bacardi included nostalgic and classic cocktails in its 2023 trends report, citing the Bacardi Consumer Survey 2022, which found 58% of bartenders are most interested in classic cocktails with a twist. Cocktails inspired by childhood flavors also have a nostalgic appeal, according to AF&Co and Carbonate’s report, which mentions a cocktail from Summer House in Chicago that evokes milk-and-cereal and a spiked root beer float on the menu at Milady’s in New York City.

Drinks won’t be the only category taking inspiration from days gone by. Dessert menus will offer a sweet taste of nostalgia with revamped classics such as moon pies and s’mores, according to the National Restaurant Association’s 2023 What’s Hot Culinary Forecast. Updated takes on retro-baked Alaska are AF&Co and Carbonate’s pick for the dessert of 2023.

Tastewise also included nostalgic desserts in its 2023 forecast, and the data platform’s report urges culinary professionals to expand their understanding of nostalgia to create mash-ups that appeal to a wider audience. Consumers’ desire to fit favorite foods from the past into their current diets is “creating the ultimate mash-up of throwback indulgences with better ingredients and special diets in mind,” according to Whole Foods Markets’ 2023 Trend Forecast, which mentions macaroni and cheese and pizza bites as some of the throwback favorites that are getting a healthy makeover.

Experiential add-ons

In-person dining made a major comeback this year as consumers returned to restaurants seeking the experiences they missed out on earlier in the pandemic. To compete for diners’ dollars in this crowded market – especially as inflation is prompting many people to be more selective about their spending – eateries will need to offer memorable experiences in addition to delicious food.

Experiences that showcase local culture and community will be the No. 1 trend of 2023, according to the National Restaurant Association’s What’s Hot report. Diners are searching for unique experiences that “offer views, activities, or entertainment, all while enjoying a meal,” according to Yelp, which saw searches for dinner theaters and underwater restaurants increase 109% and 263%, respectively, this year.

Food halls can cash in on this appetite for experiences by featuring live bands, hosting movie nights or enhancing their retail offerings with specialty vendors such as seafood stalls and bakeries, Baum+Whiteman consultants said in the firm’s 2023 trends report.

TikTok tastemakers

With so many food and beverage options to choose from, consumers are increasingly turning to social media to discover the latest and greatest – and decide which ones are worth their time. TikTok rose to the top of the social media food chain this year, and many experts are predicting the platform will continue to dominate in 2023.

TikTok has more than 65 million monthly active users in the US, and 36% of TikTok users have visited or ordered food from a restaurant after seeing a TikTok video about the restaurant, according to a 2021 survey conducted by marketing agency MGH.

“Across industries and identities, TikTok is expected to expand its influence as yet another essential app for people around the world,” according to Delish, which predicts food TikToks will be one of 2023’s biggest food trends.

Wine Enthusiast also included TikTok in its 2023 trend predictions. “We’ve…already seen how TikTok is breaking down barriers for wine content producers, and we needn’t tell you more about how the Negroni Sbagliato became TikTok famous,” cocktail consultant Kara Newman writes.

The cocktail is one of many foods and beverages that went viral on TikTok this year. Butter boards, coconut cloud smoothies, and green goddess salads also had their moments of social media fame, some of which caused spikes in grocery orders for certain ingredients, according to a report from grocery delivery service Instacart.

In the coming year, the recipes that are most likely to get traction on TikTok are those that keep it simple. “Our survey found that 56% of those who view food and recipe content on social media factor in affordability when considering making a recipe they viewed, and 49% factor in already having most of the ingredients at home,” Instacart’s trends expert Laurentia Romaniuk said.

“Most of the time and especially now in this economy, a recipe is less likely to take off if it has an extensive list of ingredients that can rack up a hefty bill. In 2023, we’ll see new food trends emerge that are conducive to budget meals – many of which will prioritize common pantry and fridge staples.” – Source: Tricia Contreras. Read more like this from SmartBrief:

Q&A: CIA faculty discuss challenges, and opportunities facing the culinary industry in 2023

What do restaurant menu trends look like post-pandemic? Omelets and nachos hold clues

Food and restaurant trends for 2022 include robots, sustainability

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THE CASUAL-DINING CHAIN, LED BY NEW CEO GJ HART, HAS A FIVE-POINT TURNAROUND STRATEGY THAT TOUCHES GUESTS, EMPLOYEES, MENUS, AND MORE . . . .

Red Robin Prepares for Restaurant Transformation

Red Robin CEO GJ Hart started his tenure in September, but he’s followed the brand long before then and done his homework on its history.

To learn how the 511-unit company has trended, Hart spoke with executives of the past, all the way up to the first president 44 years ago. Back in the 90s and early 2000s, the casual-dining chain was “clearly best-in-class on many things,” the chief executive said—local store marketing, execution, family-friendly atmosphere, and hospitality. But at a certain point, the decline began to set in.

Through his research, the CEO found that revenue was trending upward until the roughly 2017/2018 range. In fact, in 2017, with 566 restaurants, Red Robin earned $1.39 billion in sales, but that dipped to $1.34 billion the next year. In 2019, it went to $1.32 billion and sunk to $869 million in the pandemic-filled 2020 year. The chain came in at $1.16 billion in 2021 and preliminarily $1.27 billion in 2022.

In terms of guest satisfaction, the brand exceeded the casual-dining average until about 2015. Last year, the gap between the casual-dining average and Red Robin was as wide as it’s ever been.

The chief executive attributed this notable dip to cost-cutting decisions that were well-intentioned, but hurt the guest experience and financial results. He specifically pointed to lower food quality, labor reductions, and under-investment in the business. As an example, Red Robin removed bussers a few years prior as a way to reduce labor costs and also eliminated the kitchen manager position in favor of more general management throughout the restaurant. Hart also noted how the expo station became less important and how the company removed a certified training center in favor of teaching at-home restaurants. Each of these decisions, the CEO said, impacted Red Robin negatively.

Hart noted that one of these challenges would hurt a company long-term. All of them together would’ve likely put a brand out of business. But not Red Robin.

“The brand is resilient. It’s incredibly resilient,” Hart said at this year’s ICR Conference. “The brand promise when done right is incredibly powerful and to this day that’s still the case.”

Hart is prepared to put his stamp on the chain through a major turnaround plan. It comes in the form of a five-point North Star strategy “designed to drive long-term shareholder value and enhance Red Robin’s competitive positioning.”

“While the business has faced challenges in recent years due to the impact of COVID and at times execution that has not met our standards, we are committed to taking bold action through new executive leadership to deliver long-term sustainable growth,” Hart said.

The first tenet of the plan is to become an operations-focused company. This means frontline operators will be involved and have a voice in every company decision. Hart also hopes to compensate leaders more appropriately and create a managing partner program in which there’s a sense of ownership and pride.

“Very challenging to do in a restaurant with 500-plus restaurants, but we’re working on something we think that will work,” Hart said.

The next part is to elevate guest experiences, including further investment in employees, food quality, and restaurant facilities, a new cooking platform, and a menu refresh (better variety, healthier items, and enticing price points). Hart said Red Robin will modify its service model to where servers have fewer tables to execute against. Additionally, the brand will move to flat-top cooking, which in tests has proven to be faster and bring higher quality. The industry veteran added that Red Robin—for many years—has been using processes implemented in the fast-food industry.

“Well if you have gourmet burgers and you had promised this to be the best burgers in the business and casual dining, then you really have to look at yourself in the mirror and say, ‘Are we in fact executing against that and how can you produce that speed? The best burger?’ And that’s why we’ve come to the conclusion that we’ve got work to do.”

The remaining three portions of the plan aim for eliminating costs and complexity (optimizing supply chain and evaluating vendors); improving customer engagement (engaging with communities, enhancing off-premises, and building rewards program); and fueling revenue and profitability.

Hart said the plan will guide Red Robin’s efforts in the next three years and should help more than double its adjusted EBITDA margin.

“I’m super excited,” Hart said. “I have been with the company now for four months. I’m more excited today than the day that I walked in. While these situations of comebacks or transformations are difficult and hard to do in the meantime, there are fundamental things here in this brand that are powerful that we can bring back to life.”

One of the biggest points of optimism is proof of just how well a Red Robin store can perform. The chain’s top quartile restaurants have 38 percent better same-store sales, 32 percent better traffic, and are 6 percent better staffed. General managers at top quartile units have been in this type of role 67 percent longer, and they’ve been staffed at Red Robin for 41 percent longer.

Hart said it was the widest gap in top and bottom locations he’s ever seen in his four decades of experience.

“Those are significant,” Hart said. “I’ve never seen the difference between the top to the bottom be that dramatic. But what that creates is hope and possibilities of what can be and where we can go with this brand.”

The North Star announcement comes as the chain achieved 2.5 percent same-store sales growth in the fourth quarter—the eighth straight period of positive movement. Donatos—the pizza fast casual licensing its products to about 250 restaurants nationwide—is continuing to lift sales. In the fourth quarter, stores that sell Donatos outperformed non-Donatos outlets by 6.2 percentage points when looking at same-store sales versus 2019.

Hart was named CEO in July after former leader Paul Murphy announced his retirement. He’s been part of Red Robin’s board since 2019 and has spent about 35 years in the restaurant industry, with stints as CEO of Texas Roadhouse, California Pizza Kitchen, and most recently, Torchy’s Tacos.

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