My Rewards members who purchase any burger on the app will receive a mystery Famous Star offer . . . .

Carl’s Jr. and Hardee’s Offer Mystery Deal for International Burger Day

Calling all burger lovers. For International Burger Day on May 28, Carl’s Jr.® and Hardee’s® are offering deals for My Rewards members who purchase a burger via the Carl’s Jr. and Hardee’s apps. The simple combination – a juicy, charbroiled all-beef patty, topped with crisp veggies and cheese – has become a classic around the world and both brands will celebrate the holiday with deals to keep customers coming back for more.

Participating Carl’s Jr. and Hardee’s will offer an unbeatable deal to My Rewards members who purchase any burger, a la carte, or as part of a combo, through the app on May 28, 2023. Members will receive a mystery offer for a Free Famous Star® with a purchase for a day, a week, a month, or every week for a year!

“International Burger Day is the perfect moment for Carl’s Jr. and Hardee’s to recognize and celebrate our members who share our passion for charbroiled burgers,” said Jason Seeley, vice president of digital marketing. “My Rewards members always have access to exclusive offers, but the mystery Famous Star offer is especially significant as it gives us an exciting way to invite them back again and again.”

To receive the International Burger Day offer, My Rewards members must place an eligible order via the App or Website on Sunday, May 28. The offer will appear in member accounts within 24 hours of the qualifying purchase.

About CKE Restaurants Holdings, Inc.

CKE, a privately held company based in Franklin, Tennessee, runs and operates Carl’s Jr.® and Hardee’s®, two beloved brands, known for premium and innovative menu items such as iconic Charbroiled Burgers, Made from Scratch™ Biscuits, and Hand-Breaded Chicken Tenders™. With both a U.S. and international footprint, Carl’s Jr. Restaurants LLC and Hardee’s Restaurants LLC have over 3,800 franchised or company-operated restaurants in 44 states and 43 foreign countries and U.S. territories. For more information about CKE, please visit www.ckr.com or its brand sites at www.carlsjr.com and/www.hardees.com./ Source: NRN.

Taco Bell is offering a breakfast promotion every Tuesday through June for members of its rewards program . . . .

Taco Bell Introduces Yet Another Aeration of its Nacho Fries

Taco Bell has introduced Steak Chile Verde Fries to the menu nationwide, featuring jalapeno, lime, and herbs served atop Nacho Fries with nacho cheese sauce, a three-cheese blend, reduced-fat sour cream, Fiesta strips, and marinated and grilled steak. The new fries are available for $4.49.

Taco Bell’s Nacho Fries were initially introduced in 2018 and quickly became the chain’s most successful new product launch ever. The success has inspired Taco Bell to introduce limited-time iterations, like the Rattlesnake Fries and Reaper Ranch Fries, to generate traffic and sales upticks. More recently, the chain partnered with smaller vendors, Yellowbird and Truff’s, to add their signature sauces to the fries.

For the latest Steak Chile Verde version, guests can also request these ingredients be wrapped in a tortilla for a burrito, available for $3.99. The topped fries and burrito can also be made without steak for $3.79 and $3.49, respectively.

Also, Taco Bell’s Enchirito has returned to nationwide menus for a limited time for $3.79. The item includes seasoned beef, beans, and diced onions rolled in a tortilla with red sauce and topped with shredded cheddar cheese. It is available only via the brand’s digital platforms.

On the beverage menu, Taco Bell has introduced Watermelon Berry Lemonade Freeze and Watermelon Berry Freeze nationwide.

Finally, starting June 6, Taco Bell Rewards members can earn a free Breakfast Crunchwrap through their loyalty program. The offer is available on Tuesdays through the month of June before 11 a.m., perhaps intentionally corresponding with Taco Bell’s efforts to cancel the “Taco Tuesday” trademark owned by rival Taco John’s.

Taco Bell is making a big push to get customers to return to its breakfast daypart, including the recruitment of comedian/actor Pete Davidson for marketing campaigns. During parent company Yum Brands’ Q4 earnings call in February, CEO David Gibbs said Davidson’s initial appearance helped “drive consumer buzz” for Taco Bell’s breakfast, which led to a 9% transaction growth during the daypart. – Source: nrn.

APPLEBEE’S PRESIDENT TONY MORALEJO IS LEADING THE NEIGHBORHOOD BAR AND GRILL INTO THE FUTURE BY STAYING TRUE TO THE BRAND’S VALUE PROPOSITION WHILE PARTNERING WITH FRANCHISEES TO GROW AND MEET A NEW GENERATION OF DINERS WHERE THEY’RE AT.

Applebee’s Accelerates a New Era of Dining

Nearly every Millennial can recall a story when they carpooled with friends or family over to their neighborhood Applebee’s Grill + Bar, likely after a high school football game or choir concert, to grab Late-Night Half-Price Apps like spinach artichoke dip and mozzarella sticks. Memories are etched onto the walls, and not just in a figurative sense; the vast majority of restaurants display pictures of regional high school sports teams, nonprofits, and local lore and history as a tribute to the communities the eateries serve.

Knowing the history of an organization helps give context to the challenges it has overcome, and enables leaders to learn from past mistakes to help shape its future. Though Applebee’s tallied 1,569 open locations in the U.S. as of year-end 2022, it all started in 1980 when co-founders Bill and TJ Palmer opened T.J. Applebee’s Rx for Edibles & Elixirs (quite a tongue-twister name) in Atlanta. And it wasn’t until 1986 that the name changed to Applebee’s Neighborhood Grill & Bar.

The founders’ vision for the concept—to create a restaurant with a neighborhood setting, friendly service, and quality fare at a lower price point than competitors—hasn’t changed much at the casual-dining chain 43 years later, despite the business changing hands a number of times.

APPLEBEE’S: Tony Moralejo

“I’m a first-generation American, and because of that, I know the value of value,” says Tony Moralejo, who was named president of Applebee’s U.S. in January after serving at its parent company, Dine Brands, as president of international and global development for three years.

“I came to this country as an immigrant with my parents and my brothers, and I went through the same struggles that our guests are going through today with high costs and adjustments,” he continues. “And so whenever there’s a period of uncertainty, guests lean to the brands that they trust, right? And Applebee’s is a brand that they trust. And one of the reasons they trust us is because we are affordable, and we have a strong value proposition.”

Moralejo succeeded John Cywinski, who served as Applebee’s chief marketing officer in the early 2000s before returning in 2017 as president. Cywinski left his position in January to become CEO of Los Angeles-based Modern Restaurant Concepts, the parent company of Qdoba, Lemonade, and Modern Market Eatery.

During his tenure at Applebee’s, Cywinski shuttered roughly 300 underperforming U.S. stores across five years. The time spent optimizing the system and closing low-volume restaurants paid off, and led to average unit volumes increasing by more than $500,000 in the same time period. In November 2022, Cywinski argued the chain was in its “glory years” and in a better position than ever before in the concept’s history. (When he joined in 2017, AUV was at $2.2 million.)

Value, value, value

During Dine Brands’ fourth quarter and 2022 full-year earnings call, Moralejo noted the importance of retaining Applebee’s value proposition. Though he predicts the chain will open more stores in 2023 than it did last year, it will still see a net loss of 10-20 outlets.

“It’s not where we want to be in the future,” Moralejo told investors. “Based on my experience across multiple global restaurant brands, the rate or the pace of development, it comes down to franchisees believing there’s an attractive value proposition.”

Applebee’s same-store sales increased 1.7 percent in Q4, making it eight straight quarters of positive growth. It lapped the previous year’s 9.1 percent increase versus the same period in 2019. Average weekly sales per restaurant in Q4 were $52,500, which is $2.73 million in annualized AUV. For the year, comps rose 5.1 percent.

For context: Applebee’s began trading publicly in 1989, and quickly became one of the largest casual-dining restaurant chains in the U.S. with an impressive ramp-up period. Applebee’s jumped from 250 stores in 1992 to more than 500 in 1994. By 1998, Applebee’s opened its 1,000th restaurant, and the following year hit a record of $2.35 billion in systemwide sales.

In 2007, IHOP (International House of Pancakes) Corporation announced it was acquiring Applebee’s for approximately $2.1 billion. After closing the deal, IHOP Corp., under DineEquity at the time, began franchising most of Applebee’s 500 company-owned locations with a plan to revitalize the chain, and was renamed to Dine Brands Global in 2018.

Prior to joining Dine Brands in 2020, Moralejo oversaw global development at Church’s Chicken in a variety of executive-level roles for nearly eight years. But he cut his teeth in the restaurant world at Burger King, where he began as a senior attorney in 1995 and eventually worked his way up to the vice president and general manager of Latin America by 2016.

“I’m spent, wow, almost 30 years in franchising, and during those 30 years, I’ve learned a lot,” Moralejo says. “One of the things I’ve learned—and I call it one of the franchising truths if you will—is that franchisors win when franchisees succeed. And when that shared enterprise works, the guest wins.”

APPLEBEE’S: Applebee’s cocktails, like the perfect pineapple margarita, pair with its value-oriented bar and grill menu of wings, burgers, fries, salads, pasta, and tacos. Prioritizing franchisee and guest relationships

Since Applebee’s restaurants are 100 percent franchisee-owned, pricing menu items comes down to the decision of the operators in each market. Yet, Moralejo highlights that since the brand’s multi-unit franchisees are highly experienced, the company has been “very fortunate.”

“They’re smart, they’re measured, they’re strategic, and they walk this tightrope, this inflationary type of tightrope, if you will, where they’re balancing affordability, and they’re trying to protect their margins,” he tells FSR. “And they do a really, really great job of that.”

Applebee’s franchisees took pricing just over 7 percent in 2022, Moralejo notes, but that’s against a backdrop of an 18 percent increase in operators’ commodity basket. “And the pricing that our franchisees took was on par or less than any of our peers, and it was less than grocery store pricing,” Moralejo says. “I think that speaks really to our willingness in our brand or category-leading position on affordability. That’s really important to us, and that’s something that we don’t want to lose.”

Since the start, operators have been the backbone of the casual-dining chain, and have always been encouraged to integrate themselves and their restaurants into their local communities. Applebee’s has just under 1,700 restaurants, yet only has 31 franchise owners.

“It’s an optimized, more of a consolidated franchise system, and they tend to be more sophisticated than other brands domestically here. They’re actually very similar to many of the franchisees that I’ve worked with internationally,” says Moralejo. “As soon as I took over this position in January of this year, one of the first things that struck me was just how special that relationship [with franchisees] is. I call it a strategic asset, domestically,” he adds.

Moralejo visited three markets in four days during his initial 60 days as the new president, spending time with key stakeholders and getting to know both the leadership team and franchise owners. His immediate goal is to continue building up the franchisor-franchisee relationship, which involves daily chats with operators, checking in with them periodically to gauge how their business is going, and making their needs priority number one.

“Lots of brands have good brand leaders, and teams and executives, and lots of brands have really good franchisees, but when they collaborate, when they align, and when they’re engaged, that’s where the magic happens,” Moralejo says. “You see improved products, you see improved operations, [and] you see improved restaurant facilities.”

His second priority is to keep sales momentum trending upward by attracting new and returning consumers amid inflation, rising consumer credit card debt, lower savings, and other macroeconomic factors.

But offering great value to customers doesn’t just mean offering low prices, he notes; it also means increasing the entire value experience for guests including affordable, great-tasting food in a fun environment with best-in-class service.

“It’s a combination of that total; it’s all the elements of the total guest experience,” Moralejo says. “And that’s where we differentiate ourselves from other brands. … And while you will notice other brands start to put their toe in the cold waters of value, we’ve been doing it for five years, and we’re going to stick to that playbook.”

Triggering a “feel-good” element in guests is an important part of winning on value, he adds, which can come from indulgence or sharing a meal with family and close friends, so Applebee’s franchisees will continue to focus on elevating the total guest experience in addition to offering compelling value offerings.

APPLEBEE’S: value-oriented bar and grill menu of wings, burgers, fries, salads, pasta, and tacos. Development and addressing deficiencies

When asked what impact he hopes to impart on the brand, Moralejo quickly notes he plans to stay at Applebee’s “for as long as they’ll have me, so 20-plus years if that’s OK,” and he would love the next chapter of Applebee’s to talk about growth.

“And when that chapter talks about growth, it’s not just sales, but it’s also unit count,” he says. “So, bringing the Applebee’s promise, eating well in the neighborhood, to more neighborhoods in the U.S.—that would probably be the crowning achievement of my career at Applebee’s, and that’s what I’m striving for.”

On the development side of things, Moralejo sees no need to look beyond the brand’s current portfolio of franchisees to grow its domestic footprint. But in the meantime, working hand-in-hand with operators to address any deficiencies in the model will precede looking at expanding to new markets.

“We’re going to work on fixing that value proposition. We need to make sure that our franchisees are comfortable with the returns on investment that a new restaurant build will provide for them,” he says. “Once we’ve tackled that, then we can talk about who’s the right party to develop and where we’re going to go.”

Moralejo lists inflation and the rising costs of real estate, development, construction materials, and difficulty in accessing capital as factors outside of the brand’s control. However, he tells his team to focus on what they can control, such as top-line sales, assisting franchisees with their EBITDA (earnings before interest, taxes, depreciation, and amortization) and profitability, and look for ways to optimize operations for owners.

“And you know, we may need to consider different types of prototypes going forward to improve that value equation for our franchisees,” he notes.

Looking ahead: Tech and off-premises channels

An Applebee’s franchisee first tested out integrating a drive-thru pick-up window in 2021 in Texas. Now, there are 10 pick-up windows across the system in the U.S. as of press time, and those restaurants have experienced an increase in sales since being implemented.

“We’re excited and happy with the results that we’ve seen,” Moralejo says, adding that guests “really like what they’re seeing; it’s a lot more convenient.”

Sales mix in the fourth quarter was 76 percent dine-in and 24 percent off-premises (13 percent to-go and 11 percent delivery). Moving forward, nearly all new builds will include pick-up windows, as well as in restaurants that undergo significant remodels.

Like many restaurant leaders during the pandemic, Applebee’s launched a virtual brand. Called Cosmic Wings, the digital-only menu featured Cheetos Boneless Wings, Cheetos Double Crunch Bone-In Wings, Cheetos Cheese Bites, and more. Partnerships with DoorDash, Uber Eats, and Grubhub helped accelerate the Cheetos-themed brand to new markets. But as guests began returning to dining rooms, Applebee’s began winding down the delivery-only channel. “It doesn’t mean that we’re down on virtual brands,” Moralejo says.

“What we found, though, is that the virtual brands that we have experimented with in our restaurants, there were some operational issues with executing; it added an extra layer of operational complexity,” he continues. “And we just felt that we were better off focusing on our core menu items, focusing on our average unit volumes in our restaurants, and focusing on the experience inside our dining rooms versus entering this new channel.”

Cosmic Wings is available in more than 600 markets nationwide and remains an optional program for Applebee’s franchisees. That means guests can still enjoy Cosmic Wings’ traditional and boneless wings, fries, and shareable delivered to their doors.

“Ironically enough, the proliferation of the off-premises business in the restaurant industry I think has created an incremental pressure to increase your game when you’re dining in because the off-premises dining experience has been elevated over the last few years,” Moralejo adds. “And as we sort of elevated that part of the business, the expectations from the guests when they do go to your restaurant and dine in have been elevated as well.”

Now that COVID is increasingly dwindling in the rearview mirror, Moralejo wants to focus on remodeling restaurants, which got deferred during the pandemic. For example, Applebee’s is in the process of rolling out a new POS system, and also has handhelds in 500 restaurants so far.

Looking ahead, a “Kitchen of the Future” project is in the works at eight Applebee’s restaurants, and though Moralejo couldn’t talk specifics, he mentions looking into new back-of-the-house equipment to improve product quality and consistency, plus potentially saving on labor costs. Applebee’s is making “big plays” in terms of technology investments, from updating its app and website to testing lockers and dedicated off-premises delivery areas, plus a recommendation engine program.

“We’re working with our franchisees to define the critical elements of a remodel program,” Moralejo says.

“And if we do those two things, if we continue to build on the relationships with our franchisees, which is a strategic asset, and we continue to deliver on our value promise to our franchisees, then the guests are going to win, and you’re going to see us grow our number of Applebee’s restaurants domestically and bring more restaurants to more neighborhoods in the U.S.”  — Source: FSR.

Adventure and Novelty Identified as 2023 Flavor Trends

Kerry’s 2023 flavor insights report reveals the latest foodservice flavor trends consumers are seeking, including new combinations of traditional tastes, indulgence, and younger consumers seeking unconventional mashups of food and beverages they grew up with in combination with emerging flavors from other regions. Consumers are also wanting to indulge at a cost-effective price point.

“Ensuring flavor appeal positively drives brand relevance and preference,” said Soumya Nair, global consumer research and insights director at Kerry. “In the foodservice space, this means engaging in emerging and trending flavors to feed consumers’ desire for adventure and novelty. Our flavor insights are a derivative of our proprietary taste charts methodology that uncovers 2023’s emerging flavors.”

The flavor insights report is broken into specific research and recommendations for hot beverages, cold beverages, savory flavors, sweet items, and nutritional flavor trends. The report’s flavors are grouped into four categories: mainstream, key, up-and-coming, and emerging.

Kerry’s taste trends for 2023 include mix and mingle, off the real, roots and origins, purpose-driven taste, maximizing taste, joy in simple things, and a hint of health.

In the foodservice space, botanicals, spices, and florals are gaining relevance across food and beverages.

“This means we will see more rose, hibiscus, and jasmine alongside cardamom, and fennel in sweets and beverages, and sage and nutmeg in savory,” Ms. Nair said.

She noted global authentic flavors and ingredients, like Mexican and Asian flavors, also are becoming popular. Churro, dulce de leche, turmeric, and Korean BBQ are among the few in Mexican and Asian flavors increasing in popularity.

Mainstay favorites also are gaining recognition such as citrus and fruits, passion fruit, guava yuzu, and prickly pear.

Spiciness is also a trend Kerry is seeing among consumers.

“Consumers want achievable adventures and playfulness with their food and beverages,” Ms. Nair said. “Adding unexpected flavors to a classic menu item or even adding unconventional garnishes can play into this trend.”

Latin American and Asian cuisine are spicing things up in the flavor-forward spicy categories like Aleppo pepper and wasabi.

In the mix-and-mingle taste trend theme new spicy mashups include Nashville hot, kung pao, Adobo, and Szechuan, according to the report.

The mixing and matching of flavor combinations may be seen not only in beverage applications but in food applications as well.

“Texture is a key element of building surprise and delight in food and drink items, today this comes from flavor combinations and textural spices,” Ms. Nair said.

Consumers’ flavor trends may come and go, but providing health benefits within the trends is a driver and something consumers are craving.

“Health isn’t always secondary to taste anymore,” Ms. Nair said. “In a relatively post-pandemic world, people are more in tune with their health, looking for drinks with functional ingredients and balanced nutrition. They want flavors that convey a halo of health, from functionally forward ingredients to flavors that subtly imply better health — such as flavors like ginger or drinks with immune health support.” – Source: Food Business News

Wicked Kitchen Acquires Plant-Based Seafood Company

Plant-based company Wicked Kitchen has acquired Current Foods, an alternative protein company that manufactures plant-based seafood for food service and fine dining locations in the US and Europe.

“Current Foods is a perfect match for Wicked as a global-impact brand with the same mission and complementary products,” said Pete Speranza, chief executive officer of Wicked Kitchen.

The acquisition of Current Foods is the company’s second since April 2020. The company recently acquired Good Catch, a plant-based seafood consumer packaged goods brand.

The acquisition of Current Foods adds to Wicked Kitchen’s foodservice portfolio with plant-based sushi-grade tuna and salmon.

“Wicked’s commitment to impact and to defining the future of the plant-based market makes them the right home for Current Foods’ high-quality products that combine superior technology and unbeatable flavor to create a vegan sushi-grade alternative to fish,” said David Barber, partner at Astanor Ventures, an investor at Current Foods.

Wicked Kitchen offers a variety of plant-based consumer packaged goods, which are available at 90,000 distribution points with more than 40 products in the United States and 150 plus products in the UK. The company offers frozen and ambient products such as heat-and-eat entrees, frozen pizzas, ice creams, and novelties.

Current Foods launched in 2019 and gained distribution in 2021. The company has a nationwide roster of restaurants and services universities and prepared foods to retail. – Source: Food Business News.

Nestle Names New Head of Operations

Stephanie Pullings Hart has been named deputy head of operations at Nestle SA, effective July 1. She will succeed Magdi Batato, who is set to retire after a 30-plus-year career at Nestle.

Ms. Pullings Hart is currently senior vice president of operations at Warby Parker, where she is responsible for manufacturing, supply chain, and customer experience. Prior to Warby Parker, she was senior vice president of global operations for Beyond Meat. Earlier, she was with Nestle for 23 years, with roles of increasing responsibility in manufacturing, factory management, supply chain, research and development, and human resources. She worked in several of the company’s businesses and across multiple continents.

Ms. Pullings Hart officially will take over as head of operations and join the executive board on Jan. 1, 2024. Also at that time, Mr. Batato will retire. During his Nestle career, Mr. Batato has held various roles across three different continents. He currently is responsible for the operations of hundreds of Nestle facilities across the world and oversees the company’s procurement and logistics areas while also leading Nestle’s sustainability efforts.

“On behalf of our board of directors and our executive board, I would like to extend a heartfelt thanks to Magdi for his many contributions to Nestle,” said Mark Schneider, chief executive officer. “We wish him all the best for this next chapter. At the same time, we are delighted that Stephanie is returning to Nestle. With her appointment, we are gaining a highly qualified leader with extensive experience across all areas of operations, and a proven track record in growing businesses. Her highly entrepreneurial and digital experience combined with her knowledge of Nestle makes her the ideal leader to take us forward.”  — Source: Food Business News.

The new president of Barilla’s Americas region . . . .

Barilla names new president for region Americas, Barilla Group

Melissa Tendick has been named president of Barilla’s Americas region, effective June. She will succeed Jean-Pierre Comte, who is stepping down from his role after serving 13 years at the company.

Ms. Tendick, currently vice president of marketing for Barilla’s Americas region, brings over 20 years of experience to the role and will oversee Barilla’s presence in the Americas.

“I’m extremely delighted to enter into my new role at Barilla,” Ms. Tendick said. “It’s an honor to lead our employees across the Americas and to partner with our global leadership team, led by Gianluca Di Tondo (Barilla Group chief executive officer) to give the world delicious, high-quality products that have the power to bring people together around the table.”

Ms. Tendick started at the company in 2003 and joined the marketing team in 2005.

“Leading Barilla in the Americas for the past decade has been a true honor,” Mr. Comte said. Source: Food Business News.

Just 2% of guests now report waiting more than 15 minutes for a table, an 8-point improvement from a year ago . . . .

Red Robin/s Revamp Takes a Bite out of Wait Time

If you visited a Red Robin last year, there was a decent chance you’d have to wait to get a table.

About 1 in 10 guests reported waiting more than 15 minutes to be seated a year ago, according to a company survey.

It is one of the No. 1 problems the chain has been working to solve as part of its turnaround plan under new CEO G.J. Hart.

And while executives have cautioned that major changes at the 500-unit chain will take time, the brand has already made significant progress on wait times: In the first quarter of 2023, just 2% of guests reported waiting more than 15 minutes for a table, Hart said Wednesday.

Executives credited the improvement to better staffing, including the return of bussers, hosts, bartenders, and expo staff that have enabled faster table turns.

The reduced wait times may have translated to a slight bump in traffic, which rose 0.6% year over year, and dine-in sales, which were up 16%. Same-store sales, meanwhile, were up 8.6%, largely thanks to higher prices.

There were several other signs that Hart’s “North Star” plan is working. In the first quarter, Red Robin restaurants broke 700 sales records across hourly, daily, and weekly benchmarks.

“The sales-per-hour levels that we are seeing from some of our best operators are incredible,” Hart said during a call with analysts.

Supply chain efficiencies and other cost-saving measures contributed to better restaurant-level margins: 14.7% compared to 14% a year ago and 11.4% in the previous quarter.

The chain is also making progress on other efforts, like installing flattop grills designed to produce bigger, juicier burgers. They are in nearly 300 restaurants now and will be in place systemwide by the end of this quarter.

Team members have said the grills are easier to use than Red Robin’s old conveyor-belt cooking system, Hart said. The new equipment also requires less maintenance and cleaning, he said.

The grills are part of a renewed focus on Red Robin’s signature product: its self-described gourmet burgers. To ensure that the burgers live up to that name, the brand is making upgrades to its buns, bacon, mayonnaise and tomatoes and changing how it preps caramelized onions and sauteed mushrooms, Hart said.

It’s also changing how it presents the burgers. It has long served them in wax paper, but will move away from that later this year with new plateware that allows each burger to “stand tall on its own,” Hart said.

“With an upgraded burger patty and the best and freshest ingredients we can source, we think the time has come to showcase the beauty and deliciousness of our truly gourmet burger,” he said.

The turnaround plan is moving forward on another front, too. Red Robin is close to completing a sale-leaseback of 10 of its restaurants that it expects will generate gross proceeds of $30 million.

The chain announced earlier this year that it planned to sell up to 35 properties and lease them back from the buyers to help pay off debt, fund capital investments and buy back stock.

Also in the quarter, the company bought five restaurants from a franchisee who retired for about $3.3 million. Red Robin already owns and operates more than three-quarters of its system.

With the chain’s revamp apparently working on all cylinders, Red Robin raised its outlook for the year. It’s now expecting total revenues of at least $1.3 billion in 2023, a slight adjustment to its previously announced guidance of “approximately” $1.3 billion.

It also expects restaurant-level margins of 13.5%, up from 13%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $70 million to $80 million, up from $62.5 million to $72.5 million. – Source: Restaurant Business.

Why Marketing Your Restaurant is Not Expensive

Restaurant marketing has evolved multiple times over the last two decades. The old model of restaurant marketing was to invest a lot of money in magazines, radio, or television ads. Many bought billboards and bus stop benches. Needless to say, this was very expensive and there was no way to track ROI (return on investment). This is where the False Belief that Marketing is expensive started.

Out of this marketing, model sprang two less expensive ideas.

The first was Trade Marketing. This was used by restaurants to still buy ads on the old model mediums. However, instead of cash they traded gift cards from the restaurant. This lowered the price of marketing and was fairer because both sides were getting market value rather than payment of actual costs.

The second new model was Gorilla Marketing. I used this model often in my early career. Once, I went to a department store in a mall that was next to my restaurant and I asked the department store manager if I could set up a table and give away chips and salsa and balloons to all of the customers in the store during their big 18-hour sales. The department store paid for the full-page ad in the LA Times and it only cost me food cost on chips and salsa and the cost of balloons.

It worked magically because as you all know, chips and salsa are addictive, and it left the shoppers wanting more. Also, when every kid throughout the rest of the mall saw the balloons and cried for one, their unsuspecting mothers didn’t know they were free at the department store. So, they took their kids to my restaurant. My sales increased by over 20 percent on the days I did this.

Another time when I was the general manager for the Boundry, I made a deal with the GM of Nashville BMW.

I was tired of seeing BMWs, Mercedes, Lexus, and Range Rovers pulling up to my friend’s restaurant next door. So, I offered to sell the GM of Nashville BMW $100 gift cards at $50 so that he could give everyone that bought a BMW the month of December one of my gift cards. It only cost me $30 in cost of goods for a $100 gift card so even if everyone came in and used the gift card I still made money.

Suddenly, BMWs were pulling up to valet and coming into my restaurant instead of the high-end Italian restaurant next door.  And as they pulled up their friends in Lexus, Mercedes, and  Range Rovers watched them come in my restaurant and decided to check us out. My marketing actually cost me nothing but gained a lot of new business.

Email marketing campaigns, third-party delivery, and SMS text marketing have also been popular forms of marketing in the last 10 years. Out of these, I prefer email and SMS marketing because they are cheaper than giving up to 30 percent of your sale away to a third-party delivery service. I also like offering something special just to those email and text addresses and then tracking the ROI on it.

In 2010, I learned that not only are restaurants a brand but so are the owners, managers, and chefs. I was fascinated by brands like Chip & Joanna Gaines and Duck Dynasty.

I shifted my marketing from marketing the restaurant brand to marketing my brand. I became known on a national level through magazine articles, podcasts, and social media like LinkedIn. This was great because if I changed restaurants, I didn’t have to start marketing the new restaurant all over.

Likewise, when I became a restaurant coach during the pandemic, I already had a brand that people knew and trusted and were able to build a client list without spending a dime.

Today, there are so many ways to market yourself or your restaurant. There is LinkedIn, Instagram, YouTube, Facebook, TikTok, and Clubhouse. You no longer have to wait to be discovered by a TV shower food critic. You can put out your own content and develop a following that rivals TV rating. You can be a guest on podcasts or host your own podcast.

My column here at FSR is proof that anyone can market themselves or their restaurant. Many readers are finding out that I’m an Executive Restaurant Coach just from this column www.montesilvacoaching.com. And, in September, I’ll be speaking at FSR’s NextGen Restaurant Summit in Atlanta.

Next month, I’m beginning a new opportunity to host a weekly restaurant news show on Sysco Canada’s SVK Media Network.

Each time I leverage my skill set, I gain momentum. As the momentum builds, it costs less to market my coaching and training company.

So, you see, the false belief that marketing is expensive just isn’t true. Go out on a limb and make a YouTube or Tik Tok video. Reach out to a magazine editor and offer to write a column. Learn to leverage yourself to a point, like I did, where you don’t have to spend unnecessary money on advertising. – Source: FSR.

Nextbite was acquired by SBE Hospitality Group CEO Sam Nazarian

SBE’s virtual restaurant platform C3 was formerly a competitor of Nextbite and will now be its sister company just days after Ordermark was sold off to UrbanPiper

SBE Hospitality Group and virtual brand platform C3’s founder and CEO Sam Nazarian has solely acquired Nextbite, just days after Nation’s Restaurant News reported that Nextbite’s order management arm, Ordermark, had been sold off to Indian software company UrbanPiper. The latest news was first reported by Food on Demand.

Nextbite and its virtual brands — which include both original and licensed brands such as Packed Bowls by Wiz Khalifa, Shawarmama, Nestle Toll House Cookies, IHOP, Super Mega Dilla, Thrilled Cheese, Fuku, George Lopez Tacos, and Nathan’s Famous — will live on under the ownership of its former competitor as Nextbite by SBE, but will operate separately from C3’s own virtual brands, which include Umami Burger, Krispy Rice, and Sam’s Crispy Chicken.

Related: Ordermark U.S. business sold to Indian software company in wake of Nextbite layoffs

Leadership will pass from CEO Alex Canter — who founded Nextbite in 2020 after merging the then-flourishing virtual restaurant company with technology platform Ordermark — to Nazarian, and operations will be relocated to C3’s headquarters in Miami. A “suite” of former Nextbite executives will reportedly stay on board with the company under new ownership.

“We built the Nextbite business and our brand portfolio over several years to include many popular consumer favorites,” Canter said. “We’ve gotten to know Sam Nazarian and his team very well and, simply put, there’s no other organization in the virtual restaurant space that’s better qualified to take these brands to the next level in a big way.” In an interview with Food on Demand, Sam Nazarian said that he was excited to continue the expansion of more than 410 small and medium-sized brands through their virtual brand partnerships with Nextbite, as well as the company’s partnerships with brick-and-mortar legacy brands like Nathan’s Famous and IHOP. Nazarian wants to make sure Nextbite keeps growing as a company and said there are 7-10 projects in the works.

He also said that the last half a year to a year “has really shaken out a lot of players” in the food technology world, as not everyone would make the “next cut,” but claimed in the interview that it was important to him that “Nextbite … stays around as an industry leader” and “continues to build on the momentum and goodwill they’ve built” over the last several years.

“Nextbite by sbe will be the leader of the digital-only space – a global platform inspired to reimagine dining and push the boundaries of the culinary space,” Nazarian said in a statement. “Through the acquisition of Nextbite, we will further establish those brands that Nextbite has built and support them in their next exciting chapter while reinforcing the amazing pipeline we have created. We’re thrilled to have built a trusting relationship with Alex and his team and share a vision for the future of food tech and all its promises.”

The consolidation of two out of the three largest virtual restaurant companies (with the third being Virtual Dining Concepts) suggests a larger trend in the restaurant technology space. Over the past few years, the food tech boom has created a constant stream of startup fundraising and M&A news, and even a unicorn IPO or two from smaller tech companies. But as the food tech space gets more crowded, it only makes sense that not every company will make it out on the other side. Although Nextbite still lives on under the SBE umbrella, this acquisition is indicative of a shift in the virtual restaurant space, which isn’t dead, but is certainly not as hot as it was during the peak of the pandemic, when delivery-only brands were lifeline for the foodservice industry.  –Source: NRN.

Taco Bell’s Fire! Tier loyalty members will have early access to the Taco Bell x Crocs Mellow Slide collaboration . . . .

Taco Bell’s latest collab? Crocs

Taco Bell announced today it has teamed up with Crocs to launch a Mellow Slide limited-edition collaboration. The Crocs Mellow Slides are inspired by Taco Bell’s signature colors – black and purple – and include “Live” and “Más” imprinted separately in white within each footbed.

“Like Taco Bell, Crocs is all about tapping into the culture and allowing their passionate fans to express themselves,” Taco Bell CMO Taylor Montgomery said in a statement. “We tapped into that link between the two brands, and we’re pumped to be able to share this exclusive Taco Bell x Crocs Mellow Slide with our fans.”

The special Crocs are available June 28 exclusively on crocs.com and will be sold for $60. Taco Bell loyalty members who have reached Fire! Tier status will be provided with early access beginning June 20.

“We’re always looking for unexpected ways to give back to our Rewards Members and giving them early access to order their own pair of slides feels perfect as everyone gears up for the summer,” Montgomery said.

This marks the brand’s first time working with Crocs, though sister chain KFC launched a limited-edition pair of Crocs in early 2020, featuring a fried chicken print, a red-striped bucket on the base and two attachable Jibbitz charms with a fried chicken scent.

Crocs’ comeback after 20 years in business has been largely driven by celebrity endorsements, Gen Z consumers, and an appearance on a runway during Paris Fashion Week in 2017.

During Yum Brands’ Investor Day in December 2022, Taco Bell CEO Mark King noted that “the idea of brand buzz” driven by “big moments creates transactions.” He pointed to the chain’s Super Bowl campaign featuring Doja Cat, the Mexican Pizza launch after fan-created petitions, and the Taco Bell Hotel & Resort in Palm Springs as examples.

“We used to have just a calendar of being on TV. Now we have a calendar of being on TV and creating events and moments and we’ll have 12 of those moments next year,” he said. “It’s been a big learning for us that our core customer – Gen Z – doesn’t watch a lot of TV. This learning is the evolution of how we market our brand to our consumer base.”  — Source: NRN.

The quick-service taco restaurant is aiming for 600 units in the next 5-to-10 years and moved its operating functions to better support new market growth . . . .

Taco John’s Wants to Fill Market Gaps ‘as Soon as Possible

Taco John’s has been in the news plenty as of late, but there’s much more going on at the Cheyenne, Wyoming-based chain than its Taco Tuesday riff with Taco Bell. For starters, the company recently signed a 50-unit franchise agreement with Meritage Hospitality Group.

And if that name sounds familiar, it’s because Meritage is Wendy’s largest franchisee, so it has plenty of operating experience in the quick-service space to help boost Taco John’s into a new phase of growth. That phase includes a goal of expanding well beyond its upper Midwestern roots and into markets like Boston, Michigan, and Nashville. Taco John’s even moved its operating functions to Minnesota to better support this goal.

“Minnesota is important to us because that’s where our highest concentration of stores is, but we also think it’s a great springboard for the white space we see for this brand in the east and southeast. Our first priority is to grow out our core from the upper Midwest and there is a ton of opportunity for us,” CMO Barry Westrum said in a recent interview.

To better define “a ton,” Westrum said there is room in every U.S. city for the brand as the demand for Latin-inspired food increases, particularly among younger consumers. It’s fair to say Taco Bell dominates the domestic quick-service Mexican category with just over 7,000 restaurants. After that, the field is pretty open. Del Taco has about 600 restaurants, for instance, but is only in 15 states. By comparison, Taco John’s has about 380 restaurants in 23 states. Westrum believes there will be about 600 units across much of the country in the next 5-to-10 years. “We believe there is a lot of room and demand for a higher quality, Mexican quick-service experience that’s cheaper and faster than fast casual. We believe that white space is lucrative and available in every city,” he said. “And we’re determined to fill that gap as soon as possible.”

Stronger unit economics at new restaurants in new markets are driving much of this optimism. Westrum said the chain’s legacy units in smaller towns average between $1 million and $1.1 million in average unit volumes, but new locations are seeing $1.5 million to $1.7 million.

“We’re excited about that, and we believe that is the promise of the brand. We’re growing in a way that hasn’t been done in a long time and it’s been fun,” he said.

Taco John’s has several marketing initiatives underway to support its growth. It’s heavily promoting its value position, for instance, both with prominent in-store displays and through its app.

“As more consumers realize that the way to get value is through deals and discounts in the app, that has opened up a lot of opportunity for us,” Westrum said.

And since the Taco Tuesday battle began, consumers have been downloading Taco John’s app in droves; Westrum said the company is now adding about 20,000 new app users a month. The company set solid groundwork well before recent headlines, however, launching a new points-based loyalty program a little over a year ago that has since driven a 30% increase in visits and spending every month.

“It’s been great because customers want to be rewarded for their existing behavior and they want it to be easier. And it allows us the ability to learn more about them. The promise of technology is more of that individual engagement and giving that person something that makes them feel good about the brand,” Westrum said.

This loyalty evolution, as he calls it, has also sharpened Taco John’s attention on local marketing. As the company plants flags in new markets further from its Wyoming roots, such local marketing efforts have become far more effective for building brand awareness.

“For us, the relationship with the community is critical and it’s more genuine. If I can get people within a 3-to-5-mile radius to know our story, we’ll grow awareness from there with old-fashioned guerilla marketing – apartment complexes, hospitals, military bases, whatever it takes to get coupons, flyers to those people in our community,” Westrum said. “Consumers want deeper connections with brands and this approach is resonating more than a massive, fragmented, national ad campaign for us.”  — Source: NRN.

Smokin J’s BBQ in Poway, was one of the recipients of a $5,000 grant from the Restaurants Care Resilience Fund . . . .

San Diego County restaurant owners awarded $5,000 grants to invest in kitchens, technology, and employees

The California Restaurant Foundation awarded 18 San Diego County food businesses money to help recover from the COVID-19 pandemic, upgrade equipment and retain employees

The California Restaurant Foundation awarded 18 San Diego County food businesses $5,000 grants to invest in long-term growth, which was hobbled by COVID-19 over the past few years.

The food industry trade group started the Restaurants Care Resilience Fund in 2020 to help independent restaurant owners survive the pandemic.

In its third year, this round of awards is aimed at upgrading kitchen equipment, investing in technology and employee retention as restaurants continue to deal with inflation, increasing labor costs and pandemic hardships. Giacomo Pizzigoni, co-owner of Ambrogio by Acquerello in La Jolla said he is extremely grateful to receive one of the $5,000 grants as it is 10 times more difficult to run a restaurant these days.

“It’s amazing because right now, this is probably the most challenging time since I opened my first restaurant seven years ago and it’s great to have this type of support,” he said.

He moved from Italy to San Diego for graduate school and later opened his first restaurant, Ambrogio15 Pacific Beach. Pizzigoni said this is the first time his new business, which opened in November, has gotten financial assistance like this grant.

Ambrogio by Acquerello offers an eight-course tasting menu starting at $159, which is a common format in French fine dining, but a newer concept for Italian cuisine in San Diego. On top of the risk of trying a new kind of food concept, Pizzigoni said “It’s becoming really expensive for us to run a restaurant.”

“The biggest challenge has been the insane inflation that we’re facing,” he said. “That changed all the dynamics because the labor costs skyrocketed. Any type of supply from raw material to napkins to boxes to glassware doubled (or) tripled the price and in San Diego in particular.”

The business currently operates with less than 10 people so the grant money will help them hire qualified employees with culinary degrees. Additionally, Pizzigoni has spent no money on marketing so the funds will also help him invest in promotion for the business as well as some much-needed kitchen improvements, like a salamander grill.

“We just opened without doing any construction or working there,” he said of the old restaurant space they moved into. “So we’ve always tried to catch up and … made a little bit of profit, put some tiles on the floor. Made a little bit of profit, fix the gas line. Made a little bit of profit, fix the boiler and it’s been like that nonstop. So always trying to kind of add a little bit to get to where we were and always feeling like we were underwater.”

He noted that the economy is also squeezing consumers and changing their dining habits. San Diego had 8 to 9 percent fewer seated diners in March and April 2023 over a year earlier, according to Open Table.

Pizzigoni said people like him in the restaurant industry are driven by a passion for food and hospitality. But as people dine out less and profit margins tighten, it’s been challenging, so this $5,000 grant is a welcome boost.

“We received a record-breaking number of applications this year — 25 percent more than last year — so it’s apparent that there’s an immense need to support independent and locally owned restaurants throughout the state,” said Alycia Harshfield, executive director of the California Restaurant Foundation.

The local grant recipients cover the county from a Cuban restaurant in Chula Vista to a saloon with live music in Santa Ysabel and a banana-themed coffee shop in Oceanside.

Harshfield said that this year’s grant program is focused on helping restaurants move from responding to the pandemic to building a resilient business.

The foundation’s Resilience Fund is backed by contributions from California utility companies — San Diego Gas & Electric, Southern California Gas, and Pacific Gas & Electric. This year’s fund offers the largest grants in the program’s existence and totals $2.1 million.

This grant cycle, 184 independent restaurants across the state received awards and there will be another opportunity to apply for money this fall. Harshfield said that there will be $5,000 grants allocated for 17 San Diego County businesses later this year.

She said that the next grant cycle will be open to more applicants and consider the restaurant owners who applied this time but were not selected, adding that they do not need to apply again.

California-based restaurant owners with no more than five locations and less than $3 million in annual revenue (combined across all locations) are eligible to apply.  — The San Diego Union-Tribune.

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