KFC’s new sandwich comes as several brands add variations to the high-demand offering, indicating we may be in a second phase of the so-called chicken sandwich wars . . . .

KFC is Rolling Out its BBQ Chicken Sandwich Nationally KFC’s Ultimate BBQ Fried Chicken Sandwich test, launched in Tampa, Florida, in February, must have proven successful; the chain announced today that the sandwich will be available nationwide beginning July 3 and for a limited time.  The sandwich includes an Extra Crispy 100% white meat filet topped with hickory smoked bacon, KFC’s signature honey BBQ Sauce, fried onions, melted cheese, and pickles and is served on a brioche bun.

“With the best tastes of summer and our finger-lickin’ good fried chicken between two buttery brioche buns, the Ultimate BBQ Fried Chicken Sandwich is an invitation to savor every last joyful ‘bite’ of summer. It’s a BBQ in every bite,” CMO Nick Chavez said in a statement.

KFC is promoting its new sandwich through a partnership with Going.com, a travel membership site that searches for flight discounts. Through the partnership, KFC will give fans who order the BBQ sandwich via its app or website the chance to win a vacation for two to Aruba. The offer runs from July 3 through Aug. 13 and covers the flight, hotel for four days/three nights, a sunset dinner cruise, a horseback beach ride, and more. Scott Keyes, founder of Going, said interest in travel to Aruba is up 50% versus last year. Additionally, up to 500 customers will receive a one-year premium membership (worth $49) with Going, providing access to international and domestic flights.

KFC is also introducing a new blackberry lemonade this summer and, starting June 30, a new $20 Fill Up Box. The box includes a 12-piece of KFC’s new nuggets, four pieces of chicken, Secret Recipe fries, four biscuits, and a choice of dipping sauces. The suggested retail price is $7.15 for the sandwich a la carte and $10.56 for the sandwich combo with Secret Recipe Fries and blackberry lemonade or your choice of medium drink.

KFC’s national launch of its Ultimate BBQ Fried Chicken Sandwich comes as several brands roll out new variations of the product, which went viral upon Popeyes’ sandwich launch in 2019. Consumer demand clearly exists for such an offering, as evidenced by Popeyes’ initial success, as well as KFC’s tailwind from its chicken sandwich launch in 2021. Other brands, including McDonald’s, have also experienced a surge in sales following their chicken sandwich launches. McDonald’s CEO Chris Kempczinski said its newly-coined McChicken helped the company gain share in the chicken category, for instance.

The so-called chicken sandwich wars have continued to evolve since those initial launches, and KFC isn’t the only brand that has added to its platform. McDonald’s recently featured a bacon ranch McCrispy on its website, for instance, while Popeyes added a blackened chicken sandwich last year. This week, KFC’s sister brand The Habit Burger Grill debuted a new spicy chicken sandwich. Also, Chick-fil-A recently announced it is testing a new grilled chicken sandwich, made with a lemon herb marinated boneless chicken breast and topped with pepper jack cheese, lettuce, and bacon tossed in a brown sugar and pepper blend. It is served on a buttered and toasted maple-flavored brioche bun. And, Panda Express is testing an orange chicken sandwich at select Southern California locations, while Burger King is reportedly bringing back the Italian BK Royal Crispy Chicken Sandwich.  – Source: NRN.

Voodoo Doughnut Appoints new Executives to Drive Growth and Innovation Voodoo Doughnut, the innovative brand behind the handmade, gourmet doughnut category, is pleased to announce the appointment of three accomplished professionals to its leadership team. These strategic additions further strengthen the brand’s industry expertise and serve as catalysts for propelling its growth trajectory.

Jack Quigley, Vice President of Development: Jack is a dynamic and accomplished leader with a wealth of experience in the restaurant and retail industry. Jack’s remarkable track record of driving growth and spearheading transformation at companies such as MOD Pizza, Amazon, and GameStop positions him as a pivotal figure in overseeing Voodoo Doughnut’s end-to-end development process. With a keen eye for identifying new market opportunities and securing prime locations, Jack will execute development projects that align seamlessly with Voodoo Doughnut’s brand vision, ensuring continued success and expansion.

Heidi Durfee, Vice President of People: Heidi is a recognized leader with a proven track record in driving growth and fostering a vibrant workplace culture. With a solid background in the fast-casual restaurant sector and notable contributions as a founding member of MOD Pizza’s Senior Leadership Team, along with esteemed Portland brands such as Salt & Straw Ice Cream and Smith Teamaker, Heidi brings valuable expertise to shape Voodoo Doughnut’s people strategy. Her dedication to cultivating an inclusive and thriving environment, combined with her extensive industry knowledge and passion for creating exceptional employee experiences, positions Heidi as a valuable asset in driving the continued success of Voodoo Doughnut.

James Waldner, Director of Operations: James brings an impressive background in the food and beverage industry and a proven track record of success. With significant roles at renowned companies including Starbucks, Pete’s Coffee, and Potbelly Subs, James possesses deep industry knowledge and a strong commitment to excellence. As Director of Operations, James will play a vital role in further elevating Voodoo Doughnut’s success, enhancing customer experiences, and solidifying the brand’s position as an industry leader.

“We are thrilled to welcome three exceptional individuals to our leadership team at Voodoo Doughnut,” said Chris Schultz, CEO of Voodoo Doughnut. “Their wealth of industry experience and expertise aligns perfectly with our strategic vision for growth. I am confident that their contributions will propel our brand to new heights and help us achieve our goals.” With these talented individuals joining the team, Voodoo Doughnut is well-positioned for continued innovation, growth, and delivering unparalleled doughnut experiences to its loyal customers.

About Voodoo Doughnut:

In 2003, Voodoo Doughnut was established in Portland, Oregon, and quickly became the pioneer of the gourmet doughnut category. Their unique flavors such as the Bacon Maple Bar, Memphis Mafia, and The Cannolo gained widespread recognition. With over 50 flavor options, including 25 vegan alternatives, Voodoo Doughnut emphasizes the guest experience, employee incentives, and community engagement through charitable initiatives. The brand recently announced a new store opening in Tempe, Arizona, as part of its ongoing expansion across different neighborhoods in the United States. Voodoo Doughnut currently operates in Oregon, Colorado, Texas, California, Washington, and Florida. For a comprehensive list of Voodoo locations and more information, visit their website.  – Source: NRN.

Is a recession looming? Customer loyalty is key to making it through . . . .

Restaurant Meals are Frequently Among the First Things Consumers Cut Recessions can make any business — large or small — uneasy about potential drops in sales from the decline in economic activity. With inflation and ongoing supply chain issues, experts predict a 70% likelihood of a U.S. recession in 2023, with at least 41% of consumers saying they will cut back on spending at restaurants, bars, and food delivery services, according to one survey.

Historically, discretionary purchases like restaurant meals are one of the first things consumers cut back on during an economic downturn. So what can restaurants and other businesses do to make it through a recession? Since loyalty programs are responsible for an 18-30% increase in spend and visit frequency, according to Paytronix, it makes sense for a brand to strengthen its loyalty strategy in the face of an economic downturn. Fine-tuning your loyalty strategy to meet customer needs during tight financial times ensures the most loyal customers remain engaged with your brand during the downturn and are primed to return to pre-recession spending levels once the economy rebounds.

Nurture emotional connections

One way to engage loyal customers is to nurture an emotional connection with them. Acknowledging the difficult times customers face or showing small gestures of appreciation go a long way in strengthening a connection, especially when finances may be tight. This could look like anything from extending the expiration date on earned rewards to surprising loyalty members with unexpected perks such as bonus points.

A darling of the quick-service restaurant industry, Chick-fil-A knows how to engage its customers and keep them coming back time and time again. Chick-fil-A One, the restaurant’s loyalty program, connects with members at a local level through email content including surprise and delight offers and in-store events. Personalized email communications come from the local store manager and include the manager’s picture, so customers can easily recognize them the next time they visit. The program offers excellent customer service, providing members access to an FAQ, a robust online help form, a phone number, a mailing address, and customer service via Twitter.

Likewise, employee engagement can also boost customer loyalty. A solid company culture allows employees to flourish. Employees who are enthusiastic about their restaurant can be in-person brand ambassadors at every interaction. In the case of Chick-fil-A, every interaction with a customer is personalized, whether through its tiered loyalty program or at a restaurant when a manager puts a thank-you note in a pickup order. All small connections lead to satisfied and repeat customers.

Gain loyalty insight from data

How well a brand knows its customers can make all the difference in how well its loyalty strategy performs. One study showed that 73% of global consumers report it’s critical for a brand to know who they are and understand their preferences. By developing predictive models based on customer data, restaurants can identify high-value look-alike consumers and fast-track them to become loyal customers.

Beyond demographic data, brands need to consider how a person’s interests, values, and opinions impact them during a recession. With this data in mind, it might be necessary to make minor tweaks or major changes to the value proposition in a loyalty strategy in order to improve customer engagement and satisfaction during a recession. Customer data is the fuel for ongoing, meaningful interactions with your brand.

Multiply program value with partnerships Partnerships can multiply a brand’s benefits, lifting the member experience in tougher times and elevating consumers’ perception of the brand. When evaluating a potential partnership, consider if the values of both brands align, if the products and services add value to each of the customer bases, if the customer segments are complementary, if it is easy for members to engage with both brands’ programs benefits and if the partnership would enable recognition of elite tier members by both brands.

One example of a strong partnership is Delta Air Lines and Starbucks. Their partnership began with Starbucks coffee being served on Delta flights. It has now blossomed into inviting members to link their Starbucks Rewards accounts to Delta SkyMiles to earn one mile for every dollar spent at Starbucks, and double miles on the day of travel on Delta. This partnership, and the value it offers, drive member retention and provide an additional revenue stream for both brands.

Shift brand marketing and loyalty budgets Economic shifts not only impact customers, but they may also affect a brand’s marketing and loyalty budgets as well. If that is the case, look for ways to focus content and prioritize spending on high-value members — the 10% of members who statistically account for 50% of a loyalty program’s revenue. Look at economic models and budgets per tier of loyalty members to identify opportunities to shift dollars to top-tier customers. Recession cutbacks aren’t necessary to get started. Start elevating interactions with high-value members now. Recognize and reward the importance of their relationship with the brand before economic conditions shift and this will encourage high-value members to quickly return to purchasing when circumstances allow.

Recessions are stressful for consumers and restaurants alike; however, a loyalty strategy can be the key to continued connection with your most loyal customers — resulting in retention and even growth despite market challenges. The new Little Blue Menu food truck will first visit Louisville, Kentucky, before heading to other markets, and comes before the restaurant’s expected opening in College Park, Md. Source: NRN

Chick-fil-A Launches Little Blue Menu Food Truck Chick-fil-A’s Little Blue Menu virtual brand is hitting the road. The chain’s delivery-led concept, which first opened in Nashville in late 2021, has a new food truck that will initially visit Louisville, Ky., for a three-month stint in the Oxmoor Mall parking lot. The opening date has not yet been announced, but the food truck’s Instagram account hints that the grand opening news is coming in four days.

After that, the food truck is planning to travel to different parts of Kentucky and Indiana daily, as first reported by the Courier Journal.

According to a Chick-fil-A spokesperson, the truck will serve traditional bone-in wings, French fries and cookies. The chicken wings come as an eight-count with the option of five sauces and seasonings: ranch, buffalo, sweet chili sauce, lemon pepper and Sriracha garlic. They arrive undressed, so customers can add their own level of flavoring.

The food truck tour comes shortly after Little Blue Menu’s test run ended in Nashville. In May, the location reverted back to serving the standard Chick-fil-A menu only for pickup, delivery and catering, as WSMV4 NBC first reported. The Nashville location was overseen by three Chick-fil-A operators and included two virtual brands – Outfox Wings and Because, Burger. Customers could bundle their orders from those two brands, as well as from Chick-fil-A’s menu. Both brands were available on Chick-fil-A’s app, as well as DoorDash within an approximately 10-minute delivery radius. Pickup was also available.

The company is planning to open another Little Blue Menu location “later this year” in College Park, Maryland, that will also be digital-first. According to Chick-fil-A, the company’s digital sales grew to more than 40% of the business in 2021.

“We’re excited to bring our Little Blue Menu concept to the College Park community later this year. The facility is designed specifically and solely for Little Blue Menu, allowing us to continue to innovate and give customers what they want most,” the spokesperson said.

The objective with both the College Park location and the food truck is to provide “ever-changing, fresh culinary experiences” to market.

“Our guests’ feedback will help us evolve our menu and improve their experience, and we’re hungry to hear from them,” the spokesperson added. The Little Blue Menu name is a nod to Chick-fil-A founder S. Truett Cathy’s original blue menu at his first restaurant, called Hapeville Dwarf House. – Source: NRN.

WHILE CONSTRUCTION BIDS ARE STABILIZING, PERMITTING AND EQUIPMENT TIMELINES ARE STILL NOT WHERE THE COMPANY WANT THEM TO BE

Darden Softens Unit Growth Targets as COVID Impact Persists Two years ago during a call with investors, former Darden CEO Gene Lee lamented how COVID delays were harming unit growth. He hoped the company would soon reach the higher end of its 2-3 percent expansion target.

While Rick Cardenas is now chief executive, the central problem remains the same. The remnants of the pandemic, especially when it comes to permitting and equipment, are still impacting development. Cardenas said the goal is still to reach closer to 3 percent unit growth, but he admitted that it will take Darden “a little bit more time” than the company originally thought.

“It would be great if we could get permits as fast as we used to get them. It would be great if we can get utilities turned on as fast as we used to get them,” Cardenas said during Darden’s Q4 earnings call. “That’s just not coming back anywhere near where we need it to be.”

In fiscal 2023, the company opened a net of 47 restaurants, which equated to roughly 2.5 percent unit growth. Olive Garden opened a net of 21 corporate units, pushing it to 905 locations. The brand leader was followed by LongHorn Steakhouse (562 stores), Cheddar’s Scratch Kitchen (180 stores), Yard House (86 stores), The Capital Grille (62 stores), Seasons 52 (44 stores), Bahama Breeze (42 stores), Eddie V’s (29 stores), and The Capital Burger (four stores). All chains achieved net growth except for The Capital Grille and Bahama Breeze, which didn’t change their unit count, and Seasons 52, which dropped by one location.

For fiscal 2024, Darden projects 50 gross openings, and it’s likely many of those are already underway. Cardenas said if a store hasn’t begun the process by the end of the first quarter, it probably won’t open before the end of the fiscal year. That’s the result of what COVID has done to development timelines.

“We want to be prudent in making sure that we are earning a return that we really want to earn in our restaurants,” Cardenas said. “And we’ve had some contractors starting to come back in and bid for sites that they stopped bidding for during the pandemic and even after the pandemic, which should make bidding more competitive. We’re starting to see that. And so we wanted to be prudent and make sure that we have the right returns and we still have great returns in all of our restaurants and that’s kind of where it is. It’s not really because of risks.”

Cardenas noted that Darden prefers to reach its 2-3 percent framework through just organic growth, but the range technically includes M&A. That’s particularly relevant for fiscal 2023 since the company spent $715 million to buy Ruth’s Chris Steak House. At the time of acquisition, the fine-dining concept had 154 locations systemwide, including 80 company-owned stores and 74 franchised restaurants. Going into 2024, sales and profits from Ruth’s corporate units will be included in Darden’s fine-dining segment, while revenue and profits from franchise stores will be in its “other” segment, which is how all of the company’s franchise locations are treated. But, the steakhouse’s same-store sales won’t be included until after 16 months.

Olive Garden, LongHorn, and the “other” segment (Cheddar’s, Yard House, and Bahama Breeze), saw comps rise 4.4 percent, 7.1 percent, and 2.2 percent, respectively in Q4. Each of these groups also saw segment profit increases on a quarterly and annual basis. Olive Garden achieved its highest sales day and week in history during the week of Mother’s Day, and LongHorn’s “steaks grilled correctly” score is at an all-time high. Olive Garden’s average weekly sales were 108,587 in Q4, or $5.6 million in AUV on an annualized basis. For LongHorn, it was $98,240, or $5.1 million in annualized AUV.

Meanwhile, fine dining saw decreases across the board, with comps lowering 1.9 percent, quarterly profit going from $44 million to $38.3 million, and annual profit moving from $165 million to $158.5 million.

Darden attributed fine-dining declines to lapping a resurgence in demand during last year’s fourth quarter. More softness is expected in the first quarter, but stabilization is expected afterward.

Overall, the company estimates 2.5-3.5 percent same-store sales growth and 3.5-4 percent pricing in fiscal 2024, which implies flat to negative 1.5 percent traffic growth. In terms of what that means for each segment specifically, Olive Garden should be in the middle of the comps range, and LongHorn is expected to be outside of it on the positive side because of steak inflation and higher pricing. Fine dining will likely be outside the range on the lower end.

To boost traffic in 2023, Olive Garden brought back its Never-Ending Pasta Bowl promotion. Cardenas said in December that it resulted in a “good jump four us” during the second quarter, which is Darden’s lowest-performing time of the year. The CEO told investors on the fourth-quarter call that Olive Garden will explore Never-Ending Pasta Bowl and see “if there’s anything we can do with it,” but chose not to give any further plans.

The casual-dining giant will continue to advertise, but through three filters the company has mentioned several times before—it must elevate brand equity, be simple to execute, and not be deep discounts. These three tenets are meant to grow core guests as opposed to customers who are temporarily drawn to special deals.

“We’ll react accordingly if something really changes,” Cardenas said. “But when we increase our marketing spend, if we do, we expect it to earn a return. So we don’t necessarily expect us to go back into the deep discount craze and that’s our strategy and we’re going to try to stick to it.”

Despite the 2024 forecast, Cardenas said guests are “pretty strong overall” and that Darden hasn’t seen material changes in menu mix. The only area where the company is really seeing check management is in alcohol sales at the higher-end brands, and that’s a function of comparing against a significant increase last year.

“Food away from home is really difficult to give up if you’re executing,” Cardenas said. “And so what we think about it is, what it means to our brands. What it means to what we do every day. And we believe that operators that can deliver on their brand promise and the value that appeals to guests, despite economic challenges, is what’s going to get you to win. And that’s what we’ve been doing.”  Source: fsr.

Ocean Prime to Open First Sarasota Location in 2024 Cameron Mitchell Restaurants’ Ocean Prime brand announced its first Sarasota restaurant and 19th location, which will be located in the heart of The Quay Sarasota, a 14-acre waterfront development that merges the scenic waterfront marina setting with luxury residences, upscale shopping, and premier culinary experiences.

Ocean Prime Sarasota is scheduled to open in late 2024, boasting more than 9,500 square feet of space spread across two stories, with inviting outdoor terraces on each floor. The restaurant will include over 350 seats, two bars, and two private dining rooms. The second floor provides an immersive experience with sliding glass walls that open to the outdoors, creating a seamless connection to the beautiful Florida surroundings.

The restaurant’s upscale menu of seafood and steaks, hand-crafted original cocktails, special features, and decadent desserts are made with the highest standards of execution, and freshest ingredients and delivered with genuine hospitality. From its Insta-worthy Berries + Bubbles cocktail, Wine Spectator Awarded wine list, Smoking Shellfish Tower, Sea Scallops with Parmesan Risotto to Prime Steaks, Ten Layer Carrot Cake, and Warm Butter Cake, there is a dish and beverage to please any palate.

Every Ocean Prime restaurant is uniquely designed to capture the energy and elegance of each city – making it an unmatched destination to socialize, talk business, celebrate, and indulge. Dramatically designed and inspired by where the land meets the sea, the restaurant interiors balance raw materials with polished details to create a sophisticated yet comfortable atmosphere. Ocean Prime delivers genuine hospitality where “yes is the answer.”

“We look forward to bringing our extraordinary Ocean Prime dining experience to Sarasota,” says Cameron Mitchell, founder, and CEO of Cameron Mitchell Restaurants. “Sarasota is close to my heart – and where I have vacationed with my family for nearly 20 years. With our exceptional menu, vibrant atmosphere, and dedication to genuine hospitality, this location promises to be a premier dining destination for both residents and visitors of Sarasota.”

The Quay Sarasota is an all-new waterfront destination overlooking the Sarasota Bayfront, in the heart of the city’s Arts and Culture District. Being developed by Jacksonville, Florida-based GreenPointe Holdings LLC, Quay Sarasota will offer a carefully curated blend of luxury residential and upscale retail and dining in a scenic waterfront setting of natural beauty, eclectic architecture, and animated public spaces. The new 15-acre, mixed-use development will also feature a waterfront Central Quay park, boat slips along the yacht basin, and a boardwalk.

“GreenPointe Developers and Cross Lake Partners are thrilled to welcome Ocean Prime to Quay Sarasota Waterfront District,” adds Grady Miars, President of GreenPointe Developers, LLC. “It was a natural choice to bring Ocean Prime’s award-winning elevated experience to Quay Sarasota’s scenic waterfront setting, and we know it will enhance the experiences of those who live, work, and play here. With a reputation for innovation, and vision, it is our pleasure to create this remarkable waterfront destination and enrich the city’s vibrant Arts and Culture District.”

CMR has a significant presence in Florida, with more growth strategically planned within the state. The opening of Ocean Prime Sarasota will be the group’s sixth Florida restaurant overall and the fourth Ocean Prime in Florida (in addition to Tampa, Orlando, and Naples). Additionally, the Rusty Bucket Restaurant and Tavern, a sister company to CMR, has a location in UTC.  – Source: fsr.

Crimson Coward Nashville Hot Chicken expands into Maryland Crimson Coward Nashville Hot Chicken is bringing its premium hot and flavorful chicken fare to another state. Restaurant Management Group-Mid Atlantic (RMG-MA) has signed an Area Representative Agreement to expand the company into Maryland. This is the second state on the east coast, following Virginia, both of which are under RMG-MA.

The L.A. hot chicken franchise plans to open 25 locations in Maryland as well as 25 total stores in Virginia. RMG-MA will develop, franchise, and support all stores in these states. With decades of experience developing and supporting multiple franchise concepts and successfully launching their first store in Woodbridge, Virginia, principles John Filipiak and Nabil Asad, are well-positioned for this expansion. Their second store in Stafford, Virginia will also open later this year.

“We are so excited about this brand and our partnership to grow Crimson Coward,” said John Filipiak, managing partner of RMG-MA. “Having worked in the restaurant business for many years, Nabil and I were immediately impressed with the high quality of the cooked-to-order menu shared with guests at Crimson Coward – we had to get involved!”

Every Crimson Coward Nashville Hot Chicken joint offers a variety of hand-cut, marinated chicken meals, and tempting homemade sides and is dedicated to creating a unique dining experience with an open kitchen design. It begins with fresh food cooked in front of guests and made to order so every meal is hot and tender. Each piece of the fresh never frozen chicken is breaded and finished with the heat level of the guest’s choice: country, which has no heat, mild, medium, Crimson-hot, and Burn Baby Burn for those looking to fire up their taste buds.

Crimson Coward has an aggressive goal to open 200 restaurants across the U.S. by 2027. Maryland is currently the fifth state that will feature the brand.

Crimson Coward Nashville Hot Chicken has been a destination for Nashville hot chicken fans since 2019. Launched in California and now with seven and an additional 200 planned nationwide by 2027, Crimson Coward is quickly living up to the hype and bringing quality hot flavor to fried chicken connoisseurs everywhere. Only premium, all-natural, non-GMO chicken free of hormones and antibiotics from the most reputable farms are served with daily made fresh signature sides. Visit www.CrimsonCoward.com.

Source: NRN.

Like many others, the fast-casual giant is learning how to unlock the true benefits of a virtual brand . . . .

The Making of Chipotle’s Fresh-Forward Ghost Kitchen In the wake of COVID, virtual concepts have turned into culinary goldmines. The industry could potentially reach $1 trillion by 2030, according to research firm Euromonitor International. In early February, Chipotle joined the fun with Farmesa, a virtual concept offered via Kitchen United in Santa Monica, California. So far, the fast-casual is one of the largest restaurant chains to explore this emerging culinary space.

For Chipotle, the new venture represents a departure from the traditional ways in which restaurants operate. Executives such as Nate Lawton, the vice president of new ventures for Farmesa, are confident the new brand will allow the company to test future concepts and learn more about what it means to run a successful virtual restaurant.

In the past, Chipotle has tried secondary food and beverage ideas, such as Tasty Made and ShopHouse Southeast Asian Kitchen. However, Farmesa is the company’s first move into ghost kitchens, driven by a growing better-for-you fast-casual category and the promise to deliver fresh, real ingredients to a wider consumer base.  The inception of Farmesa was fueled by a fusion of Chipotle concepts and innovations. Lawton expresses “There are some great things we learned from Chipotle that have allowed us to design what we think is super exciting in this space.”

While Chipotle has seen modernization in the way of operations, store layout, and technology partnerships, Lawton points out Farmesa’s menu is what will truly connect with consumers and keep them coming back for more. Nate Appleman, a James Beard award-winning chef, serves as director of culinary innovation for Farmesa. A Chipotle veteran, Appleman was the driving force behind the brand’s menu in the mid-to-late 2000s. During Farmesa’s infancy, Appleman teamed up with Lawton to discover what customers were looking for on a menu.

“I spent four months with chef Appleman out in the marketplace, just trying to immerse ourselves in what people in the U.S. were looking for,” Lawton says. “We found that ‘fresh eateries’ had the type of food many people were looking to eat multiple times a week.”

Farmesa’s menu, inspired by Chipotle’s “Food with Integrity” standards, includes fresh proteins, greens, grains, and vegetables assembled into a bowl which ranges in price from $11.95 to $16.95. A standard bowl includes a protein, green or grain, two sides, a topping, and a choice of five sauces. Additionally, Farmesa partnered with Tractor Beverage Co. to provide 100 percent organic and all-natural drinks. According to Lawton, the virtual brand reflects the “fresh, real ingredients and classic culinary techniques” of Chipotle, but the digital model allows room to learn and adapt to customer tastes. The partnership with Kitchen United grants Farmesa the opportunity to be flexible and make changes as time passes.

“One of the things we learned from our past ventures is that we wanted to get out and learn on our menu with consumers quickly, which is why we chose this approach,” Lawton explains, regarding the decision to launch Farmesa in a ghost kitchen. “We want to adapt and evolve as we go.”

To launch expeditiously, the ghost concept started with a limited menu. However, customers can now explore a menu that includes items like tri-trip steak, king salmon, and sweet potato chips. Before Farmesa launched at full throttle, Lawton says there were three areas of focus for the brand—consumer experience, operational consistency, and financial attractiveness. This “grow-as-we-go” approach is deliberate, as Lawton’s goal is to get on the market and start learning from consumers immediately.

“We knew that if we put the initial menu into the market, we would get consumer feedback right away,” Lawton says. “We would adapt or evolve in that view as we go … We have the flexibility to do that.”

From an operational perspective, Farmesa’s kitchen is set up for culinary flexibility.

From fryers to open-flame grills, there are a variety of resources available.

“We went in with a base set of assumptions of how we would operate the menu, but we also knew there would be opportunities to improve,” Lawton says. “We knew the menu would change, so we wanted to have the flexibility there.”

Additionally, the Kitchen United partnership allowed Farmesa to move from concept menu design to market in about six months.

For reference, a traditional restaurant concept would take anywhere from 15 to 20 months.

Lawton explains the decision to operate through a ghost kitchen was made with “the expectation that we would be learning and iterating through the process.”

Kitchen United’s technology platform also aided in Farmesa’s quick arrival onto the market. This platform allows guests to choose their location, shop for meals, and select pickup or delivery.

In fact, guests looking to eat at Farmesa have multiple order options: an onsite kiosk in Santa Monica, takeout from Farmesa’s website, or scheduled delivery through third-party service providers.

Between Farmesa’s menu, diverse kitchen space, and Kitchen United’s partnership, an ability to adjust and grow has been built into the brand’s mold from the beginning.

“I think what you’ll see in the foreseeable future for us is continuing to tinker or make bigger changes based on what we learn,” Lawton says. “We want to get this proposition as clear and as consistent for consumers as we believe it should be.”  — Source: QSR.

Restaurant brands are starting to pilot artificial intelligence to streamline food service . . . .

How Restaurants Such as Panera and Chipotle are Dipping into A.I. to Streamline Food Prep and Ordering

From drive-thru to back-of-house operations to predictive ordering for consumers, restaurant brands are starting to pilot artificial intelligence to streamline food service.

The technology has yet to reach critical mass at major chains but has the potential to automate more tasks and give restaurant workers the opportunity to have a more meaningful experience with guests.

Analysts say a key benefit is the potential to ease workforce challenges in an ongoing tight hiring market. The National Restaurant Association predicts the industry will add 500,000 jobs by the end of 2023, but notes there’s currently just one job seeker for every two open positions.

What’s more, TD Cowen estimates voice-enabled AI can drive sales as much as 15% through suggestive selling as well as speed up service times by 10 seconds.

The industry shift is reminiscent of the emergence of third-party delivery services five years ago, before it was ubiquitous at nearly every major restaurant operator, according to Andrew Charles, managing director of consumer and restaurants at TD Cowen.

“Some were trying it, others we’re contemplating it, most were piloting it,” he said of third-party apps for delivery services. “I think there’s a clear analog to today where it’s very similar and as we continue to see further adoption of this, you will see a domino effect here.”

But there are still hurdles to broad adoption, according to Charles. Many of these large restaurant chains need to get franchisees on board. Language barriers and menu nuances can add complexity to the ordering process that AI may not be able to navigate.

Meanwhile, the wave of pilot programs has already begun.

Last month, Carl’s Jr. and Hardee’s parent company CKE announced it was aiming to launch AI integrations nationwide via partnerships with Presto and OpenCity AI.

Yum! Brands in recent years has been a leader in leveraging AI to enhance operations, including its 2021 acquisition of Dragontail aimed at streamlining food prep and delivery. The tech, which automates kitchen flow, driver dispatch, and customer order tracking, is used in 1,000 Pizza Hut locations in the U.S., and nearly 3,000 more globally. The company also relies on AI for its recommended ordering module that informs managers of how much product to order weekly.

McDonald’s, for its part, sold McD Tech Labs to IBM in 2021, entering a strategic partnership to help bring AI technology to drive-thru lanes. McD Tech Labs, which was formerly known as Apprente before McDonald’s acquired it, used AI to understand drive-thru orders. So far, McDonald’s has tested the technology at certain locations.

Del Taco is also using voice-activated AI for orders at its drive-thru, as is Wingstop for orders placed by phone.

Panera Bread has likewise invested in technology in both front- and back-of-house operations. It’s working with OpenCity AI on drive-thru voice ordering and with Miso Robotics to sure up coffee quality and temperature control to boost product consistency.

For Panera, it’s a question of, “How do we redeploy our people to a higher value, higher quality guest experience,” said Chief Digital Officer George Hanson. “Whether they’re spending more time on the food preparation and the quality control, or in-person interaction,” Hanson told CNBC in an interview.

“It might be just swinging around into the dining room and asking them how their meal is or if they can bus their table — just having those warm interactions. We view that as a higher value.” Chipotle, a tech leader in the restaurant space, has also partnered with Miso Robotics, introducing Chippy, its robotic chipmaker, which is currently installed and cooking chips in a restaurant location in Fountain Valley, California. Using AI, Chippy has been trained to recreate the brand’s exact chip recipe with salt and fresh lime juice. The next iteration of Chippy will determine the amount of chips that need to be made, too.

The company has also implemented AI on its app to deploy suggestive ordering and uses camera systems at its Cultivate Center test kitchen to provide real-time data on the amount of product needed to be based on customer volume to be more predictive and less reactive.

Chief Customer and Technology Officer Curt Garner told CNBC the hope is for AI and robotics to amplify and improve human experiences at the company’s restaurants.

″[It’s] helping the crew members, managers, the team to adapt to their current environment as a tool, but not taking them out of the equation of serving our guests and running the ship,” he said. – Source: CNBC.

A Warmer World  . . . .

Carbon accountants help firms keep their climate pledges The other day when Cooper Elsworth stepped into a Sweetgreen restaurant in Boston, he already knew what he was going to order.

“I’m vegetarian, so I’ll probably go for the hummus crunch salad,” Elsworth said. “That’s the lowest-emissions salad at Sweetgreen.”

He knows this arcane fact because it’s his job. Elsworth is a carbon accountant at a firm called Watershed. Instead of dealing in dollars and cents, he deals in greenhouse gas emissions.

Elsworth pointed to the massive refrigerator at the back of the store, full of carrots, spinach, and limes. A financial accountant might look at that fridge as a $10,000 expense. But Elsworth saw something different: “Electricity usage and refrigerant leakage. So those are the two main sources of emissions.”

He tallied this up for all of  Sweetgreens’ operations, from the ingredients in every salad to the commutes of the employees. Because, like many other companies, Sweetgreen says it’s going to zero out its carbon footprint this decade.

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Elsworth is part of a growing profession, carbon accounting, that aims to help firms from Apple to Zoom meet their corporate climate pledges. Because before those companies cut their emissions, they have to measure their carbon footprint in the first place. It’s a service in high demand.

“We’re pretty busy. A lot of companies are looking for help,” said Kristina Wyatt, chief sustainability officer at the carbon accounting firm Persefoni, which counts the climate beans for Citibank, Einstein Bros. Bagels, and Bumble. She said those clients want a standardized way to measure and report their carbon emissions. Because right now, corporate climate disclosures are all over the place.

“It’s sort of like if we were back in the barter system,” Wyatt said. “It was difficult to clearly define whether a chicken was worth a bale of hay, right? We didn’t have a common currency.”

Carbon accounting firms want to fix that. The best of them follow the Greenhouse Gas Protocol, internationally recognized as the gold standard for measuring corporate climate impact.

Increasingly, shareholders and customers want hard data on companies’ environmental performance, said Paasha Mahdavi, who researches energy policy at the University of California, Santa Barbara. And the data needs to be correct, because “regulators are demanding that information.”

Later this year, the Securities and Exchange Commission is expected to mandate that public companies report emissions because climate change poses financial risks to businesses.

All of this means the carbon accountants are in line for a payday.

Ty Colman, the co-founder of the carbon accounting firm Optera, estimated the total market value for carbon accounting is “tens of billions of dollars … and that’s just the accounting piece. The actual bigger play here is the work that needs to happen to decarbonize those organizations.”

It may take some time for the carbon accounting industry to go mainstream, but that was also true for financial accounting back in the day. During the Great Depression, the government told corporate America it had to do a better job tracking and reporting its finances. Firms were not happy.

“There was so much controversy,” Mahdavi said, “like steel companies saying, ‘We don’t know anything about accounting standards. What are you asking us for? Financial documents? Information? Like, that’s not what we do.’ But what did they do? They hired accountants.”

And we haven’t had another Great Depression. We’ll see what the carbon accountants can do about climate change. – Source: Marketplace.