A Deeper Dive

Michelle Korsmo, CEO of the National Restaurant Association, advocates for the restaurant industry on key issues like tariffs and immigration. She discusses how rising tariffs are impacting costs for operators and the potential consequences of immigration restrictions on labor availability. Surprisingly, she shares positive perspectives on immigration reform discussions. Korsmo also emphasizes the importance of operational efficiency and innovation for restaurants navigating economic challenges in a competitive landscape.

What does Culver’s new CEO have in mind for the chain?This week’s episode of the Restaurant Business podcast A Deeper Dive features Julie Fussner, who was recently named chief executive of the 1,000-unit, Wisconsin-based burger chain. Culver’s is quietly one of the most consistent restaurant chains in the country and is one of a generation of high-growth burger concepts. Its system sales grew 16% last year. By contrast, fast-food burger chain sales last year grew just 1%.Fussner came to the brand in 2017 and was later named chief marketing officer, the first CMO in that chain’s history. In April she was named just the fifth CEO in Culver’s history and the brand’s first woman CEO.So we thought we’d bring her on and ask her a bunch of questions about plans for the company.

Neal Sherman, the founder of TagX Brands, shares insights into how rising tariffs are reshaping the restaurant equipment industry. With tariffs hitting an average of 27%, restaurants are forced to consider used equipment as a cost-effective alternative. Sherman discusses the increasing demand for his company's offerings amid economic uncertainty, shedding light on the challenges like labor shortages and shifts in consumer preferences towards budget-friendly dining. His expertise brings clarity to navigating this evolving landscape.

How does Chili’s keep doing this?This week’s episode of the Restaurant Business finance podcast A Deeper Dive features George Felix, the chief marketing officer for Chili’s parent company Brinker International.We spoke with Felix at the Restaurant Leadership Conference. We wanted to talk about Chili’s marketing, and how it’s taken advantage of social media to draw attention to the brand. The chain’s same-store sales have increased more than 31% each of the past two quarters despite a brutal market for full-service chains.Felix talks about the way Chili’s took advantage of consumer frustration over high fast-food prices and he details the company’s thinking as it elevated one of its long-time offers. He also talks about social media in general and how the company recognized consumer affinity for cheese pulls. And he talks about the company’s Lifetime movie.We’re talking Chili’s and marketing on A Deeper Dive so check it out.

How do you teach an old pizza chain new tricks?This week’s episode of the Restaurant Business podcast A Deeper Dive features David Karam, the CEO of the pizza chain Sbarro.The pizza chain was founded in 1956 and for years thrived inside mall locations. But the company took on too much debt and filed for bankruptcy twice after the Great Recession. We wanted to talk with Karam to understand what Sbarro did to survive those two bankruptcies. Karam took over the chain between the two filings and has led the it ever since and now owns the concept. Sbarro just opened its 800th restaurant and has found new life in places like convenience stores and airports as well as international markets.Karam discusses these plans and provides insight into how the company was able to find a life past bankruptcy. 

How did restaurants do in 2024?This week’s episode of the Restaurant Business podcast A Deeper Dive is all about the Technomic Top 500 Chain Restaurant Report.Kevin Schimpf, senior director of industry research at Restaurant Business sister company Technomic, joins the episode to talk about the ranking. The restaurant industry did not have a great year in 2024 if you look at the overall numbers. Kevin and I talk about that and why restaurants didn’t do as well.We also talk about what sectors did well and what did not. Hint: It’s more menu based than anything else. We talk about the shift from some concepts to others and from some menu types to others and what it means for the future of the industry. We talk about Texas Roadhouse, McDonald’s, Starbucks, KFC, Raising Cane’s, Chick-fil-A and others. And also what sector should not exist.We’re talking Top 500 on A Deeper Dive, so please check it out.

How will the bankruptcy filings of TGI Fridays and Hooters affect the market for securitizations?This week’s episode of the Restaurant Business podcast A Deeper Dive features Ed Cerullo, a credit analyst with Octus, to talk about whole business securitizations and the potential impact those bankruptcies can have on the market. Whole business securitizations use a company’s cash-generating assets to back bonds. Cerullo helps explain how they work, and why they’ve been so popular in the restaurant industry over the past 15-plus years. TGI Fridays was the first bankruptcy of a restaurant chain that used a whole business securitization, and Hooters was the second. Fridays also has the distinction of having lost control of its assets, the first time that had happened in any industry in 15 years. Both were risky investments, however, at the time they went to the securitization market. Cerullo and I talk about that, and whether the investments properly denoted the risks those companies presented at the time. We talk about whether the securitizations promoted this risk, and what the impact will be on the market going forward. 

In this special episode of A Deeper Dive — guest-hosted by Nation’s Restaurant News editor-in-chief and Take-Away host Sam Oches — Sam talks with Joey Cioffi, founder and CEO of The Salad House, a New Jersey based franchise that has grown to 20 locations since it first opened in 2011. Cioffi joined the podcast to share how The Salad House attempts to strike a balance between healthy and indulgent for the suburban customer and how he’s refined the business to support franchise success.  Like what you hear? Subscribe to Take-Away on Apple or Spotify.  In this conversation, you’ll find out why:In kids’ menus, health-forward concepts have opportunity for growth There’s a broad spectrum of customers looking for a balance of healthy and indulgentAn outside perspective can help you tighten up your businessYou don’t need A+ real estate if you make enough noise in your messagingYou can’t fulfill your dreams if you don’t take a few risks along the way Have feedback or ideas for Take-Away? Email Sam at sam.oches@informa.com.

What is the strategy for Authentic Restaurant Brands’ newest acquisition?This week’s episode of the Restaurant Business podcast A Deeper Dive features Alex Macedo, the CEO of the multi-brand operator Authentic Restaurant Brands (ARB). The company recently acquired the New England polished casual-dining concept Tavern in the Square, its latest in a series of deals for largely regional chains. The company owns Pollo Tropical, Primanti Bros., P.J. Whelihan’s and Mambo Seafood. The company’s chains generate $1 billion worth of revenue and $150 million in EBITDA, or earnings before interest, taxes, depreciation and amortization. We asked Alex why Tavern in the Square fits with these companies, when it plans to buy another chain and what’s the strategy behind acquiring regional concepts. We also asked Alex about ARB’s ultimate exit strategy. Check it out.

How has the pandemic affected restaurants?This week’s episode of the Restaurant Business podcast A Deeper Dive features Lisa Miller, a consumer strategist and the author of "The Business of Joy."The podcast is part of our series on the impact of the COVID pandemic on the restaurant industry five years after it first hit. The pandemic wiped out a huge percentage of sales. More than half of the restaurant workforce lost their jobs. That period was an earthquake on the industry, and there have been many aftershocks since: supply shortages, runaway inflation and now traffic declines as consumers get frustrated over price hikes.We discuss the lingering impact from that era. We also talk about how consumers have changed. And we talk about the potential restaurants have to get customers, even in a tough market. The U.S. diner hasn’t fully returned to the industry and still wants to eat out more often than they do.