How was Taco Bell able to get its latest prototype from idea to operating in less than two years? This week’s episode of the Restaurant Business podcast A Deeper Dive features Mike Grams, the chief operating officer for the Mexican fast-food chain, to talk about a variety of topics, from franchising to the reaction to its Mexican Pizza. That includes its fancy new Defy prototype, the one that features four drive-thru lanes, three of them for mobile orders. The prototype was opened this summer less than two years after the local franchisee brought the idea to Taco Bell. Grams talks about that story, which is interesting and helps explain the chain’s success. Taco Bell franchisees have generally been with the brand for a long time and the value of their restaurants is at record levels, in part because of the company’s willingness to let them lead the way on some of its new store ideas. Mike also talks about labor issues and how these new stores fit into that. He also talks about the Mexican Pizza, why that was taken off the menu and why the company had to pull it back. He discusses supply chain issues, food costs and other topics.

Shahpour Nejad came to the U.S. to get his college degree. Instead he became a pizza guy. This week’s episode of the Restaurant Business podcast A Deeper Dive features Nejad, the CEO and cofounder of the Sacramento-based Pizza Guys, who discusses his personal history, the formation of his chain and its growth strategies. Nejad’s parents sent him to the U.S. in the late 1970s when he was just 16, so he could go to school. The Iranian Revolution kept him here, and he ended up working with a pizza concept. We’ll let him tell you the rest of the story on the podcast, but it ultimately led him to create Pizza Guys out of Sacramento. Today, the west coast chain has more than 70 locations and after years of slow and deliberate growth it is planning to get much bigger. Nejad talks about the company’s story and his reasons for that slow and deliberate growth, and what his plans are going forward. But his personal story is fascinating.

Subway has made yet another massive change to its menu. Will it work? This week’s episode of the Restaurant Business podcast A Deeper Dive features Pat Cobe, the senior menu editor for RB, in a discussion about Subway’s latest menu chane. Subway last year overhauled its menu with an “eat fresh refresh,” an upgrade of numerous ingredients, including its bread. Some longtime operators who recall the chain’s decision in the late 1990s to go with a more traditional split bread approach—rather the trench it used to dig into the bread—as a bigger deal. This month, the company introduced a set of 12 new sandwiches that are designed to operate as its core menu. The company will work to focus customers’ attention on those sandwiches, rather than its countertop with all its ingredients. The goal is to shift away from the customized menu that had been its trademark. Will it work? It may be vital for Subway’s future. Subway has closed about 6,000 units in the past eight years. Its unit volumes even after improving strongly in 2021 remain low and a number of locations are still underperforming pre-pandemic levels. Getting more people into Subway more often is vital. In this case, that could mean going away from customization, which Pat and I talk about at length. The two of us attended a tasting of its new menu and we talk about what it could mean for Subway’s future, and why a fully customized Subway menu may not be quite as beneficial as people think.

How do you turn a well-loved local restaurant into a hot national concept? This week’s episode of the Restaurant Business podcast A Deeper Dive features Garrett Reed, CEO of Layne’s Chicken Fingers, to talk about his efforts to take that step. Layne’s was founded near Texas A&M in College Station, Texas, in 1994. Reed and a partner later purchased the brand, intending on turning it into a franchise. The company currently has nine locations but has deals for many, many more. Reed discusses that transition and about how the company has sold so many franchises this quickly. He also talks about the brand’s unique franchising strategy and how that should, hopefully, maintain culture even as the concept grows. He also discusses why that culture is important to a brand like Layne’s.

Everybody talks about having a good corporate culture. But what does that mean? This week’s episode of the Restaurant Business podcast A Deeper Dive features James Pogue, the CEO of the leadership consulting firm JP Enterprises, to talk about culture and inclusivity. Pogue is a former researcher and administrator who now works with companies—including many restaurants—to help them attract and retain younger employees. We speak with him because we’re curious about what it means to have a good corporate culture, one that promotes inclusivity and diversity. Pogue is as good as anybody to talk about that topic. He quickly notes in the podcast that a company has a culture whether it tries to have one or not. And he talks about how to promote that culture—particularly in a time when so many things are so divisive. He talks extensively about promoting an open and honest culture at a time when political divisions are raging.

How does a mall concept do well in stand-alone locations? With chicken wings. This week’s episode of A Deeper Dive features Charley’s Philly Steaks President Candra Alisiswanto, who talks about Charley’s growth strategy. Charley’s operates 670 locations. Most of those have traditionally been in mall settings. But more recently, the company began expanding outside of those shopping centers and into stand-alone locations, many of which have drive-thrus. It has done so in part with an expanded menu that features chicken wings in addition to its traditional menu of steak and chicken Philly sandwiches. We spoke with Alisiswanto about this strategy, and why chicken wings have helped the company intensify its growth. He talks about the difference between operating in malls and operating standalone locations and what it takes to make that transition. He also talks about technology and bringing kiosks and mobile apps to the malls. He talks about franchisee demand and how drive-thrus fit in Charley’s future.

How many restaurants does Subway need to close? This week’s episode of the Restaurant Business podcast A Deeper Dive features Trevor Haynes, president of North America for the Milford, Conn.-based sandwich giant, to talk about the chain’s future. Subway remains the largest chain in the U.S. by unit count. But it has been shrinking for years. Franchisees have closed about 6,000 locations since the brand peaked at 27,000 restaurants in 2014. Restaurants have low unit volumes and franchisees on average own just two locations. Haynes was acting CEO in 2018 and 2019 before giving way to John Chidsey. He talks about the likelihood of more closures ahead. But he also says the closures open opportunities for new locations, though the restaurants may be different and could feature things like kiosks and vending machines. Haynes talks about the company’s plan to recruit larger franchisees and the future of business developers, the sometimes controversial operators who act as master franchisees and take on some of the roles of the franchisor. And he talks about the company’s efforts to build unit volumes.

How do you create a restaurant concept when so much about the business is uncertain? This week’s episode of the Restaurant Business podcast A Deeper Dive features Jack Gibbons, the CEO of concept incubator FB Society, to talk about concept development and the industry’s future. FB Society, formerly known as Front Burner Brands, is known most for creating Velvet Taco, which has since been sold—though FB still has an interest in the chain and is a licensee. The company has created several other full-service and fast casual brands including Sixty Vines, Mexican Sugar, Whiskey Cake and Son of a Butcher, among others. Gibbons talks about how FB Society thinks when it creates a concept right now and what things they consider when developing full-service and fast-casual brands. He also discusses consumers’ continued desire for service and the demand for high-quality restaurants and what kind of takeout consideration full-service restaurants should have. And he talks about whether fast-casual restaurants should focus on the dine-in business at all. Gibbons also takes some time to talk about how best to win the labor shortage and about rethinking unit economics when everything costs so much.

How do operators overcome rapidly shrinking profit margins? This week’s episode of the Restaurant Business podcast A Deeper Dive features Jim Balis, managing director with the investment firm CapitalSpring, to talk about the rising cost environment and how operators can overcome these problems. Labor costs are soaring right now, with wage rates up more than 13% over the past year. But food costs are up even more, rising more than 16% according to federal data. Add in the higher prices for construction, equipment, real estate and interest rates and it’s difficult to improve profits. Menu prices are up 7.2%, not nearly enough to offset the higher costs. In addition, a potential recession could push more consumers to shop on price, which may hurt operators’ ability to keep raising costs. Balis is an operational expert and discusses strategies restaurants can use to offset the higher costs without simply raising prices. But he also talks about price strategy. And he talks about the technologies that could do the most to improve operations down the road.

What is the state of the restaurant industry this year? This week’s episode of the Restaurant Business podcast A Deeper Dive features Lance Trenary, the CEO of Golden Corral and chairman of the National Restaurant Association, to discuss the general state of restaurants. Trenary joined the podcast from the association’s recently completed show, the first one in three years. The show was held just days after Congress could not muster enough votes to approve a package that would have provided $40 billion in funding for the Restaurant Revitalization Fund. Trenary talks about what that means for restaurants that had been counting on receiving their grants. He also talks about the numerous challenges facing the industry, notably soaring labor and supply chain costs, and what impact this is having on operators. Trenary also talks about how his own chain, Golden Corral, has been able to deal with these issues.