A Deeper Dive

Why are restaurant chains still having challenges in 2025?This week’s episode of the Restaurant Business podcast A Deeper Dive features Rich Shank, the senior principal with sister company Technomic. We wanted to talk with Shank because of the uncertain state of the restaurant business so far in 2025. A lot of people thought that things would improve this year after a difficult 2024. But so far that hasn’t quite happened. Many chains have reported weak sales beyond just weather concerns, saying that consumers are still cutting back. We talk about why that is. We also talk about the uncertainty surrounding the economy, particularly with the threat of tariffs. We also talk about the potential impact of immigration restrictions. In addition, Rich talks about how the restaurant business has changed since the pandemic started five years ago.We’re talking about the state of the industry so check it out. 

What’s going on with egg prices?This week’s episode of the Restaurant Business podcast A Deeper Dive features Ricky Richardson, the CEO of the breakfast-and-lunch franchise Eggs Up Grill. We wanted to talk to Ricky because he recently posted about a decision his franchisees made in reaction to egg prices.Egg prices have hit record highs this year because of an outbreak of avian influenza, which has caused poultry farmers to get rid of much of their flocks, dropping supply. Because of the high costs, some chains such as Waffle House and Denny’s have instituted egg surcharges. Richardson explains just how big a deal these price increases are to the company’s franchisees and how the company and operators are dealing with them. We also talk about surcharges and the impact on customers. And we spend some time talking about Eggs Up and the breakfast-and-lunch category, quietly one of the hottest categories for years.We’re talking about eggs on A Deeper Dive so please check it out. 

How should we think of the shift in marketing at Starbucks?This week’s episode of A Deeper Dive is about marketing restaurant brands and it features Dawn Kane, the CEO and co-founder of Hot Dish Advertising. Kane has extensive experience in marketing and was recently named the 2024 Bonny LeVine Award winner by the International Franchise Association, which recognizes women for their contributions to franchising. There’s been plenty of marketing news of late, including some from Starbucks, which has started television advertisements, something it hasn’t done all that often. Its promotions around the Super Bowl also generated record redemptions for the company’s free coffee offer the Monday after the event. And then companies like Chili’s generated strong sales by taking advantage of social media opportunities and then using traditional advertising to supplement that. We wanted to talk about these issues as well as the challenges of breaking through all the marketing clutter at a time when the restaurant business is more competitive than ever.We’re talking advertising on A Deeper Dive so please check it out. 

How do you take a hot restaurant concept national without destroying it?This week’s episode of the Restaurant Business podcast A Deeper Dive features Chris Schultz, the CEO of Voodoo Doughnut. The doughnut chain was founded in Portland, Oregon, in 2000 by Kenneth Pogson and Tres Shannon. It quickly gained a reputation for off-the-wall doughnuts—we’ll let you check out the website for the names of said doughnuts—and a brilliantly pink color scheme. The company has been expanding rapidly with private-equity owners. We talk with Chris about some of the changes the company has made and how the chain can make itself ready for growth without losing the irreverence that helped it gain popularity in the first place.And we also talk with Schultz about the chain’s expansion strategy, and whether that strategy can work for a concept that focuses largely on treats. 

How does a restaurant chain come back from bankruptcy?This week’s episode of the Restaurant Business podcast A Deeper Dive features Jim Greco, the CEO of the recently-emerged-from-bankruptcy Tijuana Flats.Greco is an industry veteran who has engineered turnarounds at Bruegger’s and Sbarro. He recently took over Tijuana Flats, the fast-casual Mexican chain, and is working on that comeback plan.We wanted to talk with him to go over the best strategies for resuscitating struggling restaurant chains. It’s an important topic because a lot of companies are doing just that. So we talk about the importance of operations, marketing and, of course food.Check it out.

Why are some chains easily outperforming their biggest competitors?  This week’s episode of the Restaurant Business podcast A Deeper Dive features Joe Pawlak, the managing principal with RB sister company Technomic, to talk about this topic. Several restaurant chains are easily outperforming top competitors right now. Chili’s is beating Applebee’s. Dutch Bros is outperforming Starbucks and Texas Roadhouse is outdistancing Outback Steakhouse. Pawlak uses data from Technomic to help explain a lot of this. Customers clearly prefer some chains over others right now, and amid intense competition they are voting with their feet.  We discussed what some of these chains are bringing to the table and how much luck plays a role. The discussion offers lessons for some brands as they look to win in a competitive restaurant market. 

The best time to invest in a restaurant chain may be when the industry is struggling. This week’s episode of the Restaurant Business podcast A Deeper Dive features Andrew Smith, the cofounder of the private-equity firm Savory Fund.  We have long wanted Smith on the podcast, largely because of Savory’s unique history. Smith has a restaurant operations background as a franchisee of brands like Little Caesars.  These days, Savory invests in emerging chains. The ifirm has invested in brands like Swig, Mo’ Bettahs, Houston TX Hot Chicken, Pincho, Via 313 and others. Smith discussed his firm’s investment strategies, what they look for and how to tell whether a brand will be a winner or not. He also discussed the right time to exit an investment and why it’s not about time. He also notes that tough times for the restaurant business can be good times to make an investment and explains why that is on the podcast. Check it out. 

What is the right franchising strategy for your restaurant brand? It’s not as simple a question as you may think. And I brought in Sean Thompson, VP of IT with Freddy’s Frozen Custard and Steakburgers, to discuss franchising strategies and what may or may not work for restaurant brands. The number of strategies for franchising a restaurant brand, or any industry for that matter, is as varied as the companies themselves. There are companies that love big operators and those that prefer smaller franchisees and everything in between.  There are also misnomers about franchisees. They are not always local. And they’re not always small.  In any event, we sort it all out on this episode as we talk about what works and what doesn’t and what is the key ingredient in any franchise company. Please check it out. 

Should restaurants worry about weight-loss drugs? This week’s episode of the Restaurant Business podcast A Deeper Dive features Leo Feler, chief economist with the data firm Numerator, to talk about the potential impact of GLP-1 drugs on consumers’ food-spending habits. Drugs such as Ozempic and Wegovy are increasingly popular. The medications are historically used for Type 2 diabetes but were found to cause weight loss. They’ve been used increasingly for weight loss. With nearly half of Americans overweight or obese, they’re expected to only grow in popularity.  Numerator recently coauthored a study analyzing the impact of these medications on sales at grocers and fast-food restaurants. They show a real impact that could influence sales in these industries.  Feler talks about the study and the impact of GLP-1 medications and what restaurants should do to prepare.

Why did restaurants close so many locations last year? This week’s episode of the Restaurant Business podcast A Deeper Dive features Jim Balis, the operations partner with the private equity and debt financing firm CapitalSpring. We had Balis on the podcast to talk about the closures. A lot of companies closed locations in 2024. Many of them ended up in bankruptcy, such as Red Lobster and TGI Fridays. Others have struggled for years. But many of them include brands like Wendy’s and Denny’s that closed locations for strategic reasons.  Closures generate headlines in publications like Restaurant Business. But there are reasons they opt to close locations. We had Balis on the podcast to talk about these reasons. We talk about the reasons companies make these decisions and what issues operators should take into consideration before they opt to close a location. We’re talking closures on A Deeper Dive so please check it out.