A Deeper Dive

How do brands operate in a price-sensitive restaurant market? This week’s episode of the Restaurant Business podcast A Deeper Dive features Juan Martinez, the principal and founder of the consulting firm Profitality. We periodically have Martinez on the podcast when we’re concerned about profits and, well, this is one of those times. Consumers are frustrated by rising restaurant prices and are cutting back on dining frequency. Restaurants don’t have pricing power and are about to enter a value war. That could squeeze margins for some time. How do you operate through that, particularly when many restaurants have already spent a lot of time cutting costs as it is? Martinez and I talk about this challenge and what operators can do about it. We talk about value and what exactly that means in this day and age. We’re talking about operating in a tough environment, so please check it out.

What are the restaurant industry’s biggest concerns right now? This week’s episode of the Restaurant Business podcast A Deeper Dive features Scott Redler, the co-founder of Freddy’s Frozen Custard and Steakburgers. We spoke with Scott at the National Restaurant Show in May and we chatted on a variety of issues. We wanted to talk with him about some of the bigger concerns in the industry right now, given regulatory efforts such as the $20 fast-food wage in California and other issues. I also wanted to talk about the overall operating environment, as many restaurants are struggling with weak traffic. Scott has been busy in the three years since he and his co-founders sold a majority stake in Freddy’s to Thompson Street Capital Partners. We talk about what he’s been doing since then, including his role as the former chair of the National Restaurant Association. It’s a wide-ranging conversation with the co-founder of Freddy’s on A Deeper Dive so please have a listen.

How can restaurant chains survive in this market? This week’s episode of the Restaurant Business podcast A Deeper Dive features longtime industry executive James Walker. At the moment, Walker has multiple titles. He is the chief culinary and concept officer for Experiential Brands, a concept creation engine that has created brands such as the Original Hot Chicken, Inked Tacos and Pinsa Roman Pizza. He is also the CEO of Frisch’s Restaurants, the family-dining brand. We talked with Walker at the National Restaurant Show last month, and it was a wide-ranging conversation. We talked with him about Frisch’s and his new concepts. But we also got into a discussion on the state of the industry. Traffic has been down throughout the industry amid high prices, but plenty of chains, like Wingstop, Sweetgreen and many others, have done just fine. And plenty of hot independent restaurants remain tough to get into. We talk about that and what differentiates the winners and the losers. We’re talking all things restaurants on A Deeper Dive so please check it out.

What is the future of Red Lobster? This week’s episode of the Restaurant Business podcast A Deeper Dive features Victor Fernandez, the vice president of insights and knowledge at GuestXM. GuestXM provides industry performance metrics, notably the Black Box index of industry sales and traffic. I wanted Victor on the podcast so we could talk about the state of full-service restaurants, particularly a certain seafood chain that is filing for bankruptcy. We talked during the National Restaurant Show in Chicago. Red Lobster filed for bankruptcy last month and has already closed 100 locations. It could close a lot more than that if it can’t renegotiate leases. There are plenty of reasons Red Lobster is in this situation, but we wanted to get an assessment of the full-service climate, and how much that might have contributed. We talked about a host of other topics during the conversation as well, so it was a great snapshot of the state of the restaurant industry right now.

How has Dutch Bros changed its real estate strategy? This week’s episode of the Restaurant Business podcast A Deeper Dive features Christine Barone, CEO of the drive-thru beverage chain. Dutch Bros is coming off a strong quarter under its relatively new chief executive, and we talk about a host of topics. We discuss how Dutch Bros is refining its real estate strategy and what that means. We chat about fortressing, and why Dutch Bros believes building more locations in a market is important to the brand’s customers. We talk about competition in the beverage space, particularly drive-thru beverages. We chat about the company’s strong first quarter and what drove those sales—hint, boba tea helped—and how that reflects consumers’ changing beverage habits. And we talk about customization and energy drinks and all kinds of things. This week’s episode is all about drinks, so please check it out.

What does the Technomic Top 500 tell us about the restaurant industry right now? This week’s episode of the Restaurant Business podcast A Deeper Dive features Joe Pawlak, managing principal with Technomic. And we talk all about the report and the trends that it reveals. The Top 500 is essentially data on the chain restaurant industry, since that data makes up the vast majority of chain sales. Restaurant sales increased more than 8% last year, but that was due entirely to prices and some unit growth, rather than traffic. We talk about some chains on that Top 500, including the chicken business, specifically Popeyes and KFC, and why one of those chains has been able to thrive in a changing market for chicken. We also talk about how top heavy the Top 500 is getting, given performance of chains high up on the list. We talk about which sectors are doing the best and get into a discussion on the beverage business. And we talk about what chains have the most potential to hit the Top 10.

How is Pinstripes upgrading the bowling experience? This week’s episode of the Restaurant Business podcast A Deeper Dive features Dale Schwartz, the CEO of the growing eatertainment concept Pinstripes. Dale joined us at the Restaurant Leadership Conference in April. We talk about, well, Pinstripes, a concept that combines bowling and bocce with a restaurant. It is part of the fast-growing eatertainment sector led by such concepts as Top Golf. Schwartz talks about the chain’s history and what makes his concept different than others. He also explains its heavy reliance on events for much of the chain’s sales, and how those events help the brand. We also talk about what makes the brand different than other bowling alleys. We also talk about the need to have a great experience and great food, given the growing competition in the eatertainment space these days. And we talk about the chain’s decision to go public via special purpose acquisition company, or SPAC. We’re talking bowling and bocce on A Deeper Dive so please check it out.

Who is winning the chicken wars? This week’s episode of the Restaurant Business podcast A Deeper Dive features a discussion on recent earnings with RB Executive Editor Lisa Jennings. A huge number of earnings have come in and many of them are head-scratchers. While a lot of chains have done really well, like Wingstop and its 22% same-store sales number, others have not, such as KFC and its sales decline. We discuss that issue, and what the first quarter means for the chicken market in general, including Popeyes and Chick-fil-A. We also contrast the performance of Chipotle and Starbucks, and why one chain can do well despite concerns about prices, while another cannot. We’re talking earnings on A Deeper Dive so please check it out.

What’s coming to this year’s National Restaurant Association Show? More seats, for one thing. This special episode of the Restaurant Business podcast A Deeper Dive features Tom Cindric, the president of exhibitions for Informa Connect Foodservice, which operates the show and is also a sister company of Restaurant Business. We will be attending the Show this year, and will do a few podcasts from the event, which runs from May 18 through May 21. But we wanted to talk with Cindric to get a better idea of what to look for. Cindric expects a big event this year, which may or may not be indicative of the state of the industry right now: People are looking for solutions to the operating issues they’re dealing with. We talk about technology, which is a huge focus of the show, as is equipment. We talk about menu issues and changes at this year’s event, including more benches for people tired of walking. We’re talking about the National Restaurant Association Show on A Deeper Dive so check it out.

Convenience stores are upping their food game and one concept is taking advantage of it. This week’s episode of the Restaurant Business podcast A Deeper Dive features Jim Norberg, the CEO of the convenience-store chicken concept Krispy Krunchy Chicken. We had Jim on largely because convenience stores are getting a lot of foodservice business right now. Traffic at convenience stores is up 17% since before the pandemic, compared with 5% at quick-service restaurants—meaning that some of the lost traffic at restaurants is heading to the local gas station. One reason is the higher quality food c-stores are putting out now. Krispy Krunchy is taking advantage of that. Norberg is a former executive with McDonald’s, and he is bringing a restaurant mentality to the concept. The brand is getting into third-party delivery and recently hired its first chief marketing officer in Alice Crowder. We talk with Jim about the company’s rapid growth and how many locations it expects to go into this year alone. We talk about how that program works and what’s driving interest in c-stores. We also talk about Krispy Krunchy’s new marketing program and how it can market a concept located in other businesses. We’re talking convenience-store chicken on A Deeper Dive, so please check it out.