A Deeper Dive

Subway could avoid some problems if it consulted more with its franchisees. Or so says the head of its biggest association. This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Bill Mathis, a Subway operator out of Minnesota and chairman of the North American Association of Subway Franchisees, or NAASF. Subway remains the largest restaurant chain in the U.S. by unit count, with some 20,000 stores domestically. But thousands of those locations have closed over the past decade. NAASF represents much of that franchisee base. The association rarely speaks publicly, but Mathis is breaking that silence on this podcast, specifically to talk about some of the group’s concerns with current strategies. We talk about communication between management and the association and what impact that could have on some of the chain’s strategies. But we also talk about several other issues, including slicers and the impact they have had on food and labor costs. We also talk about Subway’s recent requirement that franchisees accept digital coupons—and what that is doing to franchisees. Mathis also discusses the purchase of Subway by Roark Capital and the association’s view on that. And we talk about the general financial condition of franchisees and the state of food and labor costs right now. It's an in-depth discussion with one of the most-prominent franchisees in the country’s biggest sandwich chain, so please check it out.

Starbucks is the most complicated simple business on the planet. This week’s episode of the Restaurant Business podcast is all about Starbucks. I’m joined this week by RB Editor-at-Large Peter Romeo. Peter and I toured headquarters and have a series coming up on restaurantbusinessonline.com. We talk about how Starbucks has evolved over the years, from a simple coffee shop chain into a global behemoth selling customizable beverages through numerous ordering channels. And we talk about the impact that has had on the workforce and how it has fed into an unprecedented union drive. We also talk about new CEO Laxman Narasimhan, and how his six-month immersion into Starbucks culture is playing a role in all of this. And we talk about our apparently higher-than-expected caffeine tolerance. We’re talking Starbucks on A Deeper Dive so please check it out.

Can a slider concept use modular buildings to get big? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Maria Rivera, the CEO of the rapidly growing slider chain, to talk about its unique method of growth. Smalls is a rapidly growing quick-service slider chain. The company has been quickly adding locations throughout the South over the past year, using its “cans,” or 750-square-foot facilities that are manufactured off site and placed  onto the restaurant site. Maria calls them “cans.” And she talks extensively about the potential benefits these units can have on franchisees’ ability to open locations more quickly and more strategically, along with potential financial benefits. We talk about the chain’s history and the simplicity of its menu—customers order sliders, fries, drinks and shakes. We talk about the company’s franchising strategy and its plans for growth. It’s an interesting conversation with the CEO of a fast-growing slider chain so please have a listen.

The last episode of the Restaurant Business podcast “A Deeper Dive” is, perhaps unsurprisingly, a look back at some of the year’s best episodes. The episode features clips from some key guests, including marketing expert and author Chip Klose, speaking about, well, marketing. We speak with executives from Dave’s Hot Chicken on its fascinating start. CapitalSpring’s Jim Balis gives us some news on delivery demand. Technomic’s Lori Rakoczy talks about inflation. And our own Peter Romeo and I rant about the U.S. tipping culture. So, take a look back at the year that was with us on this very special episode of A Deeper Dive.

How did Potbelly turn its business around? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Bob Wright, the CEO of the Chicago-based sandwich chain. Potbelly struggled going into the pandemic, which hammered its core business in urban markets. Wright took over as CEO three years ago. On the podcast, he talks about what it’s like to take on a struggling concept during that time. Wright discusses the changes Potbelly has made during those three years. The company closed around 30 locations its first year, but the brand has seen strong same-store sales the past couple of years. It expects to grow unit count about 10% this year. Wright talks about getting the chain’s price-value equation right—without resorting to discounts or hammering profit margins. He also talks about the company’s efforts to improve operations, its development strategy and why Potbelly plans to franchise going forward. We’re talking Potbelly on a Deeper Dive so please check it out.

Are restaurants becoming like Taylor Swift? Well, sort of. This week’s episode of the Restaurant Business podcast A Deeper Dive features Matt Tucker. He is the senior vice president with Squarespace and is head of the reservation platform Tock. Tock was cofounded by restaurateur Nick Kokonas and was sold in 2021 to Squarespace. The company sells prepaid restaurant reservations to customers. Those reservations act like tickets, which customers can resell. And that could create a market that operates like online ticket sales, where brokers gobble up the best tickets—like Taylor Swift concerts—to resell them at substantial markups. We talk with Tucker about this, and why restaurants do not want their reservations resold. Tucker talks about what his company does to prevent this. But he also talks about the benefits to restaurants of a model in which diners prepay for their reservations, such as the ability to do more dynamic pricing. We talk about general trends in restaurant reservations. For instance, is 6 p.m. really the new 8 p.m. and why is that? What are consumers looking for in reservations these days and what is demand for those restaurants right now. It’s a fascinating conversation about reservations, so check it out.

Why is the FTC looking into Subway? This episode of the Restaurant Business podcast “A Deeper Dive” features John Gordon, a restaurant consultant out of San Diego, who discusses the apparent investigation of the sale of Subway to Roark Capital. The investigation is apparently examining whether the acquisition of the sandwich giant would give the private equity firm Roark too much power. We discuss that issue, and how much of the restaurant market Roark really would have if the sale were to go through and whether that is all that unusual. (Hint: It’s not.) We also talk about some of the chain’s efforts to push discounting through its app, including its upcoming requirement that franchisees accept digital coupons. As we reported in September, Subway wants franchisees to accept the offers by the end of this month. But we also discuss what this review could mean for the restaurant business as a whole. We’re talking Subway and the FTC so please check it out.

Lisa Miller, consumer strategist and author of “The Business of Joy,” discusses consumer attitudes on the value of restaurants. Topics include frustrations with tipping, customers feeling their visits aren't worth it, and the impact of rising prices. Restaurants can enhance their offering by investing in training and providing affordable quality meals.

How do you dust off a brand that has been dead for 15 years? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Paul Mangiamele, the CEO and chairman of Legendary Restaurant Brands, the owner of Bennigan’s. Mangiamele discusses his decision to open Steak & Ale, which is scheduled for next spring. Bennigan’s and Steak & Ale were in the same group that filed for Chapter 7 bankruptcy in 2008, which shed a light on problems with the casual dining sector. Bennigan’s franchise system was saved from liquidation by its secured lender. But Steak & Ale was shuttered, seemingly for good. Mangiamele bought Bennigan’s and has operated it since. But he also owned the rights to Steak & Ale. Now he plans to bring it back, a potentially rare comeback from Chapter 7 by a restaurant brand. We talk with him about why he’s making that decision and why now. Paul also talks about what he’s doing to adapt the chain to a new market.

What do you do with Pollo Tropical? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Alex Macedo, the chairman of Authentic Restaurant Brands, to talk about that company’s recent acquisition of Pollo Tropical. Authentic Restaurant Brands, or ARB, is owned by the private equity firm Garnett Station Partners. Macedo is a former executive with Burger King and Tim Hortons and is overseeing the multi-concept operator, which also owns Primanti Brothers, PJ Whelihan's and Mambo Seafood. Pollo Tropical has long been one of the industry’s most intriguing concept. The fast-casual chicken chain operates 169 locations and generates some industry-leading restaurant-level profits. But it has long struggled to expand outside of Florida—so much so that many buyers were reticent to acquire the company when it was put on the market two years ago. Macedo talks about that, and he discusses why he believes there is plenty of growth in Florida and nearby communities. He also talks about ARB’s acquisition plans, how many companies it is talking with, and what the company does once it acquires a restaurant chain. It is an interesting conversation with the chairman of a new multi-concept operator so please have a listen.