A Deeper Dive

How do you market a brand like Jack in the Box?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Ryan Ostrom, the chief marketing officer for the San Diego-based burger chain. 

This is a complicated environment in the restaurant industry and we wanted Ostrom on the podcast to talk about how to market a brand in an environment like this.

Ostrom and I talk about the complexities of this market, and about balancing the need for price-based promotions and customers’ desire for better fast food. We talk about the difficulties of marketing these days, given the presence of mobile orders and loyalty as well as traditional media. 

We also talk about the chain’s strategy for new markets and its ability to make fun of its competitors. 

And because it’s Jack in the Box we talk a lot about, you guessed it, tacos.

We’re talking marketing on A Deeper Dive so please check it out. 

Why is delivery so popular? Hint, it’s easy.

This week’s episode of the Restaurant Business podcast A Deeper Dive features Cameron Watt, the president and CEO of Intouch Insight, to discuss the firm’s recent study for Restaurant Business on third-party delivery at restaurants and convenience stores.

Intouch Insight is a customer experience consulting firm that works with companies across restaurants and retail. It uses secret shoppers to provide insights into a wide variety of issues, and recently examined service by the three major delivery companies: DoorDash, Uber Eats and Grubhub.

The results were fascinating. We discuss those results and why consumers appear satisfied with their delivery services. We talk about speed, accuracy and, most important, ease of use. We also talk about why delivery from restaurants appears to be better, by a fair bit, than delivery from convenience stores.

And we take a bit of a side trip to talk about growing competition between fast-food chains and convenience stores.

We’re talking delivery on A Deeper Dive, so please check it out.

What is the future of Whataburger under its new CEO?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Ed Nelson, the CEO of Whataburger, and Debbie Stroud, who will take the chief executive job at the end of the year when Nelson retires. They joined the podcast for an exclusive interview.

Whataburger is a Texas-based chain with more than 1,000 locations in 15 states. It had operated as a family-owned brand for 69 years before it was sold in 2019 to BDT Capital Partners.

Nelson has worked with the chain since 2004 and was named CEO in 2020. We talk with Ed about his tenure as chief executive, the transition from a family-owned brand to an investment firm-owned brand and how the company dealt with the pandemic. We also talk about the chain’s elevation of general managers into operating partners.

Stroud was brought in as chief operating officer last year. She had a long career with McDonald’s and Starbucks. We talk with her about her priorities for the brand, its future growth and the keys for its future success.

We also talk about technology and the love Texas consumers have for their homegrown burger chain.

It’s an exclusive interview with the current and future CEOs of Whataburger so please check it out.

What is the future of Topgolf?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Mathew Focht, the founder and managing partner of the investment fund Emerging.

Emerging is a fund that invests in small technology and restaurant and entertainment concepts. The fund has invested in several food-and-entertainment brands.

Several such brands have emerged in recent years to combine restaurants with various activities, including minigolf, bowling, baseball, pickleball and even race cars. 

Topgolf is one of the biggest names in that business. The company thrived coming out of the pandemic. It was sold to the golf equipment maker Callaway Brands in 2020 and the next year Callaway added Topgolf to its corporate name as the chain’s sales went through the roof.

But those sales have fallen more recently, prompting Topgolf Callaway to propose a spinoff. Meanwhile another food-and-games concept, Pinstripes, is cutting costs as its own sales fall. And Dave & Buster’s has also had sales problems.

We talked with Mathew about these issues and what they mean for Topgolf but also the emerging food-and-games sector, which is still receiving considerable interest from investors. Mathew and I talk about this as well as the overall state of investing in the restaurant space.

We’re talking Topgolf on A Deeper Dive, so please check it out.

How does a pot-themed brand become one of the industry’s fastest-growing restaurant chains?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Marc Torres, the CEO of the fast-growing sandwich chain Cheba Hut.

The Fort Collins, Colorado-based chain has picked up its growth in recent years behind franchising and strong average unit volumes.

System sales grew 29% last year, according to Restaurant Business sister company Technomic. Average unit volumes are well over $2 million, far higher than traditional sandwich concepts.

Marc discusses Cheba Hut, its history and performance, including why it generates those volumes. We also talk about franchising.

He also talks about the company’s pot theme, and how it convinces customers and landlords that it is more than that. Cheba Hut does not sell any THC, and Torres notes that its marijuana theme can only get the company so far. Ultimately its food does the talking.

We’re talking Cheba Hut on A Deeper Dive, so please check it out.

What do all these bankruptcies mean for the future of the restaurant industry?

In this week’s episode of the Restaurant Business podcast A Deeper Dive, RB editors Joe Guszkowski and Lisa Jennings join me to discuss the spate of bankruptcy filings this year and what they mean for the business.

Seventeen restaurant chains have filed for Chapter 11 debt protection this year, most of them since June.

That probably undercounts the true industry challenge as several companies are either close to filing or are doing an out-of-court restructuring. The filings include one of the industry’s biggest ever in Red Lobster.

We discuss these bankruptcies and get an update on where the businesses stand. We also talk about why these bankruptcies are happening now, four years after the pandemic.

We also get into a discussion on what works and how businesses can generate sales in a difficult environment.

Amid all the bankruptcy filings are companies like Chili’s and Wingstop that have reported ultra-strong sales. Why are they able to do that while others struggle?

We’re talking bankruptcies on A Deeper Dive so please check it out.

What does the potential Circle K-7-Eleven deal mean for restaurants?

This week's episode of the Restaurant Business podcast A Deeper Dive features Hannah Hammond, a senior editor with RB sister publication CSP Daily News.

CSP covers convenience stores, and I wanted to talk with Hammond about the big news of the week—maybe the year—in the convenience-store industry: The proposed acquisition of Seven & i holdings by Alimentation Couche-Tard.

Seven & i is the Japanese owner of 7-Eleven and Alimentation Coche-Tard, or ACT, is the owner of Circle K. 7-Eleven is the country and world’s biggest convenience store chain. Circle K is No. 2 in the U.S. This was the equivalent of Starbucks proposing to buy McDonald’s.

Hammond talks about the deal and what it means for the companies themselves and the c-store business and whether it could get through the FTC. We also talk about what this means for the respective chains’ growing competition with quick-service restaurants.

And we talk about all kinds of other c-store stuff, including Wawa and Buccee’s and why convenience stores can’t spell the word Quick.

We’re talking c-stores on A Deeper Dive, so please check it out.

How can operating a franchise lead to multi-generational success?

This week's episode of the Restaurant Business podcast A Deeper Dive features Kerri Harper-Howie, a second-generation McDonald's franchisee out of Los Angeles. 

Harper-Howie has written a book: The Family Secret: The Business and Franchise Owner’s Guide to Building Generational Wealth. We talk about that book and the story behind it. We talk about her parents and why they got into the McDonald’s business.

We talk extensively about her mother and the impact she had, both on the family and on the people who worked with her.

We also talk about the benefits of getting into a franchise like McDonald’s and all kinds of other things such as the number of eggs I can crack at one time.

And we also talk about the operating environment out in California and what it takes to succeed there.

This is a great conversation about operating a McDonald’s on A Deeper Dive so please check it out.

Why are some restaurant chains suddenly struggling in international markets?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Joel Silverstein.

Silverstein is a periodic guest on the podcast. He is the founder and CEO of the hospitality consulting firm Canyon Springs Advisors. He has helped a lot of companies grow in overseas markets.

I wanted to talk with him about the state of international development. We talk quite a bit about the state of the industry in China, where a number of U.S. chains have suddenly struggled but which are still intent on growing there.

We focus particularly on the coffee market, where Starbucks is struggling as is Tim Hortons. Both are watching as several aggressive upstarts, notably Luckin Coffee, have grown rapidly with low-priced coffee. We talk about that competition and what it means for the market there.

We also talk about the global economy and its impact on restaurant brands, as well as overall conditions in the U.S.

It’s a great conversation about international development on A Deeper Dive, so please check it out.

Why should franchisees take private-equity investments?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Mike Esposito, the cofounder of Franchise Equity Partners.

Franchise Equity Partners is a private-equity firm specializing in the franchise business. Mike helped found the firm in 2021 to invest in all kinds of franchisees. Before that he had an extensive career in investment banking, working 20 years with Goldman Sachs. He is also a Jersey Mike’s franchisee.

We talked with Mike about the state of the restaurant business, mergers and acquisitions and other issues, and the result was an extensive, interesting conversation about what kinds of investments work these days and what do not.

We talk about the necessity of restaurants’ value push and the impact it could have on margins. We talk about the kinds of concepts that have distanced themselves in today’s markets and how you can know whether an emerging chain has legs or not.

And we also ask why a private-equity investment is a good idea for certain franchisees.

But the biggest question we ask him is whether he is buying or not. His answer to that question is instructive.

It’s a wide-ranging discussion on A Deeper Dive, so please check it out.