Will menu price inflation ultimately hurt restaurants?

Michael Swanson, an agricultural economist and consultant with Wells Fargo, joins the Restaurant Business podcast A Deeper Dive to discuss the economy and the outlook for inflation.

How good of a year did chain restaurants have in 2022, really?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Joe Pawlak, managing principal with RB sister company Technomic, to talk about the Technomic Top 500 Chain Restaurant Report.

Specifically, we discuss the performance of chain restaurants, whose sales rose just over 8% last year. But that barely kept pace with menu price inflation.

We also discuss restaurants’ surprising unit growth last year, the remarkable unit volumes of certain chicken concepts, that sectors that stood out the most and why Raising Cane’s very well may be a Top 10 restaurant brand by 2030.

Joe and I also talk Subway, the pizza business and delivery.

It’s a loaded episode so check it out.

How is Duck Donuts evolving its prototype?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Betsy Hamm, CEO of the 115-unit chain, who joined me at the Restaurant Leadership Conference recently to discuss a wide range of issues.

Duck Donuts is based in Mechanicsburg, Pa., and is known for selling made-to-order doughnuts in tourist spots. The company generated $60.6 million in system sales last year, according to data from Restaurant Business sister company Technomic.

The company just released a new prototype designed to give operators more flexibility as they expand. It features kiosks, for instance, but it also designed to go into smaller spots.

We talk about a wide variety of other topics on the podcast, including where the chain got its name.

It’s an interesting conversation with a doughnut CEO, so please have a listen

Why is Smashburger ditching traditional drive-thrus?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Carl Bachmann, president of the fast-casual burger chain that is looking to get back on the growth path after some difficult years.

The chain is operated by the Philippines-based Jollibee Corp. It operates fewer than 250 locations, down by about a third over the past five years. But Bachmann talks on the podcast about why the brand is ready for growth again and what Smashburger has been doing to prepare for that growth.

And he talks a lot about the company’s new “virtual” drive-thrus, or mobile-order drive-thrus and why that will be the company’s option going forward. That goes in a different direction from many other fast-casual chains that have focused on increasing the number of traditional drive-thru lanes.

It’s an interesting discussion about fast-casual drive-thrus so check it out.

What are we to make of the situations at major burger chains these days?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Michael Halen, senior restaurant and foodservice analyst with Bloomberg Intelligence, to discuss what’s going on with McDonald’s and Burger King, in particular.

McDonald’s recently laid off hundreds of employees around the world, closing its U.S. field offices and eliminating its two-zone field office structure. This, despite the company’s generally strong results. We discuss those layoffs and what they mean to the company.

We also talk about Burger King, which has struggled with bankruptcy filings and restaurant closures of late. And we talk about the potential impact that former Domino’s CEO Patrick Doyle could have on the chain and its parent company Restaurant Brands International.

Who is Mike Hancock?

We find out in this week’s episode of the Restaurant Business podcast A Deeper Dive. Hancock recently took over as president of Firehouse Subs for longtime CEO Don Fox.

Hancock has worked for Firehouse Subs parent company Restaurant Brands International. He started with the chain as chief operating officer last year after serving in a similar role at the Canadian chain Tim Hortons.

Hancock discusses his views of Firehouse after a year with the chain, including its strengths and opportunities. He discusses technology in particular and the brand’s foundation. We also get into a discussion on the future of the brand. And I can’t help but ask him about Tim Hortons.

What happens when you mix ice cream and cinnamon rolls? We’re about to find out.

This week’s episode of the Restaurant Business podcast Deeper Dive features Jim Holthouser, CEO of the Atlanta-based brand operator Focus Brands, which operates Cinnabon, Auntie Anne’s, Carvel, McAlister’s Deli, Schlotzski’s, Jamba and Moe’s.

He discusses the status of these brands and the company’s plans for them. He talks about the future of development in and out of the mall. And he talks about the potential for McAlister’s to become a $1 billion brand.

But Holthouser also talks about Swirl, a concept Focus is developing that combines Cinnabon and Carvel in a new type of co-branding arrangement.

In addition, I talk about the future of restaurant IPOs, franchisee optimism, and why tipping culture will never change.

How important is tipping to a restaurant employee?

In this week’s episode of the Restaurant Business podcast A Deeper Dive, Associate Editor Reyna Estrada joins me to discuss tipping.

Estrada is a former restaurant worker herself, having spent years as a server at Steak n Shake (before it went limited service) and then as a Panera Bread employee. She relied on tips the entire time.

We discuss the practice and she discusses how much it meant to get those tips, both at the full-service restaurant and at the fast-food concept. She talks about where she made the most money and whether the tips influenced her service.

In addition, I talk about the Starbucks CEO, restaurants that sold for high multiples and joint employer.

What is the future of third-party delivery? How about virtual brands or ghost kitchens?

In this week’s episode of the Restaurant Business podcast A Deeper Dive, Senior Editor Joe Guszkowski joins me to talk about the state of some of the biggest trends during the pandemic.

We talk about delivery. Some data is suggesting that third-party delivery demand is growing. But other data suggests the opposite. We try to get at the real story. We also talk about virtual brands and what the future of those concepts. And we get into a discussion on ghost kitchens in light of Wendy’s pulling back on its deal to open in some 700 Reef Kitchens locations.

Meanwhile, three things I’m thinking about right now.

Who is going to buy Subway?

In case you haven’t heard, the fast-food sandwich chain is on the market. In this week’s episode of the Restaurant Business podcast A Deeper Dive, I speak with John Gordon, a restaurant consultant out of San Diego, to discuss the chain.

Subway has hired JP Morgan to help find a buyer. Reports suggest a host of large private equity firms, including Goldman Sachs and Bain Capital, are looking at it, with a price tag of $8 billion or more. John and I discuss that sale and the price tag. We also talk about the numerous changes Subway has made over the past two-plus years and how they are influencing the company and the sale process.

I also give my thoughts on Bojangles, Wendy’s and Sardar Biglari.