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.

How does an international restaurant chain break into the toughest market in the world?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Troy Hooper, the CEO of Pepper Lunch.

Pepper Lunch is a Japanese fast-casual chain in which customers largely cook the food themselves. It is part of a generation of concepts with unique business models that are rapidly establishing themselves in a U.S. market hungry for more Asian fare that provides interesting experiences.

Hooper became the CEO of Pepper Lunch last year. We wanted him on the podcast to talk about this brand and what he’s done to establish the concept in the U.S. It’s tough to break into this market, and he can provide some unique perspective on what it takes to do so. Hooper talks about what makes the brand tick and discusses its recent menu overhaul and how that fits into its plans. We talk about its unique menu overhaul and why Asian chains are taking off right now.

It's a fascinating discussion with one of the country’s more interesting emerging brands, so please check it out.

Why is it better for small restaurant chains to band together?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Kelly Roddy, CEO of the brand platform company Woworks.

Woworks operates several restaurant concepts, including Saladworks, Garbanzo Mediterranean, Frutta Bowls, Simple Greek, Barberitos and ZEats.

It is one of a growing number of platform companies that collect small concepts, and these companies have been gobbling up a lot of brands lately. The idea is that they can get stronger buying power and therefore cheaper prices for franchisees, at least in theory.

They can also invest in technology. We asked Kelly about that and how it works.

We also ask about the market for mergers and acquisitions. Woworks is apparently in the market for a new chain and we talk about that, what the market is like, what kinds of companies they’re looking for and how they could fit in.

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

Can technology fix restaurants’ workforce issues?

This week’s episode of the Restaurant Business podcast features two different discussions.

First, we chat with Michelle Korsmo, the president and CEO of the National Restaurant Association. We chatted with Michelle at the National Restaurant Show in May and discussed a variety of issues, including the regulatory environment, how companies are dealing with soaring costs and the importance of restaurant technology.

And speaking of restaurant technology, we also have RB Senior Technology Editor Joe Guszkowski on to talk about drive-thru AI, an increasingly popular piece of technology. McDonald’s just ended its test of that technology and I wanted Joe to talk about what that means for the future of the innovation.

We also chat about Red Lobster.

It’s a two-for-one interview day on A Deeper Dive so please check it out.

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.