QSR 309 November 2023 by WTWH Media LLC

EVOLVING QUICK SERVICE FOR THE FUTURE NOV EMBER 2023 / NO. 309

THE RISE OF JERSEY MIKE’S COVER STORY:

PLUS:

Top Menu Trends to Watch P. 48

The Best in Foodservice Packaging P. 46

What’s Next for the Plant-Based Segment? P. 11

CEO PETER CANCRO AND THE SURGING SANDWICH BRAND AREN’T LETTING UP. | P. 36 |

AND FEATURING:

THE BEST BRANDS TO WORK FOR BEST BRAND TO WORK FOR

CERTIFIED 2023

These 25 chains are meeting the needs of workers nationwide. | P. 20 |

‘Tis the Season

. . . for hot cocoa! Ghirardelli is the brand consumers most prefer to order for hot cocoas and mochas.* Ghirardelli Professional Products provide operators with a wide range of premium ingredients, including Hot Cocoa Mixes, to create a variety of seasonal menu items that simply taste #abitebetter.

Learn more, order samples, and find menu innovation ideas at ghirardelli.com/professional *

Technomic, Ghirardelli Brand Equity Study, 2020

Scan for Recipe

November

TABLE OF CONTENTS

NOVEMBER 2023 #309

Q SR / LIMITE D -SE RVICE , U NLIMITE D POSSIBILITIES

DEPARTMENTS

F E AT U R E S

N E W S

18 FRANCHISE FORWARD

BE ST BR A N D T O WOR K F OR

The Most Colorful Way to Grow

Noodles & Company is banking on an ‘under the rainbow’ expansion plan. BY SATYNE DONER

CERTIFIED

20 23

OPERATIONS

Youthful Entrepeneurship

These operators are finding franchise success at an early age. BY SATYNE DONER I N S I G H T

11 FRESH IDEAS

What’s Cooking in the Plant-Based Segment?

A look at how the meat alternative industry is faring post-pandemic. BY SAM DANLEY

Best Brands to Work For

ONES TO WATCH

OAKBERRY

Learn how the Brazilian-born acai concept is finding growth in the U.S. BY SAM DANLEY

Jersey Mike’s Won’t Let Up BY DANNY KLEIN

One of the industry’s most impressive growth streaks in recent memory is really only the beginning.

2 BRANDED CONTENT

QSR/FPI Foodservice Packaging Awards BY QSR STAFF

The annual competition recognizes brands that’ve separated themselves from the pack.

4 EDITOR’S LETTER

7 SHORT ORDER

ADOBE STOCK / ALVARO

BY QSR STAFF

These chains have positioned themselves as employers of choice thanks to an emphasis on culture, wages, and a supreme focus on the employee.

Decoding 2024’s Culinary Landscape

75 OUTSIDE INSIGHTS

The Power of Gig Workers There are efficiences around operations and costs. BY STARR DOUGLAS

80 START TO FINISH

Andrew Pudalov

The Rush Bowls founder describes his journey in the better-for-you segment.

JOCELYN WINN

Restaurants are finding innovative solutions to rising costs as social media fuels a wave of fads and trends. 80 ADVERTISER INDEX

O N QSR is a registered trademark of WTWH Media, LLC. QSR is copyright © 2023 WTWH Media, LLC. All rights reserved. The opinions of columnists are their own. Publication of their writing does not imply endorsement by WTWH Media, LLC. Subscriptions (919) 945-0704. www.qsrmagazine.com/subscribe. QSR is provided without charge upon request to individuals residing in the U.S. meeting subscription criteria as set forth by the publisher. AAM member. All rights reserved. No part of this magazine may be reproduced in any fashion without the express written consent of WTWH Media, LLC. QSR (ISSN 1093-7994) is published monthly by WTWH Media, LLC, 1111 Superior Avenue Suite 2600, Cleveland, OH 44114. Periodicals postage paid at Cleveland, OH and at additional mailing offices. POSTMASTER: Send address changes to QSR, 101 Europa Drive, Suite 150, Chapel Hill, NC 27517-2380.

T H E

C O V E R

Jersey Mike’s CEO Peter Cancro puts employees first. PHOTOGRAPHY: JERSEY MIKE’S

www.qsrmagazine.com | QSR | NOVEMBER 2023

BRANDED CONTENT EDITORIAL

BRAND STORIES FROM QSR

EDITOR I A L DIR ECTOR

Danny Klein

dklein@wtwhmedia.com

QSR EDITOR

IN THIS ISSUE

Ben Coley

bcoley@wtwhmedia.com

FSR EDITOR

Callie Evergreen

cevergreen@wtwhmedia.com

AS SOCI ATE EDITOR

Sam Danley

sdanley@wtwhmedia.com BRANDED CONTENT STUDIO

DIR ECTOR OF THE BR A NDED CONTENT S T UDIO, FOOD A ND HOSPITA LIT Y

Peggy Carouthers

pcarouthers@wtwhmedia.com

WINCUP

CRISPY FILLED

BR A NDED CONTENT AS SIS TA NT EDITOR

Ya’el McLoud

ymcloud@wtwhmedia.com

BR A NDED CONTENT AS SIS TA NT EDITOR

Olivia Schuster

14 How Eco-Conscious Products Can Boost Customer Loyalty

52 Up-and-Coming Shareable and Hand-Held Snacks

The benefits of eco-conscious products and how they can help restaurants lead in sustainability.

An innovative and convenient potato and cheese product that customers will love. SPONSORED BY CRISPY FILLED

SPONSORED BY WINCUP

The benefits of eco-conscious products and how they can help restaurants lead in sustainability. “Consumers want to do better, and their awareness is higher now than ever.”

he COVID-19 pandemic led to a surge in off-premise dining and disposable packaging, drawing attention to sustainability. Eco-conscious consumers and restaurants now prioritize fully sustainable alternatives and items that effectively address the plastic pollution problem through biodegradability. This shift reflects a commitment to environmental responsibility and reducing the environmental impact of the foodservice industry. According to the National Restaurant Association’s 2022 State of the Restaurant Industry report, sustainability in packaging ranks first among the top 10 food and menu trends. Seventy percent of millennials and 72 percent of Gen Z adults are willing

to pay extra for to-go orders with upgraded sustainable packaging. Many businesses use natural, green, and cruelty-free buzzwords to draw customers in and make them believe the company or product is eco-friendly and sustainable, but these terms often lack substantive meaning. This practice is known as greenwashing and can be very misleading. The global waste created from packaging is alarming. “The negative impacts of all this trash on marine and human life and our environment are well-documented and disturbing. Consumers want to do better, and their awareness is higher now than ever. As we move closer to an environmental breaking point, now is the time for businesses to

Visit viofoam.com and phadeproducts.com to learn what WinCup can do for your restaurant. 14

NOVEMBER 2023 | QSR | www.qsrmagazine.com

WINCUP

How Eco-Conscious Products Can Boost Customer Loyalty

lead,” says Michael Winters, president and CRO of WinCup. Sustainability not only benefits the environment but also the bottom line. Consumers want to feel good about their choices. Restaurants that provide eco-friendly options create positive customer experiences and will keep them returning. WinCup products like Vio® cups, straws, lids, and phade® straws are both eco-friendly and user-friendly. (Cups biodegrade 92 percent over four years, lids biodegrade 86.8 percent over 7.9 years, and straws biodegrade 88.5 percent over seven years tested under conditions simulating wetter and biologically active land using the ASTM D5511 test. Wetter or biologically active land may not exist in your area. The stated rate and extent of degradation do not mean that the product will continue to decompose.) Customers can do good and feel good without sacrificing quality. “When consumers do good, they often want to ensure others know about it. They are more likely to tell their friends, advocate for the product and restaurant, post on social media, and make more frequent purchases,” says Winters. “It can be a mechanism that drives top-line growth.” The Vio and the phade product line offer a compelling solution for restaurants. Vio and phade products are eco-friendly, and phade straws are derived from canola oil. The look and feel are indistinguishable from traditional plastic straws. phade and the resin from which it is made have over 13 certifications. phade is marine biodegradable and home and industrial compostable. By embracing PHA alternatives, restaurants can position themselves as market leaders in sustainability. Early adoption is key to success in the sustainability race. By taking the lead and offering eco-friendly options like phade straws, restaurants can drive profitability, increase customer loyalty, and help solve environmental issues. “While competitors scramble to find an option that checks all of the sustainability boxes without making customers grimace with each sip, WinCup presents an opportunity to seize market share,” says Winters. “If you’re ready to lead the way, WinCup is ready to help.” -By Olivia Schuster

Cleaner foam. Greener results. As the world’s first line of biodegradable* foam cups and food containers, Vio® offers the functionality of traditional foam with an end-of-life story that ecoconscious customers can get behind. Which means you’ll be growing your top line while reducing your planetary impact. Now that’s good to-go.

Rethink Foam and your current packaging at VioFoam.com.

*Cups biodegrade 92% over 4 years, lids biodegrade 86.8% over 7.9 years, straws biodegrade 88.5% over 7 years. Tested under conditions that simulate both wetter and biologically active landfills using the ASTM D5511 test. Wetter or biologically active landfills may not exist in your area. The stated rate and extent of degradation do not mean that the product will continue to decompose.

Brought to you by the forward-thinking people at:

DEPARTMENT

ONES TO WATCH

OAKBERRY The Brazilian açai brand is pushing franchise growth in the U.S.

FOUNDERS: Georgios Frangulis HEADQUARTERS: Miami YEAR STARTED: 2016 ANNUAL SALES: Undisclosed TOTAL UNITS: 600+ shops worldwide with 150+ new openings in 2023 FRANCHISED UNITS: ~90 percent

OAKBERRY MAY HAVE ORIGINATED IN BRAZIL, but founder and CEO Georgios Frangulis always had his sights set on expanding in the U.S. In fact, he initially planned to launch the brand in Southern California, where his vision of serving up blended açai bowls with unlimited toppings first took shape. The idea came when he noticed açai’s 16

NOVEMBER 2023 | QSR | www.qsrmagazine.com

rising popularity as a celebrated superfood nearly a decade ago. Born and raised in Brazil, the world’s leading producer of açai, Frangulis was no stranger to the berry’s myriad health benefits. He saw it become a trendy health food while living on the West Coast but knew consumers weren’t getting “the real açai experience” that he enjoyed growing up. “The açai that was available in juice and smoothie shops just wasn’t very good, so I drew up my own plans for an açai-inspired fast-food concept,” Frangulis says. “I really wanted to open the business in California, but when I started talking to landlords, I couldn’t find anyone willing to rent me a spot.” He headed back to Brazil in late 2016 and opened the first shop in São Paulo. Scalability was a priority from day one,

with an emphasis on small footprints and easy execution. “We didn’t have the money to make something really big or pay crazy rents, and we knew the best strategy would be to expand through franchising,” Frangulis says. “We wanted everything to be as simple as possible in order for us to accelerate growth in a healthy and organic way by having our customers become our franchisees.” OAKBERRY opened two additional corporate locations before shifting its focus toward franchising. It reached 25 units by the end of 2017, just one year after opening the first store. Two years later, it was approaching 200 units, and Frangulis was ready to prove the concept in different markets. International expansion kicked off in January 2019 when the brand launched in Australia. It entered Dubai right after that, followed by Portugal a few months later. The momentum only accelerated from there. The footprint spans over 600 units in nearly three dozen countries today, the vast majority of which are franchised. Over 70 percent of revenues come from overseas operations. Frangulis says customers in some parts of the world had never heard of açai before they encountered OAKBERRY, and in countries like Saudi Arabia, the name quickly became synonymous with the ingredient itself. It’s a different story in the U.S., where açai is the core menu item for a growing number of health-forward juice and smoothie chains, and OAKBERRY is a newer player in an increasingly crowded category. The brand launched in Miami in 2019 and has steadily grown to nearly two dozen locations across Florida, Pennsylvania, New York, Colorado, and Washington, D.C. through a mix of corporate and franchised locations. It expects to close out the year with approximately 40 units in North America, including a handful of stores in Canada. “At first, it still wasn’t [CONTINUED ON PAGE 78]

OAKBERRY (3)

BY SAM DANLEY

The Inventor of Buffalo

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DEPARTMENT

FRANCHISE FORWARD

The Most Colorful Way to Grow Noodles & Company finds success with an ‘under the rainbow’ expansion plan that targets loads of U.S. whitespace. BY SAT YNE DONE R

growth, a company must have whitespace. Franchisees like room to stretch their legs without competition, the executive says. He went to the drawing board, configuring 30-40 major metropolitan areas for Noodles to target. As he plotted the existing restaurant base and the open market areas, he noticed an arch from coast to coast. Noodles locations were distributed heavily along the top of the arch in the upper Midwest, where the brand has found success for decades. Open, targeted markets fell underneath the arch, where the population has boomed in recent years. “It was very clear the southern states are where all the population growth is, and that’s where the Noodles gaps are,” Ramsay says. “We decided to go under the rainbow, and this is the genesis of the strategy and what it looks like.” While Noodles is moving away from its geographical norms, its targeted demographics are similar. Whether it is Dallas, Minneapolis, or Tampa, the company is settling in suburban areas where young families are the primary audience. The chain has noticed differences in menu trends as it expands from coast to coast—mac and cheese in Wisconsin and Pad Thai in California—but its broad menu is prepared to handle this change. “Our menu, just by nature, has different offerings from several different categories,” Ramsay says. “It appeals to the same demographic with respect to age and income level, despite differences in eating preferences based on where they live.” There are eight key markets under the rainbow for Noodles, starting with Texas. It’s the fourth-fastest growing state in the country, passing 30 million in 2022, according to the U.S. Census Bureau. The fast casual will lean heavily into paid marketing and advertising for its franchise program in the Lone Star State. “Texas is a business-friendly state,” Ramsay says. “There is a lot of new development happening, and it is quite easy to get permits. It is wide open.” Franchise inquiries have been “a bit of a roller coaster,” Ramsay says. When inflation was high last year, franchise interest levels increased among those who were looking to exit [CONTINUED ON PAGE 78]

oodles & Company believes the future of franchising is “under the rainbow,” according to a new development strategy. The national fast casual has been monitoring guest migration patterns, which show a pot of gold in the southern region of the U.S. A report by North American Moving Services shows Texas, Florida, South Carolina, and Tennessee as states with high inbound migration in 2022. The exodus of customers leaving the Midwest in search of better living costs has left Noodles ready to pounce on new business opportunities. When John Ramsay joined the brand as vice president of franchise sales three years ago, the first thing he did was devise a new franchise strategy. The brand offered franchising early in its 27-year history but had been on a hiatus for years. “They were focused on company maturation, and because of that, there were a lot of markets out there which didn’t get developed,” Ramsay says. “When I joined the brand, it quickly became apparent there was a lot of underdeveloped territories.” Ramsay took this as good news for franchising. To project

NOVEMBER 2023 | QSR | www.qsrmagazine.com

NOODLES & COMPANY

John Ramsay, Noodle & Company’s vice president of franchise sales, joined the company three years ago.

BEST BRANDS TO WORK FOR

Best Brands to Work For BEST BR A ND TO WORK FOR

CERTIFIED 2023

B Y Q S R S TA F F

These chains have positioned themselves as employers of choice thanks to an emphasis on culture, wages, and a supreme focus on the employee.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

BEST BRANDS TO WORK FOR

ADOBE STOCK / ALVARO

In an industry as dynamic and competitive as quick-service and fast-casual dining,

it’s not just the quality of food or speed of service that sets a brand apart; it’s also how a company treats its most valuable asset—its employees. After the U.S. declared the COVID pandemic officially over in May, staffing matters appear to be returning to normal. After more than three years, the restaurant industry’s employment numbers finally returned to pre-pandemic levels in September. Food and drink establishments added 60,700 jobs that month, according to the Bureau of Labor of Statistics. It was nearly 30,000 spots above February 2020’s peak. The jobs report for September marked the most robust employment growth since the month of January. But restaurants are still working hard to differentiate themselves in the eyes of workers. As part of QSR ’s Best Brands to Work For report, we spotlight the fast-food and fast-casual chains that have risen to the challenge of being an employer of choice in an incredibly competitive and fluctuating labor market. This year, amid shortages and high turnover rates that have plagued many in the sector, the brands on our list have doubled down on employee benefits, created progressive pathways for internal promotions, and fostered work environments where employees genuinely enjoy clocking in. What sets these brands apart isn’t just what they offer on paper, but the culture and community they build behind the scenes—a culture that fosters growth, acknowledges effort, and celebrates diversity. This mindset is true whether you’re a job-seeker contemplating a move into the quick-service industry, or an industry veteran looking for a brand that aligns with your values. When compiling this report, we gathered nominations from restaurant brands and had a panel of industry pundits make their picks. The following is a group of 25 chains that don’t just serve fast food but also serve the needs, aspirations, and well-being of their employees.

www.qsrmagazine.com | QSR | NOVEMBER 2023

BEST BRANDS TO WORK FOR

Raising Cane’s L O C AT I O N S : 7 5 0

Raising Cane›s separates itself as a top-tier employer in the restaurant industry through its expansive employee benefits and opportunities for growth. Its comprehensive health and welfare offerings include medical, dental, vision, life insurance, and disability coverage. The company also provides a robust financial benefits package, which includes a 401(k) with a significant company match, financial wellness tools, and various shopping and service discounts. A major highlight is the extensive educational benefits, offering tuition reimbursement without waiting or study restrictions, fully-funded high school programs, and even free online learning accessible to family members. For its dedicated restaurant leaders, Raising Cane’s offers a First-time Home Buyer Program and the Restaurant Partner Program. The latter identifies and nurtures potential partners, ensuring they benefit from top-tier compensation that could make them industry millionaires. As of August, the fast-casual restaurant had promoted more than 500 workers to restaurant manager positions and more than 170 to salaried manager roles. Furthermore, 17 people graduated from the Restaurant Partner Program. Over the past five years, the chain has

invested over $150 million in base and bonus increases for crew members, equating to a roughly $4 per hour increase in the average wage for them. Forty percent of the staff in the Restaurant Support Office began their careers as crew members.

■ BORDER FOODS

Torchy’s Tacos L O C AT I O N S : 1 1 5

Torchy’s Tacos provides a suite of benefits tailored for full-time and part-time hourly team members. From day 1, employees enjoy perks such as DailyPay; discounts on food, merchandise, and essential services like AT&T wireless; and pet insurance. Health and wellness are central, with benefits including gym discounts and coverage options for medical, dental, vision, accidental injury, and critical illnesses. Torchy’s showcases its dedication to employee growth and well-being with 401( k) match and Company Paid Parental Leave programs. The brand’s commitment to diversity is evident, with more than 70 percent of its workforce comprising women and people of color. Its senior leadership is 42 percent diverse and restaurant leadership teams ( managing partners, front-of-house managers, kitchen managers) are over 40 percent people of color and over 30 percent female. Also, on a rolling 12-month

basis through Q2, Torchy’s turnover rate was 16 percentage points below the fast-casual median, placing it roughly in the 30th percentile. Employees relish opportunities for internal growth, with 96 percent of managing partners in 2023 being company-promoted.

Dog Haus

■ RAISING CANE’S

C OR P OR AT E OFFIC E

L O C AT I O N S : 5 5

RAISING CANE’S

Dog Haus, founded by three close friends, distinguishes itself by intertwining benefits with a familial ethos. The fast casual’s offerings range from health and life insurance to unique opportunities, like stand-up working desks, inhouse beer and wine celebrations, and a fully loaded pantry. Financial benefits include 401(k)

NOVEMBER 2023 | QSR | www.qsrmagazine.com

matches, annual bonuses, and significant employee discounts. Moreover, the company emphasizes career progression with cross-departmental training, waiving franchisee training fees, and allowing every team member to contribute to restaurant and drink developments. Since its inception in 2010, fewer than 10 employees have left the firm. When the pandemic surged, Dog Haus stood firmly by its staff, ensuring no furloughs or salary reductions. Employees receive a 10 percent annual pay raise on average based on merit, and in the past five years, the corporate staff has doubled in size. Functioning as a flat organization, Dog Haus eliminates the traditional hierarchi-

BEST BRANDS TO WORK FOR

Border Foods

BORDER FOODS

L O C AT I O N S : 2 4 0

ADOBE STOCK / BY JETCITYIMAGE

CITY BARBEQUE ■

cal structure, allowing an open-door policy where every member, from executive to new hire, collaborates equally. This setup facilitates employees in shaping the brand’s future and nurtures an environment of inclusivity, growth, and feedback.

City Barbeque L O C AT I O N S : 6 5

Masters of “backyard hospitality,” City Barbeque’s mission is to provide happiness to its teammates, guests, and even animals. In August, City Barbeque accepted donations for

local humane societies during its Dog Days of Summer event. The barbecue fast-casual concept also leads numerous initiatives to enhance the quality of life for its staff. The Pitmaster Program offers team members an opportunity to refine their culinary skills, and the City Cares Fund assists employees facing financial hardship. In addition to traditional benefits, City Barbeque has offered an annual scholarship since 2006 to promote education among its workers. The company was also honored with the Best Practices Award by Black Box Intelligence, recognizing factors such as corporate responsibility, retention rates, and employee satisfaction.

Border Foods fosters a family-oriented work culture that emphasizes employee development and long-term career advancement. It offers competitive hourly wages, free meals during shifts, health and dental coverage, and a paid vacation system in which employees can donate unused vacation time to colleagues in need. Additionally, it prioritizes education with programs like the Border Foods Tuition Reimbursement, and scholarships for postsecondary pursuits. On top of these benefits, higher-ranking employees such as assistant general managers and restaurant general managers are eligible for yearly bonuses, while select staff can earn shares through BorderShares. Its annual Family Fun Days and the “Best of the Best” trip to Mexico further illustrate its appreciation of employees. Border Foods has expanded from 220 to over 240 restaurants in three years, and added more than 650 employees. During this threeyear stretch, assistant general manager and restaurant general manager turnover has remained consistently low at 32 percent, and 35 out of 44 area coaches stepped into their current role after being promoted from restaurant general manager. The average Border Foods team member tenure is 5.3 years and the average starting wage for an hourly worker is $14.85. Central to its culture are six core values: teamwork, excellence, accountability, integrity, empowerment, and family. These values not only guide benefits but also enable pathways for upward mobility within the company, with half of its “above restaurant leaders” being women.

Smashburger L O C AT I O N S : 2 3 9

Smashburger takes pride in its employee support, ensuring everyone feels valued both on and off the clock. Its approach to work/life balance is evident in flexible schedules, paid time off, and paid sick days. The company also prioritizes the long-term well-being of its employees with a 401( k)-match package, an Employee Assistance Program, and a wide variety of insurance benefits. For those working in the restaurant, added incentives include a 50 percent meal discount, special attire benefits, a tip share program, and a referral scheme.

www.qsrmagazine.com | QSR | NOVEMBER 2023

BEST BRANDS TO WORK FOR

Recently, Smashburger showcased its dedication to improving the work environment by

■ CHIPOTLE

reducing running basis turnover by 18.5 percent and promoting 185 team members. As a testament to its efforts, manager turnover in Q2 2023 was 10 percent lower than the industry average. The philosophy of “every bite a better burger” extends to its work culture. Smashburger operates on five pillars: guest focus, speed with excellence, humility, family spirit, and integrity. Employees are encouraged to embody these values, ensuring an exceptional guest experience. To further nurture a secure, open environment, the company provides a confidential reporting service. Also, with Individual Development Plans, the brand offers an array of skills training that emphasizes team-

CHIPOTLE

work and data analysis.

Chipotle

L O C AT I O N S : 3 , 2 5 0

Chipotle is on a path to 7,000 locations—and it’s going to take a lot of staff to get there. As it has touted for years, one of the key tenets of that strategy will build from within the organization itself. In 2022, Chipotle had about 22,000 internal promotions. Additionally, 90 percent of all restaurant management roles fell into that bucket, including 100 percent of U.S. regional VP positions, 81 percent of team directors, and 74 percent of field leader positions. More than 85 percent of current restaurant leadership started as crew members at Chipotle. Meanwhile, Chipotle continues to work on its proposition, both from a compensation and force. As of December 31, 50 percent of its U.S.based employee population identified as female. Roughly 67 percent comprised racial and eth-

■ FLAME BROILER Guild; 401(k) retirement savings plan with com-

rience through a promote from within culture

Chipotle called its ground-level opportu-

pany match; employee stock purchase plan; paid

and investments in training, upskilling, and

nity “the fastest path to the middle class.” Crew

vacation; sick leave; flexible schedules; English as

advanced technologies to improve the employee

members can advance to “Restaurateurs” in

a second language for employees and their fam-

experience. By providing modern tools and

three-and-a-half years, which would put them

ilies; free Chipotle; discounts on major brands

resources, we aim to make their roles more effi-

atop a multi-million-dollar business while

through Perkspot; gym discounts; and more.

cient and enjoyable, contributing to overall job

earning a potential compensation package of

Regarding Chipotle’s debt-free degree

$100,000 or so. The brand’s suite of benefits

program with Guild, the organization said

include an all-crew bonus, which allows restau-

its retention rate is two times higher among

rant employees the opportunity to earn an extra

employees enrolled in the education assistance

month’s worth of pay each year; access to men-

program, and crew members who participate

tal health care, medical, dental, and vision for

are six times more likely to move into a man-

employees and their families; tuition reimburse-

agement role. “In addition to our commitment

Southern California-based concept Flame

ment and debt-free college degrees through

to real food, we prioritize the employee expe-

Broiler recently appointed Sherry Broesamle

nic minorities.

FLAME BROILER

benefits side, and from the makeup of its labor

NOVEMBER 2023 | QSR | www.qsrmagazine.com

satisfaction,” Chipotle said.

Flame Broiler L O C AT I O N S : 1 3 6

Slice up the fun We’re not your average Joe! We’re the leaders in the fast-casual industry, and franchisees will make an above average ROI*. Your Happy Joe’s restaurant franchise will become the fun and friendly place that parents, kids, and folks from all walks of life visit over and over again!

JOIN THE HAPPY JOE’S FAMILY AUV of $1,500,000*

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Ask about our military, and minority discounts

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EDUCATE YOURSELF QSR’s webinar series tackles hot topics in foodservice— and best of all, you can learn from the comfort of your own office. Take a deep dive into our collection today!

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WWW.QSRMAGAZINE.COM/EVENT/WEBINARS/ 26

NOVEMBER 2023 | QSR | www.qsrmagazine.com

BEST BRANDS TO WORK FOR

DIG

■ DIG

as vice president of people, underscoring its

of all in-store leadership positions are held by

In 2021, DIG launched the DIG Academy,

commitment to creating an exceptional work-

women, fostering an environment of inclusivity

which offers a six-week educational program for

place culture.

and success.

team leaders to advance their culinary careers and encourage the restaurant industry to adopt

With decades of human resources experi-

improved labor policies.

ence, Broesamle aims to establish a brand that retains and attracts a dedicated workforce.

As DIG continues to expand in New York

DIG

and surrounding areas, it remains dedicated

L O C AT I O N S : 3 1

to its people-first culture, emphasizing diver-

including career development pathways and

DIG, a New York City-based “farm-to-counter”

sity and education both within and outside of

a strong emphasis on work-life balance. The

eatery, demonstrates a commitment to innova-

its kitchens.

brand avoided layoffs or furloughs during and

tion that goes beyond its menu and extends to the

after the pandemic, boasting a turnover rate

quality of life for both customers and employees.

With 136 locations and counting, Flame Broiler has enhanced its employee benefits,

Jeremiah’s Italian Ice

of under 40 percent for restaurant team mem-

The pandemic provided DIG with an oppor-

bers. Furthermore, Flame Broiler is expanding

tunity to invest in internal development, resulting

its network of corporate locations, leading to a

in a 37 percent decrease in turnover between 2021

10.25 percent increase in system AUVs in 2022

and 2022. The company offers hourly workers

compared to 2021.

four-day workweeks while maintaining full-time

When a new team member is hired at Jeremi-

status, generous parental leave, and unlimited

ah’s Italian Ice, they receive an acceptance

access to employee assistance programs.

letter welcoming them to the “Frog Squad” and

The internal promotion rate for store leaders remains high at 74 percent, and 65 percent

L O C AT I O N S : 1 2 2

www.qsrmagazine.com | QSR | NOVEMBER 2023

BEST BRANDS TO WORK FOR

but also to the surrounding communities. Notably, its Make it Better Foundation has raised over $900,000 to support cancer research, nonprofits, and combat food insecurity.

COUSINS SUBS ■

Portillo’s

outlining the brand’s promise to provide them with personal and professional development opportunities. One of the frozen treat brand’s primary objectives is to instill a sense of ownership and promote empowerment across all levels of employees. As an example, its “Tasty Targets” program doesn’t just teach how to build sales and labor goals. It also teaches how to accomplish those goals. The company puts an emphasis on tracking daily goals and celebrating successes. Employees who consistently reach and surpass their objectives are given the chance to receive one of several systemwide awards, including the Operator of the Year award and the Frog Fund award given to a team member that’s currently in school. Jeremiah’s also brings together franchise owners and area reps once a year at its Franchise Frog Squad Operations Summit, where it highlights best-in-class leaders and recognizes the efforts they’ve put into their businesses across the country.

Cousins Subs L O C AT I O N S : 9 6

Cousins Subs believes in superior subs, an improved company culture, and enhanced sandwich shop experiences. Since its establishment in 1972, the chain has prioritized competitive compensation and benefits for all employees. Employee engagement surveys indicate that

NOVEMBER 2023 | QSR | www.qsrmagazine.com

PORTILLO’S ■ 75 percent of hourly employees and 97 percent of salaried managers are confident they will remain at Cousins Subs in the upcoming year. In 2022, Cousins Subs promoted 15 percent of its total corporate headcount and was recognized as one of Milwaukee’s Coolest Offices by the Milwaukee Business Journal. Cousins Subs introduced a Volunteer Time Off option, allowing employees to take up to 40 hours per year of paid time off to volunteer for a 501(c)(3) organization of their choice. The sandwich concept aims to cultivate a culture of giving back, not only to its employees

PORTILLO’S

COUSINS SUBS

L O C AT I O N S : 7 6

One of the most common phrases heard throughout Portillo’s during its crazy peaks (the brand generated average-unit volumes of $8.5 million last year) is, “We got you.” It’s a message that reflects the brand’s approach to team building and culture-centric leadership, and it starts with flexibility and support. This past year, Portillo’s hourly turnover rate came in 20–30 percentage points below the industry average. It saw about an 80 percent internal promotion rate, which speaks to a few realities taking shape behind the curtain. Portillo’s Ignite Leadership program provides all positions, leading up to market manager and GM, a way to grow. “We put an emphasis on investing in our team members’ futures and giving them the skills to be successful, which in turn makes employees want to grow and develop with Portillo’s,” the company said. Portillo’s offers flexible scheduling and up to $11 in free meals during shifts. There’s paid vacation for corporate employees and restaurant and management, floating holidays, as well as a 401( k) option, and financial support for workers facing hardship through the Heart of Portillo’s fund. Over the past year, the chain developed and started to implement a new time-off program featuring PTO, paid leave, and floating holidays, to offer employees greater flexibility and autonomy to manage their schedules. Portillo’s invested in daily pay, quarterly performance bonuses, annual PTLO stock grants for GMs and market managers, and extra pay for employees who clock in on major holidays. Additionally, there’s an employee stock purchase plan in which qualified employees can buy shares at a discounted rate. Hourly shift leaders can also earn performance bonuses, just like the rest of management. Going back to the point of training, this has been an A1 element of Portillo’s labor mindset for some time. It hosts career interest days, individual development plans, and LinkedIn Learning to support personal growth priorities and focus areas. The team uses BetterUp, an individual coaching platform, for leaders and managers in the company, too. Portillo’s holds

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BEST BRANDS TO WORK FOR

L O C AT I O N S : 5

Balance Pan-Asian Grille has turned the industry’s talent challenge into a brand advantage, thanks to an innovative labor approach spearheaded by cofounders Prakash Karamchandani and HoChan Jang. It starts with a culture that values authenticity and individuality. The brand embraces employees that may be considered “un-hirable” by traditional standards because of their distinctive styles. You won’t find any managers behind the counter, either. Instead, there’s a peer-to-peer accountability structure where high-performers train their fellow team members and lead shifts. Everyone begins as a “Brand Advocate” with a focus on customer-facing skills. Pay rates for that role are the same across the board and are communicated transparently to everyone. From there, employees can take a personalized approach to horizontal and vertical advancement by earning badges to certify competency in other areas. Team members are paid for the accumulated knowledge they gain through the brand’s training programs, which are accessed using phones via a back-of-house training and communication app. Karamchandani and Jang’s transparent, tech-driven, and forward-thinking approach to

NOVEMBER 2023 | QSR | www.qsrmagazine.com

CAVA

L O C AT I O N S : 2 7 9

CAVA is another brand on the verge of major growth. And, likewise, it’s spending ample resources to strengthen internally ahead of expansion (1,000 units is the long-term view for the now-public fast casual ). CAVA describes its approach as “the human deal framework.” It’s designed benefits programs around the full scope of human needs. So in addition to medical, dental, and vision, there’s a 401(k) plan for all employees to contribute after 60 days. Company match comes in after a year on the job. CAVA offers paid leave options for workers throughout the organization, including unlimited PTO for support center workers. Regardless of employees’ participation in CAVA’s healthcare plan, all staffers receive access to an employee assistance program that covers mental health benefits, elder care services, alcohol and drug dependency programs, relationship counseling, continuing education, and college planning. CAVA offers a discount program as well, which gives employees access to meaning-

■ BALANCE PAN-ASIAN GRILLE

ful savings, exclusive perks, and free food. Speaking of internal development, CAVA’s 2023 target is to place 75 percent of its GMs from within. In Q2, nearly 90 percent of new restaurants were opened by GMs trained by CAVA’s system. The chain has an “Academy GM” network that supports the directive. They’re top performers certified to develop and train new GMs and lead restaurant training programs. CAVA currently boasts 35 of them, with plans to have 50 by year’s end. How is this all being received? In 2022, CAVA had an employee net promoter score of 71. A culture of recognition continues to thrive alongside that performance. CAVA hosts bi-

■ CAVA

CAVA

Balance Pan-Asian Grille

managing and cultivating teams is a key differentiator for the growing company. It has resulted in a 2.5-year average employee tenure and attracted a growing waitlist of eager applicants.

BALANCE PAN-ASIAN GRILLE

an annual General Manager Summit to focus on professional development and draw a blueprint for the future. GMs tap into the Franks A Lot Fund to recognize and reward employees. Each restaurant receives $250 per month to celebrate crew members. Workers can access paid parental leave, health insurance, flexible spending accounts, life insurance, vision and dental, and a monthly Gympass membership offering holistic wellness programs. Portillo’s more recently added pet insurance, LifeLock Identity insurance, and critical and accident insurance. Portillo’s said its restaurants are fully staffed across the country. “People come first at Portillo’s. The company culture and work environment allow employees to build strong relationships with their fellow team members, as well as guests, and we’ve seen many cases where existing team members recruit friends and family to work at Portillo’s,” the brand said.

BEST BRANDS TO WORK FOR

Whataburger L O C AT I O N S : 9 7 6

The word “family” comes up often in Whataburger’s employee playbook. It calls workers “family members” from the day they start. Employees are open to scholarship programs for themselves and dependents, weekly pay, flexible schedules, a 401( k) savings program, leadership and training curriculum, a defined restaurant career development path, healthcare benefits, community involvement, and the potential for operating partners to make six-figure incomes. Whataburger’s Family Foundation was created to provide scholarship opportunities and emergency assistance. To date, the WFF has awarded nearly $21 million in assistance, with $10.4 million for scholarships, and $10.5 million in hardship grant assistance.

(fifth consecutive year), and America’s Great-

Aussie Grill by Outback L O C AT I O N S : 7

Aussie Grill is the first new restaurant concept out of Bloomin’ Brands in 16 years. The Outback offshoot’s goal, the company said, is to “bring the Outback sensibility around the globe with our smaller footprint, one-of-a-kind menu, and advanced technology that allows anyone to perform like a chef to execute our chef-driven menu.” And it starts from the base. Bloomin’, which also runs Carrabba’s, Fleming’s, and Bonefish Grill, has received a variety of workplace achievements of late, such as America’s Best Employers for Diversity 2023 by Forbes

■ AUSSIE GRILL BY OUTBACK

AUSSIE GRILL

weekly “Monday Meetups” in designated internal Slack channels, and hands out awards during annual leadership gatherings. Also, employees use “thank you” cards to acknowledge one another. “Our mission, ‘Bringing Heart, Health, and Humanity to Food,’ is woven into every facet of our company culture, emphasizing deeper connections with a shared purpose and holistic well-being,” CAVA said.

est Workplaces for Women 2023 by Newsweek. That approach, naturally, carried over to its fresh, counter-service chain. Hourly employees at Aussie Grill receive a detailed three-day training program, per role, by a certified “Aussie Grill expert” to ensure their knowledge and technique to execute quality food and expertise in hospitality. For management, it’s a six-week training program at a certified training store, which features a heavy focus on culture, standard, and leadership development. The career ladder, just like at all Bloomin’ chains, is drawn on day one. Cooks can become cashiers, cashiers managers, and managers managing partners. There’s flexible scheduling throughout the ladder. For example, employees who are students or have families can set their own schedules. “By investing in our employees, we see many employees growing with Aussie Grill, as opposed to having a high turnover rate. We value family and are closed on Thanksgiving and Christmas, so our employees can celebrate with loved ones,” the company noted. Award-based incentives at Aussie Grill include week-long, all-expenses paid trips to a location of their choice for all top-performing employees. Management members receive complimentary meals during shifts and team members are eligible for discounts at all Bloomin’ restaurants.

PDQ

WHATABURGER ■

NOVEMBER 2023 | QSR | www.qsrmagazine.com

WHATABURGER

L O C AT I O N S : 6 2

PDQ’s commitment to supporting its team remains steadfast, despite an annualized turnover rate of 119 percent. Introduced in 2023, the Fuego initiative is an on-demand payment application that allows employees to access a portion of their earnings before pay day. PDQ provides multiple avenues for team members to grow alongside the brand, offering scholarships and establishing “PDQ Champions,” inviting anyone from cashier to general manager to provide valuable feedback to enhance the store experience. Operating director Mike Keller from Wesley Chapel, Florida, remarked, “This company is a great opportunity for self-growth... We have a lot of young team members that come in, and so we have an ability to show them the ropes in the restaurant and in life.”

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BEST BRANDS TO WORK FOR

to grow into corporate roles where they can put

CEC Entertainment L O C AT I O N S : 4 7 3

As a place where kids and families celebrate birthdays and create positive memories, making work fun is a key part of the training and everyday directive at CEC Entertainment, parent company of Chuck E. Cheese, Peter Piper Pizza, and Pasqually’s Pizza & Wings. That goes hand-in-hand with a commitment to diver-

their experience and college degrees to work in

■ DONATOS PIZZA

departments like HR and marketing. There also is a strong commitment to diversity across the organization, including at the executive level, where 50 percent of positions are held by women. Additionally, the LGBTQIA+ community represents a quarter of the workforce, and the PROUD Noodles Resource Group recently raised $30,000 by selling Pride Crispies in restaurants to support a nonprofit focused on workplace equality.

sity and equity. Over half of all leadership positions are held by minorities and just under 50 percent are held by women. CEC also is committed to promoting from within. Along with offering a full array of bene-

Thompson Hospitality

fits touching on physical, mental, and emotional

L O C AT I O N S : 67

wellbeing, it provides clear and defined path-

Thompson Hospitality is the country’s largest

ways for advancement to all employees through its Talent Development Program (tdp). The pro-

minority-owned foodservice company. It owns

gram gives every leader a sense of where they

70 units spanning quick service to fine dining,

stand and what they need to do to get to the

serving up everything from burgers and tacos

next level and beyond. It also provides senior

to pizza and Wagyu steak. It also has a grow-

leadership with key insights on who is ready to

ing campus dining business and offers facilities

advance and where they can find the unique

management services.

skills and talents needed to fill open roles.

and operates 20 distinct brands with more than

Along with perks like college savings plans

Combined with the overall employee value

and tuition reimbursement, the company

proposition, the TDP has helped create an envi-

offers paid time off for both full-time and part-

ronment where talented people know they have

time workers. The family-run organization

the opportunity to build a career, reflected in a

also recently rolled out a new operating part-

58 percent internal promotion rate.

ner model that offers a bigger compensation package to attract talented general managers looking for positions with upward mobility.

L O C AT I O N S : 4 6 6

From part-time cashiers to executives, Noodles & Company offers every team member a wide range of benefits, including unique perks like immigration reimbursement support, mental

L O C AT I O N S : 4

Comedian Kevin Hart’s modern, meat-free quick-service restaurant is becoming known not only for its kindness to animals, but also to

■ HART HOUSE

health resources, pet insurance, tuition reim-

employees. While many brands struggled to

an employer contribution, a high-interest sav-

bursement, adoption assistance, and more.

fully staff restaurants in 2022, Hart House man-

ings account with a $50 sign-on bonus and up

Improving the employee experience and

aged to attract an abundance of applicants by

to $300 in additional annual rewards, and an

promoting from within remain key priorities

offering a living wage and industry-leading

extra $100 bonus per month that team members

for the fast-casual chain. To that end, it reduced

benefits that go beyond what frontline workers

can use however they choose, from dining out to

general manager turnover by 50 percent this

might be accustomed to. That includes subsi-

offsetting the price of fuel and groceries.

year, something it credits to a renewed focus

dizing up to 70 percent of employee medical

Flexible scheduling, paid time off and holi-

on growth opportunities and financial incen-

premiums, and providing a 50 percent contri-

days, holistic wellness support, and myriad of

tives like the GM Equity Program. Noodles has

bution match to HSAs in an effort to eliminate

other personalized benefits have contributed

clear pathways and support systems to guide

barriers to healthcare access.

to Hart House’s turnover rate within its first

The Los Angeles-based brand, which aims

year, which hovers around 68 percent between

agement and eventually regional leadership

to have a minimum of six locations by the end

its locations. Additionally, 100 percent of Hart

positions. Similarly, employees are encouraged

of 2023, also offers benefits like a 401(k) with

House’s assistant general manager placements

workers from cook or cashier to restaurant man-

Hart House

NOVEMBER 2023 | QSR | www.qsrmagazine.com

HART HOUSE

Noodles & Company

BEST BRANDS TO WORK FOR

years, with benefits like HSAs and life insurance helping to keep people around for longer.

Sbarro

L O C AT I O N S : 1 4 7

Sbarro is a family-owned global pizza chain, with more than 700 restaurants in over 30 countries. That leads to a familial culture with ample promotion and leadership opportunities, which presents a unique employer proposition—one reason why the brand says its internal promotion rates are high and turnover rates are low. The brand boasts restaurant crew staffing levels of 108 percent with a 111 percent turnover rate, and manager staffing levels at 104 percent with a 27 percent turnover rate. Many companypaid benefits like medical, dental, mental health care, life, vision, PTO, summer hours, culinary training, and more contribute to Sbarro’s position as an employer of choice.

Organic Krush

were internal promotions, which were gener-

assistance following electric shutoffs and evic-

ally recognized within two to six months from

tion notices to helping with funeral expenses

date of hire.

for family members. The brand seeks to be as dedicated to its associates as it is to guests by

■ ORGANIC KRUSH

creating and maintaining a work environment

Named a QSR Best Brand to Work For for a sec-

Donatos Pizza

that is rewarding, fun, and supportive.

ond consecutive year, fast-casual brand Organic

Founded by Jim Grote in 1963, Donatos was

Velvet Taco

nities. Founded by Fran Paniccia and Michelle

L O C AT I O N S : 4 2

leadership team is 50 percent female, and seven

years later based on the way it treats its asso-

With over 1,400 team members at 42 locations,

out of eight general managers are women. Also

ciates. Company-paid life insurance, FSAs,

Velvet Taco offers the kind of perks and bene-

for the second year in a row, the brand’s hourly

full-time associate programs like tuition and adoption assistance, 401( k), and associate assis-

fits you’d similarly see at brands with more than

turnover rate is at 84 percent, significantly below

100 units. From monthly bonuses, management

industry norms. The upscale, organic food con-

tance programs are just a few of the benefits

opportunities, and flexible schedules, to pay-

cept recently awarded 14 educational grants

offered at the 51-unit pizza chain. In 2022, the

ing for a team member’s tattoo if they get Velvet

of $1,000 each for current employees heading

company’s average promotion rate was 6 per-

Taco inked onto their skin, the brand takes a

to college or university. Other benefits include

cent. That rate rose to 18.4 percent this year.

unique approach to ensure employees can show

“Employee of the Month” gift cards, employee

Plus, 88 percent of Donatos associates reach the

up to work as their authentic selves. Velvet Taco

resource groups, referral bonuses of up to $500,

90-day mark, which is 54 percent higher than

boasted a 60 percent internal promotion rate of

discounts on catering and meal plans, and

the average in the quick-service space. Last

managers to general managers, and 22 percent

annual merit increases, in addition to offering

year, over $50,000 was given to fellow associates

of hourly employees promoted to managers. The

above state minimum wages and larger com-

in need, from helping with rent and emergency

brand’s average general manager tenure is two

pany-level benefits like LTO.

Krush is crushing it by providing employees with

L O C AT I O N S : 5 1

built on the principles of leading with love— which the company continues to exemplify 60

ORGANIC KRUSH

DONATOS PIZZA

L O C AT I O N S : 8

both personal and professional growth opportuWalrath in 2015, Organic Krush’s executive

www.qsrmagazine.com | QSR | NOVEMBER 2023

BRAND GROWTH

JERSEY MIKE’S WON’T LET UP

•THE ORIGINAL JERSEY MIKE’S LOCATION.

JERSEY MIKE’S

One of the industry’s most impressive growth streaks in recent memory is really only the beginning. / B Y D A N N Y K L E I N

chain expects to open 350 locations. The same figure, or thereabouts, is on deck for the following year. Then, come 2026, the real breakout—400, 450 openings before settling into a cadence of 13–15 percent annual unit growth after that. We’d be talking 10–15 openings per week for a brand (then called Mike’s Subs) Cancro acquired 36

NOVEMBER 2023 | QSR | www.qsrmagazine.com

JERSEY MIKE’S / JAMES SCHERZI

If you just hear Jersey Mike’s growth agenda, it sounds aggressive, CEO Peter Cancro admits. In 2024, the sandwich

BRAND GROWTH

www.qsrmagazine.com | QSR | NOVEMBER 2023

BRAND GROWTH

•PETER

CANCRO (LEFT) ACQUIRED WHAT WAS THEN CALLED MIKE’S SUBS IN 1975.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

original shop in the sea-side town of Point Pleasant, New Jersey. In the summer, it could be as high as 850 giant loaves. And that was in an 8,000-population town where residents couldn’t see the location from the road and awareness circulated through age-old methods. Currently, Jersey Mike’s and its 2,400 or so units are at about 170 bread per day. That’s up from 130. Get to 200 and AUVs would be roughly $1.75 million. Three hundred? “Come on,” Cancro says. Jersey Mike’s $1.21 million number last year was already rare-air territory. Jimmy John’s achieved $900,000; Firehouse $924,000; and Subway about $510,000. “We kept our pricing in check pretty much,” Cancro says, “and, all-in now, if you look at it from April 2020, gosh, we’re up 60 percent. That’s one, two, three years, we’re up 60 percent. … Pretty incredible.” Same-store sales this year tracked about 11 percent higher. Again, it’s a multi-faceted tale that began, Cancro says, when the cards were drawn. A week into COVID’s March onset, Jersey Mike’s sales tumbled 45 percent. Cancro woke in the middle of the night. It’s not in his makeup to let fate be. He grabbed a pen and wrote two commercials. Cancro directed and starred in both—something he hadn’t done in five decades. Since the company’s typical sports slots had shut down, Jersey Mike’s bought airtime during news programs. The message Cancro offered viewers wasn’t about Jersey Mike’s product or even the fact its lights were still on. He talked about giving back, what Jersey Mike’s was doing to help out, and asked for the world to join “in the true spirit of Jersey Mike’s.” This was March 26. All chaos included, by the time 2020 closed, only two of the top-eight grossing sandwich chains in America had managed to grow. One was Arby’s (which sells a lot more than sandwiches), at a net of 10 units. The other was Jersey Mike’s, and it tacked on 189 stores, third only to Starbucks (287) and Domino’s (229) of any restaurant brand nationwide. Cancro recently pored over awareness data and Jersey Mike’s clocked in over 90 percent. “You look at all the chains, including Panera and Arby’s, and we’re ranked with everybody,” he says. “We’re leading them all in most indicators.” “The awareness really struck me,” Cancro adds, “how people knew who we are, even though we’ll finish up this year with 2,700 stores.” One of the things that’s fueled Cancro over these 50-plus years, from the day he started working as JERSEY MIKE’S

in 1975 at 17 years old—famously too young to legally slice a sub—with a $125,000 loan backed by his football coach. Or, viewed from above, 5,000-plus domestic locations within five years on the road to 10,000 stores. These are growth targets Cancro hasn’t shared previously. But one thing that’s become widespread knowledge in recent years is Jersey Mike’s isn’t a company that deals in superlatives. “Whatever we say we’re going to do, we do,” Cancro says. In the fall of 2021, Jersey Mike’s projected it would open 250 restaurants. It debuted 246. Cancro noted then the ensuing goal would be to reach 300 net openings in 2022. Jersey Mike’s posted 297, which was more like 308, he explains, when you consider relocations and semantics of development. And this isn’t flashing by: Jersey Mike’s expanded by 1,055 restaurants in the last five years. Yet Cancro has a vision, not entirely tied to unit counts, where Jersey Mike’s would “really be cooking with gas, as Ray Kroc would say.” It’s a perhaps-less publicized element of the brand’s journey through this surge, and one that began in the thick of the pandemic. Jersey Mike’s average-unit volumes in 2019 were $824,000. It exited 2022 at $1.210 million and sits closer to $1.35 million today, Cancro says. This while taking price of about 9 percent—well under much of the counter-service and sandwich field, where 20-percent plus bumps haven’t been uncommon. In true sandwich guru fashion, Cancro often refers to throughput as “bread a day.” He used to average 300 per at the

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BRAND GROWTH

a 14-year-old at Mike’s Subs, wrapping subs and waiting until the milestone they’d let him start slicing, to buying the brand instead of attending The University of North Carolina at Chapel Hill to become a lawyer, to 2020’s commercials, is that Jersey Mike’s awareness isn’t only a visibility game. Any chain can light the marketing powder and introduce itself, Cancro says. But are you truly differentiated enough to hold somebody’s attention? Jersey Mike’s DNA is as split from peers as recent results are. The sandwich shop slices fresh or grills to order and uses whole muscle product and USDA choice top rounds. All of its offerings are more akin to local mom-and-pop delis than fourdigit restaurant franchises. “They see us as a chain, but we don’t feel like a chain,” Cancro says. “Keeping that going— that’s one of the big things. No one’s doing it. Everybody is pre-sliced. [Other brands’ ] steaks come out of a bag and are put in a steam tray. People can see the difference. Can taste the difference.” “Seeing the difference” is a literal notion that extends beyond the subs themselves, which, adding to the record, are never weighed at Jersey Mike’s. In early 2020, pre-crisis, Cancro and the brand made a pledge that had industry pundits squinting at the headlines. It would pay for all franchisees’ upcoming retrofits at $75,000 per store, or a roughly $150 million investment in the system. Jersey Mike’s also introduced a Coach Rod Smith (the same youth football coach and local bank executive who loaned Cancro money) Ownership Program that would give managers an opportunity to become store owners with financial and training support. The brand last retrofitted units during a 2009–2011 stretch. While it paid for the majority of that as well, the bill totaled only $15 million. This $150 million deal started in January 2020 after Cancro conducted a 25-city tour and met an average • IN 2020, JERSEY MIKE’S of 250 people per stop. Owners, managers, assistant DECIDED TO PAY FOR ALL managers, and even crew members showed up. Each

JERSEY MIKE’S (3)

FRANCHISEES’ RETROFITS.

time, he would save the kicker—that Jersey Mike’s was going to foot the bill—for last. Cancro says onlookers told him to stop in March and April when the pandemic pumped equals parts uncertainty and financial hardship into the sector. Cancro saw it differently. No dining rooms? Seemed like a good time to strip seating and gut stores. VP of construction Rodney Taylor and Jersey Mike’s completed the brand-wide project in a year and a half. “First franchise company in the history of franchising, as far as we know, that paid for everybody’s retrofits;” Cancro says, “that invested that much money. Most franchisors are taking off the table.” It can be difficult to measure same-store sales with retrofits. Generally, the rule of thumb is remodels hike comps 10–15 percent. California was the first Jersey Mike’s market to do so and the line bumped 15 to 20 percent in some cases, right out of the gates. New floors. New counters. New tiles on the backline. “Everything,” Cancro says. “It wasn’t just a façade thing. We gutted the place.” Jersey Mike’s stores would shut down on Sunday night and reopen Saturday. While there’s little question the fresh look and flow helped jolt and sustain sales, it strengthened something else within Jersey Mike’s trajectory. Of that current growth path mentioned earlier, 83–85 percent is coming from existing owners buying additional stores. In a lot of cases, operators are sponsoring managers to get involved as well. Put simply, Jersey Mike’s inspired loyalty where it mattered most—the pipeline. There’s a ground swell at work, too, which can be traced back further. Cancro recalls listening to Starbucks founder Howard Schultz proclaim the java giant was going to become a training company. If Jersey Mike’s wanted to scale as a consumer-centric business, it needed people and systems that would empower it to take care of guests.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

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JERSEY MIKE’S

BRAND GROWTH

• JERSEY MIKE’S

In 2021, Jersey Mike’s paid its managers over $100,000 at corporate units, with a good chunk of franchisees following suit and raising compensation during a time when COVID rattled workforce expectations. Previously, it was closer to $75,000–$80,000. Today, the average is $125,000, Cancro says. Some are nearer to $150,000. Managers work 53–55 hours per week, are off Sundays, and work half-day Saturdays. There’s no alcohol in restaurants. No fryers. “Good quality of life,” he says. “That’s the quarterback, center mid, point guard of the store.” Returning to the training note, Cancro recalls a conference room meeting in 2022 where Jersey Mike’s just posted a calendar of stellar results. He asked if everybody was done celebrating. The follow-up, Cancro told the team, would be an unprecedented training curriculum. In July, about 150 top trainers flew to The Breakers Palm Beach Resort in Florida. Clemson football coach Dabo Swinney spoke. “We treated them royally,” Cancro says. “We talked about our future, our growth, and how in 2023 we had to double down.” This past year, Jersey Mike’s did the same with district managers, those in charge of three, five, 10, 15 stores. “Had big groups and meetings and live discussions about what is our purpose,” Cancro says. “Are we going to be UPS drivers and just deliver things and put out fires? Or are we going to really try and help them grow?” “What’s their schedule? How are they doing that?” he continues, speaking of operators. “Are they making the product fresh? How is their speed of service? What about third-party delivery? How do we execute that better? And just, what should they do to go in and help stores help that manager.” A well-worn Cancro mantra is the cultivation of a “nucleus.” Like he noted, it’s the idea of feeling small as you get big. The product and execution should resemble your community shop more than a corporate flood. With training, these localized

OBJECTIVE IS FOR RESTAURANTS AND EMPLOYEES TO GROW WITH EACH OTHER.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

restaurants learn and grow together and answer to somebody who’s always nearby and available. This way, every location in Jersey Mike’s burgeoning fleet has a base of support in addition to the corporate arm. At the end of June, Cancro asked trainers what they were doing now. They were back directing groups of people, going store by store, overseeing sprinkling, wrapping, slicing, and talking about all of it. Given Jersey Mike’s isn’t weighing subs or using pre-packaged product, each order is a technique that has to be taught versus streamlined. “To craft that,” Cancro says, “you’ve got to have major, major, nonstop training.” The brand in July collected all of its area directors for the first time, plus accompanying teams, and checked in on stores. “We talked to them all as a group,” Cancro says. Broadly, it’s an ongoing process that anchors Cancro’s longview goals. Why Jersey Mike’s doesn’t see a ceiling after its most robust growth stretch yet is because it’s not complacent. “We don’t let up,” Cancro says. “We don’t feel like we’re this major success. We’ve kept it humble. We’re pushing harder than ever on the details, on the basics.” And much of that starts at the top. Cancro recently dropped into an Auburn, Alabama, location on a Sunday morning. He told them he worked in the office but didn’t reveal his title. Cancro put on a uniform and started slicing ( he claims to still be the fastest in the company). As the rush began to approach, the owner and Cancro met and spoke about what was working and how the employees bought in. “That’s kind of the point we’re at,” Cancro says. “Go to any store. We don’t target them. Just go. Tap and walk in and don’t call ahead of time. They were doing a pretty darn good job.” As Jersey Mike’s has cultivated its core and prepared for the future, it’s evolved in places, too. It spent nearly $185 million on IT and infrastructure. Just Jersey Mike’s app was a $20

BRAND GROWTH

million-plus investment. That fortuitously finished in the summer of 2019 and positioned the brand for many of its COVID pivots, like takeout at the door and curbside pickup. Units now have another counter and slicer so off-premises tickets are made on the back line away from dine-in guests. Jersey Mike’s didn’t want people who showed up on-site to have to queue beyond

•

JERSEY MIKE’S

JERSEY MIKE’S ADJUSTED TO OFF-PREMISES DURING THE PADEMIC.

an invisible customer. It was overseen by company exec Hoyt Jones, who once led thousands of Domino’s as EVP of U.S. franchise operations. “Believe it or not, a pizza guy gave us the idea,” Cancro quips. Naturally, Cancro’s role has morphed across the journey. It’s increasingly rare in foodservice to see leaders with tenure anywhere near the orbit of Cancro’s. He used to land in a city and go see 15 stores or so per day, drop into a market and simply check out the scene. Now, he’ll head to a region and there’s 250 managers, assistant managers, owners, etc. Cancro can’t go one-by-one, so he’s taken to hosting town-hall style gatherings with Jones, CMO Rich Hope, and other leadership to talk about what’s going on. After, they’ll roll the buffet out and Cancro will sit at every table and talk to every person, he says. “I’m downing waters for like three hours, just talking to everybody and shaking hands.” Jersey Mike’s held its latest national meeting in March in Disney. More than 3,000 people showed. Four charity partners attended to talk about the benefits of working with Jersey Mike’s and the football family of Archie, Eli, and Cooper Manning took the stage as guest speakers. So did brand spokesperson and commercial star Danny DeVito and Keith Urban, whose bandmate once worked at Jersey Mike’s. These kinds of events, the tying emotion, purpose, and collective pull forward, are part of what’s keeping Cancro activated when it comes to doing it all over again tomorrow, he says. The same is true of stories like area director Daniel Watts, who began when he was 21. “Just to see these young people rising up, that’s really exciting for me,” Cancro says. Yet no story of Jersey Mike’s can be complete without getting into its beating center. When Cancro was in high school, he watched two Point Pleasant businessmen, Bob Hoffman of Hoffman’s Ice Cream, and Jack Baker of the Lobster Shanty, give back to local causes. He was the recipient of one program and knew one day he’d pay it forward. 44

NOVEMBER 2023 | QSR | www.qsrmagazine.com

Jersey Mike’s is arguably best known on this front for its Annual Day of Giving. It’s really a Month of Giving, but the spotlight is on one full shift—March 29 this year—where stores donate 100 percent of sales, not just profits, to local charities. Jersey Mike’s broke its own record by donating $21 million to over 200 organizations. It was the 13th annual version of the event—a period that’s seen the sandwich chain give back north of $88 million. What bystanders often don’t realize, though, Cancro says, is charitable donations and participation are not mandatory clauses for operators. “People just do it,” he says. In 2022, Jersey Mike’s raised $20 million for the Special Olympics USA Games and State Programs. That was well ahead of the previous year’s Month of Giving collection of $15 million. So it’s a significantly elevated bar Cancro doesn’t expect to lower anytime soon, especially as the brand adds hundreds of locations each year. “Everybody says, boy, Lord please give me a check and I’ll be able to do a lot of good,” Cancro says. “But at this point now that’s really satisfying, huh? To be able to do that. Everybody gets it. All the workers. All the teams. All the crews. At the national meeting, it was just, ‘wow.’ Everybody was talking about it.” Jersey Mike’s linked up with the USTA Foundation in 2022 to support its “Rally for the Future” campaign, which powers the group’s nationwide network of National Junior Tennis & Learning chapters, and did so again in September, when it expected to raise $5 million in one weekend. More recently, Jersey Mike’s began to help Best Buddies International, which offers one-to-one friendship and leadership development programs for individuals with and without intellectual disabilities. “When you ask about what keeps me going in the game, it’s that and the young leaders in our organization and the crew and the up-and-coming people,” Cancro says. “It’s the opportunities we’re creating for so many.” All these tenets are why Cancro feels Jersey Mike’s will climb toward 10,000 units without drifting. There are cautionary tales aplenty in sandwich history of brands that rose in a blur only to crash as quickly. Cancro says, no matter how big it scales, they’ll stay involved. They’ll invest in training. Jersey Mike’s still helps franchisees pick locations and vet the dirt. Each Jersey Mike’s has its own rights that corporate doesn’t infringe upon. Units are at least 2 miles apart, and the runway to fill that in remains vast, Cancro says. They’ve invested money in data to reveal population and traffic counts and potential whitespace, which is where the 10,000 dart came from. Cancro adds international operators, U.K. and Canada in particular, have expressed interest and could be in the brand’s future. “Here we go,” Cancro says. “And how are we getting there? By the basics, the fundamentals. [ But also], I think the reason we’re rising up is people come in and try us and go, ‘really, we’ve never had a submarine sandwich like this.’ And that’s where we say the red and white vinegar, the olive oil, the oregano, we’re the only ones who ever did that.” Danny Klein is the editorial director of QSR and FSR. He can be reached at dklein@wtwhmedia.com.

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PACKAGING AWARDS

QSR/FPI FOODSERVICE PACKAGING AWARDS

Restaurant packaging doesn’t always get its due. But as equal parts

B Y Q S R S TA F F

branding palette and food integrity preserver, packaging matters. That’s why QSR magazine and the Foodservice Packaging Institute teamed up for the 2023 Foodservice Packaging Awards: to honor those restaurant operators, packaging designers and engineers, and manufacturers who recognize the importance of packaging and ae making an effort to be innovative and creative. Congratulations to this year’s honorees!

Excellence in Brand Delivery

Popeyes Next Generation Packaging

Sporting Kansas City Packaging Line Designers:

Nate Saathoff and Chad Reynolds, Sporting Kansas City Jason Hofmeyer, Chris Robertson, and George Zeiler, Huhtamaki

Designers:

Carolos Londono, Popeyes Jason Hofmeyer and George Zeiler, Huhtamaki

Manufacturer :

Huhtamaki

Manufacturer:

Huhtamaki

Excellence in New Menu Launch

Innovation in Convenience

ProView Close-Off Designer:

Genpak LLC Manufacturer:

Genpak LLC

Designer:

Jadey Gonzalez, Jack in the Box, and the Jack in the Box Marketing Department Jason Hofmeyer and George Zeiler, Huhtamaki Manufacturer:

IMAGES: QSR MAGAZINE

Jack in the Box Super Snacking Box

Huhtamaki

NOVEMBER 2023 | QSR | www.qsrmagazine.com

PACKAGING AWARDS

The “Wow” Factor

Kentucky Fried Chicken Fill Up Box Designer:

KFC Package Engineering

Manufacturer:

WestRock CP

Innovation in Manufacturing

Digital Print on Molded Fiber

Vegware Paper Cutlery Designer:

Vegware

Designer:

Eco-Products

Manufacturer:

Vegware

Manufacturer:

Eco-Products

Special Recognition

Safe-T-Chef Designer:

Inline Plastics Manufacturer:

Inline Plastics

www.qsrmagazine.com | QSR | NOVEMBER 2023

CULINARY TRENDS

Decoding 2024’s Culinary Landscape Restaurants are finding innovative solutions to rising food and labor costs as social media fuels a wave of fads and trends. /

B Y J O C E LY N W I N N

hings are heat ing up for menus heading into 2024. And by heat we mean spicy and sweet, or “swicy” as Gen Zers like to say. Add tangy to the mix for a trifecta menu ripe for innovation. This f lavor combo maximizes taste and minimizes labor, allowing operators to remain selective in sourcing ingredients. According to the National Restaurant Association State of the Industry 2023 report, 92 percent of operators say food cost is still a significant issue for their res-

taurant. Inf lation concerns are at 90 percent, followed by 89 percent for labor costs. Meantime, Moody’s reports that American households are spending an additional $276 per month on goods and services. Clearly, the economy is still front of mind, but while it’s certainly a slow-moving end game, hope is on the horizon. As of its March report, the Bureau of Labor Statistics cites inflation reaching its lowest point in two years, and the Association forecasts foodservice industry sales to reach $997 billion in 2023.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

Foodservice industry sales are forecasted to reach

997

billion in 2023 NATIONAL RESTAURANT ASSOCIATION

CULINARY TRENDS

76%

of consumers are excited for new

food and beverage trends,

66% 84%

feel optimistic, and

of consumers prefer spending time with friends and family

eating out versus eating at home.

ADOBE STOCK / PIXEL-SHOT (9)

DATASSENTIAL AND THE NATIONAL RESTAURANT ASSOCIATION

To stretch the dollar and the product’s lifespan, we’re seeing a resurgence of classic, at times nostalgic, food choices that can hold a bevy of spice, such as colorful root vegetables, fermented starches, soups, stews, the continuation of bowls, and the newest trend of off-cut and head-to-tail/-fin proteins, including a real push for seafood, elevating tinned meats and cures. There is likewise a new, hip frugality gaining traction, whereby couponing gets a digitized makeover and thrifting means super exclusivity for that influencer cool factor. Expect mashups galore here, in one-pot wonders speaking to global cross-functional ingredients. These innovations satisfy Gen Z, who is still driving the 2024 trends bus, Gen Alpha ( born 2011–2014), who is coming fast to the on-ramp, Gen Xers, who will recognize the trending 1970s vibes, and millennials and boomers, who are most agreeable to leaving the reported consumer pandemic-holdover fatigue behind. The new-and-improved self-care finds all demographics splurging on treats as a counterpoint to healthy eating. These forecasts predict a versatile, flexible, work hard, play hard mentality for 2024: Consumers are ready to come out and  play—and share.

www.qsrmagazine.com | QSR | NOVEMBER 2023

CULINARY TRENDS

Trends Are Trending According to a Datassential report, “We’re entering a new ‘golden age of weird’ where social media platforms like TikTok are forcing brands to be more authentic and irreverent.” To put things in perspective, according to Supermarket Guru, Forbes.com, and Bazaarvoice, as of April there’s been a 410 percent increase in food, beverages, and tobacco images submitted by users, and 60 percent of the one billion TikTok users are Gen Zers.

sumers wanting to try frog legs, it’s not surprising that 67 percent of consumers also want to see more fads at restaurants and retail, and nearly three quarters of Gen Z and millennials (74 percent) agree. Clearly, social media plays into menu and food trends, driving the marketing and desirability for fads that become trendlets that become trends. But how do you know if something is just a fad or a trend? Many adopted trends were born from social media fads, especially if big-name celebrities or sports names are attached. Of the TikTok cloud cakes, baked cheesy ziti, or one-mug cakes, many fads are soon replaced by flashier new items. But that doesn’t mean restaurants can’t jump on that 15

more fads at restaurants DATASSENTIAL

you’re done with that, but it really

beef, lamb, and chicken).

in food with bright, natural col-

just means that everybody knows

London Fog: Takes bergamot notes

ors like dragon fruit, lychee and

this and keeps using it as a flavor, keeps doing interesting things,” says Claire Conaghan, assistant director at Datassential.

FADS: Here are some current fads that may or may not stick around for 2024: • Pickle Pizza • Breakfast salads • Fried lasagna • Balsamic cocktails • Fruit-flavored coffee • Pickled French fries • Upscale pigs-in-a-blanket • Retail branded restaurant recipes • Crudité platters [NATIONAL RESTAURANT ASSOCIATION]

from the Earl Grey tea, with hot foamy milk for a latte. Mangonada: A Mexican dessert

purple Peruvian corn. Also rising: floral flavors like vetiver and ylang-ylang.”

made of mango sorbet and chamoy

Yuzu: An Asian fragrant and sour

topped with chili powder.

citrus fruit that also hits tangy and

Mushrooms: Known for their

hardy makeup and adaptogen benefits, popular mushrooms nowadays are maitake, lion’s mane, oyster, and trumpet. Salsa macha: A Latin American

condiment with chili peppers, peanuts, sesame seeds, and garlic. Soju: A fermented rice Korean

spirit with about half the ABV of vodka—smooth and mild.

floral.

TRENDS: These are the new

predicted trends for 2024 [ Datassential and National Restaurant Association]

Cherry blossom/Sakura: Cherry

blossoms and their leaves are edible and used in many traditional Japanese sweets and tea or pickled for mochi cakes, cocktails, and candies.

TRENDLETS: Here are some all-

Spicy maple: Literally maple syrup

season trendlets that are on their

infused with chili powder for that swicy vibe.

kind of a bold move in that there’s

way to being a trend, having been new in 2023 [ Datassential]

Ube: The New York Times says of

umami advantage: consumers now

still tons of innovation and flavor

Birria: Mexico’s brothy, adobo-

this Fillipino tuber: “The yam’s

view MSG positively, with 75 per-

usage. It used to be ubiquity meant

marinated meat stew (wether goat,

popularity is riding on an interest

cent of the global social media

minutes of fame while it lasts. “Finally, apple cider vinegar has moved to ubiquity, which is

of consumers want to see

ADOBE STOCK / NABOKOV ALEX

Indeed, with 17 percent of con-

67 %

NOVEMBER 2023 | QSR | www.qsrmagazine.com

MSG, monosodium glutamate: A

recent Mintel report debunks MSG’s bad rap and lauds its

CULINARY TRENDS

conversation about it positive

The top winner for terms was

homemade

between 2018-2023. Verju: This Middle Ages vinegar is

highly acidic from unripe grapes

All-youcan-eat

or other sour fruit Next-level cannabis: The indigo-

dominant hybrid is perfect for relax-

scored really high with millennials

ation, use in any infusions for sweets, smoothies, or functional baking. White coffee: Packs a caffeine,

“grilled”

nutty punch, with beans roasted

scored very well with the older generation

at a lower temperature and only halfway through, making a whitish bean. Savory granola: A twist on the tra-

ditional sweet variety, look for the same nuts, seeds, and oats but with savory spices. Pickled strawberries: That’s right,

sweet, tart and vinegary for snacks, breads, and boards. Sisig: A traditional Filipino hash

made from trending off-cuts of pork jowl and ears, pork belly, and chicken liver. Black tahini: The unhulled black

sesame seeds are nuttier and more bitter than regular tahini. Chestnut flour: Traditionally part

of Italian fare, the sweet flour from

ADOBE STOCK / MASTER1305

DATASSENTIAL

Craveable Terms Mirror Craveable Menu Items

chestnuts is the ideal gluten-free flour substitute. Amazake: Similar to soju, this Jap-

anese sake-like drink is made from fermented rice and is also low ABV. Alfajor: Found all over South Amer-

ica, these almond paste cookies are sandwiched by dulce de leche. Raki: The national drink of Tur-

key from twice-distilled grapes packs an approximately 43 percent ABV and is perfect for a meze

As trends themselves are trending, so too are the ways in which operators describe their food on menus. When it comes to 2024, that means not only keeping up with the influencers but also the everyday customers who appreciate a sense of the familiar.

app board.

high with millennials. They love

Food forests: Communities

bringing their entire family to

building green spaces for public

all-you-can- eat locations,” says

consumption.

Kostyo. “The number one thing we tested that consumers wanted to go back to was buffets. I believe they tested really well with millennials, so maybe we’ll see the return of the buffet,” adding that the term “grilled” scored very well with the older generation.

Food holidays: Buzz-worthy foods

are given their one day in the sun. Tequila Day is July 24, National Donut Day is June 7, and World Vegan Chocolate Day is January 31. Functional foods: Following the

food-as-medicine trend from

Here’s a modern-day vocabulary

everyday options like ghee, a clari-

list to stay on top of food and menu

fied butter, to larger ideas such as

trends in the coming year:

B12 powders for soft drinks.

ing out homemade in the products

Authentic: How a chef’s heri-

Hyperlocal: This food-sourcing

that you’re making or the items

tage or background informs their

Huacatay: This Peruvian mari-

you’re putting out, you should be,”

restaurant concept or menu,

gold-derived herb creates

says Mike Kostyo, trendologist and

acknowledging cuisines have

associate director at Datassential.

shifted, and giving voice to cele-

and native foods.

brate marginalized groups.

Literal food art: Playing on words to

Hawaiian haupia: Topping wedding

cakes or on its own, this traditional coconut pudding satisfies dessert’s trending pudding category.

traditional black mint sauce.



“The top winner for terms was homemade. So, if you’re not call-

“All-you-can-eat scored really

trend focuses on a small community and the issues facing that population, tending local gardens

[CONTINUED ON PAGE 54] www.qsrmagazine.com | QSR | NOVEMBER 2023

SPONSORED SECTION | NOVEMBER 2023

SmartChain Packaging

The Battle of the Supply Chain Trusted packaging partners are crucial as consumer preferences evolve.

HUHTAMAKI

Huhtamaki

he packaging supply chain has become paramount as COVID-19 pushed restaurants to offer customers the same quality and consistency of food at home as in a restaurant. Operators need to ensure that they have the right packaging materials when they need them to guarantee a consistent flow of packaging to each restaurant location. Time and eﬃciency are integral to the success of quick-service restaurants. “One of the biggest challenges operators face is aligning with distribution centers and getting the packaging they need when they need it,” says Mark Schlossman, the exec-

NOVEMBER 2023 | SPONSORED SECTION

“Partnering with the right supplier can provide reliable service, innovation, transparent communication, efﬁcient distribution, and a breadth of options and raw materials.” utive vice president of sales and marketing at Accurate Box Company. These challenges underscore the critical role of reliable packaging partnerships in ensuring seamless operations, making it clear that ﬁnding trusted packaging allies is essential for success in the fast-paced quick-ser-

vice restaurant industry. “Operators are responding to these challenges by diversifying their packaging manufacturers,” Schlossman says. “Now more than ever, operators are giving manufacturers the opportunity to gain their business.” Diversiﬁcation is a stra-

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SmartChain Packaging

tegic move to ensure a stable and reliable supply of packaging materials that operators may find successful. However, finding the right packaging partner is crucial in such a complex marketplace. “Partnering with the right supplier can provide reliable service, innovation, transparent communication, efficient distribution, and a breadth of options and raw materials,” says Teresa Leonard, head of foodservice national accounts at Huhtamaki. Trusted partners are instrumental in overcoming supply chain challenges. Supply flow has been a major problem for operators, particularly in the wake of the COVID-19 pandemic. “Securing and maintaining supply continuity has been a major issue for operators,” Leonard says.“ Labor and staffing stability continue to be a challenge as we have exited COVID-19. This volatility can adversely impact supply consistency and security.”. The strain COVID-19 initially caused has led to continuing supply issues. Operators and consumers are still being affected when the packaging they are used to is not available. While supply chain issues are a complex matter, partnering with a consistent and responsible packaging company can relieve some of the pressures of the supply

chain strain. “Trusted brands are trusted for a reason,” says Dan Nirenberg, vice president and general manager of GP PRO foodservice cups and cutlery categories. In the world of quick-service restaurants, trusted brands play a vital role in ensuring operational eﬃciency and consistency. “Trusted brands deliver on their promises to help operators overcome their day-to-day challenges and they weather the storms of supply chain issues and labor shortages arm-in-arm with operators,” Nirenberg says. Everyday procedures should be made as simple as possible for the success of quick-service restaurants. When operators and consumers are not hindered by smaller factors they can better focus on a good experience.

“Everyone’s looking for ways they can comply with new regulations and create a more environmentally friendly package without adding too much complexity

INNO-PAK

Inno-Pak

NOVEMBER 2023 | SPONSORED SECTION

Advancements in technology are shaping the packaging landscape, especially with an emphasis on sustainability. “Right now, we’re seeing brands experimenting with new or different substrates and coatings. Everyone’s looking for ways they can comply with new regulations and create a more environmentally friendly package without adding too much complexity to their supply chains or more SKUs to their packaging buys,” says Nathan Kraatz, marketing specialist at Inno-Pak. Sustainable packaging solutions are becoming increasingly important to meet consumer demands. Earning the confidence of restaurants and consumers is important when building a reputable brand presence. “When you build your packaging plan, replicate what your customer will experience,” says Kurt Richars, director of market development and sustainability at Anchor Packaging. “Above all, prioritize temperature, texture, and taste. Put potential packaging to the test—don’t simply put food in containers.” Innovative packaging solutions can lead to cost savings and improved operational efficiency. Working with trusted partners is also necessary as younger generations start pushing quick-service restaurants for greater innovation and unique solutions for current issues, like climate change and healthier food options. “As quick-service restaurants and foodservice customers’ profiles have changed radically and keep evolving, trusted relationships between packaging converters are crucial now,” says Akiva Buchberg, inventor, president and executive chairman of GreenDustries. Operators should make sure that they are spending money on packages and brands that can deliver consistent products and the best customer service. Everything from the design and materials to the cost and reputation of the packaging company should be taken into consideration. “Trusted suppliers build these benefits into the design of each container while also providing food safety certifications and security of supply. Pennies invested in better packaging to deliver dollars in increased efficiencies and reduced costs,” Richars says.

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SmartChain Packaging

ANCHOR PACKAGING

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Saving money is always important to maximize ROI, however, transportation challenges can exacerbate costs and relationships between suppliers and customers. “Transportation has become a larger problem since Yellow left the market. The already inﬂated transportation costs have become even higher, and the reliability and availability of carriers have diminished as well. Both of these combined, make keeping quick-service restaurants supplied in packaging more diﬃcult,” says Rich Reutti, vice president of sales at Continental Cup. These transportation challenges emphasize the need for resilient supply chain partnerships. Packaging is a critical component of quick-service restaurants’ success. “Operators can communicate with their customers in several ways. The key is focusing on a positive customer experience and the business’s excellent rep60

NOVEMBER 2023 | SPONSORED SECTION

GREENDUSTRIES

“Pennies invested in better packaging deliver dollars in increased efﬁciencies and reduced costs.”

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utation in delivering quality oﬀ-premises meals. Packaging is the caveat to that experience and essential to gathering repeat business,” says Monica Bowser, corporate marketing manager at Genpak. To overcome challenges related to distribution, supply continuity, and sustain-

ability, operators must collaborate with trusted packaging partners. These partners not only provide reliable supply but also help navigate the complex landscape of packaging innovations and sustainability demands, making them an invaluable asset for quick-service restaurants. SC

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Consumers Prefer Sustainable Packaging How environmental concerns are driving consumers’ preferences.

Genpak 62

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hold operators accountable for using packaging that upholds the quality and integrity of takeout and delivery orders,” says Monica Bowser, corporate marketing manager at Genpak. Surprisingly, one change since COVID19 is consumers are more environmentally conscious and want more sustain-

“No longer an afterthought, customers now hold operators accountable for using packaging that upholds the quality and integrity of takeout and delivery orders.”

GENPAK

ixty percent of consumers not only care about sustainable packaging but would pay more for it, according to a 2020 study by McKinsey and Company. In today’s fast-paced world, quick-service restaurants play a vital role in satisfying cravings on the go. However, as consumers become increasingly conscious of environmental issues, their expectations for sustainable packaging have grown. The current shift in consumer demand poses both challenges and opportunities for quick-service restaurant operators and their packaging partners. Much like everything else, COVID-19 has changed consumer’s needs and expectations and, in turn, how operators need to run restaurants. “Since the COVID-19 pandemic, consumer expectations regarding packaging have dramatically shifted. No longer an afterthought, customers now

able options when they shop. A study by research group Kantar said that since COVID-19 sustainability was of greater concern for consumers than before the outbreak. “Sustainability is also a huge movement that is gaining significant traction among consumers. Consumers are increasingly urging restaurants to adopt more environmentally conscious practices, and the choice of packaging material can leave a lasting impact on consumers,” says Mark Schlossman, executive vice president of sales and marketing at Accurate Box Company. The importance of sustainable packaging and how it will shape the future of the foodservice industry cannot be overstated. Sustainability is a pressing concern that has gained considerable traction among consumers in recent years. The choices consumers make are no longer solely driven by convenience or taste; they are increasingly influenced by a desire to make environmentally conscious decisions. “An added challenge is the use of unsustainable packaging which could deter environmentally conscious consumers from supporting a restaurant,” says Schlossman. Consumers are more cognizant of the environmental steps companies are taking. Now more than ever, consumers will take their business elsewhere if their values are not being reflected. One of the most critical aspects of sustainable packaging is the choice of materials. Opting for eco-friendly options such as recyclable, reusable, and compostable materials resonates positively with customers, and technology is helping drive this shift. “Overall, technology has allowed packaging manufactur-

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“Consumers are increasingly urging restaurants to adopt more environmentally conscious practices.” ers to discover better methods of delivering desired packaging capabilities, such as leak resistance, recyclability, and overall heightened performance,” says Bowser. Consumer preferences have created a clear imperative for quick-service brand operators to align their packaging choices with sustainable values. Legislation has also evolved to support these environmental initiatives. Extended Producer Responsibility (EPR) Legislation is shaping the industry by introducing greater responsibility for the disposal of packaging. “EPR legislation will continue to evolve, as will the call for more recyclable and compostable products,” says Rich Reutti, vice president of sales at Continental Cup. The market demand for recyclable and compostable packaging has increased substantially, making it crucial for brand owners to take a leadership position in adopting environmentally friendly products. Aside from market demand, packaging companies will need to innovate or face increased ﬁnancial responsibility for unsustainable designs and materials. Meeting consumer expectations is paramount for quick-service brand operators. “As the past few years have demonstrated, if consumer expectations are not met, con64

NOVEMBER 2023 | SPONSORED SECTION

sumers are more than willing to take their appetites, their wallets, and their loyalty elsewhere,” says Dan Nirenberg, vice president and general manager of GP PRO foodservice cups and cutlery categories. Nirenbger further emphasizes that consumers want operators to support sustainability, especially in foodservice packaging. This means incorporating environmentally friendly food wraps, cups, and containers into the business model. One of the pitfalls quick-service restaurants should be aware of is buying into greenwashed packaging, which is packaging that claims to be sustainable but, in reality, is not. Akiva Buchberg, inventor, president and executive chairman of GreenDustries, warns, “It is very hard for packaging companies to develop new packaging solutions without close collaboration with quick-service brands and operators. The issue becomes when packaging companies are ‘greenwashing’ and misleading with sustainable claims they make about their products.” In an era marked by consumer skepticism, transparency is of paramount importance. “Consumers want environmentally friendly packaging now more than ever before. They’re also smarter and more skeptical about greenwashing,

so operators need to know how to show proof of their eco-friendly initiatives,” says Nathan Kraatz, a marketing specialist at Inno-Pak. This transparency builds trust and confidence among consumers. It is important not to take shortcuts when it comes to sustainability, consumers want businesses to make actionable decisions regarding climate change. It is better to show not tell, and packaging is the perfect way to show consumers a restaurant is serious about the environment. “Younger consumers prioritize sustainability, innovation, convenience, and unique experiences when it comes to packaging. Unfortunately, the packaging options in the quick-service and foodservice industry are quite ordinary, and there’s a scarcity of innovative solutions that can truly excite and satisfy Gen Z and millennials,” Buchberg says. Recent surveys find that younger generations are pushing industries to find more innovative packaging solutions, and they are willing to pay for it. According to the 2021 Global Buying Green Report, 83 percent of respondents 44 and under said they would pay more for sustainable packaging. Furthermore, younger consumers were 23 percent more likely to pay more for sustainable packaging regardless of income disparities. “Operators have struggled to communicate meaningful messages to customers. Their attempts to change packaging artwork on the same old packag-

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ing have yielded little success,” Buchberg says. Consumers see past branding to the core of the issue; quick-service restaurants require better packaging solutions rather than better marketing strategies. To achieve sustainability goals, quickservice brands are exploring innovative solutions. “Right now, we’re seeing brands experimenting with new or different substrates and coatings,” Kraatz says. This experimentation aims to comply with regulations and create more environmentally friendly packaging without adding complexity to supply chains or expanding the range of product variations. Innovations can bring quality uncertainty which is why it is important to lean on trusted brands. “Trusted brands bring innovations that protect meal quality and help you exceed their expectations to build a loyal customer base,” says Kurt Richars, director of marketing and sustainability at Anchor Packaging. Manufacturers play a pivotal role in driving innovation in sustainable packaging. Teresa Leonard, head of foodservice national accounts at Huhtamaki, points out, “Operators and brands want manufacturers to innovate and develop the low-cost sustainable packaging solutions their consumers seek.” Collaborating with the right supplier can ensure reliability, innovation, transparency, efficient distribution, and a broad range of raw materials, aligning with the goals of cost-effectiveness and sustainability. Packaging plays a multifaceted role in addressing the complex challenges faced by quick-service brand operators. “Operators today must deliver consistent quality amid rising costs to more offpremise customers while providing solutions that enable their customers to act sustainably,” says Richars. Packaging not only protects food quality but also offers sustainable solutions post-use, creating value and fostering customer loyalty. Convenience and reusability are crucial aspects of sustainability. Kurt Richars further stresses the importance of making sustainability convenient for customers. “Also, understand that customers who want sustainable solutions expect restaurants to make it easy,” he

“It is very hard for packaging companies to develop new packaging solutions without close collaboration with quick-service brands and operators.” says. “Reusable containers add real value for future use. A product that remains recyclable after use makes it convenient for customers to act sustainably.” Convenience is a key driver for consumers when making sustainable choices. When pursuing sustainable solutions, it is vital to prioritize protecting the key elements that ensure food quality, including temperature, texture, and taste. “Sustainability isn’t just important to customers. It’s the right thing to do. However, when considering sustainable solutions, it’s critical to prioritize protecting the key pieces that ensure food quality: temperature, texture, and taste,” says Richars. Striking the right balance between sustainability and food quality is crucial for success. Sustainability has become an integral part of the foodservice industry, inﬂuencing both consumers and quick-service

brand operators. As consumers become more environmentally conscious, the foodservice industry must adapt to meet their expectations. Sustainable packaging is no longer an option but a necessity to attract and retain eco-conscious consumers. Quick-service brand operators must lead the charge by adopting eco-friendly packaging materials and transparently showcasing their sustainability initiatives. In doing so, they protect the environment, secure customer loyalty, and create a brighter more sustainable future for the industry. Reviewing the entire life cycle of packaging is critical, Buchberg elucidates, “Sustainability goes beyond the material used; it is all about the packaging materials source reduction, the structure and the design, and the consideration of the entire life cycle of the product.” SC

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he seismic shifts in consumer expectations and market dynamics in the post-pandemic era have positioned packaging as a pivotal element in the foodservice industry. The evolution has been profound, with consumers no longer seeing packaging as mere containers but as a critical component that preserves the quality and integrity of their food. The necessity for superior and sustainable packaging has become more pronounced, especially with the increased reliance on takeout and delivery services. Operators now find themselves navigating a labyrinth of challenges, from meeting elevated consumer expectations to reflecting brand identity accurately. “Since the COVID-19 pandemic, consumer expectations regarding packaging have dramatically shifted,” says Monica Bowser, corporate marketing manager at Genpak. “No longer an afterthought, customers now hold operators accountable for utilizing packaging that upholds the quality and integrity of takeout and delivery orders,” she says. This shift has necessitated a thorough reevaluation and reconﬁguration of packaging strategies by quick-service restaurants to align with consumer expectations and to safeguard the integrity and quality of food. Indeed, the conservation of food quality has emerged as a sustainable action, integral for reducing food waste. “Protecting food quality reduces food waste and is one of the most sustainable actions an operator can take,” says Kurt Richars, director of marketing and sustainability at Anchor Packaging. This correlation between food quality and sustainability accentuates the need for innovations in packaging that not only uphold food quality but also resonate

“Money is tight for consumers, and their expectations are high.” with ecological consciousness. In this changing landscape, consumer budgets are constrained, but their expectations are soaring. “Today, there is less margin for error,” says Richars. “Money is tight for consumers, and their expectations are high. Trusted brands bring innovations that protect meal quality and help you exceed their expectations to build a loyal customer base.” Meeting these heightened expectations necessitates an unwavering commitment to quality and innovation from brands, ensuring that the consumer experience is not compromised, even when the customer is distanced. Not only are consumer budgets tighter,

but operator budgets are as well. In the face of labor shortages and a struggling supply chain, operators need to be more cautious of price than ever before. “As a supplier to the quick-service restaurant industry, market volatility in both raw materials and transportation has, since the start of the pandemic, created many challenges,” says Rich Reutti, vice president of sales, at Continental Cup. “Prices went up during the pandemic, and, while they are now falling, they are still higher than pre-pandemic levels,” he says. Furthermore, the intelligence of the design can save operators money and time. “Consider how packaging can simplify your operations and increase profit. For example, a container closed easily with one hand shaves critical time off each order. If that container also has a clear, anti-fog lid, it increases profit by allowing staff to catch costly order errors before the food leaves the kitchen without requiring

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them to open the container and release the heat,” Richars says. Design can protect the longevity and cost associated with delivered foods. As the demand for uncompromised food quality escalates, advocacy for consumer interests is paramount. Addressing consumer needs is necessary for maintaining a loyal customer base. “Consumers are looking for packaging that can easily transport food while not compromising the quality of the food,” says Teresa Leonard, head of foodservices national accounts at Huhtamaki. “Operators should advocate on behalf of their consumers with their suppliers,” she says. Such advocacy ensures a synergistic evolution of packaging solutions that are harmonious with consumer demands, maintaining a dynamic balance between transportability and food quality. The growing trend towards convenience and ﬂexibility in the food industry is demonstrated by the rise in the delivery business model as consumers are being oﬀered a myriad of options for accessing their food. “There is much more ‘To Go’

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business than ever before, and it is spreading into fast-casual restaurants and growing even larger for quick-service restaurants,” Reutti says. “Brands are letting customers know they have multiple options for their food, be it dine-in, delivery service, or pick-up. As a result, the end user is more intimate with the packaging.” The ongoing evolution in the packaging space is characterized by a relentless pursuit of sustainability and competitive pricing while maintaining food integrity. “The packaging space is continually evolving to meet the demands of sustainable packaging that maintains food integrity at a competitive cost,” Leonard 70

NOVEMBER 2023 | SPONSORED SECTION

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says. This balancing act between costeﬀectiveness, sustainability, and food integrity propels the continual advancement of packaging solutions, making them pivotal in diﬀerentiating service providers in a competitive market. Operators have risen to the chal-

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“Consumers are looking for packaging that can easily transport food while not compromising the quality of the food.”

lenge that post-pandemic consumers demand and are credited for their relentless efforts to adapt and meet consumer needs by packaging leaders. “I give operators a great deal of credit,” says Dan Nirenberg, vice president and general manager of GP PRO foodservice cups and cutlery categories. “They are doing the best they can given what seems to be a lack of affordable, reliable, and sustainable packaging that maintains food and beverage integrity and safety while positively reflecting the restaurant’s brand.” Furthermore, the profound impact of technology on foodservice packaging is undeniable. The burgeoning of mobile orders and the incorporation of thirdparty delivery services like Uber Eats and DoorDash have necessitated a reimagining of packaging solutions. “These advancements are driving a demand for foodservice packaging that is not only convenient to carry but also highly durable,” says Mark Schlossman, executive vice president of sales and marketing at Accurate Box Company. This is imperative for meeting consumers’ multifaceted expectations surrounding convenience, durability, and organization of foodservice packaging. Consumers and delivery services have various needs from packaging. “Consumers expect foodservice packaging to fulfill a range of requirements, including being easy to carry, offering sufficient strength to securely hold their order, and keeping their food organized,” Schlossman says. “Without meeting

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the taste, presentation, and temperature of to-go food and beverages, akin to the onsite consumption experience, is escalating. “Consumers want their to-go food and beverages to look and taste the way they do Anchor Packaging

ANCHOR PACKAGING

these expectations, there’s a risk of food being tampered with and disorganized, ultimately leading to consumers being dissatisfied when opening the packaging.” Thus, the need for meticulous design and engineering of packaging solutions that address a spectrum of consumer requirements is more pressing than ever, to avoid consumer discontent and to fortify brand loyalty. Strategic alliances with reputable packaging brands are instrumental in enhancing off-premises foodservice operations. “Partnering with a trusted packaging brand ensures optimal off-premises foodservice operations. Quality packaging can differentiate a restaurant from competitive establishments, preventing leaks and

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“Quality packaging can differentiate a restaurant from competitive establishments, preventing leaks and mishaps that are out of an operator’s control.” mishaps that are out of an operator’s control,” Bowser says. This diﬀerentiation is crucial for carving a unique brand identity and ensuring consumer retention in a market teeming with competition. Consumers’ desire for consistency in 72

NOVEMBER 2023 | SPONSORED SECTION

when consumed on-site,” Nirenberg says. “They want consistency in the presentation and the temperature,” he says. This yearning for consistency underscores the signiﬁcance of packaging in replicating the in-restaurant dining experience and

maintaining consumer satisfaction. The continuing trend of preferring takeout or delivery to enjoy restaurant food at home post-COVID-19 pandemic indicates a sustained consumer interest in at-home dining experiences. “To capitalize on that continued interest, brands should make sure they use reliable, ecofriendly packaging that’s up for the challenges of delivery, transit, and improved at-home dining experience,” says Nathan Kraatz, marketing specialist at InnoPak. Embracing eco-friendly and reliable packaging is pivotal for brands to leverage this sustained interest and enhance the athome dining experience. The significance of food packaging extends beyond being a mere vessel; it is a reflection of the brand. “Your food’s packaging is an extension of your brand,” Kraatz says. “In some cases even, your customer’s first interaction with your brand is going to be receiving the packaging from a delivery driver.” This perspective makes it imperative for brands to invest in packaging that accurately represents their identity and values, as it could be the first point of interaction with the consumer. Yet, amidst these evolving dynamics, the essence of food remains unchanged. “What hasn’t changed is the food is still the star,” Richars says. “The first bite’s temperature, texture, and taste are critical parts of getting a repeat order. For more and more customers, that first bite will also be their first encounter with your brand. You can deliver what your chef intended with the right packaging.” The amalgamation of consumer expectations, sustainability, technology, and innovation is reshaping the industry’s approach to delivering sublime food experiences. The future of foodservice packaging is teetering on the brink of transformation, promising a new epoch marked by ecological responsibility, consumer satisfaction, and brand loyalty. Balancing these elements is key for operators and brands in navigating the intricate web of consumer demands and market dynamics, ensuring the delivery of unparalleled food experiences that resonate with brand SC identity and values.

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Accurate Box Company is one of the largest independent box manufacturers of litholaminated corrugated packaging in the United States. Founded in 1944 as a small family-owned box manufacturer, it is now a fourth-generation, women-owned business that manufactures in New Jersey and ships competitively throughout all of North America.

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GP PRO makes products used in commercial and industrial restrooms, break rooms, and foodservice settings. You’ve probably seen and used our products in office buildings, restaurants, stadiums, and airports across the country. Some of our well-known brands include ActiveAire®, Angel Soft® Professional Series, Brawny®, Compact®, Dixie®, enMotion®, and Pacific Blue™.

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DEPARTMENT

OUTSIDE INSIGHTS

The Power of Gig Workers They increase operational efficiency while lowering turnover costs. BY STARR DOUG L AS

ADOBE STOCK / ARTEM VARNITSIN

he hospitality industry is extremely fast-paced, and restaurants must face persistent challenges with strong determination, will, and competitive advantage. The average lifespan of a restaurant is shortlived, with a vast majority of new venues closing their doors within their first year of operations. Of those who remain, there is a 70 percent chance that they will close within the next three to five years. These statistics have always lingered in the industry, discouraging potential restaurant owners from chasing their dreams. The good news is that there is a high probability that a restaurant will remain in business after its first five years of operations—it just has to survive until then. And luckily, there is an all-inclusive answer to the high turnover that created these statistics in the first place: the gig economy. The Gig Economy: Redefining Workforce Flexibility Freelancers are becoming more prevalent in society. Now, those with a highly demanded skill do not have to tie themselves down to just one opportunity. With the growth of the gig economy in the hospitality industry, gig work has synchronized with the traditional job market, offering a specialized workforce without the need for onboarding or onsite training. Historically, following a traditional staffing model in hospitality has been an ineffective practice, as the industry has consistently championed exceedingly high turnover rates, leading to tens of thousands of dollars lost each month in turnover costs. Now, there is a solution that will save restaurants from burning through their bottom line and, instead, allow them to keep their doors open. The gig economy empowers individuals to offer their skills and experience in the form of “gigs,” in addition to their regular employment, all at their leisure. This increases operational efficiency and lowers turnover costs for the venues where the gigs take place, creating a mutually beneficial situation for both sides. The Power of Gig Workers in High-Volume Shifts Gig work is essential for restaurants to get the help they need, when they need it most, without having to catch someone up to speed. Here are the powerful benefits of contracting gig workers:

Freelancers are becoming a bigger part of the economy.

Flexibility and On-Demand Access Scheduling high-volume shifts involves long lead times and fixed commitments from regular employees, which can cause problems. Regularly scheduled 40-hour work weeks are unheard of in the hospitality industry, and a large percentage of shifts end up being assigned at the last minute. Since the gig economy offers staffing assistance on demand, restaurants can remain flexible and prepared, having gained access to a talented pool of candidates who are available on short notice. This is especially beneficial if they find themselves needing to staff an impromptu BEO, an overbooked Saturday night, or even a simple call-out. Replacing Subpar Team Members Due to labor shortages, restaurant managers and owners may feel like they don’t have much control over who gets to be on their team. Some employees may be underperforming, yet managers usually hesitate to let them go, facing concerns about being understaffed without them. www.qsrmagazine.com | QSR | NOVEMBER 2023

OUTSIDE INSIGHTS / CONTINUED FROM PAGE 75

Reducing Turnover Costs The Center for Hospitality Research estimates that the cost of turnover per employee is well over $5,000, with the majority of the cost being productivity loss. Of course, this can be much higher if restaurants are consistently unable to find quality team members, creating a vicious cycle of training and turnover. Embracing gig workers significantly cuts turnover costs, especially in times of vacancy. These costs theoretically could be nullified altogether if managers had enough time to search for candidates without feeling pressured to accept the first person who applied for the role. Eliminating Instances of Low Productivity In this industry, productivity can suffer for various reasons. For example, an unspecialized workforce may have low productivity not due to skill issues but because of a lack of motivation. Gig workers can inspire the workforce and unify the team of inhouse employees by bringing passion for the industry back into the workplace. Keeping a full staff on hand also brings down productivity. Underutilized resources can become apparent during slower periods, as they clearly reveal who is (and isn’t) pulling their weight on the team. By keeping the workforce flexible and on-demand, managers can eliminate and/or allocate resources as needed.

Preventing Existing Employees from Feeling Overworked In most successful restaurants, there usually are a handful of team members who excel at their job and display loyalty to the brand. Keeping the workforce lean and relying heavily on these employees may temporarily be great for revenue, but it eventually causes burnout and stress, leading to resentment and turnover over time. It is well-known that internal employee satisfaction is highly correlated with profits. The gig economy enables top performers to rest and take time off, and it helps increase overall job satisfaction. Embracing the Gig Economy for Sustainable Growth The gig economy has propelled the hospitality industry to be even more dynamic, and it has also enabled new strategies for driving restaurant growth. By ensuring that all of their high-volume shifts remain covered without exhausting their in-house staff, managers can maintain optimal service levels and unlock their full potential through both employee and guest satisfaction. The agility offered by an on-demand workforce helps restaurants in the quick-service industry adapt to changing business demands seamlessly by providing a cost-effective solution to high turnover costs, staffing fluctuations, extended hours, and employee burnout. With specialized gig platforms, restaurants can adopt sustainable growth and a competitive edge in an evolving industry. Starr Douglas is the CEO and founder of FrontHouz, an innovative solution for front-of-house restaurant staffing.

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NOVEMBER 2023 | QSR | www.qsrmagazine.com

DEPARTMENT

OPERATIONS

Youthful Entrepreneurship Up-and-coming franchisees are proving that age isn’t an obstacle to effectively running restaurants. BY SAT YNE DONE R

CAPTAIN D’S, KK CORPORATION, McALISTER’S

he path to success in the restaurant industry is rarely linear. Nonetheless, the entrepreneurial spirit currently emerging is extensive, especially among younger generations looking to gain their foothold. New talent is emerging from every corner of the quick-service space, like Captain D’s, Subway, and McAlister’s, all of which have top franchisees who fall under the age of 35. Anil Dossani began franchising with Captain D’s, a leading fast-casual seafood chain, in 2018 and operates five units in the Atlanta area. He has explored every prototype the brand has to offer—from express to traditional—and continues to grow in his community. In his early 20s, he got his foot in the door with Steak ‘n Shake. Looking back even further, it’s really his parents who inspired him to start franchising. Immigrating from Pakistan to the U.S. was a challenge for Dossani’s parents, but restaurants provided them with a starting point for the rest of their lives. His parents began as dishwashers in local restaurants and worked their way up to being multi-unit operators. “The restaurant industry is the most forgiving one in the world,” Dossani says. “My parents are a true testament to this … it gave them a chance to have a better future for their kids.” From his parents’ first restaurant to their first gas station, Dossani always helped, mopping bathrooms and sweeping floors. He felt as though he had a keen business sense due to his upbringing, and in his early college days, he thought he would go into real estate. “But I always ended up somehow going back towards restaurants,” Dossani adds. “There’s something about just being able to be around people and stand behind a brand with great qualities.” Two pillars that have guided his success in franchising from an early age are staying humble and not getting ahead of himself. He says his work ethic has not changed, no matter his age. At first, as a 23-year-old opening a $2 million restaurant, he experienced a lot of doubt and a lot of questions, but he never let it stop him. “It’s a driving factor for me … now, I’m one of the youngest franchisees on the [Captain D’s] board, and a lot of these guys have been with the company for 20-plus years,” Dossani says. “Ultimately it gives us the best of both worlds.”

Anil Dossani (left), Kesuv Kash Aggarwal (top right), and Taral Patel are young, but driven.

Keshuv Kash Aggarwal, president of KK Corporation, grew up similarly to Dossani, with the entrepreneurial flame lit by his mother, Renu Aggarwal. Renu founded KK Corporation in 1997 when she purchased her first Subway restaurant in Houston. Aggarwal began working as a store manager at 16 years old. Since taking over the company in 2019 he has become a big player in the Subway system, with 146 units. Most of those locations are in Houston, apart from 11 in upstate New York. He always wanted to be a 100-plus unit operator and a leader of people. Aggarwal says it’s special to find passion at an early age. The same fervor led him to where he is today. Operating through the pandemic, especially early in his leadership role, was an obstacle, but Aggarwal borrowed lessons he learned from Hurricane Harvey back in 2017. “During the hurricanes and COVID-19, we tried to supply as much support as possible to our staff and our guests,” Aggarwal says. “When Hurricane Harvey happened, I took a kayak to get to one of the stores … we gave away food and funds … we wanted to [CONTINUED ON PAGE 78] take care of everyone on a better level.” www.qsrmagazine.com | QSR | NOVEMBER 2023

ONES TO WATCH / CONTINUED FROM PAGE 16

FRANCHISE FORWARD / CONTINUED FROM PAGE 18

OPERATIONS / CONTINUED FROM PAGE 77

easy to find a good location and convince landlords to rent us prime real estate,” Frangulis says. “We had to really endure in the beginning in order for people to understand that we’re a serious brand with serious expansion plans, and this is actually where we plan to operate from and where we’re going to have our headquarters.” OAKBERRY this summer enlisted two quick-service veterans to help accelerate franchise expansion in the U.S. and guide the business through its next chapter of growth. Former Popeyes CMO Bruno Cardinali was tapped to head up global marketing. Leandro Gasparin, who previously oversaw the chicken chain’s franchise operations, was brought on to lead the brand’s North American business. Layouts and processes are optimized to maximize labor efficiency. The average shift requires just one person on the clock, with peak hours typically requiring no more than three employees. “The more I learned about the business, the more I realized this is something I can scale really quickly,” Gasparin says. “I’m not here to open 40 stores per year. That’s a great accomplishment when we’re just getting started, but we want much more than that. The U.S. market is huge, and we’re working hard to have several hundred stores in the near future.” For his part, Cardinali was drawn to OAKBERRY’s strong branding and laserlike focus on quality and consistency. The brand uses organic açai pulp, organic brown sugar, and organic blue agave syrup in its products. It hasn’t altered the proprietary recipe that Frangulis developed when he opened the first shop seven years ago. Another point of difference is the fact that every bowl served at every location comes directly from the same factory in Brazil. The supply chain is fully verticalized, which helps the brand maintain consistent quality. “Açai is native to the Amazonian region, so it encourages economic growth and encourages local communities to preserve the environment,” Frangulis says. “With a fully controlled and fully monitored supply chain, I think we’re the only brand that’s 100 percent sure we’ll have enough supply to support our growth.”

the corporate workforce. However, since Noodles is specifically targeting existing restaurant operators, its franchise offering becomes more susceptible to the industry’s ebb and flow. “Our target audience [existing operators] were running restaurants and experiencing sales declines because of inflation issues, therefore these people who would be our potential franchisees were slowing down their growth,” Ramsay says. Moving forward into 2023, Ramsay is noticing the trend shift back into favor. There’s low unemployment, people are less likely to jump ship in the corporate world, and existing franchise operators are coming back into the game looking for opportunities to grow. “We are not going into a recession. Now it is time [for operators] to start thinking about growing their portfolios and adding another brand to grow within these new markets,” Ramsay adds. Noodles is offering franchisees a model with simple operations, average net sales of over $1.3 million, and an integrated tech stack aimed at reducing both labor and paper waste. Ideal owners have existing restaurant experience, goals for multiple units, and a taste for inclusivity and collaboration. The “under the rainbow” strategy is beginning to show results. In mid-August, Paven and Navi Sandhu signed a franchise agreement with Noodles to open four new restaurants in Arkansas. Additionally, seasoned restauranteur Syed Ahmad inked a deal to bring 20 units to the Dallas area. This news comes on the heels of a multipoint plan to combat traffic declines in existing restaurants. Advancements in technology, investments in third-party internal research, and a focus on catering are all aimed at putting the company in a better position to finish the year strong. As of mid-September, Noodles had 460plus restaurants and Ramsay has his sights on 2,000 in the next 10 to 15 years. This puts the company at a 5 to 7 percent uptick per year, between 20 and 30 new units. He hopes the streamlined expansion strategies and franchise program debut will ramp up expansion in a tasteful way.

With the pandemic in the rearview, Aggarwal and Subway have been on an upward trajectory, with 10 consecutive quarters of positive same-store sales as of July. The young franchisee has goals of expanding, not just in unit counts but also in his team. He is set on taking the company to new heights through leadership seminars and an emphasis on education and fun. He is optimistic about the future of Subway, with recent menu innovations such as the Subway Series and Deli Heroes. “You have to be aggressive in transformation, and as a franchisee, you have to be very adaptable to the change,” Aggarwal comments. “I have to be okay with that. If you are adaptable as a franchisee, you will grow.” At 21 years old, Taral Patel joined the franchising world while pursuing his master’s degree in finance. The young entrepreneur owns one McAlister’s, a fastcasual restaurant under Focus Brands. A third-generation hotelier, Patel was deeply inspired by his parents’ love for hospitality. He always knew he wanted to own a business and was introduced to McAlister’s by a friend. Patel quickly became interested in the revenue, brand, and operations. His first unit opened in February with 75 employees, significantly higher than systemwide averages. He learned the importance of a formidable team from his parents, who believed in a positive, robust work culture. Patel cherishes the hands-on experience of operating the business, something years of schooling could not offer him. According to Patel, running the McAlister’s has taught him patience and time management. Even while still in school, Patel is working in the front and back of house at least three days a week to support his team. He’s locked in with McAlister’s, with a second deal inked for a unit in Somerset, Kentucky. Patel continues to have a hand in the hotel industry, as well. Similar to Dossani and Aggarwal, he does not let discouragement cloud his vision—he lets the challenges fuel him. “When it comes to [franchising] and starting a business, being passionate is the biggest thing,” Patel says.

Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com.

Satyne Doner is a staff writer at QSR. She can be reached at sdoner@ wthwmedia.com.

NOVEMBER 2023 | QSR | www.qsrmagazine.com

For more information on these companies, visit www.QSRmagazine.com/connect/

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Frank’s Red Hot......................................17 800-322-7742 | McCormickForChefs.com/Franks

Galardi Group................Inside Back Cover 714-423-6171 | wienerschnitzelfranchise.com

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Continental Cup..................................69 804-238-1399 | continentalcup.com

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GreenDustries..................................... 61 347-699-2468 | pleatpak.com

Huhtamaki.......................................... 57 800-244-6382 | Huhtamaki.com

InnoPak............................................. 59 800-INNOPAK | innopak.com

Hooters of America.................................3 770-526-9647 | hootersfranchise.com

I3 international..................................... 19 866-840-0004 X 154 | i3International.com

Jersey Mike’s........................................25 732-292-8272 | jerseymikes.com

Loomis..................................................29 713-435-6700 | loomis.us

North American Bancard....................... 33 866-481-4604 | NYNAB.com

Pickleman’s Gourmet Cafe.....................76 970-690-3601 | Picklemansfranchising.com

Pepper Lunch........................................ 31 pepperlunchrestaurants.com

Red Gold.................................................9 866-729-7187 Redgoldfoodservice.com/sample-requests

RF Technologies............................. 5,11,79 800-598-2370 | rfdrivethru.com

Shortening Shuttle................................ 41 800-533-5711 | Shortening-Shuttle.com

Slim Chickens...........................Back Cover 630-300-4798 | slimchickensfranchise.com

VITO Fryfilter........................................87 847-859-0398 | vitofryfilter.com

Watchfire Signs.......................................6 844-805-8880 | watchfiresigns.com

WinCup.............................................14-15 VioFoam.com

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Andrew Pudalov Founder and CEO RUSH BOWLS

What was your first job? I landed my first job when I was 15 years old. I cleaned an office building, which required me to vacuum floors, scrub bathrooms and wash desks. Years later after graduating college, my first professional job was a management trainee for Bear Stearns.

What’s your favorite cuisine aside from Rush Bowls? As a native New Yorker, incredible food was easy to find. I always favored Italian and French cuisine. A delicious chicken parmesan definitely tops my list. Who inspires you as a leader? I am extremely inspired by my team. They are deeply committed to expand our vision, to learn, to build and to execute in order to collectively reach our objectives. What’s the best piece of advice that other restaurant executives should hear? The restaurant industry is challenging, so persistence and community outreach are key. What are some of your interests outside of work? I enjoy traveling, reading, skiing, hiking, and diving. I also like spending my time assisting in the development of other entrepreneurs via the Ben Network and Silicon Flatirons.

he impact of September 11 was felt around the world. I was one of the lucky ones— not physically harmed but also not without consequence. Life in NYC after that fateful day was never the same. I had spent many successful years as an Institutional Derivatives Trader, but the appeal began to wane. I yearned for a change. In 2004, my wife and I, and our two young children, relocated to Colorado. I made a 360-degree turn in my career to focus on a new mission—establishing a dynamic business that provided quick, nutritious meals on-the-go. Rush Bowls began as the area’s first all-natural bowl/ smoothie bar that offered a healthy alternative to common college fare. We swiftly became a popular destination among both students and Boulder residents. Once we began franchising, I enjoyed seeing franchisees with different backgrounds and in different cities all embracing Rush Bowls and believing in our mission. With a passion and appreciation for entrepreneurship, it’s been a

NOVEMBER 2023 | QSR | www.qsrmagazine.com

blessing to see new locations open and create successful local fanbases. Ultimately, improving access to healthy food for communities, both small and large, across the country is our goal. When I first launched Rush Bowls, I could not fathom how large our brand would become. There was a steep learning curve, but gradually, it became crystal clear that this new venture posed a significant opportunity. The business has enjoyed brisk, steady growth and today, we have an expanding franchise system in 22 states, with over 45 stores open and 100 more in development. One of our key differentiators and a quality I’m very proud of is our ability to handle almost any allergy or dietary restriction. That’s all possible due to our bowls and smoothies being made to order. We also don’t use any pre-made scoops of sorbet or filler products as the base. Instead, we use real, flash-frozen fruit. Guests can see what they eat, from beginning to end with transparent ingredients, and they love the taste, embrace our brand and keep coming back for more.

RUSH BOWLS

What’s your favorite menu item at Rush Bowls? It’s hard for me to choose, since I love many of our bowls and smoothies. If I had to pick just one, it would be our Summit Bowl—a blend of acai, cherries, strawberries and raspberries—which I’d top with extra honey.

hot dogs: the missing link in your market

Hot Dogs, Hot Profits!

Exceptionally Low Cost-of-Goods 4-years of Discounted Royalties, First 3-Stores $20,000 Direct Local Marketing Spend ** Own a category that’s not Burgers, Chicken, Tacos or Pizza!

Call ted

Director of Franchise Development

(714) 423-6171 tmilburn@galardigroup.com

wienerschnitzelfranchise.com

*AUV refers to average unit volume of unaudited gross sales shared by the top 25% of 303 Wienerschnitzel restaurants open for the entire calendar year of 2022. Your estimated sales and operating costs can and will vary. This information is not an offer to sell you a franchise. We will not offer you a franchise until such time we have complied with FTC disclosure requirements, and you have met our application and pre-approval process to be awarded a franchise license. Please read Item 19 in our Franchise Disclosure Document. **New franchisees must pay initial franchise fees and meet development schedule to achieve incentives. Qualified candidates and domestic U.S. markets will be reviewed on a case-by-case basis. These incentives are only available for franchising in the United States. Please request our Franchise Disclosure Document for terms and conditions on this limited-time, limited-incentive offer.

BREAKTHROUGH BRAND.

Breathtaking Numbers.

WHY FRANCHISE WITH US? 245+ Locations, 45+ International Three Year Comp. Store Sales Increase of 48.7%

$3.8M AUV *AUV OF GROUP #1 IN THE 2022 FDD ITEM 19

Systemwide Y.O.Y Growth of 35% Strong Unit Economics

1,100+ Units in Development Ground-Up & Conversion Options

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2023 Top 400+ List

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Excellent Branding

jackie@slimchickens.com

(630) 300-4798 300-4798