FSR March 2023

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ED I TOR I A L

E D I T O R I A L D I R E C T O R Danny Klein dklein@wtwhmedia.com Q S R E D I T O R Ben Coley bcoley@wtwhmedia.com F S R E D I T O R Callie Evergreen cevergreen@wtwhmedia.com A S S O C I A T E E D I T O R Sam Danley sdanley@wtwhmedia.com D I R E C T O R O F C U S T O M C O N T E N T Peggy Carouthers pcarouthers@wtwhmedia.com C U S T O M C O N T E N T A S S O C I A T E E D I T O R Charlie Pogacar cpogacar@wtwhmedia.com C U S T O M C O N T E N T A S S O C I A T E E D I T O R Kara Phelps kphelps@wtwhmedia.com A R T D I R E C T O R Tory Bartelt tbartelt@wtwhmedia.com A R T D I R E C T O R Erica Naftolowitz enaftolowitz@wtwhmedia.com P R O D U C T I O N M A N A G E R Mitch Avery mavery@wtwhmedia.com gsanders@wtwhmedia.com N A T I O N A L S A L E S D I R E C T O R Eugene Drezner edrezner@wtwhmedia.com 919-945-0705 N A T I O N A L S A L E S M A N A G E R Edward Richards erichards@wtwhmedia.com 919-945-0714 N A T I O N A L S A L E S M A N A G E R Amber Dobsovic adobsovic@wtwhmedia.com 919-945-0712 N A T I O N A L S A L E S M A N A G E R John Krueger jkrueger@wtwhmedia.com 919-945-0728 S A L E S S U P P O R T A N D D I R E C T O R Y S A L E S Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704 CUSTOM MED I A STUD I O DES I GN & PRODUCT I ON SA L ES & BUS I NESS DE VE LOPMENT G R O U P P U B L I S H E R Greg Sanders

A Collection of Minds (Literally)

Come join us in September for two conferences we hope will take the entire industry forward.

and The NextGen Restaurant Summit (full-service emerging chains). They will both take place September 6–7 in the Buckhead district of Georgia (head to our websites to learn more). We’ve put together an agenda of more than 100 speakers address ing topics from is the POS dead, to ghost kitchens to what makes a best franchise, employer, eatertain ment concept, and far more. We’ll also present a collection of fireside chats to illuminate stories behind the curtain—from CAVA to Dickey’s to Firehouse to Chipotle to Subway to First Watch, and, as before, a lot more. Chick-fil-A CEO Andrew Cathy will kick off the opening keynote and we’ll get the show started. Personally, this was the first time I’ve had a hand in planning an event of this scale. That’s probably a comical understatement. But many of those nerves dropped over a steak dinner with an industry friend, Jack in the Box VP of franchise recruitment Van Ingram. He was the first outside person I let in on our plans. His response was something along the lines of, “our industry is looking for this kind of deal.” He thought people would gravitate toward it, three-plus years removed from COVID, ready to share ideas again. And he was right. There are so many threads of chal lenges and opportunities to address today, across both sides of segment lines. To me, 2023 is a year where we all need to catch our breath from breathless innovation and find real solutions to meet demand in every channel, through all avenues. So let’s do that together. I hope you’ll join us in September.

This is our thirdyear of publishing a “crossover” issue between QSR and FSR . We always approach the concept from a base—what trends and realities separate the full- and quick-service worlds? And which bind them? Or, spun differently, has the pandemic brought these arenas closer together or further apart? Like many points in foodservice, you can’t broad-stroke the answer. There is truth in both (thanks mostly to technology) and yet, COVID did accomplish something the customer was already pushing pre-2020: it all but evaporated the middle ground. This long-ago idea of embracing millennials by trying to appease everyone—“all things to all people”—has vanished. Category wise, it brings us to a place where experiential brands and experience driven ones thrive as murky ones struggle. However, what innovation taught operators amid the crisis is you don’t have to sacrifice one for the sake of the other. You can bring hospitality to the drive-thru window just as you can the table. And maybe that’s the cost to entry now. Yet with all of this in mind, I want to take you back a fewmonths to a pivotal moment for us here at QSR and FSR . We transitioned to the WTWHMedia family of brands officially in September. One of the first things we set course on was to host a conference dedicated to the future of restaurants. So naturally, this progressed into a vision where everything comes together in an effort to foster collective evolution; a place where one operator can learn from another, and one category from a completely different one. Starting this month, we opened registration for two conferences: QSR Evolution

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INDUSTRY-WIDE ISSUE

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C O N T E N T S

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C H E F S & I N G R E D I E N T S 16 THE GREAT CHICKEN SANDWICH ERA

F E A T U R E S

IS HERE TO STAY How fried chicken sandwiches evolved beyond flash-in-the-pan trend to a menu mainstay at both full- and quick service brands. BY CALLIE EVERGREEN

The Fabio of Foodservice BY NICOLE DUNCAN

17 HAS HAPPY HOUR SOURED? Even in an age of telecommuting, restaurants are betting on the post-work daypart. BY NICOLE DUNCAN 24 THE STYLIST’S SECRET SAUCE How Gocha Hawkins went

Fabio Viviani won viewer hearts on ‘Top Chef’ and has since built a restaurant empire. Now he’s plotting his biggest business endeavor to date.

from styling celebrities’ hair to building a restaurant portfolio. BY NICOLE DUNCAN

D E P A R T M E N T S 32 ONES TO WATCH: BRIX HOLDINGS

A multi-platform operator is injecting life—and growth—back into a category icon. BY BEN COLEY 36 PROFIT AND EXPERIENCE, HAND IN HAND Can server handhelds unlock faster service and happier guests? BY GARY STERN 45 EQUITABLE PATHWAYS TO OWNERSHIP How can the franchise industry break barriers and unlock opportunities for marginalized entrepreneurs to become owners? BY CALLIE EVERGREEN 107 GAMING THE SYSTEM Dog Haus is making the onboarding experience more tech-forward and interactive. BY ISABELLA SHERK 110 INNOVATION ON DISPLAY The KDS, while hardly new to the industry, has reemerged into the operational spotlight. BY KEVIN HARDY

113 DELIVERY, AND THE

BATTLE FOR CONTROL The need is not going away, so there must be a better solution. BY CHRIS BAGGOTT

120 START TO FINISH:

CLIFTON RUTLEDGE The CEO of Shipley Do-Nuts is leading a turnaround at the legacy snack brand.

FABIO VIVIANI HOSPITALITY

60 The Fast-Food Dining Room Lives On BY DANNY KLEIN

76 NextGen Casual Blurs Lines and Breaks Rules BY CALLIE EVERGREEN

Reports of its demise appear greatly exaggerated. But that doesn’t mean it hasn’t evolved.

From drive-thrus and QR codes to virtual food halls, the lines dividing full-service restaurants from quick service concepts continue to blur.

O N T H E C O V E R Fabio Viviani’s restaurant group covers all segments and approaches. PHOTOGRAPHY: OCTAVIO JONES / TAMPA BAY TIMES / FABIO VIVIANI HOSPITALITY

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F E AT UR E D S U P P L EME N T S :

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ON THE GO

The Chef and the Fridge

VIVIAN HOWARD RECENTLY LAUNCHED “SMART REFRIGERATOR EXTENSIONS” OF HER FLAGSHIP CONCEPT.

VivianHoward’s new venture expands her market reach and offers betterwork-life balance. BY NICOLE DUNCAN

Described as “smart refrigerator extensions” of her f lagship concept, Chef & the Farmer, the offerings are a far cry from the coffee and tuna sand wich–slinging automats of yore. The selection rotates based on the season and available ingredients. Over the holidays, options ranged from appe tizers to desserts, breakfast to dinner, with dishes like Party Magnet Cheese ball, Does Not Disappoint Breakfast Casserole, Sweet Potato and Turkey Shepherd’s Pie, and Chocolate Candy Cake Cake. “Part of what is so appealing about the model is its scalability. It made sense to expand to larger cities within driving distance of Chef & the Farmer,

 VIVIAN HOWARD

where we produce the food for the fridges,” Howard says. “After expand ing across Eastern North Carolina, the [Raleigh-Durham] Triangle was the obvious next step. People have been so enthusiastic and supportive. It’s not uncommon for the fridges to sell out several times a day.” Before the Great Recession, most chefs didn’t venture beyond a restau rant’s four walls. But the economic fallout triggered a much-needed shift

QSR FSR

VivianHoward is ready to cool it—lit erally. Last summer, the award-winning chef, restaurateur, cookbook author, and television star launched Viv’s Fridge, essentially a refrigerator vend ing machine, and in less than a year, it’s grown to seven locations across North Carolina, with two more debuting soon.

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ON T H E GO

in mindset for foodservice leaders and innova tors. Chefs began experimenting in smaller spaces and on tighter budgets, leading to the rise of chef driven food trucks and fast casuals. Years later, the pandemic precipitated another shift of sorts, as operators hunkered down on off-premises programs. For elevated, sit-down concepts, like Chef & the Farmer, the process was more involved and the outcome less certain. “When the pandemic hit and we had to close for two weeks, I wondered if we’d be able to reopen because we didn’t have enough savings to sustain us,” Howard says. “I realized that a smart refrig erator or freezer serving restaurant-quality food could be a way forward.” Even before COVID pounded the hospital ity sector, Howard noticed an unsettling trend: talented and valued cooks were leaving the res taurant because they wanted daytime shifts and

more time with their families. “I started thinking about how the restaurant model is broken. It is such a hard business. It is difficult to make money,” she says. While not a panacea, Viv’s Fridge does offer a solution in terms of work-life balance. Cooks who want consistent, daytime shifts can focus on preparing the fresh-made meals featured in the fridges. As the concept’s footprint grows, job opportunities will scale in tandem. Chef & the Farmer has been under renovations since last summer and when it reopens, staff will have more f lexibility than ever. “My hope when I reopen this summer is to only be open Thursday to Sunday so that the kitchen staff work fewer nights and have set days off. For those who don’t want to work at night, they can get more day-time hours by cooking for Viv’s Fridge,” she says. Howard first came into the spotlight a decade ago through the PBS documentary-style series, “A Chef ’s Life,” which she co-created and starred in alongside husband and business partner Ben Knight. The show, which ran for f ive seasons, earned a Peabody Award for what the board of jurors called “its refreshingly unsensational depic tion of life and work in a modern restaurant.” Since, Howard has written two cookbooks and opened three more brick-and-mortar restaurants in Wilmington, North Carolina, and Charleston, South Carolina. Like many proprietors, she didn’t go through 2020 unscathed. According to reporting from The New Bern Sun Journal, Chef & the Farmer had to lay off about 50 employees when COVID struck, while Howard’s other Kinston concept, Boiler Room, closed permanently. Despite these setbacks, she remains com mitted to full-service, dine-in experiences, as evidenced by the fact Lenoir, her second restau rant in Charleston, opened just months after the Boiler Room shuttered. Now, Viv’s Fridge rep resents an opportunity to not only expand her market reach but also ensure a more shored-up business model as her empire continues to expand. “It’s a low-cost way to make better use of the investments we already made in our kitchen and our staf f. It allows you to earn revenue without expanding your footprint and without really taking on much overhead,” she says. “By diversifying the income streams, the restaurant is better able to weather the next pandemic or another emergency.” 

HOWARD’S CULINARY TOUCH CARRIES THROUGH FORMATS. 

“When the pandemic hit and we had to

close for two weeks, I wondered if we’d be able to reopen because we didn’t have enough savings to sustain us. I realized that a smart refrigerator or freezer serving restaurant-quality

food could be a way forward.”

BAXTER MILLER (4)

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MARCH 2023

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ON T H E GO

Over the summer, Texas Roadhouse CEO Jerry Morgan informed investors the brand’s “historical seasonal sales trends” were back in the mix. It marked really the first time since COVID’s arrival the steakhouse chain could say so. Essentially, it began to prepare for back-to-school and typical routines—things that vanished fromMarch 2020 forward. Has this maintained? Insights platformWisevoter released its Dining Recovery Index to illustrate how the dining industry fared during the holiday season. It examined the change in percentage of visits for restaurants compared to 2022 on its educational platform.

A focus on casual dining (States ranked in order of increase in visits by percentage during holidays compared to December 2020)

The Dine-In Balance This return of in-store casual visits has recalibrated the field. According to Q4 data from Revenue Management Solutions, dine-in traffic (plus 31.1 percent)

Dine-in Traffic  31 %

6. Alaska: 77 % 7. Michigan: 75 % 8. New Hampshire: 66 % 9. Oregon: 66 % 10. Kentucky: 64 %

1. Colorado: 91 % 2. NewMexico: 90 % 3. Vermont: 88 % 4. Minnesota: 85 % 5. Illinois: 83 %

11. Rhode Island: 61 % 12. California: 60 % 13. Washington: 59 % 14. Maine: 58 % 15. Massachusetts: 55 %

saw the most considerable increase compared to last year. Drive-thru was down 12.2 percent, year-over-year, yet has remained stable throughout 2022. Some other stats (per RMS) : • Takeout traffic was up 22.1 percent. • Delivery traffic was also positive year-over-year at 15.9 percent, but performance slightly declined compared to Q3 2022 (20.1 percent). • Quick service was the top segment choice. When asked about the category they were using “more or much more,” over 40 percent of respondents said quick service as compared to coffee shops, breakfast restaurants, and full service.

The biggest takeaway?

Loyal Frequent Customers 10 + restaurant visits per week

“Operators should concentrate on loyal, frequent customers as they fight for market share. In the deep dive survey, respondents reporting 10-plus restaurant visits per week were twice as likely to increase their future usage across all channels,” RMS said.

Breaking out Colorado returned an interesting juxtaposition:

Change in visits to restaurants: 91 %

Change in visits to grocery stores: 0 %

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MARCH 2023

S P O N S O R E D B Y P A P E R C H A S E

What Insights Are Hiding Behind Your Numbers? What fast-casual and fine-dining restaurants can teach each other.

tor of U.S. business development at Paperchase. Paperchase specializes in working with restaurant brands ranging from quick-service restaurants to fine dining, tailor ing reports to specific aspects of business operations for each client. The consultancy is known for its mastery of day-to-day financial operations, as well as the breadth and frequency of reporting, which allows clients like Le Pain Quotidien and Zuma to make agile business decisions. Its decades of indus try specialization allows for much more detailed reports that are focused toward restaurant operations. In addition to the standard monthly balance sheet and P&L statements, Paperchase technology reconciles data from dining-specific sources such as vendors, POS systems, and third-party delivery to provide reporting by the week, day, or hour. Its weekly reporting provides comparative data analyz ing a restaurant’s top performing areas, KPIs such as cost of goods sold, and critical labor analysis. “The weekly reporting of our key metrics has been instru mental for our teams making the necessary adjustments that are needed at a restaurant day to day,” says Patrice Leys, CEO of Five Guys NY. “Their attention to detail and familiarity with the foodservice industry continue to be an advantage for our growth as an organization.” One area that Paperchase’s specialized team of experts highlight in analysis meetings with clients are comped and voided items. Paper chase accountants encourage clients with high percentages in these areas to investigate the underlying reasons for comps and voids. This typically reveals valuable insights about the business, like the need for greater training for servers—or something more nefarious, such as theft. “What is most interesting are the stories that lie behind the numbers,” Moxhay says. “We don’t just rely on technology to give the reporting, we have a team that analyzes the data and can highlight areas in the restaurant that need improve ment or present overlooked opportunities. This level of insight helps restaurant brands grow and expand.” • » To learn more, visit pchase.com.

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BY DAVINA VAN BUREN For decades, many fine dining opera tors viewed restaurants as a creative space rather than a profit center. But the tumultuous past few years have brought dra matic changes in the labor pool, supply chain, off-premise

dining, and inflation, resulting in an increased need for high-end restaurants to monitor their bottom line. Fast-casual and quick-serve res taurants, on the other hand, have always kept profits top of mind. Luxury concepts want to know which days and shifts the restaurant operates at peak effi ciency, and know they must pay higher wages

“What is most interesting are the stories that lie behind the numbers.”

to retain skilled staff. From their fine dining counterparts, fast casuals can learn to streamline business on days or areas that may not be as profitable, and the impact of loyal staff and stellar service on customer retention. Both types of res taurants—especially those in strong growth mode—must be hyper-attuned to what is happening inside the restaurant. “Whilemost restaurants can pull reports frompoint-of-sale, third-party delivery platforms, and other payment avenues, that information doesn’t convey the full financial picture due to the nature of siloed or antiquated technology. Nor does it address the cost side of the ledger,” says Chris Moxhay, direc

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Chefs & Ingredients

IN THE END, THE SO-CALLED “CHICKEN SANDWICH WARS” ELEVATED THE CATEGORY INDUSTRY-WIDE.

The Great Chicken Sandwich Era is Here to Stay

The restaurant world became a different place in 2019 when fried chicken sandwiches rose to a never-before-seen level of promi nence. The craze was ignited by an epic battle among quick-service chains, each trying to prove their respective sandwich was supe rior in a marketing trend known as “The Chicken Sandwich Wars.” Four years and one industry-shaking pandemic later, consumer interest in battered and fried chicken between two buns has con tinued unabated; full-service restaurants are even cashing in on the trend with elevated adaptations of the product.

How fried chicken sandwiches evolved beyond flash-in-the-pan trend to amenumainstay at both full- and quick-service restaurants. BY CALLIE EVERGREEN

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C H E F S & I NG R E D I EN T S

As a primarily bone-in chicken and tenders purveyor, Popeyes wasn’t sure what to expect when it introduced a fried chicken sandwich in August 2019—especially after spending three years developing the product and conduct ing market tests. With a buttery brioche bun, tangy mayo, crisp pickles, and seasoned chicken breast, the brand thought it had a winner on its hands. The response was a game-changer for the chain, which sold out of the new menu item in a matter of days. “It was not a stunt nor was it fake,” says Sami Siddiqui, president at Popeyes. “We could have never predicted selling out as fast as we did due to such unprecedented demand.” In the first few days of the launch, Popeyes sold more than 10 times the number of sand wiches it had predicted based on rigorous market testing. After relaunching the product perma nently that November, the brand had one of the best quarters in nearly two decades. One crucial aspect when considering launch ing the new menu item was in-restaurant execution. Working closely with franchisees, Popeyes was able to introduce new sandwich line equipment and batter tables in all of its restaurants, as well as train thousands of team members in a matter of weeks. “Ultimately, this type of on-the-ground exe cution from our franchisees and teammembers

drove the incredible response from guests,” says Siddiqui, who joined the brand in September 2020 after previously serving as president of par ent company Restaurant Brand International’s Asia-Pacific region. Though Popeyes certainly helped light the spark, the Chicken SandwichWars drew several other opponents. Chick-fil-A took to Twitter to claim its version predated the Popeyes’ sandwich, and a social media storm ensued that captivated the internet for more than a week. A comedy sketch on “Saturday Night Live” even parodied the popularity of Popeyes’ chicken sandwich, with Harry Styles playing an expat who’s obliv ious to the chain’s cultural touchstones. Popeyes ended up selling 203 million chicken sandwiches in the first year, which equated to a 38 percent increase in overall sales in 2019. By February 2021, the company shared a stagger ing statistic, revealing the scale of impact: After introducing the chicken sandwich, Popeyes’ aver age-unit volumes rose by $400,000, amounting to $1.8 million. Popeyes also opened 200 restau rants in 2021, propelling it past the 3,000-unit benchmark in the U.S. and Canada. The com pany even signed more development agreements than at any other time in the brand’s history. “The Chicken Wars were lightning in a bot tle for Popeyes. Having a great product was foundational, but we capitalized on a unique

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“The Chicken Wars were lightning in a bottle for Popeyes. Having a great product was foundational, but we capitalized on a unique social media moment

that became ownable for our brand.”

NOBODY CAN ARGUE POPEYES GOT THE REAL DEBATE STARTED ON SOCIAL MEDIA. 

social media moment that became ownable for our brand,” Siddiqui says. “We posted the tweet heard around the world, ‘Y’all good?’, a playful nod at one of our friends in the chicken industry that embodied our Southern heritage while engaging early in the social conversation. We like to think we ignited the Chicken Wars, and we’re proud of everything that has happened since.” Consumers’ hunger for the comforting, portable meal only grew throughout the pandemic. Soon, more than 20 fast-food brands had introduced chicken sandwiches to their menus, including Wendy’s, McDonald’s, Golden Chick, KFC, Fat burger, Church’s Chicken, BurgerFi, Zaxby’s, Fuku, Jack in the Box, Sonic, Carl’s Jr., Shake Shack, Pollo Campero, Bojangles, and more. Even con cepts that weren’t necessarily known for chicken, like Taco Bell and Panda Express, tried to cash in on the trend. “I also think the chicken craze was because of the cost; a lot of people don’t say that, but chicken is obviously cheaper than burgers or other meats,” says Troy Guard, chef and owner of Denver-based TAG Restaurant Group ( TRG ). TRG comprises a dozen restaurants including breakfast joint Hashtag, bowl-centric fast casual Bubu, modern steakhouse Guard & Grace, and a Denver-area food hall—where multi-unit chicken sandwich concept Crack Shack has planted a foot hold. Since opening, it’s ranked as the No. 1 stall

 ROCK & BREWS

in the venue. A few years ago, Guard himself won a chicken sandwich battle in Denver called Chicken Fight Festival. He marinated a chicken breast for 24 hours, letting it sit half a day to get crispier in the deep-frying process, and added sweet-and-spicy aioli and pickles, lettuce, tomato, and slaw. “It’s a huge crowd-pleaser, but it takes a little bit of time, I think, to make a good chicken sand wich,” he says. And the appeal of the chicken sandwich reaches far beyond quick-service and nontraditional restau rants. The menu item has been a mainstay for more than a decade at Rock & Brews, a casual dining, rock music–inspired restaurant and eatertain ment concept founded by none other than Gene Simmons and Paul Stanley of famed band KISS. The California-based brand—which has grown to 18 locations, including airport and casino units— introduced its Southern Fried Chicken Sandwich right around the brand’s inception in 2010. The fan-favorite dish features a sesame brioche bun, iceberg lettuce, pickles, mayo, a tomato, and, of course, fried chicken. Then came the Demon Chicken Sandwich, named after Simmons’ stage persona. “Gene likes to peek his head into the kitchen every blue moon and collaborate with culinary and put his creative input inside,” says Ben Magana, executive chef at Rock & Brews. “He wanted a spicy sandwich that kind of repre sented his demon persona, so try to envision how he looks—the makeup, bright red lips, contrast of colors. And the mission was to create a sandwich that ref lected the color, the heat, that feeling of being a little bit bigger than life,” Magana says.

UNVEILED A CHICKEN SANDWICH SHORTLY AFTER ITS INCEPTION.

TAG RESTAURANT GROUP FEATURES CHICKEN ACROSS ITS MULTI-BRAND LINEUP. 

POPEYES, TAG RESTAURANT GROUP, ROCK & BREWS

 “GENE LIKES TO PEEK HIS HEAD

INTO THE KITCHEN EVERY BLUE MOON AND COLLABORATE WITH CULINARY AND PUT HIS CREATIVE INPUT INSIDE,”SAYS BEN MAGANA, EXECUTIVE CHEF AT ROCK & BREWS.

The sandwich’s large size, which requires two hands to pick up, also represents Simmons’s tall stature at 6 feet 2 inches, Magana adds. The fried chicken breast is tossed in Rockin’ Hot Sauce and has a house-made pepperjack cheese spread, chipotle slaw, marinated red onions, fresh jalapeños, and chipotle ranch, and ranges from $13.50 to $17.95, depending on the location. “It’s one of our best-selling items. It’s a staple,” Magana says. “People come in and want to take a picture with it and post it, since its name in our menu is the Demon Chicken, and everyone immediately knows what it’s about.” Though the product is steeper in price than Popeyes’ chicken sandwich, which averages around $4–$5, guests at Rock & Brews seem to have no aversion to paying a little extra for the themed sandwich and experience. If anything, the Chicken Sandwich Wars have helped boost business for the full-service restaurant; such orders now account for roughly 13–14 percent of sales at Rock & Brews. “Restaurants have learned to evolve what used to be [quick-service] food into something a little more elevated and make it their own,” Magana says. “So whether you go to Popeyes and get a sandwich or come to Rock & Brews and get the Demon Chicken, you know in your mind what you’re going to get. The base is the same for both, but sometimes you crave one and sometimes you crave the other.” Keeping with the tradition of friendly com petition among restaurant players, Wingstop believes its chicken sandwich stands out from the pack. Launched in August 2022, the brand had an experience similar to Popeyes when it com pletely sold out in six days, burning through four weeks of inventory. After restocking, Wingstop relaunched the product in October through a phased rollout to restaurants, making sure staff levels were high enough for demand. “It really showed us the opportunity we have as a brand with chicken sandwiches as a new, different, interesting way to bring consumers in,” says Michael Skipworth, CEO of Texas based Wingstop. Sauced chicken wings have a tendency tomake a mess, which not everyone appreciates, Skip worth notes. A chicken sandwich presents a better alternative during the lunch daypart for people on the go—though customers should expect to

wait an average of 18–20 minutes, since food is cooked to order. While chains such as Popeyes typically offer chicken sandwiches either classic or spicy, Wingstop’s biggest differentiator is the ability to get its chicken sandwich tossed in one of 12 unique f lavors, from the popular Lemon Pep per or Garlic Parmesan dry rubs to Cajun or Mango Habanero sauces. To that end, wings have long been the ideal blank canvas for f lavor innovation at Wing stop. For example, in December, the brand launched Carolina Gold BBQ as a limited time option with a sweet mustard base, vinegar, brown sugar, and overall tangy f lavor profile. Despite early inventory shortages, the pay

“Restaurants have learned to evolve what used to be [quick-service] food into

something a little more elevated and make it their own.”

off was worth it for Wingstop. Swipworth says it’s one of the few brands that’s able to drive sales through positive transaction growth at this point in time rather than through price hikes that inf late sales figures. And with average unit volumes sitting at roughly $1.6 million, product innovation will be the ticket to driving that number north of $2 million, he says. With positive feedback from guests and chicken sandwiches mixing in the high single digits, Skipworth expects to see the product mix continue its upward climb as the brand builds on the success of the launch. “You’re seeing chicken consumption continue to grow, particularly in the U.S. but even out side the U.S., and I don’t think that dynamic is going to change,” he adds. 

 WINGSTOP’S CHICKEN SANDWICH SUPER POWER IS ITS VARIETY.

CALLIE EVERGREEN IS THE EDITOR OF FSR. CONTACT HER AT CEVERGREEN@WTWHMEDIA.COM.

ROCK & BREWS, WINGSTOP (4) ROCK & BRE S, WINGSTOP (4)

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DINERS ARE STILL CONGREGATING OVER DRINKS, EVEN IF IT’S NOT ALWAYS AT THE SAME TIMES AS PRE-COVID DAYS.

Has Happy Hour Soured? Even in an age of telecommuting, restaurants are betting on the post-work daypart. BY NICOLE DUNCAN

Whilenot part of the traditional, three-square-meals paradigm, happy hour has proved itself a viable revenue generator in the restaurant sector. A 2018 study fromNielsen even credited happy hour with generating 60.5 percent of weekly sales at restaurants and bars and increasing the average check by $8. ( It should be noted the study defined happy hour as taking place between 5 and 8 p . m ., which runs much later than most programs.) But a lot has changed since 2018. Consumers are returning to restau rants for dine- and drink-in—but they’re not necessarily going back to the office. This sea change has myriad implications for restaurants, with

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many lunch-centric establishments either curtail ing their hours or shuttering their doors altogether. But happy hour isn’t lunch. While the latter can be a social gathering, happy hour is almost exclusively one. Some studies suggest consumers are seeking out these occasions even more than they did before COVID. “The happy hours themselves have not changed because of the pandemic. They are still a way for our restaurants to attract guests and start the energy earlier in the day. They are just as busy as they were before,” says Jennifer Krapp, director of restaurant operations for Charleston, South Car olina–based Indigo Road Hospitality. “I believe that with so many people working remotely now, people are craving that social interaction that they are not getting throughout the day.” Happy hour is a common offering across Indigo Road’s 30-odd restaurants, though the approach varies by concept. For example, seven-unit O-Ku Sushi positions its happy hour around deep dis counts, such as half-off rolls. “Guests’ behaviors indicate everyone loves a good deal, whether it is food or drink,” Krapp adds. On the other hand, sister restaurant Maya uses the stretch between 5 and 6:30 P . M . to showcase playful dishes and drinks not found on the regu lar menu. This includes elote popcorn, Frito Pie (made with corn chips), and Ranch Water—made with Lunazul Tequila, lime, and sparkling water. At f ine casual Hopdoddy, the pre-COVID happy hour served multiple purposes from a busi ness standpoint. Vice president of revenue Matt Schweitzer breaks down the menu as follows: 50 percent showcased (and in some cases, tested ) unique items that could be quickly executed; 25 percent comprised what Schweitzer describes as “brand-defining” items; and 25 percent were dis counted offerings. In the three years leading up to 2020, happy hour was the single largest growing daypart at Hopdoddy. Schweitzer credits its burgeoning pop ularity to several high-volume stores in densely populated areas—right in the path of professional foot traff ic. Brand positioning and smooth exe cution then ensured its staying power. “At the time, we were really trying to use happy hour not as a discount, because we’re not a dis count brand, but as an outlet where we could get people [to try] things that were a little bit differ ent … and really highlighted what we do and what we do really well,” Schweitzer says. The very existence of happy hour at Hop

“Happy hour is one of those things that we wanted to grab from other sectors of the restaurant scene, and we thought that it could be a differentiator for us, given our full bar, given our service model, given our offerings.

 MATT SCHWEITZER

 HOPDODDY

doddy already highlights a difference between the concept and its limited-service peers. While not unheard of, happy hours conventionally fall under the purview of full-service operations and bars. Hopdoddy, however, bucks the norm. “Our CEO [ Jeff Chandler], who’s done an

BUCKS THE NORM WITH HAPPY HOUR IN A FAST-CASUAL SETTING.

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amazing job describing our concept over the years, coined the term ‘unicorn casual,’ and what that means is we try to capture the best things of quick service and the best things of of fast casual and casual dining,” Schweitzer says. “Happy hour is one of those things that we wanted to grab from other sectors of the restaurant scene,

diners alike. It has also remained a key revenue driver, even in a post-COVID landscape. Late last year, XRG debuted new happy hour menus at its two f lagship concepts, Chevys Fresh Mex and El Torito. “This specific iteration of both happy hours is notable because we rarely make such extensive updates to the menu at once. These are com pletely new and innovative items,” Sharpe says. New offerings now account for about a third of the two dozen–plus options on the happy hour menu. These value-driven additions include $6 Potato Chorizo Taquitos, $8 Beef Birria Tacos, and $10 Shrimp Tacos Gobernador on the food side, as well as drink specials like $4 house wine and $8 Watermelon Candy Shots. Two of the most popular new items are the Mexican Pizza and the Margarita Flight, both clocking in at $10. Sharpe says classics like the Frozen Margarita at Chevys and Signature Mar garitas in fruit f lavors at El Torito “continue to be a main draw for our guests due to their con sistent affordability and quality.” For Sharpe and Krapp, happy hour’s vic torious return seems imminent. But from the

fast-casua l point of view, Schweitzer has a more measured opin ion. Since the pandemic, he’s seen fewer profes sionals and large groups at happy hour, but more young guests. Further more, he’s observed an increase in the down time stretch between the lunch and happy hour, with the former

and we thought that it could be a differentiator for us, given our full bar, given our service model, given our offerings.” During the pandemic, Hopdoddy, like many other establishments, stopped its happy hour. Now, plans are in the works to bring it back but with a fresh, new look. Schweitzer won’t go into much detail but explains that the brand is step ping outside its comfort zone. Guests should expect culinary innovation and speed of service to be at the forefront of the new program. “We’re going to do everything and anything we possibly can to ensure our bars are packed to the rafters. We want our bars to be so busy that we have to increase staff ing. We want there to be lines, and we want people handing drinks back to their friends behind them because peo ple are fighting for seats at the bar,” Schweitzer says. “Our goal is to be big and bold, to make a statement and put our stake in the ground. We’re going to have the best happy hour in the market and we want to be the local happy hour dining establishment of choice.” Back on the full-service side, Xperience Restau rant Group ( xrg ) is also reimagining happy hour. CEO Randy Sharpe says it’s one of the most pop ular dayparts, attracting both regulars and new

ending earlier and the latter beginning later. To address this, Hopdoddy is going to embrace overlap, so happy hour bleeds into dinner. The brand is also doubling down on service, which, Schweitzer predicts, has the potential to make or break the daypart. “People don’t want to look around for service; people just want it there right now, which is kind of why we want to pack our bars,” he says. “This younger generation is definitely a crowd of imme diacy. And it’s our notion that if people are having to think about wanting the next drink, we might have lost. So we’re going to try to cater our ser vice periods, our staffing levels, and our offerings to really combat that.” 

 XRG DEBUTED NEW HAPPY HOUR MENUS AT TWO OF ITS FLAGSHIP CONCEPTS LAST YEAR.

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S P O N S O R E D B Y L A M B W E S T O N

“When COVID hit, we all started to realize that we had to work harder to simplify an operator’s life,” says Kim Hoffman, prod uct marketing director, portfolio management at Lamb Weston. “We wanted to flip it from us being a technical commodity, to a value-based proposition. We started more carefully considering, ‘What does the operator really care about?’” These brainstorming sessions led to Lamb Weston’s “Sim plifry” campaign. This required careful review, auditing, and revisions of Lamb Weston’s portfolio of products, using an oper ator-first lens to make Lamb Weston’s french fry offerings as intuitive as possible. Even some of the product names were modified to match the language operators use—if they care about how crispy a fry is, why not use verbiage to call that out? Each SKU is now sorted into one of four categories: classic fries, extra crispy fries, sweet potatoes, or “other” potato prod ucts. Within each category, there are fries designed for specific operational needs. Additionally, operators can take a brief online “Find My Fry” quiz to see which product would be the best fit for their operation. The quiz is meant to be fun and playful, but it also generates real results that are rooted in Lamb Weston’s exten sive knowledge of the industry, based on market research and decades of experience. “We really feel like we’re here to be advisors,” Hoffman says. “The quiz was us saying, ‘How can we make this as quick and effi cient as possible?’ Because each operator has their own set of problems they have to solve for, but they don’t always have time to do it.” Simplifying the fry-selection process is meant to get opera tors back to what they do best: building an enticing, innovative menu, and facilitating a top-notch customer experience. Turning something that was once a hindrance into something potentially powerful—having the perfect french fry offerings—is helping do just that. “We say it over and over: ‘operator first,’” Hoffman says. “Oper ators are at the core of everything we do. We’ve been around for over 70 years. Now we’re trying to be innovative in how we think and sell and position ourselves with operators. That’s where all of this stems from: we want to simplify an operator’s life, and stay true to that message in everything we do.” BY CHARLIE POGACAR “WhenCOVIDhit, we all started to realize thatwe had towork harder to simplify an operator’s life.”

THE PANDEMIC brought with it a whirlwind of change for operators. In many ways, the industry is still dealing with the fallout—infla tion, labor, and supply-chain issues persist. Each challenge takes time out of an operator’s day and cuts into already-thin margins. Consider the process of choosing the right french fry. Often, product portfolios are dense, bloated, and confusing. Operators hardly have time to navigate through hundreds of SKUs, let alone sample them all. Taking note of these challenges were the people at Lamb Weston—founded in 1950, the company is one of the country’s largest potato and french fry producers. In the early days of the pandemic, Lamb Weston began to wonder how it could help make the industry a bit more sane. This vendor recently reorganized its portfoliowith the operator inmind. SIMPLIFYING the Fry Selection Process

TO FIND YOUR FRY, VISIT LAMBWESTON.COM.

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