QSR August 2022

First page Table of contents Cover Next page Last page

Animated publication

AUGUST 2022 / NO. 294 THOUGHT LEADERSHIP FOR 25 YEARS

50 ® 5 THE INDUSTRY’S LEADING REPORT ,Q WKH ɍ UVW IXOO \HDU

SPECIAL ANNUAL ISSUE

IROORZLQJ WKH RQVHW RI &29,' WKH QDWLRQǯV WRS HDUQLQJ UHVWDXUDQW FKDLQV EDWWOHG IRU PDUNHW VKDUH RQFH DJDLQ / P.26

Plus

A Golden Era of Fast Food? P. 78 Cold Coffee Gets Hot P. 15

JUMP TO THE RANKING OF AMERICA’S BIGGEST LIMITED-SERVICE CHAINS | P.50

REFRESHMENT RUNS IN THE FAMILY We are Coca-Cola and so much more, offering the preferred categories and leading brands to drive your sales and profit growth. Contact your Coca-Cola representative, call 1-800-241-COKE, or visit www.coca-colacompany.com.

August

TABLE OF CON T E N T S AUGUS T

2 0 2 2 # 2 9 4

QSR / LIMITED-SERVICE, UNLIMITED POSSIBILITIES

26 / McDONALD’S SITS ATOP THE QSR 50, AS USUAL. BUT WHAT’S CHANGED IN A YEAR? THE SHORT ANSWER: A LOT.

DEPARTMENTS

FEATURES

N E W S

9 SHORT ORDER 24 FRANCHISE FORWARD Diversity from the Top Down

Franchising can prove a powerful vehicle for restaurants to create career opportunities. BY HILARY DANINHIRSCH 97 CLIMATE RESPONSIBILITY Shaking Up Sustainability Shake Shack is tackling the topic with a multifaceted strategy. BY RACHEL PITTMAN I N S I G H T 15 FRESH IDEAS Cold Coffee Gets Hot Customers of all demographics are changing how—and when— they drink the habitual classic. BY AMANDA BALTAZAR 20 ONES TO WATCH Sarpino’s Pizzeria A bevy of offerings is drawing in guests, old and new, and prospective operators, as well. BY BEN COLEY 62 OUTSIDE INSIGHTS Why 2021 Was a Mixed Blessing for Top Brands Beyond the numbers and into consumer sentiment, there’s a lot this past year can tell us. BY ADAM LEFF 104 START TO FINISH Scott Snyder The CEO of Bad Ass Coffee of Hawaii on leading a rocket ship.

ADOBE STOCK / NITIPHOL

26 QSR 50 BY DANNY KLEIN AND BEN COLEY

78 Is a Golden Era of Fast Food Upon Us? BY DANIEL P. SMITH The restaurant world continues

In the first full year following the onset of COVID-19, the country’s highest-earning restaurant chains battled for market share once again. Who grew in 2021? Who slipped? And who is ready to accelerate on the other side? Let’s dive into the data.

facing undeniable headwinds, but the impressive results and ambitious plans of industry power players suggest quick-serves are poised to become an even bigger part of daily life.

2 BRANDED CONTENT

4 EDITOR’S LETTER

103 ADVERTISER INDEX

ON THE COVER Starbucks clocks in at No. 2 in this year’s QSR 50 as it keeps scaling up. PHOTOGRAPHY: STARBUCKS / CONNOR SURDI

QSR is a registered trademark ® of Journalistic, Inc. QSR is copyright © 2022 Journalistic, Inc. All rights reserved. 101 Europa Drive, Suite 150, Chapel Hill, NC 27517-2380, (919) 945 0700. Printed in USA. The opinions of columnists are their own. Publication of their writing does not imply endorsement by Journalistic, Inc. QSR (ISSN 1093-7994) is published monthly. Periodicals postage paid at Chapel Hill, NC, and additional entry points. SUBSCRIPTIONS: (800) 662-4834, 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. ABC member since 2001. POSTMASTER: Send address changes to QSR, 101 Europa Drive, Suite 150, Chapel Hill, NC 27517-2380. All rights reserved. No part of this magazine may be reproduced in any fashion without the expressed written consent of Journalistic, Inc.

PERIODICALS POSTAGE PAID AT CHAPEL HILL, NC, AND ADDITIONAL ENTRY POINTS.

www.qsrmagazine.com | QSR | AUGUST 2022

BRANDED CONTENT

E D I TOR I AL EDITORIAL DIRECTOR, FOOD NEWS MEDIA: Danny Klein danny@qsrmagazine.com MANAGING EDITOR, FOOD NEWS MEDIA: Nicole Duncan nicole@qsrmagazine.com DIRECTOR OF CUSTOM CONTENT: Peggy Carouthers peggy@qsrmagazine.com CUSTOM CONTENT ASSOCIATE EDITOR: Charlie Pogacar charlie@qsrmagazine.com CUSTOM CONTENT ASSOCIATE EDITOR: Kara Phelps kara@qsrmagazine.com CONTENT EDITOR: Ben Coley ben@qsrmagazine.com STAFF WRITER: Trevor Griner Trevor@qsrmagazine.com ART & PRODUCTION ART DIRECTOR: Tory Bartelt tory@qsrmagazine.com ONLINE ART DIRECTOR: Kathryn “Rosie” Rosenbrock rosie@qsrmagazine.com ADVERTISING 800.662.4834 NATIONAL SALES DIRECTOR // EXTENSION 126 : Eugene Drezner eugene@foodnewsmedia.com NATIONAL SALES MANAGER // EXTENSION 149 : Edward Richards edward@foodnewsmedia.com NATIONAL SALES MANAGER // EXTENSION 141 : Amber Dobsovic amber@foodnewsmedia.com NATIONAL SALES MANAGER // EXTENSION 148 : John Krueger john@foodnewsmedia.com CIRCULATION WWW.QSRMAGAZINE.COM/SUBSCRIBE CIRCULATION COORDINATOR: N. Weber circasst@qsrmagazine.com ADMINISTRATION GROUP PUBLISHER, FOOD NEWS MEDIA: Greg Sanders greg@foodnewsmedia.com PRESIDENT: SALES SUPPORT // EXTENSION 124 : Tracy Doubts tracy@foodnewsmedia.com GRAPHIC DESIGNER: Erica Naftolowitz erica@qsrmagazine.com PRODUCTION MANAGER: Mitch Avery mitch@qsrmagazine.com

IN THIS ISSUE BRAND STORIES FROM QSR

6 Improve Beverage and Dessert Sales on the Takeout Menu

18 How Actionable Insights and Improved Communi cation Make Drive Thrus More Profitable

HME ADOBE STOCK / MILENKO ÐILA

As drive-thru business continues to increase, efficiency is critical. SPONSORED BY HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

How Brands Are Enhancing CRM Data In Order to Target Customer Segments Inflation affects

RICH PRODUCTS ELLIANOS COFFEE

Off-premises, appearance is (almost) everything. SPONSORED BY RICH PRODUCTS

12 Ellianos Turned $100 into a Multi-Million Dollar Coffee Franchise The brand is searching for franchisees with fuel to grow.

businesses and customers alike, but this solution offers a win-win. SPONSORED BY FETCH REWARDS

59 Quick-Serve Restaurants are Already

Decarbonizing Menus Next up: decarbonizing parking lots while driving down the bottom line. SPONSORED BY CHARGENET STATIONS

CHARGENET STATIONS

SPONSORED BY ELLIANOS COFFEE

Ellianos Turned $100 into a Multi-Million Dollar Coffee Franchise Brand seeks franchisees with fuel to grow.

I nspirational stories of how restaurant brands came to be abound in the food service industry, but Ellianos Coffee may have one of the most unique. Though the drive-thru coffee franchise now boasts multi million dollar sales, with 23 locations open and over 80 more in development, it all started with just $100. The Ellianos story began over 40 years ago when now-Ellianos-president and founder Scott Stewart received a $100 savings bond gifted to him by his grandmother. Inspired by a trip to the Pacific Northwest in the early 2000s, Stewart and his wife Pam returned home to Lake City, Florida, and decided to take that savings bond he had received 20 years prior and turn it into a coffee chain focused on serving “Italian Quality at America’s Pace.” Having owned several of his own busi nesses, combined with his experience as a

and take on new challenges while still offering support programs to help them in their journey. These strong support programs have, in part, resulted in very satisfied franchisees. In fact, in a recent survey of Ellianos’ franchisees conducted by a third party, over 90 percent said they would recommend franchising with the brand to a friend. The second most important factor for a potential Ellianos franchi see is location. Though the brand has received interest from potential investors across the country, the coffee chain’s leadership team is committed to offering each of its franchisees one-on-one support, in cluding in-person assistance. This means a new territory must be close enough to be supported by the existing Ellianos network, and potential franchisees must live close enough to their proposed stores to offer their own support to store staff. Greg Pruitt, vice president of marketing at Ellianos, says the right franchisee is also community-oriented. “We want to pick the right franchisees in the right locations,” Pruitt says. “A lot of our franchisees are very involved in their stores. In every organization, employees look from the top down to understand a brand’s goals and priorities. When you have friendly bosses who are enjoying work, you also have happy employees. We want to be a light in each community and help that community feel like they’ve got some thing special.” -By Peggy Carouthers

franchisee with a major national pizza chain, Stewart knew the ins and outs of the foodservice business. Thanks to his industry knowledge, the brand’s dedication to thoughtful growth, and its emphasis on hir ing the right people, Ellianos is now a steadily growing chain. Yet while the brand is seeking new franchisees, the company hasn’t lost sight of its roots and is committed to maintaining the same thoughtful growth plans it has since its inception. “We don’t want to grow just to grow; we want to grow the right way,” Stewart says. “My wife and I said 20 years ago that we’re going to do it right and take our time. We started that journey and built the frame work, and while we want to expand, we’re prioritizing strong growth over just growing for the sake of growing.” Rather than setting aggressive growth targets like other brands, the Ellianos team is committed to finding the right people first. “More than past experience, we’re looking for genuine people with the right kind of fuel,” Stewart says. “We always start by asking people why they want to franchise. Some people’s fuel is helping others, to be busy, to make a difference, to feel successful, to take care of their family—this is all good fuel. Bad fuel is jealousy, pride, or arrogance. We don’t want people who just want to make money at all costs. Past expe rience is helpful, and the financial ability to get a loan and have enough equity is important, but it really all comes down to fuel.” When a person has the right fuel, Stewart says, the goal is to find their passions and get out of their way so they can develop new skills

To learn more, visit ellianos.com.

ELLIANOS COFFEE

AUGUST 2022 | QSR | www.qsrmagazine.com

COMPETE WITH COFFEE AND TEA

In today's environment, foodservice operators are facing ongoing challenges like inflation, labor shortages, r and supply chain issues - just to name a few. According to Cleveland Research Company in their recent r “State of the Foodservice Industry" webinar, research shows that despite inflation, consumer demand r for restaurants looks to remain strong and the outlook for dining out is optimistic. However, with growing competition to win consumer loyalty, r how do you ensure you're standing t?

By providing a full-scale, top-quality coffee and tea program, you are laying the foundation to greatly enhance your food offerings! By upgrading your coffee and tea programs, your establishment r can become a destination for hot and iced coffee and tea all day long!

wmf-coffeemachines.com • schaererusa.com • wilburcurtis.com

Dutch Bros. is using its loyalty base to promote cold offerings, but the message is getting out through word-of-mouth as well. fresh ideas | COLD COFFEE | Cold Coffee Gets Hot Customers of all demographics are

changing how— and when—they drink the habitual classic. BY AMANDA BALTAZAR

S ervings of cold brew coffee ordered at quick-service res taurants climbed 27 percent in the 12 months ending April 2022, year-over-year, according to The NPD Group/CREST. That equated to 373 million servings, which is no small figure. Servings of frozen/slushy coffee from quick-serves during the same stretch jumped 3 percent to 726 million, showing custom ers are open to cold coffee in myriad formats. However, iced coffee remained the cold leader, as customers ordered 2.8 billion servings in the calendar up to April, up 11 per cent from the year prior. Roughly 70 percent of all sales at The Coffee Bean & Tea Leaf are cold coffee and cold tea. Sanjiv Razdan, president, Americas

and India, attributes it to several factors: First, the consumption of coffee shop beverages has moved away from first thing in the morning “and become a pick-me-up treat, a recharge beverage that people consume across the day,” he says. “As that daypart consumption has changed, people use the beverage very differently. Cold is more versatile and tends to be more suitable for various dayparts up until late evening.” Secondly, the quality of these cold drinks has improved as con sumers’ became more sophisticated. “There’s an appreciation for the craftsmanship that goes into these drinks,” Razdan says. And finally, cold beverages fit snuggly into the off-premises trend that

DUTCH BROS.

www.qsrmagazine.com | QSR | AUGUST 2022

MULTI-UNIT FRANCHISE OPPORTUNITIES

ACQUIRE EXISTING LOCATIONS

INVEST IN MODERN, FRESH FORWARD RESTAURANT DESIGNS REMODELS, RELOCATIONS, AND NEW RESTAURANTS LEVERAGE MULTIPLE REVENUE STREAMS ENGAGE WITH NEW BRAND LEADERSHIP FOCUSED ON DRIVING FRANCHISEE PROFITABILITY

* *COMPARED TO 2019 O 9

GROW YOUR PORTFOLIO WITH US $K < )+N < ; K+ ɔNX d jǗ @; IçėñČėćÓĈßç åçĠÓøĄĚ ĕėČįøåçå ÞĶ øĈĠçėĈÓĄ ėçĕČėĠøĈòǗ TöøĚ øĈñČėćÓĠøČĈ øĚ ĈČĠ øĈĠçĈåçå ÓĚ ÓĈ Čȯçė ĠČ ĚçĄĄ Čė Ġöç ĚČĄøßøĠÓĠøČĈ Čñ ÓĈ Čȯçė ĠČ ÞĤĶ Ó ñėÓĈßöøĚçǗ TöøĚ ÓåįçėĠøĚçćçĈĠ øĚ ĈČĠ ÓĈ ČȯçėøĈòǗ NĤÞİÓĶ Ș ĄĄ KøòöĠĚ KçĚçėįçåǗ ƪƩƬ NĤÞ dÓĶǘ ;øĄñČėåǘ T Ƨƭƫƭƨ S

fresh ideas | COLD COFFEE |

boomed amid COVID-19 conditions. More than 58 percent of Bad Ass Coffee’s business fits into the cold bill, which includes everything from cold brew to smoothies and blended drinks, with iced lattes being the hands-down top category. Bad Ass Coffee has 22 stores with eight under construction. Cold drinks constitute 70–80 percent of sales At Dutch Bros. as well. “Cold travels better and more of our drinks are traveling with us as opposed to being enjoyed in the moment,” CMO John Graham says. Innovation and LTOs To succeed in cold beverages, it’s vital cof fee shops innovate and continue to create excitement in this category. Coffee Bean & Tea Leaf launched a summer LTO with three cold brew teas: watermelon mint; peach jasmine; and mango caramel. Previously, the brand focused inno vation on lattes and iced drinks but switched to cold brew this year, Razdan says.

drinks before they were adults, and are now comfortable with these options. While hot beverages remain popular in the mornings, the customer who buys that often comes back in the afternoon for something cold, he says. “What we really see, especially with that younger demo graphic, is that afternoon bounce-back with a cold brew product,” Snyder says. “The cold brew packs quite a punch so you can make it straight up or with cream or flavors and it can be both a treat and a pick-me up. We see a bigger influx [of these] in the afternoon.” Chilled out marketing While Coffee Bean & Tea Leaf uses store menuboards and social media to promote cold drinks, especially new ones, the loy alty program is also great for this purpose. The concept sends members customized messages based on what they’ve previ ously drunk. Bad Ass Coffee promotes its cold cof fees with in-store tactics including posters, table cards, and menu highlights, as well as online marketing with geotargeted ads. Social media is exploding, too.

The brand also embraced decadence with its Belgian Chocolate Ice Blended Drink. To generate engagement, Coffee Bean & Tea Leaf launches these beverages as LTOs, but adds them to the permanent menu if they do well. But limited runs really drive sales, he says. “We’re a society driven by the fear of missing out and we want to try new things and be the first to try something that our favorite brands are bringing to us,” Razdan says. “We create that buzz and it plays for us very well.” Bad Ass’ summer LTOs included Beach Bonfire Latte (iced, frozen, or hot): espresso and milk with macadamia nut, toasted marshmallow, and dark chocolate swirl syrups; and Beach Bonfire Cold Lava Cold Brew: Hawaiian blend cold brew, macadamia nut syrup, and toasted marshmallow cold lava (cold lava is cold foam made with milk and syrup). It’s essential to stay ahead of trends, CEO Scott Snyder says, because guests love customizing drinks. “Brands are listening and creating more and more innovation,” he says. “We have tea, cof fee, cold brew, smoothies, and we use those as base elements and then listen to what our customers want. When you see a trend, you see innovation.” Universal appeal While customers of all walks are enjoying cold drinks, they do tend to skew more toward younger demographics, Razdan says, and are also proving an option for the much younger crowd—the tweens and teens who don’t yet drink caffeine but want a drink when their parents go to a coffee shop. Younger consumers have grown up with coffee shops, Snyder adds. So they’re accustomed to ordering blended, non-alcoholic

But most important is loyalty, Synder says. “It gives great access to the custom ers who are our best customers, who are also our best word-of-mouth and influenc ers,” he says. Dutch Bros.’ loyalty base is also a great tool for promoting cold coffees. “Our first stop in anything we do is our rewards program,” Gra ham says. “We back that up on the social side with text and email programs. We have a great customer data program and talk to customers the way they want.” The future Cold beverages aren’t going anywhere, Razdan notes. “We’ll see significant growth of cold brew teas and coffees with their more delicate flavor, more nuances. Cold is here to stay but the name of the game is innovation,” he says. Synder echoes the thought. “The younger audience who grew up in these stores are creating that same family experience now with their kids,” he says. “Diversity and creativity in your menu is also what customers are looking for. Everyone gets excited when there’s something new. By the same token hot isn’t going away; it’s where this all started. “But I do believe that cold as the dominant percentage is here to stay,” Synder adds. q

THROUGH THE DRIVE-THRU, VIA MOBILE, OR IN-STORE, COLD DRINKS FIT THE INNOVATION BILL.

Amanda Baltazar is a regular contributor to Food News Media and is based in Washington.

DUTCH BROS., COFFEE BEAN & TEA LEAF

www.qsrmagazine.com | QSR | AUGUST 2022

SPONSORED BY HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

How Actionable Insights and Improved &RPPXQLFDWLRQ 0DNH 'ULYH 7KUXV 0RUH 3URͤ WDEOH

7 he NPD Group recently reported drive-thru sales grew by 20 percent between February 2020 and February 2022. Digital ordering has also picked up in a big way, with the NPD Group reporting an increase of 117 percent since February 2020. That figure includes curbside pickup and other digital orders that are picked up at the drive-thru window, and is yet another reason why drive thrus are busier than ever before. The growth in these areas have been a blessing and a curse for the industry. More revenue is always With drive-thru business up 20 percent, greater efficiency is necessary. /BY CHARLIE POGACAR

decisions in real time,” Mullica says. “ZOOM Nitro alerts to your NEXEO | HDX headset enhances awareness to key areas of your operation—the drive thru, mobile orders, and curbside—enabling your team to improve performance on the spot.” The cloud-connected NEXEO | HDX platform has other competi tive advantages that make it better suited for modern off-premises sales, too. Because of its multiple channels, the platform enables dedi cated communication for outside order takers, mobile order groups, and more. Team members can use hands-free voice commands to perform certain tasks, such as connecting to a mobile order group channel. HME CLOUD connectivity also keeps NEXEO | HDX up to-date and prepared for the future of the industry. Plus, the system is ready to integrate with voice-AI providers. “NEXEO | HDX is the total communication platform that is best suited to drive increased efficiency in your restaurant as your business grows,” Mullica says. “This platform provides more communication options and flexibility than other systems currently available and can grow with your business and its future needs. Z

good, of course, especially as labor and food costs spike. But the chal lenges of integrating new ordering and pick-up channels, with the backdrop of an industry-wide labor crisis, means restaurant efficiency is a critically important challenge. “Restaurants are severely understaffed,” says Scott Mullica, direc tor of product management with HME Hospitality and Specialty Com munications. “Managers are working six days a week, and operators are extending crews across multiple locations. But these temporary solutions are increasing employee burnout instead of alleviating pres sure.” Fortunately, there are tech solutions that can help maximize res taurant and employee efficiency. For example, HME Hospitality and Specialty Communications’ new NEXEO | HDX Crew Communica tion Platform integrates with the HME ZOOM Nitro Timer with video detection to enhance drive-thru efficiency. The platforms’ integration empowers restaurants with actionable insights delivered to the right person at the right time. Key staff members can receive headset alerts when it matters most, like each time a car arrives in a curbside pickup space in the parking lot, enabling your team to better serve guests across all order pickup locations. “Actionable data and greater insights help managers make better

For more on HME’s NEXEO | HDX, visit hme.com/nexeo.

HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

AUGUST 2022 | QSR | www.qsrmagazine.com

FINALLY! Integration Between Drive-Thru Headset and Timer.

620 4:46:20

DAYPART-3 S CK SNACK

2 00PM 00PM 2:00PM 5:00 PM

S T-2 C OS G SHIFT-2 CLOSING

2 00PM 12:00PM 8:00 PM 8 00PM

JUNE23

HMEats’ #4321

S Y WEDNESDAY

1:42

1:25

1:22

1:12

SERVICE

CASHIER

0: 5 0:45

0:55

Menu1Time

Menu2Time

Cash erTime shierTime

0:20

0:28

0 2

M G 1 MERGE1

M G 2 MERGE2

CarsCount 0:45 HourAVG rs Count 5 urAVG

0: 0 l 0:40 Goal

0:42 Hour AVG

0:40 Goal 0:14 3 Drive Offs 0:42 Hour AVG

0:40 Goal

Service Time

020 028 0:20 0:28

DRIVE OFF DETECTED

l Goal

70 Prev 0 ev

12 B t 125 Best

05 P e 105 Pace

0:12 Hour AVG

0:15 Goal

This Hour

M 1 MENU1

M U 2 MENU2

PRE-MENU

0:02

0:03

0:08

0:12

“Drive off has occurred. * ”

“A mobile order is waiting.”

“Drive-thru danger zone alert. * ”

“Pull-forward time has been exceeded.”

*requires ZOOM Nitro with video detection.

NEXEO | HDX TM integrates with ZOOM Nitro® Timer to deliver actionable insights to key staff when it matters most. Maximize efficiency and stay on top of your operation’s performance even as you move around the restaurant. Notifications from ZOOM Nitro to the right employee’s headset provide critical information that enables immediate action and helps you improve performance on the spot. Actionable Insights to the Right Person at the Right Time

The Total Solution for Restaurant Communication 866.577.6721 | www.hme.com/nexeo

DEPARTMENT ONES TO WATCH

Sarpino’s Pizzeria A bevy of offerings is drawing in guests, old and new, and prospective operators, as well. BY BEN COLEY

way from pizza to pasta and tiramisu. And it’s all fresh.” Nelowet was brought on in September 2021 to make sure the Chicago-based Sarpi no’s is no longer a secret, both to operators, and by extension, consumers. The delivery/ takeout focused pizzeria entered the U.S. in 2002 and has since expanded to roughly 45 locations in Georgia, Iowa, Missouri, Texas, Florida, Minnesota, and Illinois. Sarpino’s USA acquired domestic franchising rights in 2005, and has been in charge of growth ever since. For the first time, the fast casual is moving forward with a national franchis ing push. Sarpino’s USA president David Chat kin, who’s been with the brand for 20 years, feels the timing for expansion made sense, given how strongly the pizza chain’s oper ational model performed during the rush toward convenience. Sarpino’s has expe rienced double-digit increases in sales in the past few years, and systemwide AUV is almost $1.1 million. The brand’s expansion plan targets mar kets where it’s already having great success, including Florida and Kansas City, Mis souri, where stores are making $1.3 million per year. Illinois, Colorado, Kansas, and the Southeast are under consideration, as well. “We’ve been through COVID times for a couple of years,” Chatkin says. “It was a time of unknown. But we went out of this time much stronger than we used to be before COVID, and we see some good progress in the several states we are in, and we were able to prepare and build a franchising pro cess internally. We’ve specialized in delivery for the last 20 years and after COVID time, it’s a good business to be in.” In addition to the menu, Nelowet believes operators will be most attracted to Sarpi no’s technological infrastructure. In the back of house, there’s a monitor installed at every work CONTINUED ON PAGE 102

calzones and sandwiches each, 11 salads, 12 pastas, five bone-in wing flavors, and a vari ety of appetizers. Among those choices are several vegan options. All selections aren’t available at every restaurant, but the variety is still unmatched by most in the quick-ser vice pizza segment, and Nelowet knows this. “[Sarpino’s] hasn’t spent a lot of time doing press and conversations like this,” Nelowet says. “And so, when I’m talking to people, a lot of them have never tasted the product before. And what’s great about Sar pino’s for me is that’s the least of my worries. I know that once I move into the franchise process, I worry about all their stuff. I don’t have to worry about the food at the end of the day. We’ll sit them down, they’ll taste it. It’s a home run every time because they’ve got the full Italian restaurant menu all the

SCOTT NELOWET, DIRECTOR OF FRANCHISE DEVEL opment for Sarpino’s Pizzeria, has been with the fast casual for less than a year. In that time, he quickly learned the key to reeling in prospective operators—the expansive Italian menu. The brand boasts more than 60 specialty and gourmet pizzas. There’s also roughly 20 FOUNDER: David Chatkin, CEO HEADQUARTERS: Chicago YEAR STARTED: 2005 ANNUAL SALES: 2021 U.S. system-wide sales of $45,988,768 TOTAL UNITS: 45 FRANCHISED UNITS: 45

SARPINO’S PIZZERIA (2)

AUGUST 2022 | QSR | www.qsrmagazine.com

SPONSORED BY FETCH REWARDS

How Brands Are Enhancing CRM Data In Order to Target Customer Segments With inflation affecting both consumers and businesses, this solution offers a win-win. /BY CHARLIE POGACAR

brands visibility into purchasing behavior, including on cash transactions, and allows brands to market directly toward customers. Best of all, says Lindsay Eichten, head of CRM and loyalty at TGI Fridays, restaurants only pay for results. It’s why many of the leading brands are turning to Fetch Rewards. “Fetch Rewards caught my eye with its commitment to pay-for-performance, hyper targeted customer opportunities,” Eichten says. “I didn’t have to just believe it from the sales pitch, I could actually evaluate for myself how a small investment could work hard for the TGI Fridays brand to deliver incremental value to our guests in a tough macro-economic environment.” The investment has paid huge dividends for TGI Fridays. Eichten reports that she had high expectations for performance, but Fetch has exceeded her KPIs, “driving incremental sales lift.” The app has driven repeat visits from TGI Fridays’ loyal following, while also creating “new and engaged Fridays customers who can now double dip into Fridays Rewards to earn

C ustomer relationship management (crm) software has traditionally of fered restaurant brands insights into consumer behavior that can assist in run ning targeted marketing campaigns. But the practice of doing so has become increasingly challenging as the largest tech brands move to enhance privacy. “The shift in the digital landscape toward privacy is in line with consumer demand, but it also means advertisements are becoming less effective,” says Phil Quackenboss, vice presi dent of restaurants at Fetch Rewards. “It’s also more difficult to track ROI, because you may no longer have the ability to measure incremental behaviors that are driven by each campaign.” On top of this, surging inflation means both restaurant brands and consumers are strapped for cash. That means that even if restaurant brands have a CRM, they have an uphill battle on multiple fronts in reaching and convincing customers that they should come dine out. In many ways, Fetch Rewards was made

for this moment. Co-founded in 2013 by then college student and current Fetch Rewards CEO Wes Schroll, the company’s mission is to

build customer loyalty while creating a win-win for the cus tomer and brand alike. Fetch Rewards has since grown into the largest consumer rewards app in the U.S. with more than 15 million active users. Here’s how it works: Users snap restaurant receipts in the app, building up loyalty points that translate into rewards. Restaurants gain actionable

points from both platforms and maximize values from constrained wallets.” Eichten says Fetch has become like an extension of her marketing team, helping bring data and insights to the challenge of connecting with a customer base dealing with the same inflation that is affect ing restaurant brands. “The macro-economy factors will

“The shift in the digital landscape toward privacy is in line with consumer demand, but it also means advertisements are becoming less effective.”

first-party insights that have the ability to enhance CRM data with no impact on unit economics. Customers pay full price for each purchase, and there are no changes required for in-store operations. Fetch offers restaurant

continue to be steep to overcome,” Eichten says. “Fetch is a waste-less, highly-effective, comprehensive app experience that supports the TGI Fridays brand goals while serving our guests additional value.” Z

For more on Fetch Rewards, visit partners.fetchrewards.com/qsr.

ADOBE STOCK / MILENKO ÐILA

AUGUST 2022 | QSR | www.qsrmagazine.com

15 MILLION engaged ´ N " N

OVER

in captured annualized retail sales $120B

With Fetch, your restaurant brand can ´ I billions Q

N / >P> Q Q L N 9 & Q W a GENERATE PRECISELY TARGETED OFFERS CUSTOMIZE

COMMUNICATIONS PAY FOR OUTCOMES, NOT IMPRESSIONS

USE FIRST-PARTY DATA TO UNDERSTAND CUSTOMERS

Discover how Fetch can help your QSR brand stand out and go further. N N j

> 2 ! Download America’s

DEPARTMENT FRANCHISE FORWARD

Diversity from the Top Down Franchising can prove a powerful vehicle for restaurants to create career opportunities. BY HILARY DANINHIRSCH

and measurable steps.” Some of these steps she sees brands take include mentoring, recruitment, and pro grams specifically aimed at increase diversity. “I think it’s almost like vision statements and core values. Everyone has them, but for a lot of brands, they sat in the drawer and were never referenced; that is where diversity was. Now, we’ve taken everything out of the drawers and put it on the walls and are focusing on it as an industry,” adds Gagnon, who is also the chair of the International Franchise Association’s Women’s Franchise Committee.

Traditionally, some of the obstacles to becoming a franchise owner was the startup capital, which could be cost-prohibitive to many potential business owners, as well as the educational opportunities and skills required. That is why some companies are taking proac tive measures to break down barriers, many of which disproportionately affected minorities. To be a successful entrepreneur, you also need a social network. “The IFA found that entrepreneurs of color have smaller and less connected networks. Also, there is discrimina tion: unconscious bias that these entrepreneurs are facing,” says Abigail Pringle, president of international and chief development officer with Wendy’s. These capital, educational, and social gaps are gradually being recognized and rectified through various initiatives across the industry. In January, Yum! Brands, a Louisville, Kentucky, company with more than 52,000 restaurants including KFC, Pizza Hut, Habit Burger, and Taco Bell, initiated the Yum! Franchise Accel erator, a fellowship designed to advance underrepresented people of color and women interested in the industry. “This is an impor tant part of the Yum! Brands ‘Unlocking Opportunity’ initiative announced last year. The initiative knocks down current barriers to entry such as lack of franchising education, knowing the right key franchising contacts at a brand or in the industry, and access to capital,” says Wanda Williams, Yum!’s head of global franchising. “One of the gaps we have identified in terms of opportunity for success among some franchisees is education, so we are taking steps to make this education widely available to students and fran chise professionals worldwide through the Yum! CONTINUED ON PAGE 102

Taco Bell has continued to invest in employee education, inside and outside restaurants.

D iversity in the workplace is a goal for many restaurant franchisors, as the benefits are numerous, from attracting more talent to being better able to serve its customers to an improved bottom line. The U.S. Census Bureau reported franchise businesses were more likely to be owned by minorities than non-franchised businesses. Specifically, just over 30 percent are minority-owned, compared to 18.8 percent of non-franchised ones. The good news is there has been a steady and significant increase in the minority and female ownership rate across the sector, but there is still work to be done. Robin Gagnon is the co-founder and CEO of We Sell Restau rants, a company specializing in business brokerage specifically for the restaurant industry. Gagnon said for the first time in more than two decades, there is a real push to address the diversity issue rather than it just being a discussion point. “Now, it’s absolutely on everyone’s radar; everyone is discussing how we can embrace a platform of diversity to make us stronger as a company and how we can appropriately reflect the audience around us,” she says. “The main thing is this incredible focus, and with focus, comes specific

TACO BELL

AUGUST 2022 | QSR | www.qsrmagazine.com

EVOLUTION OF EXPERIENCE THE CHECKERS & RALLY’S

TECHNOLOGY & INNOVATION THAT DRIVES THE O OM LINE HE BOTTOM LINE

• A compelling growth opportunity from a p n o l brand with plenty of white space to e p d d g w affordably with efficient buildings, sm er p s d strong growth incentives om a proven national expand and grow maller footprints and

• A proven concept with strong return on investment and competitive growth i ce es to grow your portfolio • Metrics-driven management style imp s profitability by developing efficiencies across the business model Visit owncheck r V on incentives mproves es across

c K i

QSRor Call 888 913 9135 ©2022 Checkers Drive-In Restaurants, Inc. 4300 W. Cypress St., Suite 710, Tampa, FL 33607. 1. Checkers & Rally’s 2020 Franchise Disclosure Document (FDD). Written substantiation will be provided on request. This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. The franchisor, Checkers Drive-In Restaurants, Inc. is located at 4300 West Cypress Street, Suite 600, Tampa, Florida 33607, and is registered as file number F-4351 in the state of Minnesota. In New York, an offering can only be made by a prospectus filed first with the Department of Law, and such filing does not constitute approval by that Department. 20220300

Page IFC Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page IBC Page BackCover

Made with FlippingBook - Online catalogs