QSR January 2023

EVOLVINGQUICK SERVICE FOR THE FUTURE

JANUARY 2023 / NO. 299

®

PLUS:

JACK IN THE BOX’S BIG BREAK CEO Darin Harris has the legacy brand positioned for a transformative run. OB FRAT NH DE YEAR T R A N S F O R M A T I O N A L

Meet the Breakout Brand of the Year P. 30 Should You Still Believe in Ghosts? P. 36

P. 24

INSIDE:

/P.51

BONUS: LEADERS IN QUICK SERVICE P.20

RestaurantEquipment&Technology

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January T A B L E O F C O N T E N T S J A N U A R Y 2 0 2 3 # 2 9 9

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24 / JACK IN THE BOX IS FORGING AHEAD

D E P A R T M E N T S

F E A T U R E S

N E W S 18 FRANCHISE FORWARD FroYo’s Second Act Leading brands are evolving. BY CALLIE EVERGREEN 42 OPERATIONS A Shifting Paradigm DEI isn’t just corporate speak— it’s part of the retention equation. BY BRYAN REESMAN 44 CL IMATE RESPONSIBI L ITY Good to Go on Food Waste A growing app looks to empower restaurants on a vital topic. BY ISABELLA SHERK

WITH A NEW PROTOTYPE AND PLENTY OF FRANCHISE INTEREST.

I N S I G H T 13 FRESH IDEAS The Convenience Battleground

Can C-stores compete with quick-service restaurants? BY ISABELLA SHERK 16 ONES TO WATCH Cookie Plug An o beat brand is ready to turn a red-hot category on its head. BY BEN COLEY 40 OUTSIDE INSIGHTS The Next Wave of On-Demand Delivery Ghost kitchens are learning from the successes of predecessors. BY LIZ MOSKOW 50 START TO FINISH Tom Sterrett The president and CEO of D’Angelo Grilled Sandwiches on the path ahead. HOLOGRAM STICKERS: ADOBE STOCK / ANTON PORKIN, TROPHY: ADOBE STOCK / PAMBUDI, JACK IN THE BOX

BRAND OF THE YEAR T R A N S F O R M A T I O N A L

24 Jack is Back BY CALLIE EVERGREEN From revitalizing

30 A Heat Wave is Coming BY BEN COLEY Dave’s Hot Chicken, our Breakout Brand of the Year, might just be one of the fastest-growing franchises in restaurant history.

36 Do We Still Believe in Ghosts? BY GARY STERN

company culture to acquiring Del Taco, the classic burger chain is once again on a winning streak.

Headed into 2023, the future of virtual kitchens is becoming more fact than apparition.

4 BRANDED CONTENT

6 EDITOR’S LETTER

9 SHORT ORDER

72 ADVERTISER INDEX

O N T H E C O V E R Jack in the Box CEO Darin Harris has led a major turnaround at the legacy concept. PHOTOGRAPHY: JACK IN THE BOX

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.

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BRANDED CONTENT

E D I T O R I A L EDITORIAL DIRECTOR Danny Klein dklein@wtwhmedia.com

IN THIS ISSUE BRAND STORIES FROM QSR

MANAGING EDITOR Nicole Duncan nduncan@wtwhmedia.com SENIOR EDITOR Ben Coley bcoley@wtwhmedia.com SENIOR EDITOR Callie Evergreen cevergreen@wtwhmedia.com

20 LEADERS IN QUICK SERVICE

C U S T O M M E D I A S T U D I O DIRECTOR OF CUSTOM CONTENT Peggy Carouthers pcarouthers@wtwhmedia.com ASSOCIATE EDITOR , CUSTOM CONTENT Charlie Pogacar cpogacar@wtwhmedia.com ASSOCIATE EDITOR , CUSTOM CONTENT Kara Phelps kphelps@wtwhmedia.com

With this issue, we’re proud to present the inaugural Leaders in Quick Service, a special section in which vendor partners who can help you grow your restaurant operation present themselves to you in their own words. Running a quick-service restaurant in any economic environment is a challenge. Being faced with the headwinds ADOBE STOCK: F8 \ SUPORT UKRAINE

operators see today, like inflation, labor challenges, and a potential recession, only ups the ante. The good news? You don’t have to go it alone. The vendors who have chosen to participate in this section take pride in the solutions they’ve created for quick serves, and they’re eager to connect and help out. So if you’re looking for a product or service—or just a few new ideas—consider turning to these suppliers.

A R T & P R O D U C T I O N ART DIRECTOR Tory Bartelt tbartelt@wtwhmedia.com GRAPHIC DESIGNER Erica Naftolowitz enaftolowitz@wtwhmedia.com PRODUCTION MANAGER Mitch Avery mavery@wtwhmedia.com

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S A L E S & B U S I N E S S D E V E L O P M E N T GROUP PUBLISHER Greg Sanders gsanders@wtwhmedia.com NATIONAL SALES DIRECTOR Eugene Drezner edrezner@wtwhmedia.com 919-945-0705 NATIONAL SALES MANAGER Edward Richards erichards@wtwhmedia.com 919-945-0714 NATIONAL SALES MANAGER Amber Dobsovic adobsovic@wtwhmedia.com 919-945-0712 NATIONAL SALES MANAGER John Krueger jkrueger@wtwhmedia.com 919-945-0728 SALES SUPPORT AND DIRECTORY SALES Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704

Restaurant Equipment & Technology / January 2023 As restaurants continue to combat new challenges, here are some of the companies and vendors o ering solutions.

RestaurantEquipment&Technology

Old wisdom has noted that the restaurant industry was slow to adapt to certain technologies. The digitization of, well, everything was a slow and steady process playing out during the 2000s and 2010s. New equipment, technology, and digital solutions were rolled out fast and furious, all with the aim of helping restaurants become more efficient. J A N U A R Y / 2 0 2 3 ADOBE STOCK / LANGSTRUP

66 R.F. TECHNOLOGIES, INC. 68 WELBILT 70 XENIAL

58 INTELLIHOT 60 LOOMIS US 62 NAVIA ROBOTICS 64 RESTAURANT TECHNOLOGIES

52 ACRELEC 54 APEX ORDER PICKUP SOLUTIONS 56 BOTRISTA

58 2023 Restaurant Mantra: Operational Efficiency SPONSORED BY INTELLIHOT 60 How Restaurants Are Solving 3 Big Challenges in 202 3 SPONSORED BY LOOMIS US 62 How Restaurants Are Reducing Labor Cost While Improving Customer Service SPONSORED BY NAVIA ROBOTICS 64 Keep Your Head Above Water When Labor Costs Rise SPONSORED BY RESTAURANT TECHNOLOGIES

66 Why Operators Are Moving Toward Repair Plans SPONSORED BY R.F. TECHNOLOGIES, INC. 68 How to Maximize Restaurant Efficiency with the Internet of Things SPONSORED BY WELBILT 70 The End-to-End Solution that Will Increase Drive-Thru Velocity and Sales SPONSORED BY XENIAL

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RESTAURANT EQUIPMENT & TECHNOLOGY | JANUARY 2023

52 How Quick-Service Restaurants Can Elevate the Self-Ordering Experience SPONSORED BY ACRELEC 54 Why Digital Orders Need a Chain of Digital Custody SPONSORED BY APEX ORDER PICKUP SOLUTIONS 56 This Automated Beverage Program Helps Restaurants Regain Lost Beverage Sales SPONSORED BY BOTRISTA

F O U N D E R Webb C. Howell

A D M I N I S T R A T I O N 919-945-0704 / www.qsrmagazine.com/subscribe QSR is provided without charge upon request to individuals residing in the U.S. who meet subscription criteria as set forth by the publisher.

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E D I T O R ’ S L E T T E R

Solutions, Not Resolutions Looking ahead, restaurants will grapple with years of change, and applications that bring it all together.

A s always this time of the year, con versations have turned to the future. Personally, I’m not a big resolutions fan. It doesn’t take me long to remember why I wasn’t doing something to begin with ( like jogging ). But in terms of restaurants, I’ve been charting prediction pieces for close to a decade. And as you might imagine, the first several years were tame in com parison to the past few. We’ve gone from themes like delivery and plant-based to trying to sort a revolution. This year, I crowdsourced some thoughts from Linke din. Here were some replies: MarkMoeller , a national restaurant consultant, believes the word of 2023 will be “transparency.” In his view: “As a guest we want to know where our food is coming from, we want to know that the team is being treated fairly and ethi cally, we want to know if the restaurant owner is truly invested in the community they serve.” The same, Moeller goes on, applies to employees believing their company’s ethos is more than lip service, as well as investors backing brands with purpose. LenaKatz , a content and creator strategy director at Ampersand, sees the convergence of AI/robotics and employ ees taking on a lasting form. Perhaps fewer employees, but better paid, and thus, tech that improves guest experience while maintaining a sustainable profit margin. One example she referenced was Which Wich’s YellowLab kiosks—an innovative spin that allows remote work ers ( or virtual cashiers ) to run the system. Restaurant coach and entrepreneur BryanMeredith projects a labor shift. “When the Fed wins and unemployment goes up, the labor pool will get better for restaurants and the real decisions will

have to be made with respect to staffing needs versus the path to automation,” he said. “Restaurateurs must figure out this dynamic and get a clear focus on how they want to run their business.” MeganGibson , brands account execu tive at Restaurant365, feels improving margins ( on the mind of all ) starts with eliminating outdated systems that run your back office. Toss the Excel spread sheets. Dynamic speed of service and dynamic pricing? Both came up. On the former, VP of digital at HMSHost, Neil Thompson , projects f lexible technology solutions that enable the guest to control the pace of their experience. Quick serves, he says, have become more about convenience than dine-in destinations. BrittanyMaroney , director of mar keting and communications at PAR Technology, envisions more expansion for restaurants into loyalty, using data to personalize and integration into online ordering and contactless payment. And lastly, is a shakeout in store? Mark Hutchings , who works with restaurants and bars at Statement Insurance Agency, believes so. “I see a new wave of closures in the post pandemic era. PPP and other programs that kept struggling locations af loat during the pandemic are winding down just as a recession is starting. … At the same time, surviving operators may finally see some labor relief as layoffs hit other industries and underperforming restaurants close.” In my view, I think 2023 is a year of recalibration as innova tion settles into application. From disrup tion to optimization, and beyond.

DKLEIN@WTWHMEDIA.COM QSR MAGAZINE

Danny Klein, Editorial Director

ROSIE ROSENBROCK

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SHORT ORDER

Merch lines have become a common branding expression for quick-service chains.

PandaExpress Hits the Streets The brand’s latest apparel collection took it up a notch.

AHEADOFTHEHOLIDAY SEASON, Panda Express teamed up with AAPI-owned community-driven streetwear brand, UPRISERS, to launch a limited-edition apparel collection called “Future Is Now.” The full collection debuted at ComplexCon, but consumers and non ComplexCon attendees were able to shop a special early drop of four items (reversible bomber jacket, takeout pail purse, T-shirt, and air freshener pack). Inspired by UPRISERS’ mantra, “what you wear is what you represent,” the collaboration looked to honor both brands’ cultural roots to collectively move forward as a community. Furthermore, 10 percent of proceeds from the UPRISERS x Panda Express collection were donated to the Filipino Migrant Center, furthering the company’s efforts to uplift AAPI voices and small businesses through its fundraising initiative.

PANDA EXPRESS

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SHORT ORDER

Anewyear brings freshpredictions for fast food, and some old and novel ideas on deck. Just like 2023, this coming calendar promises plenty of consumer-driven innovation ignited by technology. What’s to come? We check in with some experts.

Smaller footprint stores will emerge focused on off-premises strategies and rapid order pickup.

As consumer restaurant habits continue to shift away from in-store dining and mobile ordering becomes more prevalent, some restaurant brands have acquired real estate as well as off-premises technology solutions for new stores uniquely designed for mobile orders, curbside pickup, and the drive-thru. In lieu of in-store dining, we’ll see distributed, smaller footprint stores that offer a highly personalized customer experience and real estate optimized for order pickup, whether that’s dedicated mobile-only drive-thru lanes or curbside pickup spots. These initiatives will be further enhanced by automation such as AI voice ordering, reconfirming order details, and the like.

VICE KIOSK: ADOBE STOCK / WIFESUN, TAKE-OUT FOOD ORDER ON A RESTAURANT COUNTER: ADOBE STOCK / DAVID

Consumers are slowly moving away from takeout and delivery and are starting to enjoy more meals at brick-and-mortar stores. During the COVID-19 pandemic, consumer demand

Competition in fast food heats up. Quick-service restaurants aren’t just competing with their rivals anymore; there’s growing competition between fast-food brands and stores that offer a faster, easier, or more engaging buying experience such as smaller footprint stores, coffee chains with shorter drive-thru lines, or conve nience stores that continue to invest heavily in foodservice initiatives. Some fast-food customers are also lured away from quick-serves in search of healthier options, clean ingredients, or even en vironmentally friendly packaging that reduces the carbon footprint. In some cases, smaller restaurants may need to be more mission-driven and provide a healthier menu to compete. —Emil Davityan BLUEDOT COFOUNDER AND CEO

for takeout and delivery services reached an all-time high. Now, consumers are starting to return to restaurants and food halls to sit down and linger in-house. To gain new customers, menus will have to be inno vative. To meet this need, PITA will launch a completely new menu in 2023 highlighting new, innovative items to capture more loyal customers, and of course, keep their current consumers happy. This menu launch will coincide with PITA’s 10th anniversary and will include new items such as spanakopita, veggie grape leaves and an appetizer cheese roll that will double as a dessert. —Nour Rabai FOUNDER AND CEO OF PITA MEDITERRANEAN STREET FOOD

Fast-casual dining segments will become

more popular. Coming out of the pandemic, inflation will hit full-service restaurants heavily, and fast casual will trend higher in terms of dining experiences for consumers. Consumers will gravitate toward the fast-casual restaurant market for its convenience and away from full-service and fine-dining experiences.

Pickup is the NewDelivery Driven by inflationary fears and escalating delivery fees, people are shifting to picking up their own food. Fast-casual and fast-food chains are making it progres sively easier by building double- and triple-pickup lanes at their restaurants,

Menu Re-Development. With rising inflation and the cost of goods at an all-time high for restaurants, virtually all restaurant operators are looking at re-engineering their menus to find unique and creative ways to be able to provide perceived value to the guest in terms of menu items, while tweaking or changing the ingredients used and the portion sizes. I also believe we will see price increases across the board in all sectors of the dining industry to offset these rising costs. —James King FOUNDER & CEO OF TITAN HOSPITALITY GROUP

exclusively for people who’ve pre-ordered online. The idea is to wean customers away from profit-killing delivery apps and, at the same time, save customers money, often as much as 30–50 percent. —Baum+Whiteman consultants

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| C A N C - S T O R E S T H R E A T E N F A S T F O O D ? | fresh ideas The Convenience Battleground Can C-stores compete

with quick-service restaurants? They sure think so. B Y I S A B E L L A S H E R K

There’s plenty of daypart share up for grabs, especially at breakfast.

W hen most think of C-stores, they imagine small shops where you can grab a drink or snack while filling up the gas tank. That image isn’t always associated with traditional quick-service dining. Some brands, however, are work ing to change the conversation, expanding their food offerings and giving customers a reason to stop beyond the pump. According to the National Association of Convenience Stores ( NACS ), C-stores sell 80 percent of the fuel purchased in the entire country, and about 44 percent of those customers go inside. Among those who venture in, about one in three end up mak ing a purchase. This large cohort is there for the taking, and is as good of a reason as any to attempt to convert fuel customers into food ones as well. Kwik Trip is a Midwest-based chain working to draw in those

customers. Its priority is keeping prices low, and making the food high quality and readily available to try. Notably, through sampling. ”Our goal is to get the food in our customers’ mouths,” Paul Ser vais, retail food service director for the brand, says. “We sample all the time. The expectation is that we’re going to be sampling a minimum of eight hours a week per store.” Servais says this prac tice, along with implementing specials like Dollar Wednesdays, have inspired trial. Though fuel certainly drives customers into Kwik Trip, the brand also has a significant grocery arm. Kwik Trip has its own dairy and is able to produce proprietary milk and ice cream, as well as two bakery plants that produce breads and sweet goods. Having these resources shortens the supply chain and allows the brand to innovate food items in-house at an accelerated rate, Servais says.

CASEY’S

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fresh ideas

| C A N C - S T O R E S T H R E A T E N F A S T F O O D ? |

CAN REWARDS BRIDGE THE GAP? CASEY’S LAUNCHED ITS PLATFORM IN JANUARY 2020 AND IS CURRENTLY APPROACHING 6 MILLION MEMBERS.

Kum & Go, also based in the Midwest, decided to back a large effort to improve its foodmenu roughly two years ago. The brand wanted to put more of an emphasis on quick-service foods rather than the typical C-store menu, Jac Moskalik, VP of food innovation for the brand, says. That meant launching made-to-order options like sandwiches or bowls. Moskalik says customers responded well to the change, but the difficult part was conquering the stereotype that C-stores don’t feature restaurant-quality food. “All statistics show that once the consumers try our newmenu, they’re hooked. Once they try it, they come back,” Moskalik says. Natasha Ratzlaff, director of category management and food service at Kum& Go, adds there is a 68 percent customer retention rate. “The lines of convenience are blurring,” she says. One way Kum & Go found to engage consumers was to con tinue to offer grab-and-go items alongside its made-to-order menu. This allowed the brand to retain customers coming into the store on a time crunch, while also exposing them to broader offerings down the line. It’s not about ditching the convenience element—but rather being able to meet the need for any occa sion, the company says. In terms of dayparts, the morning is generally a time where C-stores thrive—people are on their way to work, they need gas, maybe they stop in to get a coffee. While in line, they might add on a bagel or breakfast burrito to their order. Moskalik notes about 54 percent of Kum& Go’s sales occur during the A.M. window. Though the brand still plans to innovate at breakfast, it expects to focus on the afternoon and evening dayparts as well. “Next year, all of our innovation is built around different occasions,” Moskalik says. On the other hand, Casey’s is a C-store looking to do the opposite. The chain already thrives in the afternoon and evening because of its established pizza business that brought in $1.2 bil lion in revenue last fiscal year. Because of that dinner strength, it has its sights set on beefing up breakfast. Pizza is part of that equa tion, too—Casey’s breakfast pizza, sold by the slice, has been a fan favorite for a while, TomBrennan, chief merchandising officer, says. However, about a year ago, Casey’s decided to do a breakfast

relaunch, complete with bean-to-cup coffee machines and the re-engineering of its breakfast burritos. “We’ve continued to see unit and dollar growth in that product,” Brennan says. “We’ve also taken a look at our breakfast sandwich lineup tomake sure that we are delivering the same quality that we deliver in our pizza. We’ve seen guests really engage with us, and it’s been very favorable.” One common thread between C-stores that operate well across their quick-service operations is a rewards program tied to dis counts at the pump. With recent inflation, consumers are looking to save on gas however they can. This gives C-store apps and their connected loyalty programs a leg up—consumers already have to buy gas; why not save some money by joining a loyalty program? At Kum & Go, a rewards program connected to its mobile app is an important way to drive transactions. The brand has tangi bly connected its app to fuel by allowing customers to unlock the pump and pay from their phones. “You can actually fuel up while not having to leave your car, with the exception of putting the pump inside of your vehicle,” Moskalik says. “Then you can actu ally shop for items inside the store while you’re fueling up and our fuel rewards are all linked in there.” Customers can also tailor rewards to get what they want, whether that is money off gas or a free food item. Casey’s launched its rewards platform in January 2020 and is currently approaching 6 million members, Brennan says. People earn points from money they spend at Casey’s and can redeem it for Casey’s cash to purchase in-store items; receive money off their gas, or a donation of those points to a local school through its cash for classrooms program. The brand also touts an active customer base: over 50 percent of its members are active in the app on a monthly basis, Brennan says. Kwik Trip’s mobile app is called Kwik Rewards, which Servais says customers use religiously to get money off of their gas. “The magic of rewards is cents off gallons,” Servais says. “That’s what drives loyalty in the C-store industry.” q

IsabellaSherk is a Staff Writer at QSR magazine. She can be reached at isherk@WTWHmedia.com .

CASEY’S (2)

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To learn more about Frank’s RedHot ® , visit McCormickForChefs.com/Franks-Means-Buffalo ©2023 McCormick & Company, Inc. 24-1 Schilling Road, Hunt Valley, MD 21031 • 800-322-SPICE (7742)

DEPARTMENT ONES TO WATCH

CookiePlug An offbeat brand is ready to turn a red-hot category on its head. B Y B E N C O L E Y

The growth targets are massive. Cookie Plug, with 23 corporate stores and two fran chises open as of early November, wants to have at least 300 locations by the end of 2026 and at least 1,000 units under develop ment. Currently, there’s roughly 130 stores in the pipeline. “I think we’re well on our way to that, but obviously you have to build the infra structure and make sure you have the right personnel and teams in place in order to do it,” Wyland says. “That’s what we’re busy doing.” Martinez’s Cookie Plug journey origi nated from operating the Cakewalk Cake and Candy Supplies, a cake decorating concept. The business’ success led him to London, where he found international chain Ben’s Cookies. The visit inspired Marti nez to launch a cookie brand of his own in the U.S., infused with the culture he grew up in—West Coast 90s hip hop. The f irst Cookie Plug opened in May 2019 inside one of Martinez’s cake stores. It was only 60 square feet with a counter and enough room for one person to walk inside. The unit opened the day before Mother’s Day and only earned about $150. On Mother’s Day, even fewer cookies were sold. He kept at it, but in the following months, the high est days were just $600–$700. But then in his hometown of Redlands, California, he came across a 700-square foot spot that he was able to grab for $1,300 per month in rent. Martinez started posting about the second location, and Cookie Plug caught f ire overnight. He added another store before COVID hit in March 2020, and instead of reeling back, he doubled down. Twenty units opened between 2020 and 2021. “I mean honestly, all the other brands are boring,” Martinez says. “I mean when you walk into Mrs. Fields, they got a red wall with white writing. You CONTINUED ON PAGE 46

after having visited Roll-Em-Up several times. He kept up with the press releases and growth targets, and was interested in Wyland doing the same for his emerging dessert company. WhenWyland did his due diligence, he discovered a brand that com bines urban culture with a variety of cookie f lavors. Graffiti covers the walls and hip-hop music plays over speakers—even unedited versions. More than a dozen cookies on the menu invoke the same ethos, like the Snoo perdoodle, Mac Daddy, and Nutty O.G. Wyland visited a few locations and fell in love with the vibe. He helped Martinez initiate the process of creating an FDD and began working on everything required for a suc cessful launch, like infrastructure, training, and real estate. The program was officially announced earlier this year.

FOUNDERS: Erik Martinez HEADQUARTERS: Riverside, California

YEAR STARTED: 2019 ANNUAL SALES: N/A TOTAL UNITS: 25 FRANCHISED UNITS: Two open/125 signed under development agreements

CHRIS WYLAND WAS IN THE MIDST OF GROWING the franchise base of Roll-Em-Up Taqui tos—a chain that signed development deals for 420 stores in six months—when he first learned of fellow Southern California-based brand, Cookie Plug. Erik Martinez, the company’s founder, connected withyWyland through Instagram

COOKIE PLUG

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For more information: CoatesGroup.com info@coatesgroup.com

Leading the Industry Immersive Customer Experiences Powered by Digital Hardware & Switchboard™ CMS

DEPARTMENT FRANCHISE FORWARD

FrozenYogurt’s SecondAct Leading brands are evolving to meet a changing customer. B Y C A L L I E E V E R G R E E N

tomize their yogurt with a variety of different toppings like fruit, candy, pretzels, and syr ups—started gaining traction in 2005 when Pinkberry opened its f irst store in West Hol lywood, California, which has grown to about 260 franchises in 20 countries. Though Pink berry touts itself as “the original frozen yogurt that reignited the category,” competitors quickly rose up to vie for a piece of the frozen treat market. Yogurtland was among the first to offer the self-serve frozen yogurt bar with a variety of f lavors available to customers at the pull of a handle. Yogurtland served its first cup of fro yo in 2006 in Fullerton, California, and after 15 years has grown to nearly 300 locations across eight countries. In September, same-store sales were up 27 percent versus 2021, with comp sales up around 30 percent from 2021, according to Yogurt land president Sam Yoon. And 80 percent of stores are outperforming 2019 sales, proving the brand is fully recovered from any pandemic lags, Yoon says. Yogurtland didn’t reach success by acci dent. A purposeful, multi-tiered drive to stay

16 Handles was acquired by its largest franchisee, Neil Hershman (left), and investor Danny Duncan, who boasts nearly 7 million YouTube subscribers.

T rends come and go, but prospective franchisees want to invest their hard-earned dollars in concepts with staying power. Here’s how fro-yo leaders at Yogurtland and 16 Handles are staying relevant. Frozen yogurt shops are the millennial equivalent to the soda fountains that served as social hubs for teenage Baby Boomers. The frozen treat has gone through multiple popularity booms that seem to fizzle out after a few years, but leaders in the segment are reassuring customers—and potential franchise owners—that fro yo is poised for a comeback, and is here to stay. Though the origins of yogurt can be traced back thousands of years to the Middle East and India, the f irst commercial frozen yogurt wasn’t available in the U.S. until the early 1970s. “Frogurt,” as it was initially called, was sold only in scoops like ice cream and was more tart than sweet. Soft-serve frozen yogurt was invented in the 1980s, and quickly gained popularity for being the healthier alternative to sugary ice cream since fro-yo contains digestion friendly probiotics. The modern version of fro-yo shops—where customers cus

relevant has enabled the brand to keep building momentum, Yoon says, plus better-for-you concepts are trending in franchised food and beverage concepts—“contrary to articles in the past that said frozen yogurt is dead,” he says. While many attribute the explosion of health and wellness focused brands to the pandemic spurring people to care more about their health, Yoon predicts better-for-you brands have more room to grow. “This trend will only grow stronger,” he says. “Fro zen yogurt is healthier and contains probiotics that boost immune systems. Our frozen yogurt contains at least 10 million cultures at the time of manufacturing, and our f lavors are developing around plant-based f lavors our guests love, as well as sugar-free options.” A focus and investment on using high-quality ingredients helps differentiate the brand from competitors in the space. An in-house team of “f lavorologists,” as Yoon calls them, ensure customers are receiving the latest global and diverse mix of new f lavors at Yogurtland. The team has a rolling 18-month f lavor development plan, and the innovation process—from ideation to [CONTINUED ON PAGE 48]

16 HANDLES

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A D V E R T I S E M E N T

Why do the world’s busiest restaurants rely on FIFO Innovations for their dispensing needs? FIFO sauce dispensers are designed around the specific demands of fast-paced restaurants. Each product helps increase service speed and reduce waste so you can save more! Savewithfifo.com even allows restaurants to calculate how much they can save when upgrading to FIFO sauce dispensers. Explore FIFO’s range of dispensers and discover how they reduce waste, increase speed of service, and help you create consistently amazing experiences. FIFO Innovations

FIFO Bottle ™

Sauce Gun Bottle Simple yet durable. Use Sauce Gun Bottle with widely used stainless steel sauce guns for refillable, time-tested portion control. Large quick-serve restaurants have long used sauce guns for fast, consistent food prep. FIFO’s Sauce Gun Bottle provides an efficient, refillable alternative to disposable paperboard canisters. Like Portion Pal™, the bottles help restaurants create consistency and cut waste. However, the sturdy construction means you can also dispense condiments that were previously too thick to work with. Now, with just the squeeze of a handle, you can cleanly dispense condiments like Nutella or sour cream.

The always-ready squeeze bottle. Perfect for dispensing ketchup, mayonnaise, mustard, and many more sauces. FIFO Bottle’s bottom dispensing design works with gravity to pull sauce down towards the valve, keeping it primed for fast dispensing. No more banging bottles on the counter! The second opening on top of the bottle provides access for filling and in turn ensures proper First In, First Out (FIFO) sauce rotation. As with all FIFO Innovations products, there’s a wide range of accessories available to customize FIFO Bottle™ to your specific needs.

FIFO Innovations 107-2999 Underhill Ave, Burnaby, British Columbia, Canada, V5A 3C2 PH: 1-800-453-FIFO PH: +1 778-383-6200 www.fifoinnovations.com

Portion Pal ™ Fast, versatile portion control. With adjustable portion control, 98% sauce yield, and speedy dispensing, Portion Pal™ is the quick-serve industry’s secret weapon. Choose between three sauce dispensing patterns: single hole, ideal for tacos, tortillas, smoothie bowls, or any application needing a single drizzle; or two holes, perfect for wider sauce coverage on subs. Or three holes to provide optimal sauce coverage on buns and sandwiches. Savings from Portion Pal™ can often outweigh the initial investment in under two months! Higher yield means less waste and quick dispensing equals less prep time.

a FRANKE company

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A D V E R T I S E M E N T

Fiorucci

Deliver Fiorucci’s Exceptional Italian Taste to Your Customers Fiorucci is proud to offer a full line of pre-sliced Italian deli meat products to quick-service restaurants, for use in a variety of menu applications and chef inspired recipes. Fiorucci’s Italian Sandwich Variety Pack allows operators to build a delicious, authentic Italian sandwich instantly. Featuring three mouthwatering dry

Fiorucci is the brand of specialty meats that delivers the true taste of Italy. For over 170 years, we have used old-world recipes to produce a full line of authentic Italian deli meats, using only hand trimmed cuts of premium pork and the finest ingredients, then slowly aging them to perfection. Our portfolio includes a variety of pre-sliced and bulk meats including Prosciutto, Pancetta, Salami, Pepperoni, Sopressata, Jamón Serrano, Capicollo, Mortadella, Chorizo, and other specialties, including our best-selling Paninos line.

goes to waste, maximizing customer usage and output, while reducing back of-house prep. Some favorites include Pepperoni, Mortadella, Hot Capicollo, Salami, Prosciutto, and Prosciutto di Parma. Our 1 lb. All-Natural Charcuterie Slices, in various flavors—all with no hormones, antibiotics, nitrates, nitrites, preservatives, or artificial flavors, colors, and ingredients—can be applied to charcuterie boards, pizzas, salads, soups, pastas, and much more, while providing perfect portion control, versatility, and minimal prep time for operators. We are also proud to introduce our new traditional and Hot Sopressata deli meats in 2.5 lbs. pack sizes to for an

cured meat combinations that are ready to eat any time, each 6 oz. resealable package contains pre-sliced Hard Salami, Pepperoni, and Genoa Salami, six slices each. Operators could also prepare an impressive charcuterie tray instantly with Fiorucci’s Italian Charcuterie Variety Pack, featuring three premium meats that are ready to eat any time. Each 6 oz. resealable package contains pre-sliced Sopressata, Prosciutto, and Italian Dry Salami. For larger recipes and added portion control, we offer pack sizes ranging from 1 lb. to 2.5 lbs. pre-sliced deli meats in resealable packages to ensure no product

Fiorucci Foods, Inc. 1800 Ruffin Mill Road South Chesterfield, VA 23834

PH: 804-520-7775 EMAIL: cfa.marketing@campofriofg.com https://fioruccifoods.com

elegant, zesty flavor when added to any recipe. All our products are gluten-free, low-carb, low-sugar, and high in protein, with original recipes that have been passed down through three generations for more than 170 years, dating back to 1850 in Norcia, Italy. For more information on Fiorucci’s various foodservice and retail products, please visit us at www.fioruccifoods.com , Facebook, Instagram, YouTube, TikTok,

and Pinterest, or reach out to us at cfa.marketing@campofriofg.com .

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Frymaster

Focus on Frying Innovation By understanding the needs of our customers, Frymaster leads the industry in creating innovative solutions that make frying safer, easier, and more profitable.

Frymaster manufacturers a broad portfolio of commercial fryers featuring innovative technologies that simplify frying and oil management. We are constantly engaging with our customers and designing innovative solutions to make frying easier and more profitable.

from crew members. Simplifying the most tedious fryer maintenance task encourages better oil management and

translates to increased profits. Connected Solutions

Frymaster has embraced the power of internet-connected fryers to drive continuous improvement in the world of frying. Updating software and menus can now be done remotely across an entire system of fryers. For customers, the ability to see how their fryers are being used in their restaurants remotely from the Cloud improves management capabilities. As we learn from today’s connected fryers, we are developing tomorrow’s innovation. Frymaster’s award-winning commercial fryers take frying to a new level through innovative solutions to operational issues. We’ve taken the guesswork out of oil management for crews and operators. Our fryers walk

Intuitive Touchscreen Controls With simple and easy to use touchscreen controllers, training crews has never been easier. The fryer is now able to alert crews to filter during idle periods, provide on screen troubleshooting

Frymaster 8700 Line Avenue Shreveport, LA 71106

information when needed, and even tell the crews exactly when the oil needs to be replaced. Instead of crews having to learn how to operate the fryer, Frymaster fryers instruct the crews on how to properly manage the oil and extend oil life. Safe and Automatic Filtration Manual methods of filtering oil are messy and dangerous. Frymaster has designed fryers in a wide range of sizes that can automatically filter the oil. Oil from the most challenging applications, like fresh breaded chicken, can be filtered without manual intervention

www.Frymaster.com

crews through step-by-step processes to filter the oil simply and safely to extend oil life and increase profitability. Everybody wins with Frymaster fryers.

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Sunny Sky Products is a Beverage Solution Provider for the foodservice and convenience store industries offering an extensive portfolio of licensed and in-house brands with the ability to create custom solutions. Sunny Sky Products

CUSTOM BEVERAGE SOLUTIONS In addition to the company’s core product offering, Sunny Sky can develop custom private label solutions that meet the strategic needs of our customers, creating long-term trust and mutual benefits. We have the unique ability to go from concept to finished product in as little as 6 weeks and are renowned for our attention to service and proactive approach to increasing our customers’

Beverage Solution Provider

SUNNY SKY PRODUCTS is a leading manufacturer of beverage solutions, specializing in liquid and powder concentrates for hot, cold, frozen, and beverage enhancer products. We measure our success by the success of our customers, which is why we pride ourselves on our commitment and dedication to creating, manufacturing, and delivering top quality products and customer service. EASY-TO-EXECUTE SOLUTIONS Sunny Sky Products produces a wide variety of on-trend, high-appeal, and easy-to-execute solutions offered as core “everyday” products as well as seasonal LTOs. The company’s products include: cappuccinos, hot chocolates, iced and cold brew coffee, creamers, fountain drinks, slushies, bar mixes, smoothies, frappes, energy drinks, juices, teas, sweeteners, flavored syrups, sauces, and toppers.

Beverage Expertise:

• Hot Beverages • Cold/Chilled Beverages • Frozen Beverages • Beverage Enhancers • Alternate/Secondary Sourcing

sales. Our marketing team is here to help ensure the success of your beverage program by providing market research, consumer insights, machine graphics, and in-store POS. THE COMPANY’S BEST-IN-CLASS Production facilities are fully certified and excel at plant audits, providing manufacturing solutions you can trust. Our extensive product portfolio is distributed domestically and internationally across five continents and over twenty countries. TRUSTED PARTNER We continue to expand our capabilities and portfolio to provide value to foodservice through our innovative and on-trend offerings. Our versatile products expand the scope of application in various types of end products that enable you to do more with less while keeping back-of-house operations simplified.

Sunny Sky Products 11747 Windfern Road, Suite 100 Houston, TX 77064 PH: ( 877 ) 235-6466 www.sunnyskyproducts.com

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BRAND OF THE YEAR T R A N S F O R M A T I O N A L

From revitalizing company culture and introducing a new store design to acquiring Del Taco, Jack in the Box is once again on a winning streak. JaCk IS B a ck / B Y C A L L I E E V E R G R E E N Donning a Ted Lasso costume for Halloween last year, Darin Harris just so happens to share a few qualities with the fictional American college football coach turned English soccer coach—from his optimistic demeanor to his ability to win over skeptics. Though, to be fair, Harris had no shortage of restaurant experience when he joined Jack in the Box as CEO. He helped lead the turnaround of Cicis Pizza as CEO from 2013 to 2018, resulting in 17 consecutive quarters of same-store sales and traffic growth after the brand was bought by a private equity firm. (For context, Cicis faced five straight years of negative restaurant sales and more than 200 restaurant closures before Harris joined). Before, he also revitalized restaurant growth in his senior vice president role at Arby’s, lead ing the global strategy for international, franchise, and non-traditional development.

HOLOGRAM STICKERS: ADOBE STOCK / ANTON PORKIN, TROPHY: ADOBE STOCK / PAMBUDI, JACK IN THE BOX

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TRANSFORMAT IONAL BRAND OF THE YEAR

 JACK IN THE BOX’S NEW RESTAURANT DESIGN FOCUSES ON THE BRAND’S BUDDING OFF-PREMISES BUSINESS.

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TRANSFORMAT IONAL BRAND OF THE YEAR

Upon joining Jack in the Box in June 2020, Harris was tasked in his first 90 days with every new CEO’s dream—set tling a two-year-old lawsuit with the Jack in the Box National Franchisee Association, which represents 95 franchise owners with about 2,000 of the brand’s more than 2,200 restaurants. However, his diligent work paid off. Jack’s stock price, as of press time, was hovering around $89, an increase of 170 per cent since Harris came on board. Overall franchisee satisfaction scores also improved from 56 percent in 2020 to 72 percent. He attributes Jack’s successful turnaround to clarifying the brand’s strategic direction, re-establishing franchisee relationships, hir ing a new leadership team, and focusing on culture. Delving into the latter, Harris faced another immediate chal lenge when he entered an empty office during a pandemic and began assembling a new C-suite at a time when people were still nervous about meeting in person. “Just trying to f igure out, how do I roll up my sleeves and understand the business, and understand what really happens at Jack in the Box and the culture and the people and franchi sees, was a huge challenge,” Harris says. The lack of in-person meetings led to missed moments to connect and build culture, “because you’re focused so much on how do we execute, what do we need to get done today,” he adds. “A whole new leadership team didn’t know their employ ees personally, because they weren’t seeing each other in the office each day.” Though Harris admits the solution to building a strong cul ture in today’s environment is ever evolving, building time in the schedule to get to know employees and ask about their fam ilies has boosted morale, and even helped the team align on a shared vision and strategy. “If we get people and culture right, 90 percent of our success will come from those two things,” Harris says, plus “having a clear strategy and being able to adapt.” If rising sales figures are the measure of success, Harris must be on to something. In 2021, Jack in the Box reported $1.8 million average-unit volumes—up 20 percent from 2020, and providing $4.3 million enterprise average EBITDA, Harris says. In the fourth quarter ending on October 2, Jack in the Box reported total revenues of $402.8 million—an increase of 44.6 percent from last year during the same period. The brand ended Q4 with 2,181units, including 2,035 franchises and 146 com pany-run locations. AN ENERGIZING ACQUISITION LEADS TO LEARNINGS AND NEW PROTOTYPE A signif icant driver of Jack in the Box’s success over the last year can be attributed to a strategic acquisition completed in March 2022 of Del Taco, which comprised about $126.3 mil lion—nearly 32 percent—of the total revenue in Q3. Aligning menu offerings, company cultures, and guest profiles drove Jack in the Box’s interest in the $585 million purchase of Del Taco, another California-based American fast-food chain that offers burgers, fries, shakes, and, no surprise—tacos. By acquiring Del Taco, Jack in the Box added about 300 corpo

rate-owned and 300 franchise-owned units under its portfolio, growing Jack’s overall reach to more than 2,800 locations span ning about 25 states. There was also the opportunity for Jack in the Box to learn from Del Taco’s success with its “Fresh Flex” prototype, a new restaurant design that dropped in January 2021 and led to increased franchise deals for the 600-unit-plus franchise. Highlights include third-party delivery pickup stations, double drive-thru lanes dedicated to mobile or delivery orders, and a

THE PROTOTYPE IS ALL ABOUT EFFICIENCY, FROM THE KITCHEN LAYOUT TO THE DRIVE-THRU.

kitchen redesigned for optimal labor efficiency. Following the deal, Harris and his team ref lected and real ized it “had been a very long time” since Jack in the Box released a new prototype, Harris says. “So our focus became, what can we do to make this a more viable development opportunity for growth?” he says. “One, it has to have a great image to the street, but it also has to be more cost effective and efficient to build and have a great eco nomic model.” Del Taco’s Fresh Flex design was based off of a previous Jack in the Box prototype that a former architect brought to Del Taco, Harris reveals, which they tweaked and improved upon. “We very quickly said, OK, this is very interesting,” Harris says. “Why don’t we take their learnings and provide our new image to a building that’s already more value engineered? And that’s what we were able to do.” In October, Jack in the Box announced its new “CRAVED” model—which stands for “Cultural, Relevant, Authentic, Vis ible, Easy, and Distinctive”—with a new restaurant opening in Tulsa, Oklahoma, at only 1,350 square feet, less than half the size of Jack’s typical dine-in restaurants. The new prototype features a double Y-lane drive-thru and pickup window, no inte rior seating to lower building costs, dual assembly kitchens, and exclusive parking for mobile and third-party delivery orders— sound familiar? The brand also brought a more modern design and color palette to its restaurant of the future with warm wood tiles, nat ural concrete waiting blocks, graphic poster panels, white cube tiles, and upgraded lighting and landscaping.

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