QSR July 2023

JULY 2023 / NO. 305 EVOLVING QUICK SERVICE FOR THE FUTURE

®

CLIMATE CONTROL FOCUS

PLUS:

EV Charging Goes National P. 26 The Strength of Renewable Energy P. 32

Panera has led with sustainability for years, but its job

is far from over. Building a Better World | P. 20 |

PANERA CHAIRMAN NIREN CHAUDHARY

INSIDE:

/P.43

Restaurant Equipment & Technology

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July

TABLE OF CONT ENT S J U LY

Restaurant Equipment & Technology P.43

2 0 2 3 # 3 0 5

QSR / LIMITED-SERVICE, UNLIMITED POSSIBILITIES

DEPARTMENTS

FEATURES

N E W S

CLIMATE CONTROL FOCUS

18 FRANCHISE FORWARD Sustainability, but in a Box A global franchise is exploring a new way to make delivery as environmentally friendly as possible. BY SATYNE DONER 38 OPERATIONS Follow the Plant Supply Trail With COVID forcing delays and inflation, meatless chains had their own ways of figuring things out. BY SAM DANLEY Consumers are demanding healthier options, and this segment is reaping the benefits. BY SAM DANLEY 16 ONES TO WATCH Burger Patch Check out the plant-based concept making waves on the West Coast. BY SATYNE DONER 42 I N S I G H T 11 FRESH IDEAS Battle of the Bowl Chains

20 / FORMER PANERA CEO NIREN CHAUDHARY BELIEVES IT’S A MORAL

IMPERATIVE THAT HIS COMPANY LEAD THE FIGHT AGAINST CLIMATE CHANGE.

START TO FINISH Dan DiZio

The Philly Pretzel Factory leader believes bringing doughnuts to the office is in the past. Pretzels are the star now.

PANERA BREAD, ECO ENVIRONMENT EARTH ICON: ADOBE STOCK / YURII

20 The Power of Change BY BEN COLEY

26 Order Up and Plug In BY SAM DANLEY Quick-service restaurants are going green with electric vehicle charging stations.

32 Renewable Revolution BY AMANDA BALTAZAR

Since its founding, Panera has pushed itself to take care of the environment— with one big climate goal after the other.

Restaurants are making change by incorporating energy efficiency into operations.

2 BRANDED CONTENT

4 EDITOR’S LETTER

7 SHORT ORDER

72 ADVERTISER INDEX

ON THE COVER Panera chairman Niren Chaudhary holds a meal that is known to be climate friendly. PHOTOGRAPHY: PANERA BREAD

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.

www.qsrmagazine.com | QSR | JULY 2023

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BRANDED CONTENT

E D I TOR I AL EDITORIAL DIRECTOR Danny Klein dklein@wtwhmedia.com

BRAND STORIES FROM QSR

QSR EDITOR Ben Coley bcoley@wtwhmedia.com FSR EDITOR Callie Evergreen cevergreen@wtwhmedia.com ASSOCIATE EDITOR Sam Danley sdanley@wtwhmedia.com

IN THIS ISSUE

14 Sifting Through the Noise: How to Avoid Greenwashed Products at Your Earth Friendly Restaurant ‘Greenwashed’ products pose a danger to brands. SPONSORED BY PHADE

CUSTOM MEDIA STUDIO 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

PHADE

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ART & PRODUCTION ART DIRECTOR Tory Bartelt tbartelt@wtwhmedia.com GRAPHIC DESIGNER Erica Naftolowitz enaftolowitz@wtwhmedia.com

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

SALES & BUSINESS DEVELOPMENT 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 CUSTOMER SERVICE REPRESENTATIVE Mitch Avery mavery@wtwhmedia.com 919-945-0722 CUSTOMER SERVICE REPRESENTATIVE Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704

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. JULY / 2023 ADOBE STOCK / STRATFORDPRODUCTIONS Restaurant Equipment & Technology

44 ACRELEC 46 APEX ORDER PICKUP SOLUTIONS 48 DSA SIGNAGE 50 INTELLIHOT 52 LOOMIS

54 NCCO 56 NOMAD GO 58 R.F. TECHNOLOGIES, INC. 60 RESTAURANT TECHNOLOGIES

62 SSI SCHAEFER 64 SEB PROFESSIONAL 66 TRANSACT

54 Looking to Improve Kitchen Operations? Start with Labeling Save time, reduce waste, and improve efficiency with NCCO’s DateCodeGenie. SPONSORED BY NCCO 56 Why Manual Inventory Counts computer vision counts improve efficiency while unlocking supply chain automation. SPONSORED BY NOMAD GO 58 Restaurant Tech: Why Operators Need a Full-Service Technology Partner The right partner keeps the focus on the customer experience, not technical difficulties. SPONSORED BY R.F. TECHNOLOGIES, INC. 60 With top-line costs rising, practical cost-cutting measures are more pivotal than ever. SPONSORED BY RESTAURANT TECHNOLOGIES 62 Leveraging Automation for Mixed SKU Case Palletizing and Route Sequencing How restaurants can get the right mix of products on every pallet. SPONSORED BY SSI SCHAEFER Are a Thing of the Past Fast and accurate mobile AI How a 20-Unit Franchisee Saved $8,000 Per Store

64 How Automation in the Coffee Space is Improving Both Operations and the Customer Experience With the simple push of a button, operators can provide consistent, delicious coffee. SPONSORED BY SEB PROFESSIONAL 66 Battling Labor Shortages and Rising Food Costs with Technology How technology is revolutionizing the back-of-house. SPONSORED BY TRANSACT TECHNOLOGIES—BOHA! 68 Maximizing Drive-Thru Traffic with Outdoor Digital Reader Boards How to boost drive-thru efficiency and revenue. SPONSORED BY WATCHFIRE 70 The End-to-End Solution that Will Increase Drive-Thru Velocity and Sales Operators report a return on investment in as little as nine months after installing this solution. SPONSORED BY XENIAL

TECHNOLOGIES—BOHA!

68 WATCHFIRE 70 XENIAL

RESTAURANT EQUIPMENT & TECHNOLOGY | JULY 2023

43

44 How Quick-Service Restaurants Can Elevate the Self-Ordering Experience Interactive kiosks help build loyalty and increase revenue. SPONSORED BY ACRELEC 46 Why Digital Orders Need a Digital Chain of Custody End-to-end data improves efficiency, ensures better customer experiences. SPONSORED BY APEX ORDER PICKUP SOLUTIONS 48 Why Restaurants Are Switching to Hybrid Drive-Thru Menuboards They’re the perfect tool for the post-pandemic landscape. SPONSORED BY DSA SIGNAGE 50 2023 Restaurant Mantra: Operational Efficiency Tankless water heaters can reduce energy use by 40 percent while saving space. SPONSORED BY INTELLIHOT 52 How Restaurants Can Reap Savings in an Uncertain Market Automating cash management leads to improved profitability. SPONSORED BY LOOMIS

FOUNDE R Webb C. Howell

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Our Bavarian Pretzel Bites are on track to be one of the most profitable products for menus everywhere. A delightful taste, these bites have the versatility to fit on any menu and be served in every daypart. Oh, and they’re good at making customers smile.

EDITOR’S LETTER

G , Planet! The world literally needs saving, and restaurants are pinching in.

I loved watching “Captain Planet” growing up. The animated TV series followed five teenagers who used magical rings to summon Captain Planet, an envi ronmentally conscious superhero. I can still hear the theme song’s lyrics in the back of my head, “Captain Planet, he’s our hero, going to take pollution down to zero!” The 1990s show was before its time in how it educated young people about sustainability. Thirty years later, we live in the same reality—climate change cannot be ignored. Piles of statistics back up this claim, all of which can be found with a simple Google search. Let’s start with the fact that Antarctica loses 151 billion tons of ice per year, which equals the weight of the rock of Mount Everest, according to NASA. Or how about 200 million people will be below sea level in 70 years if levels continue to rise at their current pace, said Nature Communications, a peer-reviewed scientific journal. And if you thought COVID was bad, wait until you hear about dengue fever, a mosquito-borne illness that causes high fever and flu-like symptoms. More severe forms can cause serious bleeding and even death. It’s a disease typically found in tropical regions, but with the rise in global temperatures, the sickness is expected to impact 60 percent of the world’s population in about 40 years, according to Frontiers in Public Health. The point of all this is to say, climate change is a global problem that affects all. When Panera announced two years ago its plan to become climate positive by 2050, chairman Niren Chaudhary described the problem as “one of the greatest humanitarian crises of our time.”

He followed that up by imploring every one to act now. The sandwich fast casual certainly walks the walk, with nearly 60 percent of its menu being labeled climate-friendly. Other restaurants, large and small, have done their part with climate change and continue to strive for more. Amy’s Drive Thru—an emerging plant-based chain in California— uses “living roofs,” or roofs comprising soil and vegetation. It’s not only aesthetically pleasing, but it also helps with stormwater management, reduces energy, and creates new habitats for plants and animals. There’s also the likes of Subway, Sonic, and Starbucks, that are investing in EV charging sta tions and providing extra convenience for customers willing to be greener. Research shows that food and bever age brands stand to benefit from taking a stance on sustainability. The National Restaurant Association’s 2023 State of the Industry Report listed zero waste/ sustainability/upcycled foods as one of the top 10 hot trends for this year. A survey from the Association found that 72 percent of adults are more likely to visit a restaurant using sustainable and environmentally friendly business prac tices. This is especially true of the much desired Gen Z and millennial genera tions, which came in at 81 percent and 77 percent, respectively. Sixty-four percent of adults say they’d likely order food grown or raised in an organic or envi ronmentally friendly way, with millenni als at 77 percent and Gen Z at 71 percent. A lot of people are joining the band wagon and for good reason. The planet needs help.

BCOLEY@WTWHMEDIA.COM QSR MAGAZINE

Ben Coley, Editor

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SHORT ORDER

The prototype debuted in Dripping Springs, Texas.

Welcome to a New Panda Express The fast casual revealed a new store honoring its heritage.

PANDA EXPRESS RECENTLY INTRODUCED A PROTOTYPE that pays homage to its American Chinese background in terms of architecture, design, and art. The first restaurant opened this past spring in Dripping Springs, Texas. Some of the more recognizable elements include a moon gate-inspired entrance, a neon welcome sign in the form of a dragon, a mural celebrating Chinese culture, and pictograms along the drive-thru that tell an American Chinese story. When it comes to the guest experi ence, the new restaurant has a bigger kitchen to help with speed of service. In exchange, the dining room is 15 percent smaller, but still decorated with terrazzo tables symbolizing Chinese New Year confetti, traditional fretwork tiling, and red lanterns. Panda created the prototype in partnership with ChangeUp, a retail brand agency. The fast casual’s plan is to open the format in new locations across the country later this year and into the future.

PANDA EXPRESS / MARK STEELE

www.qsrmagazine.com | QSR | JULY 2023

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SHORT ORDER

In January 2020, Starbucks announced a major sustainability goal to reduce its carbon, water, and waste footprints in half by 2030 using science based targets. The company believes embracing this longer-term mission creates the greatest value for all stakeholders. That announcement three years

REDUCING IMPACT

ago was paired with five strategic priorities—expanding plant-based options; shifting from single-use to reusable packaging; investing in innovative agricultural practices, reforestation, conservation, and water replenishment; finding better ways to manage waste; and developing more eco-friendly stores.

Certification of more than 3,500 Greener Stores • Co-developed with the World Wildlife Fund, Greener Stores are lower-impact restaurants engaging in renewable energy, waste diversion, energy efficiency, water stewardship, and employee engagement. • Starbucks set a goal to reach 10,000 Greener Stores worldwide by 2025, and it’s one-third of the way there. The coffee chain is the world’s largest retail builder of shops certified by Leadership in Energy and Environ mental Design ( LEED ), a green build ing rating program. • In April, 88 Greener Stores were certified in 18 additional markets, like Argentina, Vietnam, and the U.K. QUOTE TO KNOW: “Most of them look no different from any other Starbucks store,” said Grace Yoo, Starbucks Greener Stores global program manager, in a state ment. “But there are Greener Stores quietly opening and operating all throughout the world, with unglamor ous details like energy-efficient dish washers, water-saving faucets, and carefully thought-out waste diversion signage to help do our part in mitigat ing the effects of climate change.” In April, Starbucks revealed two major milestones along this sustainable journey:

Reusables Pilot • As part of the program, customers ordered their beverages and let the barista know they brought their own cups. With every personal cup, guests saved 10 cents and Starbucks Rewards mem bers received an additional 25 bonus stars. • The pilot ran in 192 participating shops throughout Colorado from April 10 to June 30. • By the start of 2024, Starbucks wants custom ers to be able to use their personal reusable cups for every store visit in the U.S. and Canada. • This is one of a few methods the brand has tested: Borrow a Cup— Customers order their drinks in designated Starbucks reusable cups and return them to a store. This has been tested in the U.S. and internationally. 100 percent Reusable Operating Models— In this example, single-use cups are eliminated in favor of reusable cups or for-here-ware (mugs, glass cups, etc.). One Test in Jeju, South Korea, diverted about 200,000 disposable cups from landfills within three months.

QUOTE TO KNOW: “We set a bold aspiration to become a resource-positive company—to store more carbon than we emit, to eliminate waste, and to conserve and replen ish more freshwater than we use. This aspiration included setting ambitious 2030 targets to cut our carbon, water, and waste footprints in half,” said chief sustainability officer Michael Kobori in a statement. “Innovation is how we will build our next chapter, advance our planet-positive impact, and boldly reimag ine our future together.”

STARBUCKS (4), CONNOR SURDI (3), TOP; WOMAN WITH REUSEABLE CUP: NICHOLAS MATTHEWS PHOTOGRAPHY, ECO ENVIRONMENT EARTH ICON: ADOBE STOCK / YURII

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fresh ideas |GROWTH AND DEVELOPMENT|

Battle of the Bowl Chains

Blended fruit bowl concepts are expanding across the country, thanks to growing demand for healthy options.

COVID PUSHED GUESTS TO THINK ABOUT THEIR WELL-BEING, AND THERE ARE PLENTY OF QUICK-SERVICE CHAINS TO SUPPORT THAT JOURNEY.

BY SAM DANLEY

A ndrew Pudalov didn’t have any experience in the restaurant industry when he left his Wall Street career to pursue a pas sion for healthy living. He only had his financial acumen and a vision of serving up wholesome and convenient meals in a bowl. The idea was to combine the taste and texture of smoothies with the crunch of granola, topped with honey, fresh fruit, and other nutritious fixings. It’s a familiar concept today and one that’s surging in popularity as more consumers seek out better-for-you alternatives to standard fast-casual fare. That wasn’t the case when he opened the first Rush Bowls location nearly two decades ago. “We were the pioneers,” Pudalov says. “A lot of our time early on was spent on education. People weren’t familiar with the for mat at first, but now, more people are aware of bowls, and more people are getting into the space.” Pudalov created a separate wholesale business after opening his first store in Colorado, partnering with Whole Foods to distrib

ute frozen bowls across the country. That venture came to an end in 2014 when his co-packer closed. By then, he was thinking about franchising, and the wholesale business had given him the crash course in national distribution he needed to make that happen. Rush Bowls has expanded to more than 40 units across nearly two dozen states since it started franchising in 2015. It plans to open 20-25 new stores in both new and existing markets this year. Competition in the segment has only accelerated alongside acai’s rise to fame as a celebrated superfood, but Pudalov says his brand maintains a competitive edge by focusing on what it does best. “We don’t do a lot of esoteric items,” he says. “We’re not dis tracted by things like salads or sandwiches. We’re focused on premium bowls and smoothies, and we have a lot of diversity within that narrow subset.” Playa Bowls also is ramping up its nationwide expansion. The fast-casual concept emerged in 2014 as the brainchild of wave

ADOBE STOCK / ALENA OZEROVA

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fresh ideas

|GROWTH AND DEVELOPMENT|

riders Robert Giuliani and Abby Taylor, who drew inspiration from the acai bowls they encountered on surfing expeditions to Cen tral America. What started with a blender and a folding table on a boardwalk in Jersey is now a 175-unit chain operating in 20 states. “We’re heavily populated on the East Coast in beach towns and vacation spots. That’s the core of where we started,” says CEO Dan Harmon. “Now, we’ve recognized that we do really well in airports, we do really well in colleges, and we do really well in the suburbs, so our ability to expand and go into new markets and areas feels really strong.” Harmon took the helm at Playa Bowls this spring after a five-year stint at Smoothie King, where he was president and chief operating officer. Before that, he spent more than three decades growing his passion for franchising and restaurant operations at Papa Murphy’s, Potbelly, and McDonald’s. Part of what drew him to Playa Bowls was its approach to the franchisor-franchisee relationship, which is dif ferent from what he’s experienced in the past. The company works with a diverse group of operators, from Gen Z entrepreneurs launching their first venture to surfers with seed money and retired Wall Street execs. “The people that we’re attracting love the brand,” Harmon says. “They’re not just trying to open a business. They’re really thinking about how to grow the store pipeline.”

but is finding success with a savory menu that features grain bowls, wraps, and other healthy bites. More recent additions include a line of frozen acai bowls and a proprietary line of bottled beverages, which it plans to roll out nationwide this year. Founder and president Tara Gilad launched the company in 2011 after discovering her daughter’s severe food allergies, so all of the products are prepared in kitchens that are designed to avoid cross-contamination. “We launched the savory menu during the pandemic, which was challenging, but also exciting, because the numbers proved to be very successful,” Gilad says. On the heels of that sales momentum, Vitality Bowls is ramping up its restaurant growth plans. Last year it opened nine new locations and signed 20 development agreements. It’s on track to ink 30 deals this year. The brand operates in 19 states and has more than 120 locations either open or in the construction stage. Last year marked a significant milestone for Vitality Bowls. Gilad says it entered a new phase of growth with its first five-unit development agreement. The deal was struck with an operator in Arizona. “When we first started, we wanted to work with hands-on owner-operators who could bring the brand into their community and prove the concept could be success

RUSH BOWLS (FROM TOP), PLAYA BOWLS, AND VITALITY BOWLS.

Playa Bowls opened 37 new stores and entered nine new mar kets in 2022. It also signed 77 development agreements in seven new territories. It plans to open at least 60 locations this year. Harmon sees that number reaching triple digits “pretty soon.” He says the competitive landscape for healthy bowl concepts is “getting aggressive,” but a refusal to cut corners helps the brand stand out in an increasingly crowded category. As an example, Playa Bowls sources acai berries from Brazil to formulate its pro prietary blend, which contains around 50 percent more pulp than the typical acai product. “We have a lot of conversations around the quality of our ingre dients,” Harmon says. “There is no compromise. We need our vendor partners to deliver on that, and we’re not going to settle for something that doesn’t meet our standards.” Playa Bowls also offers coconut bowls, pitaya bowls, mango bowls, smoothies, juices, specialty coffees, and more. Harmon believes opportunities exist to optimize the menu as the brand continues growing its footprint. “Making the menu easier to navigate for customers could also take out some of the costs for franchisees,” he says. “We have good unit economics, but I think we make it even better.” Menu innovation has been a key growth driver for Vitality Bowls. The “superfood cafe” concept specializes in acai bowls

ful, then potentially grow into a second location,” she says. “Now, we’re able to scale and we’re open to multi-unit franchisees. We’re more focused on operations, increasing our corporate team, and putting together those checklists and training materials for those larger franchisees.” A focus on second-generation sites has helped the company lower the cost of entry for franchisees, enabling some existing partners to become multi-unit operators for the first time. The company also has introduced architectural changes that reduce the cost of new builds, enabling both new and existing partners to ramp up the pace of new openings. “Our goal is to help each franchisee become a multi-unit fran chisee,” Gilad says. “We also want to keep entering new states and new markets that we’re not currently in.” The category has grown at a faster pace coming out of the pandemic. Along with the heightened interest in functional foods, healthy bowl concepts typically carry a lower upfront investment. They tend to operate with limited square footage, limited labor needs, and limited equipment. “By being really efficient, we’ve been able to withstand and succeed during COVID,” Pudalov says.

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

RUSH BOWLS, PLAYA BOWLS / NOAH FECKS, VITALITYBOWLS / TARA GILAD - FILMTWIST PRODUCTIONS

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SPONSORED BY PHADE

SIFTING THROUGH THE NOISE: How to Avoid Greenwashed Products at Your Earth-Friendly Restaurant ‘Greenwashed’ products pose a danger to brands. / BY KARA PHELPS

Greenwashing abounds in the world of packaging. Most packaging is petroleum-based, single-use plastic that ends up in waterways and takes hundreds of years to break down. Packaging vendors—and restaurants relying on them—may market these products as “plant-based” even when only a small percentage of the total makeup includes plants. Paper straws are another major offender, according to Winters. At first glance, paper straws may seem to present a sustainable alterna tive to traditional plastic straws, even though their user experience is notoriously poor. In addition, paper straws are slower to decompose in landfills due to the chemicals and glues used to hold them together. These chemical coatings and adhesives often contain per- and polyfluorinated (pfas) substances, also known as “forever chemicals,” and are harmful to humans and animals, as well as deadly to marine life. In fact, a 2020 study by the University of Florida tested 38 straws labeled as “biodegradable,” and all the paper straws were found to contain PFAS. Consumers, especially younger generations, are expressing concerns about the widespread use of PFAS, which has been shown to have nega tive health effects. Regulatory bodies are also beginning to take note. “The world is changing—think of the legis

lative pressure in certain areas of the country over single-use plastics,” says Brad Laporte, CEO of WinCup. “If your restaurant isn’t al ready under legislative pressure, it’s coming. You’re better off getting on board early.” WinCup’s phade straws offer an alterna tive to petroleum-based plastic straws as well as difficult-to-use, PFAS-associated paper straws. phade straws—made with PHA, a ma terial derived from canola oil—are designed to biodegrade completely within months, even in a home composting setting. “We wanted to make sure there weren’t any microplastics left, even after biodegradation was completed, so we did the extra leg work to make sure this wasn’t going to come up as a surprise later down the road,” Laporte says. Certification or compliance with glob

I t’s clear that consumers appreciate environmentally con scious brands. In fact, a survey from CGS found that con sumers are willing to pay more for products that benefit the environment. But in order for restaurants to see that lift, they need to spread the word about how they’re helping—and when it comes to marketing environmental benefits, it’s a little like the Wild West. Vendor claims of eco-friendliness can be stretched or misinterpreted, and if evidence of deceptive or misleading information ever reaches consumers or the media, the effect on restaurant brands can be devastating. The practice of misleading consumers about environmental benefits is called greenwashing, and consumers are increas ingly aware of it—and averse to it. “Greenwashing happens when companies don’t have proof of what their product claims to do,” says Michael Winters, president and chief revenue officer of WinCup. “Consumers are becoming more and more educated, especially around the environmental side. When you try to create a shortcut, you think you’re doing something good for your brand, but it could end up hurting you.”

ally recognized standards guarantee the sustainability of a product. Certifications from TUV Austria and BPI verify the product does what it says it will do. When a foodservice brand can show proof of certifications like these, franchisees and restaurateurs can proceed with confidence, both in selecting that product and in delivering it to their customers. ◗

To learn more, visit phadeproducts.com .

PHADE (2)

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THE SOLUTION TO GREENWASHING STARTS WITH CERTIFIED PRODUCTS.

At phade®, empty claims aren’t really our thing. That’s why we’ve had several globally recognized, standard-setting bodies certify our PHA-based products are exactly what we say they are – marine biodegradable and home and industrial compostable. It’s an extra step many brands aren’t willing to take and one we wouldn’t dream of skipping. Because you and your customers deserve to know for a fact that the sustainable products you use are helping the planet and, with phade, there’s proof.

Learn more about phade® and our crusade against greenwashing at phadeproducts.com .

CERTIFICATIONS

FROM: 13+

CMA-I, CMA-W

DEPARTMENT ONES TO WATCH

Burger Patch The brand is looking to sell ‘convenient consciousness’ fast food to a wider guest base. BY SATYNE DONER

nostalgic taste.” The first brick-and-mor tar location reached Sacramento’s block in 2019 and has since served over 500,000 customers, ranging from loyal plant-based followers to “veg-curious” meat-eaters. The development of Horn’s KIND Lab (Kitchen of Innovation & Discovery), based in Sacramento neighborhood Land Park, has proven to be a major asset in Burger Patch’s menu development. It has been in use for over a year and serves as a prepara tion hub for ingredients and a brainstorming location for new ones. At the earliest onset of COVID, Burger Patch’s business traffic increased by upwards of 40 percent, which prompted the building of two additional locations in the Sacramento area. However, this became overpowering, and Horn made the challenging decision to consolidate to the original location. Not only that, but supply chain con straints on a niche product were difficult. Often, Horn and his team needed to cre ate their own backups by tweaking recipes and driving hours to find suppliers. Overall, downscaling was the most beneficial plan for the brand’s long-term future. “Once we consolidated, that location con tinues to soar, and sales have increased by over 30 percent. We had to take a step back and put our ego aside and learn from what the last year or two has taught us,” Horn explains. “The next phase of what we’ll do is regrow the Burger Patch brand through out the region.” For Horn, regrowing the brand means building awareness about its mission. He calls it “convenient consciousness” fast food, but in a kinder way. He wants to spread the idea of “feeding kindness” whether that is through delivering a guilt-free product, saving animals, or giving back to the com munity. In May, the Midtown, Sacramento, location celebrated its CONTINUED ON PAGE 40

NOSTALGIC PLANT-BASED

food meals,” Horn says. “At that time, [the concept] didn’t exist at all where we lived.” At the turn of 2016, Horn put together a business plan and hired a chef to bring a menu to life. It includes American staples such as burgers, chicken sandwiches, wraps, and shakes from scratch. At the time, plant based meat was not readily available in Horn’s region, and he shares that “we went through all kinds of crazy things to try and source that product.” The first Burger Patch pop-up event in Sacramento was held in early 2017, and to Horn’s delight, it was a hit. He describes the event as having “over 1,000 people show up for a one-day event, waiting in three to-four-hour lines. It was mind-blowing.” From there, Horn continued to work on what he calls “modern ingredients but a

FOUNDER: Phil Horn and Danea Horn HEADQUARTERS: Sacramento

YEAR STARTED: 2019 ANNUAL SALES: NA TOTAL UNITS: 2 FRANCHISED UNITS: 0

A DECADE AGO, BURGER PATCH FOUNDER PHIL Horn and his wife Danea began explor ing a plant-based diet. They wanted to be kinder to themselves and their ecosystem but discovered the quick-service industry lacked options. “When we made the switch to the plant based lifestyle, we were still missing the nostalgic taste of typical American fast

BURGER PATCH (2), ECO ENVIRONMENT EARTH ICON: ADOBE STOCK / YURII

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Armed Forces VETERANS...

WE WANT YOU! Veterans are a source of inspiration and honor to our country. Doug Stritzel, Pickleman’s Gourmet Café Founder and CEO, is proud to announce an offer of discounted fees and royalties to veterans who become Pickleman’s franchise owners in this fast growing sandwich chain. By offering a $10,000 reduction in the initial franchise fee and royalty payments waived for the first six months, Pickleman’s Franchising is letting potential partners know their military service is valued.

For more information, visit picklemansfranchising.com or email franchising@picklemans.com

DEPARTMENT FRANCHISE FORWARD

Sustainability, but in a Box A growing international franchise rethinks how pizza should be delivered. BY SATYNE DONER

well-adjusted to local markets, and its take on pizza delivery has put a larger focus on sustain ability than most brands. “We dreamed about launching reusable packaging [for our pizza] and thought that Dubai would be a great place to test it since it is a very innovative and flexible market,” says Dodo Brands founder Fyodor Ovchinnikov. “Customers in Dubai are also quite concerned about the environment.” To execute this dream, Ovchinnikov teamed up with PIZZycle, a German startup that created a minimalistic container that can be reused up to 500 times, saving up to 500 disposable pizza boxes. Tests were conducted by both Dodo Pizza and PIZZycle to ensure pizzas were kept warm and in good condition during delivery. Right now, the packaging keeps food warm for an hour. According to PIZZycle, over 3 million single-use pizza boxes have been saved by reusable containers. The idea sprung to life in March 2020 from two design students, and by 2022, the innovation was ready for use. The zero-waste containers are made from poly propylene, which is durable and 100 percent

REUSABLE PACKAGING

Reusable containers have saved more than 3 million single-use boxes, according to PIZZycle.

I n the last 60 years, the disposable cardboard box has become a pillar of the pizza segment. Domino’s alone can deliver up to 1.5 million pizzas every day. It begs the question of how much waste these boxes create each year, piling up inside residential gar bage cans and college campus dumpsters. Dodo Pizza wants to reimagine the way guests consume the staple dish. The franchise chain operates in 17 countries, recently launching reusable pizza boxes for delivery in Dubai. It is the first food and beverage company to offer this option in the Middle East, and the first worldwide to make it free of charge for customers. The concept is known for its digital-first approach and new sustainabil ity initiatives. Dodo Pizza falls under the Dodo Brands umbrella, a collec tion of foodservice concepts that are tech-powered and poised to franchise globally. These digital-first brands include Dodo Pizza, Doner 42 kebabs, and Drinkit coffee. Despite its technology-first model, Dodo Pizza has opted out of working with third-party delivery aggregators. Instead, the com pany prefers direct contact with customers. Its dine-in areas are

recyclable. This partnership has only been in the works for about three months, Ovchinnikov says. Ten percent of all orders in Dubai are already completed with the reusable boxes, which Ovchinnikov counts as “quite a good result.” “We’ve already gained a lot of insight about how to operate with these reusable boxes, so we are planning to continue this experi ment,” Ovchinnikov says. “Once we get all our operating systems to work with this packaging, we will start in other markets.” The idea for Dodo Brands, and eventually Dodo Pizza, started in a Russian city in 2011. Ovchinnikov spearheaded a mission to create a company centered around technology, transparency, and eventually sustainability. “My idea was to build a digital franchise to combine pizza delivery with an IT system to help control operational quality and efficiency,” Ovchinnikov says. “We were working on developing our own information system.” After seeking coders to join his startup and become partners, Ovchinnikov began to develop Dodo IS, a suite CONTINUED ON PAGE 40

DODO PIZZA (3), ECO ENVIRONMENT EARTH ICON: ADOBE STOCK / YURII

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SUSTAINABILITY DRIVEN

 CHAIRMAN NIREN CHAUDHARY PLANS FOR THE FUTURE OF BOTH

PANERA AND THE PLANET.

PANERA BREAD, ECO ENVIRONMENT EARTH ICON: ADOBE STOCK / YURII

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SUSTAINABILITY

C ange Po er Since its founding, Panera has pushed itself to take care of the environment—with one big climate goal after the other. / BY BEN COLEY

PANERA CHAIRMAN NIREN CHAUDHARY doesn’t mince words when it comes to sustainability. The restaurant industry veteran calls climate change one of the biggest challenges humanity faces, and he’s far from the only one. Earlier this year, United Nations scientists said the planet is warming at such a rapid rate that it may cause irreversible harm. The group referred to it as a “final warning.” Meanwhile, greenhouse gases are at an all-time high, ocean levels are rising, deserts are expanding, and species face extinction. If food isn’t at the center, it’s close. U.S. restaurants accumu late 22 billion to 33 billion pounds of waste each year, according to FoodPrint, a report aiming to increase awareness of key environ mental issues. Roughly 4 to 10 percent of purchased food is wasted before reaching customers. Food systems contribute almost 30 per cent of greenhouse gas emissions. But that’s far from the worst part of it. “We are already late to the party,” Chaudhary says. “It’s an imperative that anybody in the food retail industry must do more to make a contribution.” Chaudhary doesn’t throw out that call to action lightly. The warning comes from a place of authority and leadership. He’s been with Panera since May 2019, but the fast casual’s penchant for

sustainability dates back to its origin when founder Ron Shaich rec ognized customers sought more than processed meals. He had the vision of serving food that was both craveable and healthy, without artificial colors, flavors, sweeteners, and preservatives. In 2022, Worth Magazine listed Panera as one of its Top 10 Most Sustainable Companies. The chain was also on Inc. Maga zine’s 20 Most Purpose-Driven Brands of 2022, alongside the likes of Google, Clorox, Patagonia, and REI. Panera was the only res taurant on the list. The reason why Chaudhary is inspired to work at Panera is that there’s a strong convergence of what appeals to him personally and what the brand stands for. The chain’s purpose is to make the world healthier and happier, and it looks to achieve this objective through an impact agenda that covers food beliefs, community, and a commitment to inclusivity. The chairman believes his C-suite position is a privilege and that leaders must be force multipliers of good. Sustainability is a moral imperative, nothing less. To Chaudhary, everyone needs to do more to help the world. Even Panera—for all it’s done in the past few decades—has room to be better. “I think that captures everything,” Chaudhary says. “That was the notion with which the founder created the brand many years ago.

www.qsrmagazine.com | QSR | JULY 2023

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SUSTAINABILITY

As we move forward, we have carried the torch with a deep sense of responsibility of wanting to continue to elevate good eating. “ Having a broader impact as a leader at this time in the econ omy, in the world, I think is massively important.” KEEP IT CLEAN Sara Burnett, who serves as Panera’s vice president of food beliefs, sustainability, and public relations, understands sus tainability through several definitions. The executive could give a technical, academic answer— which would likely be on par with her. But she simplifies it to how the fast casual can have a positive impact for people, planet, and communities in any decision it makes. Burnett emphasizes that sustainability is a much higher level than just a recyclable piece of packaging. “That’s how we need to think about it and hold it if we really want to make long-term systemic change,” Burnett says. Panera has a lot of milestones in this area. Burnett would know best since she’s been with the chain for 18 years. There’s a hallway in the company’s Boston office that showcases accom plishments, and the brand has a rather difficult time fitting everything up there. Some actually have to come down, and that brings Burnett great pride. Among her nearly two decades of experience, several achievements stand out. The first came in the mid-2000s when Panera moved into the “raised without antibiotics” chicken market and served the product in its Strawberry Poppyseed Salad. It was placed on the menu because focus groups labeled it as the best-tasting chicken. At the time, this type of meat was a small market, so Panera had to build the supply chain. Throughout that process, the team discovered that it was not

birds are rendered unconscious using multi-step controlled atmospheric stunning. In June 2021, Panera completed its transition to receiving 100 percent of its primary egg supply from cage-free sources. Primary egg supply accounts for about 71 percent of the chain’s total egg sourcing; the plan is to reach 100 percent cage-free eggs across all products by the end of 2025. “I think that’s when sustainability really pays off—when you recognize you’re delivering for everyone in a positive way,” Bur nett says. “I’m very proud of that work, and Panera continues that today. And now in many ways, raised without antibiotics has become more of an industry standard, and especially in retail. I’d like to attribute that to the fact that we pushed, we grew the supply chain, we advocated along with many others.” Burnett describes Panera’s commitment to clean ingredients as progressive. In 2010, the company became the first national chain to post caloric information on menu boards. A few years later, the chain announced a new food policy aimed at remov ing artificial additives from the menu in two years. In that time span, the chain reviewed more than 450 ingredients, partnered with more than 300 food vendors, and reformulated 122 ingredi ents. Burnett says it was an “astronomical feat,” but that Panera pushed through because everyone wanted the food to be noth ing less than what they would share with their own families. Then in October 2020—during the thick of the pandemic nonetheless—Panera revealed that it was partnering with the World Resources Institute ( WRI ) to label climate-friendly “Cool Food Meals” on its menu. It was the first national restaurant to do so. Similar to how nutritionists recommend a certain number of calories per day, the WRI has a maximum recom mended daily carbon footprint for a diet, which is 38 percent smaller than average. The organization’s research shows that

only the best-tasting chicken, but it also resulted in better animal care standards and had “a very dramatic” public health effect, Burnett says. To this day, the menu item is a fan favorite and the top-selling salad. In fact, now all chicken, turkey, sausage, and ham used on the menu are raised without antibiotics. In 2016, Panera commit ted to better welfare standards for broiler chickens. The chain works with animal welfare experts, growers, suppliers, competitors, and other market participants to identify cost-effec tive solutions. In a few years, it wants to use new broiler breeds recognized as having higher welfare outcomes, provide birds more space, offer improved envi ronments (better litter, lighting, and enrichment), and ensure

this type of diet is necessary to mit igate the worst impacts of climate change by 2030. According to the WRI, a breakfast’s carbon footprint can’t be more than 20 percent of the daily total; for lunch and dinner individually, it’s no more than 30 percent. The other 20 percent is for drinks and snacks. “People who are environmen tally conscious and want to make an appropriate choice, have the con venience of coming into Panera, and through their choice of where they eat and what they eat, they can impact climate,” Chaudhary says. “… I certainly hope that the industry will also embrace the trans parency and the carbon footprint just like they did the caloric value many years back so that it becomes a broader standard and it makes it easy for consumers to be more cli mate-conscious in the way in which

PANERA’S COOL FOOD MEALS ARE CLIMATE FRIENDLY.

PANERA BREAD (3)

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CHRISTIAN CHARNAUX Chief Growth Officer Inspire Brands

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SUSTAINABILITY

they make their food choices,” he adds. Panera’s Cool Food Meals—which covers 57 percent of entrées—have a low impact on climate and help guests remain below their carbon limit. Some examples include the Asian Sesame Salad, Chipotle Chicken Avocado Melt Sandwich, Fuji Apple Salad with Chicken, Green Goddess Caprese Melt on Baguette Sandwich, and Steel Cut Oatmeal with Straw berries & Pecans. The company acknowledges that plant-based foods have a lower impact on the environment, but it reminds customers that they don’t have to be vegan or vegetarian to limit their carbon footprint. If each year, every person in the U.S. ate 10 Chipo tle Chicken Avocado Melt sandwiches with chips instead of 10 quarter-pound burgers with fries, it would reduce emissions by 77 million metric tons of carbon dioxide equivalent, according to Panera. That’s equal to removing more than 16 million cars off the road in a year. “I believe strongly that providing information and nudg ing guests to decisions that align with their core values but are also better for the planet can be incredibly impactful,” Burnett says. “We need to not only work on the supply side and the work that restaurants and our partners do, but there also needs to be some work on the demand side. And so we want to make sure that we’re being able to influence both.” THE CLIMATE CHALLENGE For all the sustainable actions Panera has taken over the years, none may be more aggressive than its goal to be climate pos itive by 2050. That means the fast casual wants to take away more carbon from the environment than it emits. The company said reaching this objective equates to remov ing roughly 2.4 million metric tons of carbon dioxide equivalents each year compared to its 2019 greenhouse gas baseline. For perspective, that’s the same as the amount of carbon sequestered by 2.96 million acres of forest per year, an area 14 times the size of New York City. This is a plan that touches the sustainability team, as well as culinary, supply chain, human resources, and other departments. “When we think about our bold climate goal of becoming climate positive by 2050, while, yes that’s a lot of years away, there’s a lot of work to be done,” Burnett says. “So when you think about our carbon footprint, over 90 percent of it is in our supply chain and value chain. So a lot of the work that we’re doing over the years ahead is working with our partners and working on agricultural practices in the field to distribution networks and how to shorten them.” The brand has a host of projects planned, but Burnett says the number one challenge for any sustainability professional is breaking everything into parts and not “trying to boil the ocean.” Panera is setting science-based targets, which Burnett says is the most credible way to measure and set a climate goal. These are things Panera wants to achieve in 10 years, but the com pany views climate change as too pressing of an issue to wait. After the chain first released its climate-positive stance in

October 2021, Chaudhary says the peer set agreed with the general intent that neutrality may not be enough. At the same time, they looked at 2050 and immediately asked, “So what are you going to do right here, right now in the near term?” It’s the right question, Chaudhary says. Here’s one answer: Panera has already realized greenhouse gas reductions by investing in more energy-efficient store designs, lighting, HVAC systems, and kitchen equipment. It also decreased fuel use by consoli dating deliveries. “I think there is more curiosity around, ‘OK, tell us spe cifically what you will do by when,’” the chairman says. “And realistically, I think people are able to wrap their heads around nearer-term milestones. What are you going to do by 2025? That’s pretty tangible. And then also as we move towards 2050, are you really walking the talk on things that you ought to be doing so that you’re constantly demonstrating through behav iors that this is a serious commitment?” The chain formulated three specific short-term targets for 2025. One of these goals centers around transitioning to 100 per cent circular packaging. The chain opts for packaging made with recyclable, reusable, and compostable materials. Three years ago, the brand revamped packaging for most of its hot sandwiches, which involved eliminating individual boxes and using a compostable thermal wrap. The switch led to a 60 per cent decrease in material use and a package that increased heat retention and portability. Additionally, Panera moved from a tri-fold napkin to a bi fold, which cut 30 percent of raw material needed, but kept functionality. The company lets customers help by providing an “opt-out” option for single-use cutlery in the mobile app, via kiosks, and through third-party delivery. For dine-in guests, Panera uses real plateware and silverware to reduce the use of single-use products. Another short-term objective is to use renewable electricity for at least 50 percent of company-owned operations. When it comes to this goal specifically, Chaudhary says Panera is constrained by availability and capacity in the U.S., but it’s something the brand is working through. The third pillar considers the menu. Panera wants to increase the percentage of Cool Food Meals to 60 percent of entrées. “Those are the projects that we’re very much in the weeds on right now and working toward and making progress on each and every day,” Burnett says. Chaudhary understands that setting a goal for 2050 comes with the understanding that future leadership will have to take up the mantle and continue what Panera started. But that’s the whole point of making the strategy public—so the company can stay accountable in the coming years. Plus, momentum around sustainability is only getting larger and more important. It’s too much for any significant leader to ignore, let alone Panera. The chairman says the company doesn’t have all the answers, but it knows sustainability is the right problem to solve and that it has a major role. “I feel very confident that the foundation of the brand and what makes the brand unique and distinc- [CONTINUED ON PAGE 41]

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