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June

TABLE OF CONT ENT S J UNE

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QSR / LIMITED-SERVICE, UNLIMITED POSSIBILITIES

DEPARTMENTS

FEATURES

N E W S

16 FRANCHISE FORWARD So You Want to Be a Franchisor? Some franchisees are learning what it’s like to run a brand from the top. BY SATYNE DONER 61 INNOVATE

25 YL YOUNG LEADERS TO WATCH

Chipotle Goes Ghost The restaurant leader taps into one of the industry’s biggest trends. BY SATYNE DONER

I N S I G H T

11 FRESH IDEAS Smoothie Success Doesn't Rest

18 /

The segment is filling with competitors ready to grow. BY SAM DANLEY 14 ONES TO WATCH Cupbop The emerging fast casual wants to put Korean cuisine on a national stage. BY SAM DANLEY 64 START TO FINISH Shawn Lalehzarian The Red Chickz founder tells his journey from Iranian immigrant to rising restaurateur.

THE INDUSTRY’S FUTURE IS IN GOOD HANDS WITH SEVERAL YOUNG STARS, INCLUDING DICKEY’S BARBECUE PIT'S SIMONE SMITH (BOTTOM RIGHT), PLAYA BOWLS’ ABBY TAYLOR (TOP RIGHT), AND VIRTUAL DINING CONCEPTS’ ROBBIE EARL.

VIRTUAL DINING CONCEPTS / RICH POLK, PLAYA BOWLS, DICKEY'S BARBECUE PIT

18 25 Young Leaders to Watch BY QSR STAFF The food and beverage sector is filled with youthful bright minds eager to make a significant impact.

34 Concessions of The Future BY SAM DANLEY Accelerated by COVID, multiple tech upgrades are boosting the fan experience.

42 Loud and Krystal Clear BY BEN COLEY After decades of operations, the legacy restaurant is finding a new voice.

ON THE COVER Virtual Dining Concepts co-founder Robbie Earl is always on the cusp of finding innovation. PHOTOGRAPHY: VIRTUAL DINING CONCEPTS / RICH POLK

2 BRANDED CONTENT

4 EDITOR’S LETTER

7 SHORT ORDER

63 ADVERTISER INDEX

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 | JUNE 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

SmartChain / p. 47 SmartChain VENDOR RESOURCES / TRENDS / NEW PRODUCTS JUNE 2023

FOOD SAFETY TODAY / FOOD SAFETY IS EVOLVING TO ENSURE RESTAURANT CUSTOMERS ARE PROTECTED IN A SHIFTING WORLD. 48

®

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

Food safety is evolving to ensure restaurant customers are protected in a shifting world. /BY KARA PHELPS

56 A Strong Brand Reputation Consumers now expect food safety practices to be visible. 60 Key Players Here are the biggest names in the world of food safety.

Food Safety Today

Modernizing Food Safety New advancements are responding to new challenges. 52 Keep It Simple How can brands ensure food safety during labor shortages?

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

Advancing Tech P48 Labor and Training P52 Visible Practices P56 Key Players P60

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SPONSORED SECTION | JUNE 2023

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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 Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704

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FUNDING

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How Two Restaurants Secured Funding During Tough Times These resourceful establishments found ways to thrive despite headwinds. SPONSORED BY BIZ2CREDIT

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Checkers & Rally’s Expands with New Look and Franchise Incentives The brand plans to open upwards of 40 new restaurants this year

The Secret Weapon Helping Slim Chickens Uphold Brand Standards In a stage of rapid growth, the chicken brand relies on this solution to create consistent processes. SPONSORED BY WISETAIL

WTWH MEDIA LLC RETAIL, HOSPITALITY, AND FOOD GROUP

with a modernized design. SPONSORED BY CHECKERS & RALLY’S

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Candy & Cookie Explosion Milkshakes Made with Ferrero Dessert Inclusions, Keebler® Cookies & Keebler® Waffle Cones

For exciting recipe ideas and to learn more about Ferrero Foodservice brands, visit www.ferrerofoodservice.com, or call (800) 408-1505 for more information.

Ferrero S.p.A. © Ferrero 2023

EDITOR’S LETTER

Youth is Power

T he much-used phrase, “age is nothing but a number” is typically reserved for people who believe they’re being underestimated because they’re getting up there in years. The saying is just as appropriate for the younger crowd. There are some pretty interesting examples throughout history. Mozart wrote his first symphony at 8 years old. Bumble founder Whitney Wolfe Herd became the world’s youngest female self made billionaire at 31 years old. Tiger Woods became the No. 1 ranked golfer at 21. Doogie Howser even finished medical school at 14. OK, that last one is fictional, but there is a point in saying all of this. The common thread among these folks is that the difference between improbable and achievable is a combina tion of talent, skill, luck, hard work, and dedication. Food and beverage employment is often depicted as a transient career used to develop soft skills for other sectors. This is partially true. The segment does build character, but career ladders also exist. QSR has 25 examples proving as much in this issue. Since 2018, our magazine has com piled a list of young stars in the restau rant industry who share a hunger to beat the odds. In what can sometimes feel like an unforgiving business with razor-thin margins—especially during the COVID era—the group has repeatedly risen above. This year’s collection features young leaders across operations, growth and development, marketing, technol ogy, and franchising. It’s a diverse crowd, showing that innovation and persever ance is table stakes in any department. Headlining the list is 29-year-old Robbie Earl, who cofounded Virtual

Dining Concepts, a company created out of necessity during the pandemic. The brand is well-known for combining culinary and celebrity, like Mariah’s Cookies (Mariah Carey), Guy Fieri’s Flavortown Kitchen, and Robert Irvine’s American Heroes. One of the biggest hits among them is MrBeast Burger, which Earl played a significant role in formulat ing. The ghost concept is named after MrBeast, aka YouTube star Jimmy Don aldson. Earl nurtured the relationship and helped the brand go from virtual to brick-and-mortar last year in New Jer sey’s American Dream shopping center. Resumes for the rest are just as impressive. Thirty-two-year-old Abby Taylor, who traveled the world to surf, cofounded Playa Bowls, which now has more than 175 shops nationwide across 20 states. No stores closed dur ing COVID and 250 more openings are planned in the next five years. Or how about 33-year-old KK Corporation pres ident Kesuv Kash Aggarwal, who’s con tinuing his family’s legacy. His mother started it all in 1997 when she bought her first Subway restaurant, and now Aggar wal is leading 146 franchise stores. The beauty of this annual list—and also the most difficult—is that QSR receives numerous nominations each year. And by rule, no one can appear on the list twice. This year being the sixth installment, we’ve highlighted 137 dif ferent young leaders in total. We know there are a lot more out there, and we promise to tell as many of their stories as we can in the future.

Restaurants are capable of nurturing young talent, and we have plenty of proof.

BCOLEY@WTWHMEDIA.COM QSR MAGAZINE

Ben Coley, Editor

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JUNE 2023 | QSR | www.qsrmagazine.com

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SHORT ORDER

Panera’s latest move wasn’t short on style.

Panera’s Fashion Statement The sandwich chain launched its rst merchandising storefront.

IN MAY, PANERA ANNOUNCED its second MyPanera Week—a weeklong celebra tion of fan-favorite menu items. As part of the festivities, the fast-casual giant debuted The Panera Shop, an online merchandise storefront where customers can purchase what the brand calls “Carb Couture.” The items are inspired by Panera's menu. Some examples include “Mac Drip” sweatshirts and pants and “Just Baked” baby onesies. MyPanera loyalty members had exclusive access to the shop from May 1 to May 7, with all net profits from sales during this period donated to the Panera Bread Foundation. As of May, the rewards program had more than 52 million guests. “MyPanera has always been focused on delivering personalized experiences and disrup tive value to our guests,” said Eduaro Luz, the chain's chief brand and concept officer, in a statement.

PANERA / NOAH FECKS

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SHORT ORDER

Customers want convenience any way they can get it, including from the sky. Flytrex, a drone delivery service that partners with retailers and restaurants to bring items directly to diners’ yards, caters to more than 140,000 subur ban customers across Texas and North Carolina. It’s partnered with some of the bigger names in quick service, including Jersey Mike’s, Charleys Philly Steaks, and El Pollo Loco. In late March, Flytrex released its 2022 Yardstick, a report detail ing customer trends. The data highlights volume, types of items delivered, fastest times, and more.

• Average Time from Takeoff to Delivery: 3 MINUTES AND 32 SECONDS

• Favorite foods: SALADS AND SANDWICHES • Top three dishes: FRIES, TURKEY SANDWICHES, AND BURRITO BOWLS

STATISTICS TO KNOW: Flytrex delivered 85,000-plus items by drone across 21,350 orders in 2022. The average time from takeoff to delivery was 3 minutes and 32 seconds, and the fastest time from order to delivery was 12 minutes and 13 seconds. Flytrex experienced its busiest day on October 14, when it witnessed one order every five minutes. The company had more than 4,000 unique users in 2022, a 765 per cent increase year-over-year. QUIRKY NOTES: One consumer placed 532 drone orders in 2022. Another scheduled eight deliveries in one day. A third guest ordered coffee 81 times throughout the year. Some other odd orders include: five types of Girl Scout cookies, 12 types of macarons, four dozen large eggs, and four pints of ice cream. The largest order delivered was three tomato soups and one noodle soup, two cobb salads with chicken, two BLTs, and two-and-a-half cheese sandwiches.

CUSTOMER INTEREST: Guests’ favorite food groups were sandwiches and salads, accounting for nearly one-fifth (19.8 percent) of all orders. Chicken and wings were sec ond at 18.5 percent. That was followed by Mexican food (12 percent), burgers (11.7 percent), retail and grocery (8 percent), coffee, tea, and snacks (7.2 per cent), Asian food (5.5 percent), and pizza (5.2 percent). An “other” category represented 12.2 percent.

The top grocery items ordered were fresh produce (36.3 percent), dairy and eggs (9.2 percent), pantry (8.7 percent), sweets and snacks (8.3 percent), frozen goods (7.7 percent), beverages (6.8 percent), bread and bakery (5.1 percent), refrigerated goods (3.7 percent), and meat and seafood (3.5 percent). The “other” category accounted for 10.7 percent. The top three dishes via the Flytrex app were fries, turkey sandwiches, and burrito bowls , and the top three packaged items deliv ered were bananas, sports drinks, and milk.

COMMENTARY: “ The drone delivery industry as a whole has progressed immensely over the past year, and this snapshot is a testament to its soaring future,” said Yariv Bash, CEO and cofounder of Flytrex, in a statement. “We strive to provide the utmost convenience and satisfaction to everyone who uses our service, and we’re thrilled to see that our customers are as delighted and excited about drone delivery as we are. Building on this momentum, we look forward to expanding our service and eventually providing the same level of quality practicality across suburban America.”

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fresh ideas | GROWTH AND DEVELOPMENT |

THERE IS NO SHORTAGE OF GROWTH

OPPORTUNITIES IN THE SMOOTHIE CATEGORY.

Smoothie Success Doesn ’ t Rest Doesn t Rest From menu updates to new store prototypes,

innovation is key to winning in the increasingly crowded segment.

BY SAM DANLEY

T he demand for smoothies is higher than ever, at least that’s what dollar signs say. The market, valued at $27.2 billion in 2023, is expected to reach $52.5 billion in 10 years, according to research firm Fact. MR. That’s a CAGR of 6.8 percent. Smoothie King was well-positioned to capitalize on the COVID driven health and wellness craze. In 2019 the company completed a years-long menu overhaul that saw it swap out nearly every ingredient with better-for-you options. Coming out of the pandemic in 2021, same-store sales were up 16.5 percent. Chief marketing officer Marianne Radley says the legacy smoothie chain has managed to maintain its momentum since, but it isn’t resting on its laurels. As the category matures and the competition from smaller players intensifies, Smoothie

King ramped up innovation on multiple fronts. It recently embarked on its largest menu launch. The company this spring debuted a new smoothie bowl platform, serving up menu items with a spoon instead of a straw for the first time in its 50-year history. It also opened its first drive-thru-only prototype. The design stands at 800 square feet and features a traditional drive-thru lane on one side of the building, with a lane dedicated to online ordering and third-party delivery on the other. Smoothie King last year opened 77 new stores and grew its footprint to more than 1,400 units. It also signed franchise and area development agreements to add over 160 stores to new and existing markets. It plans to open at least 100 new locations this year, and Radley says the drive-thru-only design will help fuel that ongoing national expansion.

ADOBE STOCK / BAIBAZ

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fresh ideas

| GROWTH AND DEVELOPMENT |

“We’re seeing a lot of success with that model,” she says. “It’s all about provid ing ease of access for our guests. We’re spending a lot of time making sure that our models are really optimizing the off-premises business and optimizing digital sales.” Consumer demand for convenience also is shaping prototype innovation at Tropical Smoothie Cafe. The company last year opened its first double drive thru location. Like Smoothie King’s latest model, the design includes a designated lane for delivery and digital orders, which now account for more than a third of the brand’s total sales. Digital is a top priority for Tropical Smoothie Cafe, which has more than 1,200 locations across 44 states. It recently invested in upgraded app technology, enhanced mobile ordering capabilities, and a new loyalty program to elevate its digital experience. Chief marketing officer Deborah von Kutzleben says the company is working with franchisees to develop more double drive-thrus, and it’s exploring additional prototypes that will cater to the growing strength across digital channels. “How can we get people their smooth

Main Squeeze Juice Co. also is aiming to bolster its breakfast business. Around 70 percent of the brand’s revenue comes from juices and smoothies, and much of that business is lunch driven. “Our challenge is being able to educate that we have something other than juices and smoothies,” says chief operating offi cer Julie Canseco. “That means maximizing our lunch by sampling things out, so peo ple are primed to come back for breakfast later. We’re really focused on that 7 a . m . to 9 a . m . window—think overnight chia seed pudding and different types of breakfast wraps. We’re also looking at making bars out of our juice pulp to really make a more robust breakfast daypart program.” Main Squeeze is a newer player in the smoothie space. It opened its first store in New Orleans in 2017. Since then, it has expanded to 28 units throughout the South, with around 60 locations currently in development. The company’s foot print almost doubled this spring when it acquired Tennessee-based I Love Juice Bar, a 23-unit concept offering a similar selection of juices, bowls, and smoothies. Canseco says the current environ ment, marked by inflation and economic uncertainty, makes growing through acqui sitions a better option. The company is continuing to explore opportunities to purchase similar concepts and expand into markets where it can convert exist

ies as quickly and as seamlessly as possible? That’s always at the forefront of our minds,” she says. “At first blush, customers might not think a smoothie would be a great experience from a delivery perspective, but we really stand by how it holds up to time.” Tropical Smoothie Cafe opened 158 stores last year, the highest number of new cafe openings for the brand in a single year. It also achieved its 11th consecutive year of same-store sales growth. While much of that growth can be attributed to the namesake bever age’s health halo, the company has made a point to balance health with indulgence. From functional smoothies to dessert-inspired blends that satisfy sweet cravings, a steady stream of LTOs has helped the brand stay relevant with a broad base of customers. Despite its name, von Kutzleben says the company doesn’t see itself competing squarely in the smoothie space. It also offers a robust food menu centered around flatbreads, wraps, sand wiches, and salads. “We know our guests are cross-shopping a lot of more main stream [quick-service] and fast-casual brands, so we sort of sit in between all of them,” she says. An all-day breakfast menu is a key differentiator. Earlier this year the company bolstered its breakfast menu with new morning centric flatbreads and smoothies, which helped drive an increase in traffic for the daypart.

SMOOTHIE KING, TROPICAL SMOOTHIE CAFE, AND MAIN SQUEEZE JUICE CO. ARE ALL EXPERIENCING FRANCHISE SUCCESS.

ing stores into Main Squeeze locations. “Mom and pop juice bars have really struggled lately because the costs have been so out of whack. They don’t have buying power and they don’t have any leverage. It’s just a lot harder to make a fresh product,” she says. “Second-generation sites are everywhere, and they’re already built for this.” The deal with I Love Juice Bar was struck with Conscious Growth Capital, an investment firm that first partnered with Main Squeeze last summer to fast-track franchise sales and real estate develop ment to scale nationally. Following the investment, Main Squeeze inked a 30-unit development deal with an operator in Arizona and opened new locations in Texas and Missouri. Canseco says faster and more accurate service will help improve unit-level performance and position the brand for long term success. “The problem is that when you’re making products as fresh as we are, that could mean three to five minutes for a ticket,” she says. “But we know the faster we can make our times, the more frequently people will visit us.”

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

SMOOTHIE KING, TROPICAL SMOOTHIE CAFE, MAIN SQUEEZE JUICE CO.

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DEPARTMENT ONES TO WATCH

Cupbop With a convenient take on a trendy cuisine, the emerging brand aims to become the first national Korean quick-service chain. BY SAM DANLEY

Kwon gave Song a call and pitched him self as a partner. He says it was evident the demand for the brand was there, but Cup bop was struggling to “take things to the next level.” It had grown to 10 locations while he was in New York, but he knew he could help it expand further. So, he left the finance world, purchased equity in the com pany, and got to work developing a strategy that would enable the business to scale effi ciently. Early on, Kwon decided to pivot from food trucks and channel all of the com pany’s resources toward brick-and-mortar restaurants. He says Cupbop had to dial back on growth to position itself for future success. That meant foregoing aggressive development goals to focus on the funda mentals. “My priority is never store count,” Kwon says. “What really makes a brand special is the inherent demand you can generate, and that comes down to AUVs, margin profiles, and same-store sales.” He isn’t the only former fan that’s help ing Cupbop grow its footprint. Not long after Song opened his food truck, he met a pair of Indonesian students studying at the University of Utah. They struck up a part nership, and the company now has more than 150 locations throughout the South east Asian country. Stateside, the company has taken a mea sured approach to growth. It hasn’t raised any money and has grown through organic cash flow, building one store at a time. When Kwon joined, Cupbop had a sole franchisee that had been grandfathered in since 2017. Despite a steady stream of inquiries from outside operators, he resisted opening the brand up for additional fran chising opportunities. “One thing I learned as an investor is that a lot of great companies fail when they start growing for CONTINUED ON PAGE 62

Junghun Song (left) and Dok Kwon have big plans for the Korean fast-casual segment.

officer in 2020, after working as an invest ment banker and hedge fund manager in New York City. He’d spent the better part of a decade on Wall Street and was “itch ing for something new.” As he was plotting his next move, he remembered Cupbop, a food truck he frequented while living in Salt Lake City. When fellow Korean immigrant Jung Song first started serving up Korean bar becue under the Cupbop banner in 2013, Kwon was one of the earliest fans. “One thing I knew right off the bat, before I even joined, was that the brand is naturally very scalable,” Kwon says. “That has to do with the fact that it started with a food truck, where you can run in very small spaces with only a few people, and where the operations have to be extremely simple.”

AMONG THE COUNTRY’S TOP 50 QUICKSERVICE chains, Panda Express stands out as the only Asian concept. Dok Kwon believes there’s room for more, and he wants Cupbop to be next. The emerging brand is on a mission to be the first Korean-inspired fast-casual chain to go national. Kwon joined the Korean barbecue con cept as a co-owner and chief operating FOUNDERS: Junghun Song HEADQUARTERS: Salt Lake City, Utah YEAR STARTED: 2013 ANNUAL SALES: ~$40 million (systemwide) TOTAL UNITS: 47 (U.S. only) FRANCHISED UNITS: 19 (U.S. only)

CUPBOP

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DEPARTMENT FRANCHISE FORWARD

So You Want to Be a Franchisor? Franchisees are making the transition and finding a wealth of growth opportunity. BY SATYNE DONER

Despite the increase in responsibilities, Mumtaz expresses growth has provided key learning opportunities and experiences. Although as a franchisee Ampex Brands nets $500 million in yearly revenue through its Yum! holdings and 7-Eleven locations, Mum taz sought a different approach for the future direction of his company. “If you think about the brands we have, there was very little space for us to grow within the franchise concept,” Mumtaz says. “The only other option was to either buy a franchise or create our own unique concept. So, that was one of our biggest motivators.” Mumtaz defines finding the balance between franchisor and franchisee as a “hum bling experience.” “Learning from each branch helps,” Mum taz says. “So, we have adopted aspects from our different brands and implemented them to ensure that the learning is there.” While operationally the brands are sep arated according to their strengths to keep things simple, Mumtaz draws connections with cross-training and weekly newsletters. Additionally, the geographic location of units

Ampex Brands CEO Tabbassum Mumtaz says becoming a franchsior has provided key learning opportunities.

I n recent years, the quick-service industry is seeing more brands than ever make the leap from franchisee to franchisor. Long standing franchisees of powerhouse brands such as Yum! Brands and Jack in the Box transitioned into purchasing concepts of their own to diversify their portfolio and put their experience to the test. Ampex Brands, a Texas-based franchisee of chains such as Pizza Hut, KFC, Taco Bell, and 7-Eleven, acquired Au Bon Pain from Panera in 2021 and bought bellagreen in 2022. Ampex Brands oper ates with more than 500 units, and with these new acquisitions, moved into the franchisor seat for the first time in its 16-year history. Tabbassum Mumtaz, CEO of Ampex Brands, says there are certainly “growing pains” behind the transition. He stresses that understanding the difference between the franchisor and franchi see systems is often the biggest hurdle companies face. “Once you get into the franchisor position, you realize it’s more than just collecting royalties,” Mumtaz explains. “A lot of work goes behind it. Sourcing the product, the iteration of new products and marketing, making sure franchisees are happy, collecting sales information, it is all-important.”

is strategically placed to provide extra support when needed. “Our units are all next to each other … in Dallas for example, we have around 150 units for different brands. We seek help from each other—especially for team members,” Mumtaz explains. “If someone is working two jobs, we would rather have them working for two of our brands. Flexible hours, sharing our teams, and lead ership visiting from different brands have helped us operationally.” Yadav Enterprises, the largest Jack in the Box franchisee and significant investor in the ownership group of TGI Fridays, has taken a path akin to Ampex Brands with the acquisition of Taco Cabana in 2021. Yadav Enterprises is also a franchisee of Denny’s, El Pollo Loco, and Corner Bakery Café, with roughly 340 locations spread across Northern California, Texas, and six Midwestern states. It purchased the 148-unit Taco Cabana business for $85 million. In fact, news of this purchase came just a day after Ampex Brands announced it would acquire Au Bon Pain. In addition, Yadav Enterprises also a bought controlling interest in Nick the Greek last year. Anil Yadav, CEO of Yadav Enterprises, CONTINUED ON PAGE 62

AMPEX BRANDS (3)

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Do you want to be an OWNER? total investment 10k • Go into business for yourself, not by yourself • Average owner earned over six figures* • Ability to demonstrate the gold standard in service

*Based on the average annual earnings of 82 Steak ʻn Shake Franchise Partner Program franchisee outlets opened and operating for 12-months or more during the two-year period ending December 29,2021, as published in our April 29, 2022 Franchise Disclosure Document. Of these 82 outlets, 34 (40.6%) met or exceeded $136,933 annual average earnings. However, your individual results may vary and there is no assurance that you will do as well.

Scan to apply for Franchise Opportunities across the U.S. steaknshakefranchise.com

25 YL / BY QSR STAFF THE PANDEMIC BROU�HT UNPRECEDENTED CHALLEN�ES FOR THE RESTAURANT INDUSTRY, but it also presented opportunities for young leaders to shine. In response to the crisis, many of these up-and coming executives demonstrated remarkable resilience, creativity, and adaptability. They quickly pivoted to new business models, embraced technology to enable contactless ordering and delivery, and implemented safety protocols to protect employees and customers. Moreover, they leveraged their digital savviness to build online communities and engage with customers in new and meaningful ways. By doing so, these 25 young leaders not only helped their restaurants survive but also positioned themselves as visionaries.  The food and beverage sector is filled with youthful bright minds eager to make a significant impact. Young Leaders to Watch 18 JUNE 2023 | QSR | www.qsrmagazine.com

5 L

YOUNG LEADERS

Robbie EARL

COFOUNDER VIRTUAL DINING CONCEPTS AGE: 29

Robbie Earl recognizes how rare it is to create a new cate gory from scratch. One of his favorite stories is Patagonia founder Yvon Choui nard and The North Face creator Doug Tompkins being lifelong friends, taking road trips together. They carved out an outerwear sports category that “changed the very fabric of everything,” Earl says. Virtual Dining Concepts, founded in 2020 during the peak of COVID, intended to do the same. The company creates food and beverage concepts licensed to operators with additional kitchen capacity. It was formed in response to restaurants needing extra rev enue. “I love the innovation that we’re doing and bringing to the space,” Earl says. “And just seeing people experience the product, whether

VIRTUAL DINING CONCEPTS / RICH POLK

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YOUNG LEADERS

for a brand, and not all of them have a com munity. “I always say I’d rather have one per son that would buy something from me than 10 people who just want to watch and not engage,” Earl says “It’s a totally different ball game.” Virtual Dining Concepts spends time with talent enough to understand their vision and become embedded in their following. From there, it’s data analysis of what will work and what won’t. After taste tests, the concept undergoes an operations process, which can be difficult, Earl says. The brand can’t be too complicated. For instance, hand-breading a product can take a lot of prep time. Those items can be tricky, especially if a restau rant already operates at scale. To remove this obstacle, Virtual Dining Concepts created a “speedy system” in which it learned how to get concepts to a certain number of SKUs and ease of execution. The process considers back of-house workers’ ability to learn the product and go off of muscle memory. One of Virtual Dining Concepts’ biggest successes was MrBeast Burger. Earl met Don aldson four or five years prior when he was playing in the creator brand space. He orig

and form a new industry. He also partici pated in several startups that gave him a broad understanding of the restaurant tech ecosystem. Earl and his team ask multiple questions before recognizing a concept as viable. Could this be a national brand? Is it able to survive and thrive on its own? Is it good enough to stand the test of time? There’s also a talent lit mus test. Earl says not every celebrity is made

it is a restaurant that we were able to help or a customer that enjoyed a meal and was sur prised and delighted by it, that is probably my favorite part of what we do.” Some examples of Virtual Dining Con cepts’ work includes MrBeast Burger (with YouTube star MrBeast, aka Jimmy Don aldson), Mariah’s Cookies (Mariah Carey), Guy Fieri’s Flavortown Kitchen, and Robert Irvine’s American Heroes. Earl co-founded the company with his father, Robert Earl (founder of Planet Hol lywood), and Trish Giordano, a longtime marketing executive with Earl Enterprises. He describes the partnership by quoting Isaac Newton, who once said, “if I have seen further [than others], it is by standing on the shoulders of giants.” That’s how he views the expertise of his father and Giordano, whose credibility and knowledge help Virtual Dining Concepts make the right decisions. But Earl carries his weight. He oversees much of the day-to-day operations and helps develop many new brands. The three main skillsets he uses for the job are hospitality, dealing with talent, and in-depth knowledge of technology. He acquired the first two by working in his father’s restaurants since he was 14 years old and by attending Boston University School of Hospitality Administra tion. After graduating, Earl worked at talent management companies, where he gained a strong belief that creators could build brands

ROBBIE EARL PLAYS A BIG ROLE IN CULTIVATING NEW BRANDS FOR VIRTUAL DINING CONCEPTS.

VIRTUAL DINING CONCEPTS / RICH POLK

inally pitched the social media sensation a different idea, and Donaldson ripped it to shreds. So Earl came back with an even stron ger pitch. It was going to be pizza at first, but statistics showed burgers had a greater oppor tunity for disruption. “It wasn’t originally going to be a smash burger,” Earl recalls. “So at the time, we had two to three burger concepts that we were test ing and seeing what worked, and our best one was smash burgers. So in the back of every one’s head, we’re like, ‘This thing is a hit no matter what. We know it’s going to work.’ And we were like, ‘Oh, well, let’s talk to Jimmy about the non-smash patty.’ And I was just like, ‘No, let’s go with the best product that we possibly have with the best talent for the high

VIRTUAL DINING CONCEPTS / DAVE KOTINSKY (2)

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Kelsey McMANEMIN SENIOR DIRECTOR OF

est probability of success.’ And things just fell into place on it all.” Earl says MrBeast Burger’s success resulted from hard work, preparation, and luck converging. In September, the brand opened its first physical location at American Dream, a shopping, dining, and entertainment concept in New Jer sey. Thousands of customers filled the mall, hoping to see Donaldson and get a taste of the virtual sensation. It was stag gering for Earl but also one of the hardest things he’s had to do. It was one of those days—everyone stood on their feet con stantly, the POS broke, the KDS system stopped working, and the menu changed a few times. Despite the challenges, Earl calls the restaurant “a mastery in creation.” “It was amazing to see the experience that people had,” Earl says. “They were happy to wait in line for however long they were in that line. It was just a sur real experience at the end of it all. I think I slept for probably 24 hours, but not until after three days because the business kept going, and I had to go back. One of the big concerns was, are we going to open tomorrow? And Jimmy was very focused on, ‘We need to make today perfect so there is tomorrow.’ And fortunately, we did. We called in some extra support, and I think it was a great experience for every one involved.” Virtual concepts are still in their infancy, Earl says, and the rules keep changing. Future guidelines could shift everything from required menu com ponents to customer ratings, error percentages, and core metrics that third parties hold valuable. Education is required, too. Even three years after the pandemic, many customers are curi ous about ghost kitchens and don’t quite understand them. All these shifts are hap pening simultaneously, and Earl believes it’s Virtual Dining Concepts’ responsi bility to guide the restaurant industry through this innovation. The one thing Earl is confident in is the long-term runway of virtual brands. When a company can solve an issue, it tends to stick around. “No matter what the economic climate is, I think the need for our service is there. You look at the list of problems for restau rants, getting customers is at the top of it,” Earl says. “And something like what we do provides that. And through technology, I think we can further enhance and build on it with a restaurant-first approach.”

are seeing with influencer marketing will certainly play a larger role in strategy develop ment, customer acquisition, and budgeting.”

MARKETING SALATA SALAD COMPANY AGE: 32

Andrew LEE SENIOR MANAGER,

STRATEGY & MARKETING BB.Q CHICKEN USA AGE: 28

Growing up in South Korea, Andrew Lee spent much time at bb.q Chicken, which debuted in 1995. When his father worked late nights, he treated Lee to fried chicken, so the brand “definitely holds a special place in my heart,” Lee says. “And I’m thrilled to be in a role where I can help open more bb.q res taurants and share my love of Korean fried chicken with customers across the nation and the world.” The chain entered the U.S. in 2014. Lee joined the bb.q Chicken team as operations manager five years later after graduating from the Culinary Institute of America. Speak ing three languages (English, Korean, and Japanese) combined with financial and hos pitality skills, he bridges cultures and plays an extensive role in expansion plans. As an operations manager, Lee led store openings and implemented new online ordering and POS systems. When he first joined the con cept, there were 32 locations. Now the brand has more than 150—a 400 percent increase in three years. “We’ll be see ing more Korean

SALATA SALAD COMPANY

In her four years at Salata, Kelsey McMane min has grown from director of field marketing to senior director of marketing, overseeing the marketing strategy across the national, regional, and local levels. When she joined in 2019, her first initiative was revamp ing the entire grand opening strategy. The renewed approach led to record sales for an opening, and since, Salata has debuted 27 restaurants. In addition, the unit opening in Mesquite, Texas, in April 2022 achieved the highest grand opening figures in com pany history. The success is due largely to McManemin’s programs—one that fills key field marketing roles with industry veter ans and another that supports franchisees by outlining the best ways to get involved in the community. Her responsibilities include brand strategy, product innovation, loyalty program, guest retention and app strategy, managing local and national public relations efforts, and the new Mobile Kitchen, which serves as another revenue driver for franchise stores closing for a remodel. Her team’s tactics have proven successful as Salata set sales records in 2022, delivering 9.25 percent comps growth and an AUV of $1.3 million. In 2023, McManemin will help the chain open 16 stores and fill a pipeline of 50 stores. “For the industry as a whole, I believe we will continue to see innovation in the digital space, especially in the way of new ave nues on how to reach customers where they are consuming content,” McManemin says. “Additionally, the reach and audiences we

culture and cuisine go mainstream in the industry,” Lee says. “We’re already seeing Korean items like Gochu jang, Mando, K-BBQ, Cupbop, and Korean Fried Chicken all over the country, and I

BB.Q CHICKEN USA

think this trend is definitely going to continue as more people fall in love with our food and culture.” Lee, now senior manager of strategy and marketing, continues to make his mark. In 2022, he hired marketing agency MGH and led a complete rebrand in the U.S., including a new tagline, design, and website.

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Casey COOLEY DIRECTOR OF FRANCHISE DEVELOPMENT & REAL ESTATE JEREMIAH’S ITALIAN ICE AGE: 34

Casey Cooley has impacted Jeremiah’s Ital ian Ice’s franchising strategy from the very beginning. After joining Pivotal Growth Partners in 2019—a full-service growth and develop ment consultancy—he was assigned to Jeremiah’s and helped launch the brand’s franchise opportunity. Since that turning point, the brand has awarded

JEREMIAH’S ITALIAN ICE

more than 260 franchise units across more than 115 groups and has seen more than a 350 percent increase in new units in fewer than four years. “I think holistically dessert is having a re emergence—cookies, frozen treats, cakes, etc.,” Cooley says. “They are fun, colorful, family friendly, and approachable to most, if not all, demographics. I think virtual experience will cool off some, and people will look for those instances where fellowship and community can be facili tated and held-desserts have always been a part of that.” In 2020, Cooley and his real estate team iden tified 50-plus locations to open the following year by taking advantage of second-generation spaces that an operator could quickly convert. Although travel restrictions complicated site selections, Cooley leveraged relationships with national and local real estate brokers to ensure franchisee support. Jeremiah’s managed to open its first 10 franchise units in 2020. The chain dou bled that total in the first six months of 2021. By the end of that year, the company had 40 fran chise locations.

Taylor FISH DIRECTOR OF FRANCHISE MARKETING BAD ASS COFFEE OF HAWAII AGE: 28

PLAYA BOWLS / NOAH FECKS

Abby TAYLOR COFOUNDER AND CMO

As you might imagine for a fine artist by training who traveled the world to surf, a 9 to 5 gig was never going to cut it for Abby Taylor. A self-described “Jersey Shore girl,” Taylor and Rob Giuliani (also an avid surfer) came across myriad versions of superfruit acai and pitaya bowls during their travels. They decided to bring the category, which was hardly mainstream in 2014, to the Jersey

PLAYA BOWLS AGE: 32

Taylor Fish’s journey with Bad Ass Coffee of Hawaii began during the height of the pan

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Shore. The pair lived above a pizza shop and asked the owner if they could set up a single umbrella stand on the boardwalk in front of the business. They borrowed an umbrella, played music, bought a blender, and stood up a small refrigeration unit and devised a small menu that featured many of the items still available today. “Nobody knew what it was,” Taylor says. “But once people tried it, the line was down the road.” Today, Taylor’s creative spirit is on full display as CMO. She oversees the cre ative identity of the Playa Bowls brand, from its bright colors and playful imagery to catchy slogans and social media cam paigns to its menus. She’s hand-painted many of the shop’s murals as well. Taylor was recognized on Forbes’ 30 Under 30 list and won the Ernst & Young Entrepreneur of the Year Regional Award for Innova tion in 2019. And along the way, Playa Bowls bal looned to more than 175 shops nationwide across 20 states, making it one of the larg est players in the now-crowded segment. Playa Bowls kicked off 2023 by announc ing a 40 percent increase in average-unit volume as well as aggressive plans to open 250 stores over the next five years. Just in 2022, the chain debuted 36 units and signed 77 agreements. It entered nine new markets and inked deals to reach seven fresh ones. “The brand really is how Rob and I live our lives,” Taylor says. “It’s so much in our DNA. It’s not fake, and people see the authenticity in it. They grew with us from the stand to all these locations. … It’s a concept that could work anywhere.” Playa Bowls navigated the pandemic without any closures. Fortuitously, it had begun partnering with third-party plat forms prior to COVID and was able to tap in-app advertising and promotions when lockdowns arrived. Also, it didn’t hurt the product was built to travel. During that stretch, the chain expanded its cater ing program and made it easier to order delivery in bulk from Playa Bowls’ app. Additionally, Taylor led an initiative called “Helping Heroes” that opened an avenue for communities to make donations toward providing bowls and smoothies to essen tial workers. Going forward, Taylor says, the brand’s mission will mirror its day-one goals—introduce a healthy lifestyle to new audiences and do it with personality. “I feel like we’re only at the tip of the iceberg hon estly,” she says.

demic. Although she was hired during challeng ing times, Fish, head of franchise marketing, has continuously been at the forefront of the brand’s growth. Since Fish was the sec ond person hired in the marketing department after

Since that transaction, Weaver has overseen record sales of more than $213 million in sys temwide sales in 2022, AUVs of $1.7 million, and an upcoming modern store prototype. In addition, the new leadership team made good on its promise to align with franchisees by purchasing 16 existing stores in the first 18 months. Those locations, based in Ohio, Florida, Kentucky, and Indiana, were bought from longtime operators ready to retire. “For Lee’s, we continue to see a lot of opportunities to continue to evolve how we leverage technol ogy in our business—this is everything from keeping our app and loyalty program relevant to embracing newer sales channels, including delivery, and looking at our technology stack we utilize in our restaurants,” Weaver says. In March 2022, Lee’s signed the most sig nificant development deal in company history when franchisees Noman Aiyash and Leo Gonzalez agreed to build 12 new restaurants in the next seven years in the Detroit market. Weaver has also been part of three new fran chise openings, improvements to corporate infrastructure, and the reintroduction of an annual franchisee convention that’s increased communication efforts between the company and operators. Kelli MUTZ PRINCIPAL TEAM LEADER, SUPPLY CHAIN AND DISTRIBUTION CHICK-FIL-A AGE: 35 The supply chain

BAD ASS COFFEE

the Royal Aloha Coffee Company bought Bad Ass Coffee, there was no precedent. Fish took the initiative and launched an app that includes online ordering, a mobile wallet, and a loyalty program. The app is now a main component of the brand’s success. Fish also established LTOs catering to popular flavor trends while keeping true to the brand’s Hawaiian roots with island-inspired twists. She has helped Bad Ass Coffee break into 11 new markets with grand openings that raise money for charity. In addition, Fish has introduced technological tools to help fran chisees with marketing, including their music program that makes “every coffee run feel like an escape.” In 2022, Bad Ass Coffee awarded 45 franchise deals, and it’s seeing 76 percent growth in AUV compared to pre-COVID. “This is only the beginning of what’s to come with Bad Ass Coffee of Hawaii and our robust marketing efforts. As we look to the future, it’s our aim to disrupt the national coffee franchise category with a true experi ential brand like Bad Ass Coffee of Hawaii,” Fish says.

and network behind running restaurants today has been one of the most difficult are nas coming out of the pandemic. And Kelli Mutz is navigating all of it as Chick-fil-A continues to expand at the fastest pace in its history (the brand recently opened its first Hawaii location

Ryan WEAVER CEO LEE’S FAMOUS RECIPE CHICKEN

AGE: 33 Ryan Weaver is bringing energy to a brand founded more than 50 years ago. He’s part of an investment group led by ex-Apollo Global Manage ment professionals that purchased Lee’s in 2021 from industry veteran Chuck Cooper.

CHICK-FIL-A

and is even exploring international growth). Mutz spearheaded “multiple grueling under takings,” according to her nomination, to ease supply chain constraints and provide optimal service for operators and customers. Posi tive indicators emerged: product delivery has been reliable, sales and transactions increased chainwide, and, most importantly, customer

LEE’S FAMOUS RECIPE CHICKEN

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