QSR May 2023

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EVOLVING QUICK SERVICE FOR THE FUTURE

MAY 2023 / NO. 303

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COFOUNDER TRAV BOERSMA (LEFT) IS LEADING DUTCH BROS INTO NEW TERRITORY— FIGURATIVELY AND LITERALLY— WITH PRESIDENT

CHRISTINE BARONE AND CEO JOTH RICCI .

How Dutch Bros is evolving from a West Coast favorite to a nationally recognized brand. | P. 30 | Dutch Dynasty

PLUS:

Potbelly’s Big Comeback P. 52 Can Burger King Reclaim its Flame? P. 60

+NRA SHOW SPECIAL SECTION:

SOLUTIONS & EQUIPMENT /P. 97

Bold FROM BEAN TO CHIP TO BEVERAGES

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Ghirardelli Chocolate Company, 1111 139th Avenue, San Leandro, CA 94578 U.S.A. ©2023 Ghirardelli Chocolate Company

SIMPLY MIXOLOGY WINS A 2023 FABI AWARD!

Visit booth #4401 for more from Coca-Cola

©2023 Simply Orange Juice Company. “Simply Mixology” is a trademark of the Simply Orange Juice Company.

COSTA COFFEE SMART CAFÉ WINS 2023 KITCHEN INNOVATION AWARD!

Visit booth #4401 for more from Coca-Cola

©2023 Costa Limited. “Costa” and “Costa Co ee” are registered trademarks of Costa Limited. “Costa Co ee Smart Café” is a trademark of Costa Limtied.

An Opportunity to Spread Joy

Franchise with IHOP and bring a sense of joy to your community. We have opportunities in select, prime markets and non-traditional venues for qualified restaurant operators and developers with varied incentives for development.*

• Widely recognized and loved brand in family dining where guests feel welcomed and can enjoy classic favorites and craveable menu innovations any time of day • A powerhouse brand that is a part of Dine Brands Global, a publicly traded company and one of the largest restaurant groups in the U.S. • A dynamic brand that aims to deliver on popularity, relevancy, adaptability, and support • An established franchise system with a business model and flexible design—from conversions to freestanding, endcap, in-line and non-traditional—adaptable across varied venues

CONTACT US

*Subject to Franchise Agreement and Development Agreement Terms © 2023 IHOP Franchisor LLC. This is not an offer to sell a franchise. An offer can be made only by means of a Franchise Disclosure Document that has been registered and approved by the appropriate agency in your state, if your state requires such registration, or pursuant to availability and satisfaction of any exemptions from registration.

May

+NRA SHOW SPECIAL SECTION:

TABLE OF CONT ENT S

MAY 2 0 2 3 # 3 0 3

SOLUTIONS & EQUIPMENT /P. 97

QSR / LIMITED-SERVICE, UNLIMITED POSSIBILITIES

DEPARTMENTS

FEATURES

N E W S

26 FRANCHISE FORWARD Championing Black Excellence A Ben & Jerry’s franchisee finds balance in business and education. BY SATYNE DONER 84 OPERATIONS Stacking the Deck with Tech WOWorks gives operators multiple pieces of digital innovation. BY SATYNE DONER 17 FRESH IDEAS Examining the Cookie Craze The dessert segment is exploding out of COVID. BY BARNEY WOLF 88 OUTSIDE INSIGHTS See You in Chicago! The former Firehouse leader previews the National Restaurant Association Show. BY DON FOX 94 START TO FINISH Max Sheets Chick N Max is hitting on all cylinders with its franchise restaurant program. I N S I G H T

30 / Aboard the Java Journey BY BEN COLEY

Across 30 years, Dutch Bros has grown from a pushcart to the third-largest co ee chain in the U.S. It wouldn’t have gotten there without its not-so-secret weapon— building a people-first culture.

DUTCH BROS

42 The Pizza Wars’ Next Chapter BY SAM DANLEY A slew of headwinds has category leaders rethinking their playbooks.

52 A Pot of Gold BY DANNY KLEIN Potbelly has never lacked for brand a†nity. But it’s just now starting to realize that massive potential.

60 Reclaim the Flame BY DALE BUSS Can a proven turnaround expert get Burger King back on solid footing? He’s betting $30 million on it.

68 How Good is Fast Casual at Order Ahead? BY DANNY KLEIN The fast-casual world emerging from the pandemic has a new set of rules to play by.

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6 BRANDED CONTENT

8 EDITOR’S LETTER

11 SHORT ORDER

112 ADVERTISER INDEX

ON THE COVER From left, Trav Boersma, Christine Bar one, and Joth Ricci are taking Dutch Bros to new heights. PHOTOGRAPHY: DUTCH BROS

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 | MAY 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

22 Restaurant Communication: Why Operators Need a Total Solution With drive-thru business up, greater efficiency is necessary. SPONSORED BY HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

28 How Restaurants Can Level Up Their Cash Management

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

PAYIQ / ISTOCK

New Research: What Executives and Customers Really Think of Loyalty Customers love personalization, but it’s tough to manage at scale. SPONSORED PAYiQ

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

ADOBE STOCK / MICHAEL IRELAND

As restaurants automate to find cost and labor savings, cash management is often overlooked. SPONSORED BY LOOMIS

HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

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 SALES SUPPORT AND DIRECTORY SALES Tracy Doubts tdoubts@wtwhmedia.com 919-945-0704

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MAY 2023

SOLUTIONS & EQUIPMENT

NRA SHOW SPECIAL SECTION

MAY 2023

I•N•S•I•D•E 98 Monin 100 SSI Schaefer 102 SEB Professional 104 phade products 106 The Nacey Group 108 Vitamix Commercial 110 Frozen Beverage Dispensers

The last couple of years have been a roller coaster for the franchising industry as a whole, even for brands that don’t necessarily fit within the quick-service restaurant space. As consumers gradually returned to dining out and enjoying more time away from home,

SOLUTIONS & EQUIPMENT

Innovation and opportunities abound in the beverage space. These companies and vendors are making waves.

brands have also had to contend with supply chain issues and chronic labor shortages throughout the hospitality industry.

BEVERAGE SOLUTIONS & EQUIPMENT | MAY 2023

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98 Now Serving ‘Swicy:’ Two Sweet and Spicy New Flavors from Monin

102 How Auto mation in the Coffee Space Is Improving Both Oper ations and the

108 For Smoothie King, Being Consistently Good Is the Formula for Growth SPONSORED BY VITAMIX COMMERCIAL

FOUNDE R Webb C. Howell

110

SEB PROFESSIONAL

ADMINISTRATION 919-945-0704 / www.qsrmagazine.com/subscribe QSR is provided without charge upon request to individuals residing in the U.S. who meet subscription criteria as set forth by the publisher.

Customer Experience SPONSORED BY SEB PROFESSIONAL

104 For an Easy Top-Line Growth Strategy, Try Sustainability SPONSORED BY PHADE PRODUCTS 106 Control the Cost of CO 2 by Taking Control of Your Equipment SPONSORED BY THE NACEY GROUP

R E P R I NT S The YGS Group 800-290-5460 FAX: 717-825-2150

MONIN

qsrmagazine@theygsgroup.com www.qsrmagazine.com/reprints Sponsored content in this magazine is provided to the represented company for a fee. Such content is written to be informational and non-promotional. Comments welcomed at sponsoredcontent@qsrmagazine.com.

SPONSORED BY MONIN

FROZEN BEVERAGE DISPENSERS

The Coolest Way to Profit: Expanding Menus with Highly Profitable Frozen Beverages SPONSORED BY FROZEN BEVERAGE DISPENSERS

100 Leveraging Auto mation for Mixed SKU Case Palletizing and Route Sequencing SPONSORED BY SSI SCHAEFER

WTWH MEDIA LLC RETAIL, HOSPITALITY, AND FOOD GROUP

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EDITOR’S LETTER

An Optimistic Era Begins

I joined QSR Magazine in January 2020 not knowing much about res taurant operations. I was naive about same-store sales, barbell menu strategies, EBITDA, and the like. The learning curve was steep. And that was before March when the entire industry changed forever. The past three years have been one entirely teachable moment for my editorial colleagues and me. Not only did we report on an unprecedented global pandemic (and still are to an extent), but we were privileged to tell stories of how so many restaurateurs fought their way through restrictions, delays, and a changing consumer base. Drinking from a firehouse, baptism by fire, between a rock and a hard place— we’ve heard all the euphemisms from executives in recent years. Being part of the restaurant world for only a couple of months, it was an oppor tunity for me to gain a first impression. I was left marveling at operators’ ability to adjust against an obstacle so unfamiliar and widespread. Last year was my first visit to the annual National Restaurant Association Show, which had been canceled the previous two years due to COVID. Chicago’s McCormick Center was full of buzz and excitement around people being together again. To say it was fascinating and captivating would be an understatement. The show is truly a maze of innovation, and I look forward to an even bigger spark this year. I now find myself in the position of QSR editor, with greater control over telling the best stories this beautiful industry has to offer. As I look back on where I came from, no topic seems more fitting than growth and develop

ment. That may seem odd, considering the word “recession” has been used countless times by economists and government officials in the past year. But we’re talking about restaurants here. Drive-thru, digital, and deliv ery—they always seem to find a way forward. With that said, it’s quite appropriate that Dutch Bros ( page 30 ) takes center stage as our cover feature for the May issue. Cold beverages are the brand’s main sales driver, but metaphorically speaking, the chain is hotter than ever. The company finished 2022 with 671 shops, and it expects to eclipse 800 units this year, making good on a promise to do so back in 2018. In terms of unit count, Dutch Bros is the third-largest beverage chain in the U.S., following Starbucks and Dunkin’; $1 billion in annual sales and 1,000 units are well within reach, recession be damned. I’m also excited about what’s to come for my own team. My colleague Callie Evergreen assumed leadership of FSR Magazine, our sister publica tion. Sam Danley, who took the pulse of the quick-service pizza wars in this month’s issue ( page 42 ), joined as our associate editor earlier this year. Last, but certainly not least, is our fearless leader Danny Klein, who is leaning heavily into his role as editorial direc tor and organizing the bigger picture. Brighter days are not ahead, they’re here. Witness it. Hear it. Heck, even smell it. The restaurant industry is alive and well.

Restaurants proved resilient during COVID, and that’s not going to change now.

BCOLEY@WTWHMEDIA.COM QSR MAGAZINE

Ben Coley, Editor

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MAY 2023 | QSR | www.qsrmagazine.com

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SHORT ORDER

Dunkin’ made a splash with its Breakfast Tacos.

Dunkin’ Steps into Taco Space The beverage chain is innovating and giving customers more options.

DUNKIN’ OFFERED A NEW WAY to enjoy its menu in late March with the debut of its Breakfast Tacos. The Breakfast Tacos are made using a warm flour tortilla, scrambled eggs, melted sharp white cheddar cheese, fire-roasted corn, and a drizzle of tangy lime crema. For an extra flavor boost, customers can choose to add crispy crumbled bacon on top. Setting the tacos apart is the blend of spring-forward ingredients, with fire-roasted corn as the star. According to Dunkin’, the product is good for breakfast, a midday snack, or the evening. The tacos are designed to be convenient for customers to eat on-the-go, served in a Dunkin’ taco holder. “Our culinary team has expertly crafted these Breakfast Tacos with the vibrancy of spring in mind, delivering a taste sensation that can be enjoyed any time of the day, not just for breakfast,” says Jill McVicar Nelson, Dunkin’s chief marketing officer.

DUNKIN / CLINT BLOWERS

www.qsrmagazine.com | QSR | MAY 2023

11

SHORT ORDER

In August 2022, the National Restaurant Association released a DEI survey report that took stock of how well employers were handling diversity in the workplace.                 € ‚          ƒ  „   ƒ  „ †  €

What are the keys to closing this gender gap? Let’s ask some of the top female leaders in the restaurant industry.

Tisha Bartle VICE PRESIDENT OF MARKETING, FAZOLI’S

Stacey Pool CHIEF MARKETING OFFICER, NOODLES & COMPANY

   Sara Scroggins DIRECTOR OF BRAND MARKETING, TACO JOHN’S   Genevieve Bernard DIRECTOR OF OPERATIONS, VILLA AZUR ƒ  „ † ‡ ˆ ‰       ‚  „ Kshama Swamy SVP, CUSTOMER SUCCESS, SUPPORT & DELIVERY, PAR TECHNOLOGY



63 % crew-level employees identified as female The research found 69 % for mid-level employees and

38 % at the executive level with only

Shauna Smith CEO, SAVORY MANAGEMENT   € ‚  €   € €

BLOCKS: ADOBE STOCK / NITO, RESTAURANT MANAGER: ADOBE STOCK / BNENIN

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MAY 2023 | QSR | www.qsrmagazine.com

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NEW RESEARCH: What Executives and Customers Really Think of Loyalty

aren’t being met, and 42 percent of that group says they’ll leave if they aren’t being rewarded quickly. “Those numbers tell us that people are hungry for personalization,” Byrnes says. “They want their needs anticipated. They want re wards built on an understanding of their purchase behavior and menu preferences, and the big challenge is they expect this kind of loyalty o‡ering from the very first signup. They expect a reward before you’ve even had any time to collect a scrap of data on their purchase behavior or what they like o‡ the menu.” The survey also reveals the chal

“Customers now expect a lot of value up front, so that creates a conundrum.”

lenges executives face when grow ing personalized loyalty programs. Of course, properly integrating sys tems into the back o•ce is a major undertaking in itself, but as the results of the survey suggest, that’s when the going gets really tough.

Forty-two percent of executives say they’re struggling to convey the value of their rewards to customers. “Customers now expect a lot of value up front, so that creates a conun drum. Loyalty programs today have to be able to convey that value immediately, or they run the risk—as we’ve seen—of near-term abandonment and attrition,” Byrnes says. “Cus tomers have a desire to have a more personal relationship with the brand, and that hasn’t been lost on leadership. Because of this shift in the landscape, nine out of 10 executives surveyed now feel that los ing loyalty members is inevitable if they can’t find a way to provide a more personalized experience. What’s more, 75 percent of these executives say that diners are leaving loyalty programs because they don’t feel valued.” Even with a strong loyalty program laser-focused on customer preferences, there are still limits to what brands can do. Customers might only open their loyalty apps—and self-identify—to get points or redeem rewards on large orders. “You’re missing out on learning who your customers really are,” Byrnes says. Payments Intelligence® by PayiQ allows restaurants to securely gather first-party data on every customer who pays at a restaurant with a card. “Payments Intelligence augments your current loyalty program to identify customer behavior patterns,” Byrnes says. “It gives you the ability to leverage data to reach your customers in the highly personal ized ways they want to see, with the infrastructure you’ve already cre ated, without requiring any extra e‡ort on the part of your employees or the customer.” ◗

I n the wake of COVID-19, quick-service restaurant customers have completely changed how they interact with their favorite brands. They want—and expect—loyalty programs to be an “Amazon-like experience,” says Tom Byrnes, senior vice president of marketing at PayiQ. Customers are looking for intensely personalized experiences, and brand executives aren’t always sure how to o‡er it to them. PayiQ recently commissioned a survey on loyalty programs from the independent research firm Wakefield Research. The survey sheds light on just how much consumers love loyalty programs today, and, on the flip side, how challenging these programs are to grow. A massive 91 percent of customers say a personalized loyalty experi ence is worthwhile, and 50 percent say they can’t live without it. At the same time, however, 69 percent say they’ll drop a program if their needs Customers love personalization, but it’s tough to manage at scale. / BY KARA PHELPS

To learn more, visit pay-iq.com / payments-intelligence.

PAYIQ / ISTOCK

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MAY 2023 | QSR | www.qsrmagazine.com

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| GROWTH AND DEVELOPMENT | fresh ideas THE COOKIE SEGMENT IS EXPANDING WITH COMPETITIVE, EMERGING BRANDS ACROSS THE U.S.

Examining the Cookie Craze The dessert category is quickly saturating with serious franchise players.

BY BARNEY WOLF

C ookies are baking in more than just chocolate chips these days. The popular confections comprise America’s latest des sert-based store craze, joining past favorites like artisan ice cream, cupcakes that trended in the early 2000s, and frozen yogurt, which has been in expansion mode a couple of times. Gourmet cookie operators have exploded onto the scene, expanding both internally and through franchise deals that could add hundreds of new stores across the country. The burgeoning

competition has led some observers to say the “Cookie Wars” have begun. That phrase took a more literal turn last year after fast-growing national chain Crumbl, based in Linton, Utah, filed lawsuits against two smaller Utah-based players, alleging copyright infringement. These actions eventually garnered the social media hashtag “#UtahCookieWars.” Using a combat term seems a bit overdramatic for the humble

ADOBE STOCK / B.G. PHOTOGRAPHY

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fresh ideas

| GROWTH AND DEVELOPMENT |

“These operations are attractive now as they can operate in a much smaller footprint, require less labor, have tight stock so management is easier, and can be more flexible with their hours,” explains Maeve Webster, president of Vermont based foodservice consultant Menu Matters. Initial investments for these franchised units are relatively low. Young consumers remain willing to spend on decadent items like big, gooey, rich cookies that offer the “full, immersive sensory experience” and can play with colors and textures, Webster notes. Plus, “cookies are nostalgic, but infinitely variable,” appealing to various customers. That last point is basically echoed by almost everyone in the cookie business. “I think that cookies are timeless,” says Sarah Wilson, chief executive of yet-another Utah based cookie company, Chip Cookies, which launched in 2016 and has about a dozen units in several states. The cookie “is more American than pie. It is embedded in our communities and our diet.” Jenn Johnston, Quick Service Division pres ident of Great American Cookies’ parent FAT Brands, agrees, noting, “Almost everybody loves cookies to some degree, so it is a fun busi ness model.” Unlike newbies like Chip Cookies, Cookie Plug, and Crumbl, Great America Cookies is a veteran.

GREAT AMERICAN COOKIES (BOTTOM) HAS CO-BRANDED STORES WITH MARBLE SLAB CREAMERY.

cookie, even if multiple chains are intent on growth. “It depends on who is using the term and how it is being used,” says Chris Wyland, chief executive of Cookie Plug, based in Riv erside, California. To him, the phrase is a quick way to describe the sudden creation of many fresh-baked cookie chains and the resulting frenemies. Cookie Plug, which features a hip-hop vibe and cookies that are 4 inches in diameter and an inch high, has three dozen com pany and franchised units. “I don’t think anyone is going to confuse us with Crumbl,” which has more than 700 bakery stores nation wide, he says. There are several reasons why cookie chains are increasingly taking center stage.

The franchised gourmet cookie chain, which claims about 370 bak eries, launched in 1977 with its original chocolate chip cookie recipe. In that time, the company has seen several dessert trends come and go. “Different concepts have their time,” Johnston says, and the recent growth in gourmet cookies accelerated due to post-pan demic consumer behavior. “People have been turning to indulgent treats,” adding this response extends beyond individuals to fami lies and groups. Great America Cookies focuses on all these factions, not only through its many scoop-and-bake cookie varieties, but also its popular—and high revenue—cookie cakes, which are “a point of celebration and sets us apart,” she adds. Additionally, the com pany is increasingly co-branding units with FAT Brands’ Marble

COOKIE PLUG (2), GREAT AMERICA COOKIES

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| GROWTH AND DEVELOPMENT | fresh ideas

a gourmet cookie delivery service and since has added physical stores. When Wilson and her husband, Sean, launched the company, “we saw a gap in the market for a warm gour met cookie,” she says. “When we started we thought our customers were going to be pregnant women,” but they quickly discovered it could be much more inclusive. Chip has four standard big, hot cookies—the OG (orig inal chocolate chip) and Biscoff Chip among them—plus hundreds of recipes for one more that rotate weekly, and all stand up well in delivery. Wilson states product qual ity is key to the company’s growth beyond its 11 original, company-owned units to new franchised stores in the 50-plus territories it has sold. “You have one product, so it better be the best cookie,” she says. That extends to delivery, including experiment ing with drone service. “We historically have done our own delivery,” she notes. “We find that with third party that last mile doesn’t always work out. Controlling the quality is important.” Cookie Plug’s chocolate-chip cookie is also named OG, and that moniker—urban slang for something original— fits in nicely with the company’s hip-hop ambiance. The stores feature 15 daily thick cookies, including three keto, called “phatties”—another takeoff on urban lingo—with names like SnooperDoodle, a snickerdoodle referencing well-known rapper, Snoop Dogg. An advantage of a concept like Cookie Plug, CEO Wyland says, is the relatively low cost to open and oper ate stores. Cookies are prepared off-site and baked in shops, requiring only a few employees daily to run each 800- to 1,000-square-foot unit. The average ticket is $23, as most customers buy several cookies to take away. Cookie Plug has some 180 units in development and projects 50 openings this year, Wyland states. “It’s always great to sell deals, but we want to be strategic and open successfully.” At this point, “There is room for multiple players, and room for everyone to play well,” he notes. Still, “You need to have a great product; you can’t just throw it out there.” Eventually, a shakeout may come, according to ana lyst Webster. “There’s always the danger of over-saturation of the marketplace when too many operations focus on only one category,” she explains. There’s also a danger that chains that grow too quickly “will result in variability, availability, etc.” that can damage a brand. Smart operators will constantly look to create expe riences that will tie consumers to the brand, including creating a social media presence, as Crumbl has done. “If it’s just a good cookie, that going to be less compel ling,” Webster says, “because there are a lot of good cookies out there.”

CHIP COOKIES BEGAN IN 2016 AS A GOURMET DELIVERY BUSINESS.

Slab Creamery, creating multi-option dessert outlets. Chip Cookies is among the originators of the recent boom of fresh-baked gourmet cookies, born in Wilson’s off-hours crav ings—while pregnant in Los Angeles—for a warm, hot chocolate chip cookie delivered to her home. The business began in 2016 as

Barney Wolf is a regular contributor to QSR and is based in Ohio.

CHIP COOKIES (2)

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Whether you’re a quick service restaurant or full service restaurant with a breakfast program, Mother Parkers is here to partner on your tea and coffee needs through: • Brands that meet a variety of tastes • Surety of supply • Insights to drive growth 74% OF COFFEE DRINKERS HAVE CHANGED THEIR TASTES. * OUR LINE UP HELPS YOU KEEP THEM HAPPY.

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    

AI allows teams to increase operational eciencyandfocusonotherimportant duties while the system automatically takes customers’ orders and sends them to the POS to process. Crew members can be relocated to stations where per sonable, face-to-face interactions will have the greatest impact on customer service and satisfaction. “By integrating AI voice ordering solutions with your NEXEO | HDX platform, you provide an additional tool to help your team succeed,” Bertellotti says.

Other features of the NEXEO | HDX platform include tap-to connect headset registration, unlimited headset pairing, color touchscreen display, system diagnostics, and integration with the HME ZOOM Nitro Timer, which audibly alerts team members when certain metrics need their attention. “NEXEO | HDX delivers critical information—from other systems and team members—to key employ ees when it matters most,” Bertellotti says. ◗ A comprehensive restaurant com munications platform keeps crews con nected to key areas of the operation, and it can integrate with other solutions like voice AI providers and timer systems. “A total solution is about providing critical informationtokeysta•whenitmatters most,” Bertellotti says. “Whether you’re calling a crew member to clean up a spill in the dining area or delivering alerts from your timer to your headset, a total communicationsolutionenablesyourteamtoincreaseeciencyand provide a greater customer experience.” The NEXEO | HDX platform is one such solution. It delivers fully digital end-to-end audio, eliminating hum and noise even to voice AI systems. NEXEO | HDX’s Digital Audio enhances the drive-thru ordering experience, allowing the AI system to “hear” customers in high-definition audio—critical to ensuring order accuracy. Cloud connectivity also helps operators remotely manage and future-proof their entire store base. As their business and technology needs grow, NEXEO | HDX will grow with them, delivering advanced technology and functionality to support their ever-changing needs.

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ong after pandemic lockdowns, drive-thru and off-premises orders continue to take a larger slice of total sales—and restau rants are changing to accommodate their customers’ needs. Some brands are expanding and perfecting drive-thru lanes, while others are focusing on mobile orders via third parties and loyalty programs. Operators must figure out how to provide the same level of excellent service in these new configurations while managing the current ongoing fluctuations in labor. To navigate the challenges of higher trac through multiple or der points, it’s more important than ever for restaurant teams to be able to communicate seamlessly with each other. “Restaurants are evolving in shape and size, which means communication needs are changing, too,” says Jason Bertellotti, president of HME Hospital ity and Specialty Communications. “A total solution for restaurant communicationenablesoperatorstomanagethesignificantlyhigher volumes more effectively at every touchpoint—mobile order and curbside pickup, walk-up windows, drive-thru lanes, front counter, dine-in service, and any additional service areas.” Brands are also beginning to test the capabilities of artificial intel ligence (‰Š) voice ordering systems. Amid stang fluctuations, voice

HME HOSPITALITY AND SPECIALTY COMMUNICATIONS

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Voice AI Ordering is Just the Beginning.

Meet NEXEO | HDX™ NEXEO takes communication beyond the drive-thru and into key areas of your restaurant, increases efficiency with voice commands and group conversations, and seamlessly supports voice AI ordering. And that’s just the beginning.

“ OK NEXEO, Volume 10. ”

“OK NEXEO, Change Lanes.”

“ OK NEXEO, Talk to Lane 1. ”

The Fully Digital Solution for Drive-Thru and Beyond 866.577.6721 | www.hme.com/nexeo

© 2023 HM Electronics, Inc. The HME logo and product names are registered trademarks of HM Electronics, Inc. All rights reserved.

DEPARTMENT ONES TO WATCH

Big Dave’s Cheesesteaks An Atlanta transplant is tapping into his West Philly roots to build a sandwich empire. BY SAM DANLEY

point he faced a potential jail sentence for drug trafficking, but a stroke of luck helped him avoid spending time behind bars and gave him an unexpected second chance. Hayes started Big Dave’s to honor his father, David Hayes, who he watched die from cancer in 2009. Before moving to Atlanta, he promised the patriarch that he’d turn his life around and start his own busi ness. He made good on that pledge when he set up shop in a 750-square-foot gas sta tion in the northern suburb of Dunwoody. It was there that he started serving up fla vors from his hometown in the form of beef, chicken, and salmon cheesesteaks. “I want people to know that they’re get ting something authentic, because I’m from West Philly,” Hayes says. “The marriage between that authenticity and the special way I do things is what sets us apart.” He points to the signature Dave’s Way sandwich as an example. It comes with onions, sweet peppers, banana peppers, and mushrooms, plus American cheese, provo lone cheese, and Cheese Whiz, all served on a traditional Amoroso’s roll. That’s differ ent from what you’ll find in Philadelphia, where the sandwiches come with just one type of cheese. Hayes also prides himself on Big Dave’s seasoning, which is now sold as a standalone product in-store and via the company’s website. Beyond the flagship cheesesteaks, the menu includes hand-rolled egg rolls, wings, Philly fries smothered in cheesesteak fix ings, and a selection of Philly-inspired salads and beverages. Hayes says it didn’t take long for Big Dave’s to develop a loyal following. Still, those early days at the gas station weren’t a walk in the park. He was cash-strapped, learning how to run a restaurant in real time, and dealing with faulty equipment. A passion for cooking and CONTINUED ON PAGE 92

into one of the region’s fastest-growing busi nesses. Its footprint now spans four stores across the city, along with a food truck and three units in Mercedes-Benz Stadium, home of the NFL’s Atlanta Falcons. Hayes has become a rising star in the restaurant industry with his award-win ning take on West Philly fare. In 2021 he was named to the Forbes Next 1,000 List. Last year, he graced the cover of Essence Magazine alongside his partner and fellow restaurateur Pinky Cole, founder of Atlanta based Slutty Vegan. Hayes has also been nationally recognized by Good Morning America, Black Enterprise, RevoltTV, Peo ple Magazine, Red Table Talk, and more. Success hasn’t come easy. In fact, it almost didn’t come at all. Hayes ran into trouble with the law as a young adult. At one

FOUNDER: Derrick Hayes HEADQUARTERS: Atlanta YEAR STARTED: 2014

TOTAL UNITS: 4 restaurants in Atlanta, 3 kiosks in Mercedes-Benz Stadium,

and a food truck FRANCHISED UNITS: 0

ATLANTA ISN’T THE FIRST CITY THAT COMES TO mind when you think about cheesesteaks, but it’s where Derrick Hayes built a name for himself with his take on the classic sand wich. The West Philadelphia native launched Big Dave’s Cheesesteaks in 2014. What started with a single location in a small gas station outside of Atlanta has expanded

BIG DAVE’S CHEESESTEAKS / BITES & BEVS

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On-the-go flavor . Texas Pete ® is taking its flavor on the road with convenient, easy to-enjoy portion control packets! Whether it’s a Texas Pete ® dip cup or sauce packet, your customers will be able to enjoy bold flavor for a better on-the-go dining experience—anywhere, at any time. SCAN HERE

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Ask your broker for the #1 portion control hot sauce and request a free sample today!

©2023 Texas Pete® and Sauce Like You Mean It® are registered trademarks of TW Garner Food Company. 1007-121222

DEPARTMENT FRANCHISE FORWARD

Championing Black Excellence Ben & Jerry’s franchisee Primo Partners proves it’s more than just an ice cream shop. BY SATYNE DONER

North Carolina. From there, they have opened 14 more in metro areas such as Chicago, Tampa, and Houston. From the beginning, Primo Part ners used its business to educate and develop young leaders. Its goal is to change Black busi ness as we know it. “We’ve always looked for ways to tackle dif ficult issues or have difficult conversations, and we really see ice cream as a vehicle for doing so,” McBroom says. “It’s something that brings people together.” Through its Ben & Jerry’s platform, Primo Partners has established a growing internship and scholarship program. It donates 1 per cent of its revenue back into the community, supporting Black entrepreneurship and mar ginalized communities. Additionally, it has commitments to foundations, such as Habitat for Humanity and United Way. In addition, Primo Partners sets aside 2 percent of its revenue for staff development. Through the pandemic, the company poured resources into professional enhancement activ ities and coaching. “Coaching is what we love to do. If you think about the original coaches or carriages from the

Primo Partners supports Black entrepreneurship by donating 1 percent of revenue to the community.

W hen Primo Partners—Ben & Jerry’s largest and only Black-owned multi-unit franchise group—began its growth path, it felt the need to choose between busi ness and education, says Antonio McBroom, the company’s CEO. “But we saw the genius of ‘and,’” McBroom says. “We saw that we could be business leaders and make major contributions educat ing people about business; our business could be our classroom.” Consisting of long-time friends McBroom, Eric Taylor, and Phillip Scotton, the journey of Primo Partners is one of passion and mentorship. In addition to Ben & Jerry’s, the company also has development endeavors in real estate and just this year was awarded a Starbucks licensing agreement. When McBroom had the opportunity to buy the Ben & Jerry’s shop he was working at during his senior year in college, he felt like it was the right time to take the entrepreneurial leap. “As a brand, Ben & Jerry’s has always been a justice company. They use ice cream for their platform,” McBroom explains. “That allowed the company to connect with us at even deeper levels.” The friends’ first Ben & Jerry’s location opened 15 years ago in

early centuries, they got valuable assets from where they are to where they need to be,” McBroom explains. “We look at Primo as a coach to transfer these leaders from where they are to where they want to be.” Furthermore, February 16 ushered in a new era for Primo Part ners. The group opened its first Starbucks location at the University of South Carolina, and McBroom is eager about the partnership. “We thought that this would be the ideal complement to the Primo brand as we become a multi-unit, multi-brand organization,” McBroom says. “I’m excited to grow within the Starbucks ecosys tem and be a key partner across multiple markets in the Southeast.” For McBroom, Starbucks felt like the right fit not just for its products but also for its justice-minded approach to equity. Since its inception, Starbucks has never shied away from taking stances, something McBroom looks for in an organization. The Starbucks store at the University of South Carolina adds to Primo Partners’ portfolio of campus locations. The franchise group has Ben & Jerry’s locations at the University of North Carolina, the University of South Carolina, and the University of Georgia. While McBroom looks forward to expanding CONTINUED ON PAGE 90

PRIMO PAR TNERS

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           €  

©2022 Johnsonville, LLC • *IRI 1/2/22

SPONSORED BY LOOMIS

How Restaurants Can Level Up Their Cash Management

As restaurants automate to find cost and labor savings, cash management is often overlooked. / BY KARA PHELPS

R estaurant operators frequently underestimate the time and labor commitment they’re making to cash handling. From counting and recounting to depositing, reconciling, and delivering cash to the bank, it adds up quickly. “Manual activities, such as the handling and depositing of cash receipts, distract restaurant managers from the core of their business, which is providing a great experience for customers and a positive working environment for their employees,” says Lenny Evansek, senior vice president of SafePoint business development at Loomis. “That’s why accepting cash payments is more important than ever. Cash is and will remain a strong method of payment within the quick service restaurant industry as the needs and characteristics of its consumer can vary across many geographic areas and social metrics.” Given ongoing challenges with labor and the supply chain, it may be time for restaurant operators to re-evaluate how they manage cash handling, Evansek says. Solutions put in place five–10 years ago may no longer serve the mod ern world as e’ectively as operators need. Manual cash counting, for example, leads to increased cash discrepancies, shortages, and errors—not to mention the increased security risk when cash is openly handled and vulnerable. The risk of internal theft rises, as cash can’t be tracked, and the location also becomes a target for external robbery or burglary, potentially putting customers and employees in harm’s way. Since em ployees also need to arrive early and stay late for manual cash handling tasks, labor costs increase, and supervisors must take time away from other revenue-generating responsibilities to oversee cash handling and visit the bank if needed.

“On-site store observations, comparing what is actually happen ing in the restaurant versus the standard operating procedure, can reveal many ine ciencies which can be corrected by implementing an automated and standard way of handling and depositing cash,” Evansek says. When a restaurant adds new automation technology and begins a new cash handling process, training and providing resources for ongoing training of employees is essential, Evansek says. Operators should ensure there’s always a paper trial, which is easy for managers to maintain and view if their smart safe and cash recycling solutions come with a customer reporting portal. Finally, operators should assess their new cash handling process at 60-, 180-, and 360-day intervals, evaluating the compliance of the transition and making improvements as necessary. In fact, a case study conducted by Loomis found that res taurants can save more than 30 hours per month in labor and another $50–$100 in bank depository and change order fees by automating cash management. “Operators that choose an automated way to handle and deposit cash can count on time and money savings from eliminating or reduc ing bank trips, deposit prep, drawer reconciliation, and benefits within corporate treasury, accounting, and loss prevention,” Evansek says. ◗

“Accepting cash payments is more important than ever.”

To learn more and download Loomis’s Ultimate Guide to Restaurant Cash Handling, visit loomis.us/restaurant-guide.

ADOBE STOCK (2): COUNTING MONEY / MICHAEL IRELAND, PAYING WITH CASH / MIHAIL

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