QSR November 2022

THOUGHT LEADERSHIPFOR25YEARS

NOVEMBER 2022 / NO. 297

®

Can Less Be More with Labor? P. 44 Wellness Brands Prepare for Growth P. 22 PLUS:

THE BEST BRANDS TO WORK FOR Portillo’s leads a pack of restaurant BEST BRAND TO WORK FOR C E R T I F I E D 2022

chains setting a new standard for employee care. / P. 32

CEO Michael Osanloo andPortillo’s continue to put people first— and it’s payingoff.

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QSR / LIMITED-SERVICE , UNLIMITED POSSIBILITIES November

T A B L E O F C O N T E N T S N O V E M B E R

2 0 2 2 # 2 9 7

D E P A R T M E N T S

F E A T U R E S

N E W S 9 SHORT ORDER 22 FRANCHISE FORWARD Tapping the Well

After a COVID rush to comfort food, health-driven brands are back on franchisees’ radars. BY GARY STERN 67 CL IMATE RESPONSIBI L ITY Dispatching Change A growing reusables vendor works to disrupt the packaging industry. BY RACHEL PITTMAN I N S I G H T 15 FRESH IDEAS Planting a Seed Where will the meat-free movement go next? Creative brands are leading the way. BY AMANDA BALTAZAR 18 ONES TO WATCH Vicky Bakery Roots run deep at the legacy brand, which continues to guard a quality-first approach. BY BEN COLEY 72 START TO FINISH J.R. Galardi The CEO of Wienerschnitzel is carrying on a family legacy while also evolving a classic brand into the future.

24 / PORTILLO’S LEADS OFF QSR MAGAZINE’S FIRST BEST BRANDS TO WORK FOR REPORT.

BEST BRAND TO WORK FOR C E R T I F I E D 2022

PORTILLO’S HOT DOGS

24 The Heart of Portillo’s BY DANNY KLEIN

32 QSR’s Best Brands to Work For BY QSR STAFF

44 When Less is More BY CONNIE GENTRY

As the cult-favorite sets o on a national growth push, there’s one secret sauce element that won’t ever change.

Regional operators are shifting from decisions of desperation, brought on by the labor crisis, to envision a whole new silver linings playbook.

Today, how chains treat their employees is as vital as how they serve their guests. Meet the brands setting the bar.

2 BRANDED CONTENT

4 EDITOR’S LETTER

71 ADVERTISER INDEX

O N T H E C O V E R Portillo’s industry-leading results start with some of the lowest turnover rates in the business. PHOTOGRAPHY: PORTILLO’S HOT DOGS

QSR is a registered trademark of WTWH Media LLC. QSR is copyright © 2022 WTWH Media LLC. All rights reserved. 1111 Superior Ave., Suite 12600, Cleveland, OH. Printed in USA. The opinions of columnists are their own. Publication of their writing does not imply endorsement by WTWH Media LLC. QSR (ISSN 1093-7994) is published monthly. Periodicals postage paid at Cleveland, OH, and additional entry points. Subscriptions: (800) 662-4834, www.qsrmagazine.com/subscribe. QSR is provided without charge upon request to individuals residing in the U.S. meeting subscription criteria as set forth by the publisher. AAM member. Postmaster: Send address changes to QSR, 101 Europa Drive, Suite 150, Chapel Hill, NC 27517-2380. All rights reserved. No part of this magazine may be reproduced in any fashion without the expressed written consent of WTWH Media LLC.

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BRANDED CONTENT

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

IN THIS ISSUE BRAND STORIES FROM QSR

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

6 Study Shows Major Opportunity in Quick-Service Menu O erings

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

BOTRISTA

Beverage Break Here’s how to make your beverage menu more intriguing—and e cient. SPONSORED BY BOTRISTA 20 Cult Favorite NYC Wing Brand Takes Aim at 100 Units

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

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

Potatoes: The Perfect Plant-Based Canvas This versatile vegetable opens up a world of flexitarian-friendly innovation. SPONSORED BY IDAHOAN

ATOMIC WINGS

Atomic Wings is seeing explosive growth with a franchisee-first mentality. SPONSORED BY ATOMIC WINGS

SmartChain / p.51 SmartChain V E N D O R R E S O U R C E S / T R E N D S / N E W P R O D U C T S

SPOTLIGHT ON PACKAGING / CONSUMERS WANT MORE OUT OF FOODSERVICE PACKAGING.

F O U N D E R Webb C. Howell

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NOVEMBER 2022

52 Tackling Tough Challenges Operators face new pressures in supply and demand. 56 The Elements of Great Packaging Improving a packaging program hinges on these key attributes.

60 Sustainability Goals The future of foodservice packaging is earth-friendly.

®

Tough Challenges P. 52 Best Practices P. 56 Earth Friendly P. 60 Key Players P. 64

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

Consumers want more out of foodservice packaging. Here’s how operators can deliver.

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.

64 Key Players

SPOTLIGHT ON PACKAGING BY KARA PHELPS

Here are the biggest names in the world of packaging.

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**This information can be found in Item 19 of the 2022 Franchise Disclosure Document issued byWNW Franchising, LLC. The data reflects the calendar year beginning January 1, 2021, and ending December 31, 2021, and shows information for reporting stores which were open and operating for at least 12 months as of December 31, 2021. There is no assurance will do as well. If you rely upon our figures, you must accept the risk of not doing as well. This is not an o er to sell you a franchise. The o er of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain states require that we register the Franchise Disclosure Document in those states. This communication is not specifically directed by us to the residents of any of those states. Moreover, we will not o er or sell franchises in those states until we have registered the franchise (or obtained an applicable exemption from registration) and delivered the Franchise Disclosure Document to the prospective franchisee in compliance with applicable law.

E D I T O R ’ S L E T T E R

A New Day of Labor? Hiring and retaining workers remains at the forefront of running a successful restaurant. But the tools are changing.

I want to preface by saying I’m writ ing this in late September. You have to put that caveat out there whenever you talk about foodservice. Monday’s problem is often Tuesday’s long-forgotten fire. One of the reasons we all embrace restaurants is because you wake up with no clue what’s ahead. But with that said, restaurant labor has stuck to the priority board since the day I made my first call at QSR . Will it get better a week after I type this letter? Hard to say. Yet it won’t lose relevancy. That much I can promise. Earlier in the month, some operators told me application f low was up. One even mentioned they had the unique task of suddenly coaching GMs on how to manage labor. Through the pandemic, it’s mostly been a crash course in skeleton crew survival. And yet, as a consumer, a local fast casual recently stopped opening on the weekends and another took 45 minutes to fulfill a digital order because they were strapped. It’s an unstable topic. But one thing I think we can agree on is COVID spun the wheel. Brands are now more atten tive to workers’ needs and to higher pay, and the reality they’re facing as much competition to lose employees from other sectors as they are from each other. In platform Toast’s recent Voice of the Restaurant Industry report, 32 percent of operators said they had a difficult time hiring in 2022. Six percent cited “extreme challenges;” 26 percent moder ate; 36 percent slight; 23 percent few; and 8 percent none. Among the top tech hurdles at hand, inventory and scheduling employees saw the biggest year-over-year increases—22 percent picked managing inventory and cost of goods; 19 percent scheduling

employee shifts and time; 19 percent managing online ordering; 18 percent integrations with third-party platforms causing workf low issues; 17 percent man aging and leveraging guest data; and 17 percent managing multiple order sources. It’s an intriguing combo. Operators surveyed noted they have an average of seven service models today. Some, as many as double-digits ( counter, hybrid, table, takeout, delivery, catering, retail, wholesale, food hall, and drive-thru ). Not surprisingly then, the No. 1 area of focus for restaurants in the next 12 months was employee training, at 45 percent. Simply, restaurants are trying to deliver experience through a bevy of channels. Meanwhile, they’re f lipping staff over at higher rates ( as much as 200 percent at some brands ). So technology arrives on two fronts: One, to auto mate duties so employees can work on consumer-facing tasks; and two, to bring employees up to speed faster. And that latter point is why simplified operations are a buzzing topic, too. Where we’ve arrived, it appears, is a world where restaurants are trying to catch their breath from a breathless run of innovation, and to take these evolu tions into an environment where they improve human interaction rather than replace it. Software to boost employee productivity and make the quick-service restaurant a more desirable place to work. Can it all come together? That’s what 2023 is going to show us.

DKLEIN@WTWHMEDIA.COM QSR MAGAZINE

Danny Klein, Editorial Director

ROSIE ROSENBROCK

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S P ON S O R E D B Y A L A S K A S E A F OOD MA R K E T I NG I N S T I T U T E

Study Shows Major Opportunity in Quick-Service Menu Offerings

percent—want toseemore seafoodonquick-service restaurant menus. Additionally, only 42 percent of consumers are satisfied with seafood offerings in thequick-servicespace, leavingmanyopportunities for restaurants to create innovative LTOs featur ing seafood. This is particularly true among diners whowant to reduce their redmeat consumption, as the survey found 61 percent of consumers believe fish or seafood is healthier than plant-based meat alternatives. LeahKrafft, foodservicemarketingmanager at ASMI doesn’t find these results surprising. “Diners knowhowhealthyseafoodisandbelieve it tobemuch healthier than plant-basedmeat alternatives,” she says. “I thinkthere is just somuchnoiseaboutplant baseddishes, but, in reality, the desire is for seafood onthemenu. It’s thenumberoneproteindinerswant whenavoidingmeator reducingmeat consumption.” Yet the type of fish available on a restaurant menu is also important to consumers. Datassential reports consumerpreference forAlaskaseafoodhas grownsince2019, and items labeled“Alaskaseafood” are now preferred two-to-one over seafood that is not labeled as “Alaska.” In fact, the study found 91 percent of diners weremore likely to order seafood when “Alaska” is called out on the menu, meaning marketing theoriginof seafoodcouldbeasignificant boon to restaurants. ​”Consumers see Alaska seafood as fresh, wild, and tasty, aswell as offering strong health benefits,”

Expanding offerings create sales potential for restaurants. / BY PEGGY CAROUTHERS

T herestaurant industry isalreadyhighlycompetitive, but amidhigh inflation, rising interest rates, andstaffing andsupply chainshort ages, it’snosurpriseoperatorsare feelingthepressure.Additionally, asmargins shrink, it’s become increasingly important to not only draw in and retainmore customers, but also to increase check sizes to bring in revenue. It’s no secret that striking the right balance of menu offerings is crucial to drawing in customers, and its menu offerings is one of the majoroperational elementsentirelyunder thecontrol of therestaurant brand.Yet arecentonlinesurveyconductedbyDatassential onbehalf of theAlaskaSeafoodMarketingInstitute (asmi) highlightsamajormenu opportunity for quick-service brands. Notably, the survey found59percent of customerswant to increase their seafoodconsumption.Meanwhile, themajorityof customers—54

To learn more or find menu inspiration, visit alaskaseafood.org. “With inflation and increased costs to today’s operator and diner, menuing seafood is still an important answer to consumer demand for eating healthy, delicious foods,” Krafft says. “There are affordable ways tomenu seafoodwithout sacrificing on innovation. It’s clear that menuing and calling out ‘Wild-caught Alaska’ is of the utmost benefit tooperators.” ◗ Krafft says. “And consumers prefer the term ‘wild’ over ‘farm-raised’. ‘Wild’ boosts interest likely since it’s seen as more climate-friendly. EmphasizinghowAlaskaseafood iswild-caughthelpsestablishAlaska’s connection to these key criteria in consumers’minds.” Withthese lessons inmind, adoptingAlaskaseafoodcanhelpquick service restaurants generate positive consumer sentiment, as well as drivesales.Additionally,withawidevarietyoffishhailing fromAlaska, operators havenearly endlessmenuoptions.

ALASKA SEAFOOD MARKETING INSTITUTE

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TACO’bout

WILD.

Want the best fish tacos? Go to the source. Alaska Seafood is always authentic - wild flavor from a wild place. AlaskaSeafood.org

SHORT ORDER

Moe’s “Queso Incognito” container appears as a speaker from the outside.

QuesoGoes Incognito Moe’s gave cheese lovers a new way to enjoy the fan-favorite add-on, anytime, anywhere.

INSEPTEMBER, MOE’S SOUTHWESTGRILL unveiled “Queso Incognito,” a portable speaker-shaped container that keeps the brand’s “liquid gold” undetectable— so customers don’t have to share, the brand explained. Guests could now sneak queso into restaurants, movie theaters, or even family dinners. Moe Rewards members were able to enter to win one of three limited-edition devices along with a “Liquid Gold Queso Card” that unlocked a flood of queso for the remainder of 2022 (more than three kegs of beer worth). “Our three-cheese queso—fondly referred to as ‘liquid gold’ by our fans—is a Moe’s staple, and we think something this iconic deserves to be celebrated,” says Tory Bartlett, chief brand officer. “This year, we’ve gone bigger than ever before to give our most loyal queso enthusiasts a chance to enjoy their favorite treat, wherever and whenever. We’re excited to kick off the queso festivities and to give our customers more of what they’re craving.”

MOE’S SOUTHWEST GRILL

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SHORT ORDER

The labor challenge for restaurants today has more layers than a wedding cake. And when you tackle one crisis, another is waiting. In the fall, a survey from Alignable.com found 9 percent of operators were laying o workers and another 55 percent suspending recruitment e orts altogether in light of rising costs and broader economic challenges. But still, the high-turnover

reality of running a restaurant keeps this topic central to every playbook in every segment this industry has to o er.

Jordan Boesch CEO, 7shifts Why do your employees quit? “We asked 3,700 restaurant employees why they quit and the top three answers were wages, schedule flexibility, and school— in that order.” How do you get employees to show up and stay put? “When employees choose their own schedules, they’re more likely to show up for the shift. No-shows happen for many reasons including scheduling conflicts, a desire to avoid working with specific people, and illness—but self-scheduling allows employees to trade shifts to prevent these types of no-shows. Flexible self-scheduling can also be a powerful recruiting and retention tool.” What’s the best way to ramp up for 4Q / holiday labor demands? “Refine your hiring strategy to be enticing and resonate with workers. You should incentivize your existing staff for referrals and get creative around how you market your brand— think videos of your team, pitching the vision and giving folks a glimpse into what it’s like working there.”

So let’s ask the experts.

Jason Westhoff president, Cousins Subs

What are you accepting that you thought you’d never allow? “The no-call no-show. Used to be two no-shows and you were out, but those days are gone … And the second thing is not holding people to the brand’s standards for uniforms. Now we’re letting people wear jeans with a Cousins branded shirt or hat. It’s more everyday wear that they choose rather than a strict uniform.” How are you recruiting? “We’re using everything: Digital billboards in markets where we need immediate hires, social media, and—as far as job boards go—Indeed is still one of our best sources. And, we put stickers on every sub: “Work for Cousins Subs!”

Jennifer Schuler CEO, Wetzel’s Pretzels

Is there a way to ease the pain of employee turnovers? “Keep your business model simple. For most store-level staff, this is a starter job; they’re young students working part-time so keep the menu streamlined and training easy. Turnover becomes more painful as complexity increases. For instance, don’t bring out a new item in the holiday season. LTOs and new items add complexity to the supply chain and to training. We decided to postpone introducing a new item until February timeframe because our stores will have 4Q traffic even without adding new items, and franchisees will be better equipped to manage the holiday traffic if we keep it simple.”

Where are we failing and how do we fix it? “In the restaurant industry, we’re just stealing from each other, and our industry is going to have to adapt to how the workforce has shifted since the pandemic. We have to figure out how we can take advantage of the gig economy and those part-time workers who want to work multiple places. The franchise groups that own multiple brands may have a huge opportunity parsing out employees across all of their brands.”

Mijo Alanis co-founder , Beyond Juicery + Eatery

How can corporate make sure franchisees get staffing right? “When a potential investor comes in and wants to franchise, my question is: ‘Who’s your operator?’ You need someone with skin in the game who is dedicated and loves what they do.”

Jeff Hetsel president, Cicis Pizza

What’s your best advice for hiring? “Act fast. If you don’t hire them when they’re in front of you, they’re gone. If you call them two days later, they’ve already taken another job. That goes for managers too; you need to move fast to check references, do background checks, and extend an offer. And if you put off orientation until next week, they may have taken a better option.”

ADOBE STOCK / VOLHA

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S P ON S O R E D B Y I D A HOAN

Potatoes: The Perfect Plant-Based Canvas

The versatile vegetable is opening up a world of flexitarian-friendly innovation. / BY CHARLIE POGACAR

T he demand for plant-based foods has risen astronomically. It is a trend being driven by the growing number of consumers adhering to a flexitarian-style diet, as well as those with food sensitivities and intolerances. For some, the words “plant based”might evoke images of one-for one swaps, but RichardHoelzel, corporate executive chef at Idahoan® Foodservice, sees something else coming into focus. “Consumers are discovering that there’s more to making plant based alternatives better for you,” Hoelzel says. “Rather, clean-label products are something people are really starting to prioritize, along withplant-based alternatives.” Tomeet the demand for clean-label, plant-based foods, chefs are turning toward potatoes. Potatoes are a nutritious vegetable that can be used in a variety of dishes, dayparts, and cuisines. They can be servedmashedor shredded intraditional sides, orusedasacomforting, healthy base in creative bowls or salads. “Thepotato isavehicle,”Hoelzel says. “That’showI lookat it.When you talk about innovation, there are so many options when you are workingwithpotatoes.” The downside of raw potatoes, however, is their relatively short shelf-life and the high labor costs associatedwith preparation. That’s why chefs love Idahoan’s Honest Earth® line of clean label products, which are created using a proprietary cooking method to produce Fresh-Dried™ potatoes. The cooking method “honors the integrity of the potato,”Hoelzel says, while adding a host of operational advan tages. Included in those advantages is the fact that the products carry a 12-month shelf life and therefore reduce foodwaste. Unlike potatoes that have undergone traditional dehydrated methodologies, Idahoan’sFresh-Dried™potatoes remainstructurally sound.That’swhyHonestEarthproductsareconsideredspeed-scratch

“Nobody out there is doing potatoes the way we do them.”

ingredients—they performand taste the way a potato should. Best of all, chefs get the credit for this while cutting back on labor otherwise spent prepping potatoes. Hoelzel uses the Honest Earth Creamy Mashed Potatoes or the Honest EarthRusticMashed Potatoes in globally inspired bowls, like aMashedPotatoandTofuCurryBowl, oraSweetChiliPorkBowlwith CreamyMashedPotatoes. Honest EarthHashBrownShreddedPota toes openupaworldof possibilities onevery singlemenu—they canbe made intoHashBrownLatkesor servedas thebaseof aCajunCrawfish CreoleBowl, for example. EachHonest Earth product contains simple, familiar ingredients. TheHonestEarthCreamyMashedPotatoes andHonestEarthRustic MashedPotatoes containFresh-Dried™potatoes, andahintof seasalt andbutter forflavorandtexture.HonestEarthShreddedPotatoescon tainFresh-Dried™potatoes, sea salt, and cracked black pepper. Chefs onlyneedtoaddwater, or someother liquid—Hoelzel evenrecommends coconut milk, or stock—to refresh the potatoes and enable a world of plant-based innovation. “Nobody out there is doing potatoes the way we do them,” Hoelzel says. “These are clean-label potatoes that perform exactly the same as if youmade themin-house. It’s truly a scratch-quality, foodservice friendly, plant-based ingredient.” ◗

For more on Honest Earth, visit idahoanfoodservice.com/honestearth.

IDAHOAN

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| P L A N T - B A S E D F O O D S | fresh ideas

Next Level Burger’s signature patty is an organic quinoa and mushroom option.

Planting a Seed Where will the meat-free movement go next? Creative brands are leading the way. B Y A M A N D A B A L T A Z A R

A ccording to Datassential, 29 percent of the American population limitsmeat consumption in somemanner. Fur thermore, 28 percent say they prefer plant-based over animal proteins. What does this add up to? A sizable opportunity for restaurants. Americans’ reasons for avoiding meat products vary. Some are taking a stance against the killing of animals and their byproducts; others are switching because rearing animals for meat takes a toll on the environment; others simply want to be healthier. Steele Smiley falls into all of those categories, but especially the latter. He launched his fast casual, Stalk & Spade, last year and has three locations with 10 projected by the first quarter of 2023. Stalk & Spade offers 100 percent plant-based food including burgers, chick’n sandwiches, and salads. It’s important to Smiley the meals taste like the meat dishes they mimic. “We won’t put some

thing on the menu unless it tastes like the classic original,” he says. But Smiley doesn’t work with external companies—all R&D is done in-house and the food is proprietary. “We’re the only fast food chain that owns its own supply chain,” he says. Matt de Gruyter launched Next Level Burger in 2014 with the goal of improving consumers’ health and being climate friendly. There are now nine locations and de Gruyter, CEO and founder, opened a Denver flagship in August. It’ll come as no surprise the nascent chain offers burgers and fries, but also brats, salads, chik’n burgers and meals, and shakes. Next Level’s signature patty is an organic quinoa and mushroom offering that’s made in-house. It also menus Beyond Meat burg ers. Working with other companies just makes sense for them, de Gruyter says. “There are companies spend CONTINUED AFTER INSERT

NEXT LEVEL BURGER / FROM THE HIP PHOTO

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S P ON S O R E D B Y B O T R I S TA B E V E R AG E S

Energize your beverage menu. Beverage Break

T he beverage menu has long been a prime area to increase margins and ticket sizes. Drinks can also be a great differentiator for brands looking to win brand loyalty at a time when that is increasingly pivotal—if diners are eating out less due to worsening economic con ditions, then it is all the more critical to find ways to lure them out. And, just as food that is chal lenging to make at home will always be popular at restaurants, beverages that cannot easily be found on the shelf at the grocery store can lead to increased foot traffic. Sowhat type of drinks are consumers looking for? While soda consumption at restaurants has been declining for years, a renewed focus on innovative, functional beverages has taken center stage—for instance, energy drinks. According to Chicago basedMintel, “the energy drink category is a strong performer within thewider non-alcoholic beverage industry, outpacing growth in other beverages.”

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THE FIRST ENERGY DRINK DISPENSER “Consumers, especially those aged 18 through34, are always wanting to trynew items,” saysEmilyHirsch, vice president of beverages at BotristaBeverages. “The increasing demand for energy drinks is a good example ofwhat those types of consumers are looking for.” However, expanding the beveragemenu tonewcategories is challenging for restaurant operators as they continue to face

Offer your guests freshly made on trend energy drinks with the touch of a button

has dozens of energy options that containnatural ingredients— co„eeberry, ginseng, ashwagandha, guarana, and green co„ee, to name a few. These are great exampl s of howtheDrinkBot thrives inhelping operatorsmake the aforementionedpivot toward functional beverages. TheDrinkBot goes beyond energy drinks, too, dispensing other functional beverages fromcategories that include iced tea, lemonade, agua fresca,mocktail, smoothie, and iced co„ee. AndrewEck, vice president ofmarketing at TheHalal Guys, says implementing theDrinkBot has increasedbotheˆciency andprofitability. The brandhas beenable too„er signature drinks andLTOs itmaynot have beenable to execute previously. “We o„er flavored iced teas and lemonades, whichour guests love,”Eck says. “This past spring, we o„eredwatermelon lem onade as anLTO, and itwas a bighit. Our average check sizehas increasedby 17percent since implementing thenewo„erings.”

labor shortages. Arecent report fromtheNational Restaurant Association stated that nearly 80percent of operators donot have enoughemployees tomatch demand. That canweighheavily ona beverage program—when not executedwell or consistently, drinks su„er greatly.

“Developing great drinks to delight their customers— and drive revenue— is desirable, but not easy to execute.”

LABEL Using a bag-in-box (BiB) system, theDrinkBot canprocess syrups 1,000 times thicker thana traditional drink fountain to churnout awide variety of high-quality beverages inunder 20 seconds. TheDrinkBotwas builtwith the operator inmind and, for anumber of reasons, is becoming increasinglypopularwith some of themost cutting-edge quick-service brands. “Themachine requires little-to-no training,”Hsu says. “It has a sleek touchscreen interface that requires the teammember to simply followon-screenprompts. You suddenlyhave automated, barista-quality drinks.” TheDrinkBot is the first automated energy drinkdispenser andhelps brands elevate their drinko„erings. BotristaBeverages NOTHING ARTIFICIAL GLUTENFREE GMO FREE NO ADDED SUGAR VEGAN L E A R N MO R E “Developing great drinks todelight their customers—and drive revenue—is desirable, but not easy to execute,” says Jason Valentine, chief strategy oˆcer at BotristaBeverages. “Industry labor participation is not backup topre-pandemic levels, so sta„- ing takes priority over investing inbeverage innovation.” Perhaps this iswhy, according to a recentDatassential survey, 63percent of operators plan tokeep their beveragemenus the same, while only 8percent sawthenon-alcoholic beverage space as a placewhere they could innovate. Thismakes non-alcoholic beverages a clear placewhere brands could create di„erentia tion—if andwhen theyhave the solutions todo so. Inmanyways, the solutions createdbyBotristaBeverages are primed tohelpoperatorsmeet themoment. CEOand co-founder SeanHsu startedBotristaBeverageswith the goal of creating an automatedway for operators to add a craft beveragemenu that would enhance speedof servicewhilenot sacrificing onquality. The conceptwas bornwhenHsunoticed thismarket ineˆ- ciencywhileworking at a cafe:While drinkswere a key part of the restaurant experience, they oftenbackedup the line to the point where guestswould just settle forwater. Hsubegan towonder whatwouldbe the bestway to simplify the process of creating complexdrinks and implementing themat any restaurant that coulduse it. Later on, using his background in robotics combined withexperience creating automated liquiddispensing systems at Tesla, Hsu spent years researching a solution thatwouldbecome theBotristaBeveragesDrinkBot.

BOTRISTA

info@botrista.io

has dozens of energy options that containnatural ingredients— co„eeberry, ginseng, ashwagandha, guarana, and green co„ee, to name a few. These are great examples of howtheDrinkBot thrives inhelping operatorsmake the aforementionedpivot toward functional beverages. TheDrinkBot goes beyond energy drinks, too, dispensing other functional beverages fromcategories that include iced tea, lemonade, agua fresca,mocktail, smoothie, and iced co„ee. AndrewEck, vice president ofmarketing at TheHalal Guys, says implementing theDrinkBot has increasedbotheˆciency andprofitability. The brandhas beenable too„er signature drinks andLTOs itmaynot have beenable to execute previously. “We o„er flavored iced teas and lemonades, whichour guests love,”Eck says. “This past spring, we o„eredwatermelon lem onade as anLTO, and itwas a bighit. Our average check sizehas increasedby 17percent since implementing thenewo„erings.”

“Consumers, especially those aged 18 through34, are always wanting to trynew items,” saysEmilyHirsch, vice president of beverages at BotristaBeverages. “The increasing demand for energy drinks is a good example ofwhat those types of consumers are looking for.” However, expanding the beveragemenu tonewcategories is challenging for restaurant operators as they continue to face

labor shortages. Arecent report fromtheNational Restaurant Association stated that nearly 80percent of operators donot have enoughemployees tomatch demand. That canweighheavily ona beverage program—when not executedwell or consistently, drinks su„er greatly.

“Developing great drinks to delight their customers— and drive revenue— is desirable, but not easy to execute.”

“Developing great drinks todelight their customers—and drive revenue—is desirable, but not easy to execute,” says Jason Valentine, chief strategy oˆcer at BotristaBeverages. “Industry labor participation is not backup topre-pandemic levels, so sta„- ing takes priority over investing inbeverage innovation.” Perhaps this iswhy, according to a recentDatassential survey, 63percent of operators plan tokeep their beveragemenus the same, while only 8percent sawthenon-alcoholic beverage space as a placewhere they could innovate. Thismakes non-alcoholic beverages a clear placewhere brands could create di„erentia tion—if andwhen theyhave the solutions todo so. Inmanyways, the solutions createdbyBotristaBeverages are primed tohelpoperatorsmeet themoment. CEOand co-founder SeanHsu startedBotristaBeverageswith the goal of creating an automatedway for operators to add a craft beveragemenu that would enhance speedof servicewhilenot sacrificing onquality. The conceptwas bornwhenHsunoticed thismarket ineˆ- ciencywhileworking at a cafe:While drinkswere a key part of the restaurant experience, they oftenbackedup the line to the point where guestswould just settle forwater. Hsubegan towonder whatwouldbe the bestway to simplify the process of creating complexdrinks and implementing themat any restaurant that coulduse it. Later on, using his background in robotics combined withexperience creating automated liquiddispensing systems at Tesla, Hsu spent years researching a solution thatwouldbecome theBotristaBeveragesDrinkBot. Using a bag-in-box (BiB) system, theDrinkBot canprocess syrups 1,000 times thicker thana traditional drink fountain to churnout awide variety of high-quality beverages inunder 20 seconds. TheDrinkBotwas builtwith the operator inmind and, for anumber of reasons, is becoming increasinglypopularwith some of themost cutting-edge quick-service brands. “Themachine requires little-to-no training,”Hsu says. “It has a sleek touchscreen interface that requires the teammember to simply followon-screenprompts. You suddenlyhave automated, barista-quality drinks.” TheDrinkBot is the first automated energy drinkdispenser andhelps brands elevate their drinko„erings. BotristaBeverages

BOTRISTA

Something else operators love about theDrinkBot is its size—theDrinkBot Pro takes up about the same amount of space as a beverage fountainand contains refrigerated space for up to 12BiBcontainers of syrup. TheDrinkBotMini has a smaller footprint, but can still fit up to8BiBs.

IvaChen, who runs aGoldilocksFilipino Cuisine locationat SFOAirport, southof SanFrancisco, was immediately takenwith

“The machine requires little-to-no training.”

theDrinkBotwhen she saw it at a trade show. Themachine’s footprint, combined with its contributions to speedof service,made it a perfect fit for anairport location. “As soonas I sawa demoof theDrinkBot at a food show, I knewweneeded tohave it at our quick-service restaurant,”Chen says. “It’s beena great addition toourmenu—we arenowable to o„er customized craft beveragesmade inunder 20 seconds for our customers, who are always ina rush.” These operators are experiencing the solution to the issue Hsu set out to solvewhenhe conceivedof BotristaBeverages in the first place. That’s not lost onHsu, who says his company is constantly innovating tohelp its customersmeet shifting market demands. “Our flexibility indrink formats and equipment is expanding tomeet operators’menuneeds,”Hsu says. “We strive to continu ously improve andmeet our customers’ goals, so that they can meet their guests’ goals.” IMAGES: BOTRISTA (3)

For more on adding craft beverages to the menu, visit botrista.co.

| P L A N T - B A S E D F O O D S | fresh ideas

And he has options for both on the menu. Native Foods’ customers are also wide-ranging, and not just vegans, says Stutz, who notes today’s guest might tap plant-based foods just a few nights a week, while eating meat on other days. Without appealing to all demographics, a restaurant chain won’t thrive, Stutz says. “Studies show that only 3 to 6 percent of people claim to be vegan, so plant-based restaurants that want to grow simply can’t survive on those numbers,” she says. “We therefore must make food that’s so delicious and approachable that everyone will want to try it. We must start by attracting the flexitarian.” She also has items that resemble meat and some that don’t. “For the person who comes in for the first time we know certain items will be pretty close to what they’re familiar with,” she says. So staff are trained, Stutz adds, to steer the first-time guest toward more familiar items. However, she points out, “the plant-based guest is the most adventuresome guest I’ve ever seen. Their willingness to try any thing makes it really fun to put new items out there for them and they give you feedback.” Native Foods offers a monthly special, such as a fried green tomato BLT or a wasabi crabcake sandwich, as well as seven or eight dishes that change seasonally “so we can keep things fresh,” she says, adding “inspiration is everywhere, whether it comes from foreign cuisines or popular lifestyle foods.” The road ahead Stalk & Spade is largely focusing on urban areas for develop ment, “because there’s more awareness there,” Smiley says. But he notes the suburbanmarket “is where the real opportunity lies.” His first stores were in suburban areas, because “we always prove in a suburban market first. You don’t have a brand if it can’t be successful in the suburbs.” He plans to grow via franchising, which will be about 90 per cent of locations, and already has a large base of operators through his other concept, Crisp & Green. “They’re looking for more brands,” he says, “so we don’t need to go out and find new partners and it allows us to scale relatively quickly.” Native Foods has 12 corporate locations and expects to open its 13th by the first quarter of next year. It may consider franchis ing down the road, Stutz says. The chain has changed plans from urban to suburban. “The pandemic made us think about the diversity of our portfolio and we’re moving into the suburbs,” she says. “This is no longer a trend; plant-based dining is here to stay and there’s a lot of white space in the suburbs.” Next Level Burger has nine restaurants, six of which are located within Whole Foods, but de Gruyter expects to grow mostly through standalone venues. He expects to quadruple his foot print from the beginning of this year when he had seven units, to 28 by the end of 2025, with an ultimate goal of 1,000. “We’re looking to invest in a community that responds enthu siastically to our presence,” he says. “We’re not trying to be a commodity; we want to have relationships.” q

Matt de Gruyter launched Next Level Burger in 2014.

ing hundreds of millions of dollars in developing the best plant-based food. We don’t have to figure out how to take it to the next level; instead we can be a gate way for people to eat the best of the best.”

Carin Stutz is the president and CEO of Native Foods, which offers a diverse menu featuring vegan comfort foods from burg ers to entrees like cauliflower chickpea shawarma bowl, street tacos, and nachos. Native Foods creates as many of its proteins in-house as it can, but like de Gruyter, Stutz is open to working with third parties. “If they can make something better than me and it’s good, clean ingredients, I’m interested,” she says. Customer counts Stalk & Spade is attracting a broad demographic. Younger gener ations, however, “are truly driving this trend,” Smiley says. “They are plant-positive and choosing to live that lifestyle. However, he adds, “people in their 50s and 60s aremaking the change because they want to be around as long as possible.” De Gruyter’s goal with Next Level Burger was to appeal to a broad audience, too. “If you’re only attracting a slice of people, you’re limiting your income.” So, he aims to serve both the con sumer who’s looking for a plant-basedmeal that closely resembles meat, and the vegan who doesn’t want to be reminded of animals.

AmandaBaltazar is a regular contributor to QSR and is based in Washington.

NEXT LEVEL BURGER (2), MATT DE GRUYTER: FROM THE HIP PHOTO

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DEPARTMENT ONES TO WATCH

VickyBakery Roots run deep at the legacy brand, which continues to guard a quality-first approach. B Y B E N C O L E Y

is on top of the marketing department, and Fernando and Carmen run training and operations. Santiago rose to CEO because of his mil itary background, where he learned many of his management and discipline skills. And he knows his role. The restaurateur isn’t as talented at engineering cakes as his some of his family members, so he’s taken it upon himself to bring what Vicky Bakery has done for the past five decades and cre ate a bridge to the next generation. And a big part of that is selecting the right fran chisees to grow with. “The American dream is that ability to start from nothing, pick yourself up by your bootstraps, and make something in your lifetime,” Santiago says. “And that’s what my in-laws did. It’s a sense of pride to be able to say that through franchising we are finding partners and investors that can go out there and take our concept because of the way it’s been set up. It’s become, in our limited experience, a very profitable busi ness for those that decide to sign up with us.” The growth will be meticulous. Vicky Bakery doesn’t want to open 100 stores, or even 50. It started 2022 with 17 locations and hopes to end next year with roughly 35. Currently, all of the concept’s locations are along Florida’s Southeast Coast, from Homestead to Boca Raton. More units are scheduled for Palm Beach, Orlando, and Southwest Florida. Santiago also mentioned that Vicky Bakery has been in talks with operators in Texas and Georgia. The brand began with one store in 1972, which was actually Antonio and Gelasia’s third try, with the first two attempts burn ing down. The second outlet didn’t open until 1984 and the third came in the early 1990s as Santiago entered the business. Point being, Vicky Bakery thinks very deeply about growth before proceeding. The ongo ing expansion phase, CONTINUED ON PAGE 70

ida’s culture. The learning process was as personal as it gets. Going back through baby pictures, he discovered the cake at his chris tening and baptismwas fromVicky Bakery. “I was born in 1975. This company’s been around since 1972, and it’s been doing amazing products ever since,” Santiago says. “Because I married the youngest daughter, I was the last one to come into the family. I’m still the rookie. I’ve only been here 28 years. I’m still in awe by all the knowledge and just the things that the family does.” Vicky’s board of directors includes six members of the family: Santiago and Eliz abeth; Pedro and Amy Cao; and Fernando and Carmen Oramas. Santiago serves as CEO while Elizabeth oversees human resources and account management. Pedro is in charge of business development, Amy

FOUNDERS: Antonio and Gelasia Cao HEADQUARTERS: Miami YEAR STARTED: 1972 ANNUAL SALES: About $42 million systemwide TOTAL UNITS: 20

ALEX SANTIAGO WALKED INTO THE VICKY BAK ery business 30 years ago because he fell in love with his wife, Elizabeth, the youngest daughter of Cuban founders Antonio and Gelasia Cao. Admittedly, he didn’t understand the company’s special nature at f irst, but he quickly came to realize just how much the neighborhood concept is part of South Flor

VICKY BAKERY

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NOVEMBER 2022 | QSR | www.qsrmagazine.com

S P ON S O R E D B Y AT OM I C W I NG S

T he story of AtomicWings is a remarkable one. The brand, createdbyAdamLippin in1989, isknownas thefirstwingrestaurant inNewYorkCity. Ithelped introduce authentic buffalo-stylewings to theworld. Fast-forward to today. CEO Zak Omar and his brother, Ray, recently took over the brand with a fran chisee-firstmentality.Asexperienced franchisees, they have deep knowledge of the franchisemodel and what franchisees need inorder to thrive. “We really focus on franchisee success and satisfac tion,”Omar says. “Westoppedtaking royaltypayments during theearliestCOVID-19 lockdowns.Thoseweren’t Featured on national television multiple times, Atomic Wings is seeing explosive growth with a franchisee-first mentality. / BY KARA PHELPS Cult Favorite NYC Wing Brand Takes Aim at 100 Units

deferred payments—we stopped taking them altogether. During the nationalwing crisis, we also reduced royalties byhalf.We toldour fran chisees, ‘Hey, we’re in this together.’ We understand their cost burden, andwe understandwhat it takes to run successful restaurants.” With 16 current locations in theNortheast and over 90more signed locations across the U.S., AtomicWings is entering a phase of unprec edented growth. This growth has largely been spurred by the brand’s very selectiveAreaRepresentativeProgram. “2023 is going to be a year of aggressive expansion,” Omar says. “We’ve sold out several territories in theMidwest already. We’re look ing for experienced operators all over the U.S.—people who know the restaurant industryandwhoknowhowtodrivesales totheir stores.We want tobuild this brand the rightway fromthe groundup.” That includeskeepingconstructioncosts toaminimumfor franchi sees. “Wewant todoeverythingwecantohelpour franchiseesgrowand get a return on their investment as soon as possible,” Omar says. “With our stores,we’re looking tocreatea friendlyguest experience, andwe’re hoping that translates across all of America.” In many ways, it already has. In the last couple of years, Atomic

Wings has garnered attention fromnational media, fromThe Tonight ShowwithJimmyFallontoTheLateShowwithStephenColbert toFox andFriends. In addition to prioritizing franchisees, Omar attributes the brand’s success to itspremiumproducts. “Todifferentiateourselves fromother wing brands, our wings go through a series of steps before they ever hit the fryer,”Omar says. “Ourproduct is always fresh, never frozen.We’ve also been able to reduce cook times from 12 minutes down to about four–sixminutesdue toourprocesses. It’sall about speedof serviceand convenience for our guests.” Thebonelesswingsandtendersarehand-breadedandhand-battered. (Grilledwingsarealsobeingrolledout inselect locations.)Theselection of sauces is huge, and Omar says about 95 percent of themare gluten free. The brand recently introduced several new offerings, including a NashvilleHot line, aseriesofdryrubs, andaioli sauce forchickentenders. Drive thrus—rare in thewing space—are also in theworks. “Oneof the things I loveabout thisbrand is that all thegrowthwe’ve hadhas beenorganic,”Omar says. “We offer a superior product, andwe treat our franchisees like a family.” ◗

To learn more, visit atomicwingsfranchising.com.

ATOMIC WINGS

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NOVEMBER 2022 | QSR | www.qsrmagazine.com