First Bite Nation's Restaurant News
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- Business
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First Bite, hosted by Nation’s Restaurant News digital editor Holly Petre, highlights the top restaurant industry headlines of each day followed by a short conversation on one of the day’s trending stories. Published early every weekday morning, First Bite is the perfect way to get a brief recap of the daily foodservice news alongside your first cup of coffee.
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Why Papa Johns may be losing its competitive edge in the pizza segment
Papa Johns’ customers are spending less than they had previously, and when they do spend money on pizza, they are more likely to choose third-party aggregators over the company’s first-party delivery channels. This shift in mix balance was a primary driver behind the Atlanta-based pizza chain’s 2% decline in North America same-store sales, as well as revenue and overall sales deflation for the first quarter ended March 31, 2024.
Sales from aggregator channels have grown to 16% this quarter, as compared with 12% the same quarter of 2023, meanwhile organic delivery has declined year-over-year, while carryout remains flat. This highlights the quandary operators face when utilizing third-party apps: they are crucial to pull in new and non-regular customers, but operators lose revenue from these transactions. -
How Applebee's is planning to turn things around
Dine Brands’ first quarter results included same-store sales declines at both Applebee’s (-4.6%) and, for the first time in 11 quarters, IHOP (-1.7%), highlighting a continuing narrative across the industry about increasing consumer sensitivity. Despite a few exceptions, that narrative has impacted concepts across segments, from McDonald’s and KFC to First Watch and Starbucks.
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How Dutch Bros pulled ahead of its biggest competition this quarter
At a time when many restaurant companies are struggling to get customers in the door, Dutch Bros is one of the better success stories for the first quarter of 2024. In Q1, the Oregon-based coffee chain saw 10% same-store sales growth, attributable mostly to menu pricing increases, discounting, and positive traffic trends.
Traffic will likely continue an upward growth trajectory after Dutch Bros starts accepting mobile order and pay, which the company will begin offering for the first time by the end of 2024, in partnership with Olo. The new partnership and mobile order and pay solution is currently in test mode at seven locations, and is meant to boost operational efficiency, especially for guests that want to cut down on wait times at the drive-thru lane. -
Where can FAT Brands go from here after failing to turn a profit?
During the first quarter of 2024, FAT Brands continued its journey toward profitability and revenue growth through continued acquisition and physical expansion. The company reported skyrocketing revenues of 43.8%, primarily attributable to the acquisition of Smokey Bones in Sept. 2023.
Despite a growing portfolio — which has expanded tenfold in three years — FAT Brands continues to struggle with profitability as the company reported a net loss of $38.3 million, attributable to increased costs and expenses associated with multiple brand acquisitions over the past several years, including Fazoli’s and Nestle Toll House Café in May 2022. FAT Brands chairman of the board, Andy Weiderhorn, noted that the upcoming (though seemingly delayed) Twin Peaks IPO would be used to tamp down the company’s debt to income ratio. -
How big restaurant chains are trying to get in on the growing coffee segment
Whataburger is upgrading its coffee offerings with new hot and iced coffee, a new sweet cream, and a limited-time shake to promote the change. They’re being rolled out on May 7.
The same blend of Arabica coffee beans from Colombia, Nicaragua, Guatemala, and Honduras are being used for both hot and iced coffees, but the roast is different. -
How this underused vegetable can be on your menu
Squash doesn’t seem like the most charismatic of vegetables. Even the name sounds like a failure. But many chefs are into them. They say each one has its own unique qualities, with summer varieties offering fresh, clean tastes and winter ones providing sweetness and a sort of implied richness, despite their low fat content, that can help lighter dishes seem more satisfying.
The difference between chefs’ love for squash and consumer perception might be reflected in Technomic’s Ignite menu data, which indicates that mentions of squash on United States menus overall decreased by 7% between the end of 2022 and the end of 2023. But butternut squash soup mentions are up by 19.6%, and squash mentions in fine-dining restaurants are up by 8%.
One big squash advocate is Dan Barber, chef of Blue Hill at Stone Barns in Pocantico Hills, N.Y., and Family Meal at Blue Hill in New York City.
Barber also is the founder of a seed company, Row 7, that essentially got its start developing new squash varieties, including the popular koginut, a variation of butternut that is now grown nationwide.
Customer Reviews
Informative!
Great podcast to stay in the now with popular restaurants and issues that matted! I like that it’s short and relative.