A Deeper Dive

What will the restaurant industry do in 2024? This week’s episode of the Restaurant Business podcast A Deeper Dive features Hudson Riehle, the senior vice president of the research and knowledge group with the National Restaurant Association. Riehle joined the podcast to talk about the association’s annual State of the Industry Report and what it says about restaurants in the coming year. Restaurants and bars are expected to generate $1.1 trillion in sales this year, crossing the trillion mark for the first time. We chat about how big the industry really is and how many people it employs. And we talk extensively about labor, labor costs, labor availability and efficiency. We talk about demands for technology among operators and why it’s important to target younger generations these days. It’s a packed podcast on A Deeper Dive, so please check it out.

How does an emerging brand break into a new market? This week’s episode of the Restaurant Business podcast A Deeper Dive features Otto Othman, the cofounder of Pincho, who discusses a wide range of topics. Pincho is based in Miami and specializes in two things: kebabs, or pinchos, and burgers. The company received an investment from the Salt Lake City-based private-equity group Savory Fund. Savory has injected some operations expertise, not to mention investment, into the fast-casual brand, and we talk about a lot of that. Some of that expertise came in play when the chain opened restaurants in Houston recently. We chat extensively about all that the company did to expand in the city and what kind of technology it used. We also talk about the chain's recent kitchen upgrades and how that cut the company’s service times in half. It’s a fascinating conversation on A Deeper Dive, so please check it out.

How do you get an 87-year-old brand ready for expansion? This week’s episode of the Restaurant Business podcast A Deeper Dive features Flynn Dekker, the CEO of the 352-unit donut and kolache chain Shipley Do-Nuts. Shipley is an institution in its hometown of Houston, something Dekker discovered after he took over as CEO last year. But it is also an old brand. It’s been around for nearly 90 years. The longtime family-owned chain was sold to Peak Rock Capital in 2021 and since then has taken numerous steps to change operations and processes to bring it into a more modern age. We talk about all of that on the podcast, including the company’s efforts on marketing and what that's doing to the brand, along with processes, franchising and technology. We also talk about kolaches and what that does for the brand’s business. It’s a fascinating conversation with an interesting brand, so check it out.

How is Cici’s becoming more like Chuck E. Cheese? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Jeff Hetsel, the president and COO of Cici’s Pizza. Hetsel discusses the chain’s rapid shift into something of an eatertainment concept. Many of the brand’s locations have been adding larger and larger game rooms, complete with tickets and prizes, much like the aforementioned classic pizza-and-games concept. We talk about what games is doing for its business and why franchisees are the ones who led the charge. We also talk about a variety of other topics, including the labor situation in the restaurant industry and what Cici’s and its operators are doing about it. We also talk about the brand’s new loyalty program. You can also find out what the most expensive pizza to make is—it’s not what you think. It’s a fascinating discussion of pizza so please check it out.

How is private equity impacting food costs? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features John Davie, the CEO of Buyer’s Edge Platform. Buyer’s Edge is a digital procurement platform that helps restaurants use data and other tools to source food and other supplies. It operates numerous technology brands, including Consolidated Concepts. As much as the restaurant industry focuses on front-of-house technology like mobile ordering and kiosks, back-of-house tech is also important—particularly with food cost inflation. We talk about that inflation and why Davie believes that pre-pandemic food cost levels are not returning anytime soon. Hint: It has something to do with ownership of the vendors that produce that food. We talk about how long that rate of inflation could last, and what operators can do to offset it after three years of looking for profits where there weren’t any before. We’re talking food costs on A Deeper Dive so check it out.

Subway could avoid some problems if it consulted more with its franchisees. Or so says the head of its biggest association. This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Bill Mathis, a Subway operator out of Minnesota and chairman of the North American Association of Subway Franchisees, or NAASF. Subway remains the largest restaurant chain in the U.S. by unit count, with some 20,000 stores domestically. But thousands of those locations have closed over the past decade. NAASF represents much of that franchisee base. The association rarely speaks publicly, but Mathis is breaking that silence on this podcast, specifically to talk about some of the group’s concerns with current strategies. We talk about communication between management and the association and what impact that could have on some of the chain’s strategies. But we also talk about several other issues, including slicers and the impact they have had on food and labor costs. We also talk about Subway’s recent requirement that franchisees accept digital coupons—and what that is doing to franchisees. Mathis also discusses the purchase of Subway by Roark Capital and the association’s view on that. And we talk about the general financial condition of franchisees and the state of food and labor costs right now. It's an in-depth discussion with one of the most-prominent franchisees in the country’s biggest sandwich chain, so please check it out.

Starbucks is the most complicated simple business on the planet. This week’s episode of the Restaurant Business podcast is all about Starbucks. I’m joined this week by RB Editor-at-Large Peter Romeo. Peter and I toured headquarters and have a series coming up on restaurantbusinessonline.com. We talk about how Starbucks has evolved over the years, from a simple coffee shop chain into a global behemoth selling customizable beverages through numerous ordering channels. And we talk about the impact that has had on the workforce and how it has fed into an unprecedented union drive. We also talk about new CEO Laxman Narasimhan, and how his six-month immersion into Starbucks culture is playing a role in all of this. And we talk about our apparently higher-than-expected caffeine tolerance. We’re talking Starbucks on A Deeper Dive so please check it out.

Can a slider concept use modular buildings to get big? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Maria Rivera, the CEO of the rapidly growing slider chain, to talk about its unique method of growth. Smalls is a rapidly growing quick-service slider chain. The company has been quickly adding locations throughout the South over the past year, using its “cans,” or 750-square-foot facilities that are manufactured off site and placed  onto the restaurant site. Maria calls them “cans.” And she talks extensively about the potential benefits these units can have on franchisees’ ability to open locations more quickly and more strategically, along with potential financial benefits. We talk about the chain’s history and the simplicity of its menu—customers order sliders, fries, drinks and shakes. We talk about the company’s franchising strategy and its plans for growth. It’s an interesting conversation with the CEO of a fast-growing slider chain so please have a listen.

The last episode of the Restaurant Business podcast “A Deeper Dive” is, perhaps unsurprisingly, a look back at some of the year’s best episodes. The episode features clips from some key guests, including marketing expert and author Chip Klose, speaking about, well, marketing. We speak with executives from Dave’s Hot Chicken on its fascinating start. CapitalSpring’s Jim Balis gives us some news on delivery demand. Technomic’s Lori Rakoczy talks about inflation. And our own Peter Romeo and I rant about the U.S. tipping culture. So, take a look back at the year that was with us on this very special episode of A Deeper Dive.

How did Potbelly turn its business around? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Bob Wright, the CEO of the Chicago-based sandwich chain. Potbelly struggled going into the pandemic, which hammered its core business in urban markets. Wright took over as CEO three years ago. On the podcast, he talks about what it’s like to take on a struggling concept during that time. Wright discusses the changes Potbelly has made during those three years. The company closed around 30 locations its first year, but the brand has seen strong same-store sales the past couple of years. It expects to grow unit count about 10% this year. Wright talks about getting the chain’s price-value equation right—without resorting to discounts or hammering profit margins. He also talks about the company’s efforts to improve operations, its development strategy and why Potbelly plans to franchise going forward. We’re talking Potbelly on a Deeper Dive so please check it out.