Philadelphia Business Journal’s Post

The first in the series is out! 𝗡𝗢𝗦𝗧𝗔𝗟𝗚𝗜𝗖 𝗥𝗘𝗦𝗧𝗔𝗨𝗥𝗔𝗡𝗧 𝗦𝗘𝗥𝗜𝗘𝗦 𝗡𝗼. 𝟭 - 𝙎𝙏𝙀𝘼𝙆 & 𝘼𝙇𝙀 𝙇𝙞𝙠𝙚 𝙩𝙝𝙞𝙨 𝙨𝙚𝙧𝙞𝙚𝙨, 𝙘𝙡𝙞𝙘𝙠 𝙝𝙚𝙧𝙚 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙉𝙤𝙨𝙩𝙖𝙡𝙜𝙞𝙘 𝙍𝙚𝙩𝙖𝙞𝙡 𝙎𝙚𝙧𝙞𝙚𝙨 𝙬𝙚𝙗𝙨𝙞𝙩𝙚: https://bit.ly/3YxvVfR Founded in 1966 in Dallas, Texas by the one and only Norman Brinker, a legend in the restaurant industry. "The chain, with its dimly lit Tudor-style decorated dining rooms, billed itself as offering an upscale steak experience at lower prices. It was seen as a model for the casual-dining steakhouse chain, and many executives there went on to run other large chains." [Wikipedia] Purchased by Pillsbury in 1976 (113 locations), the chain became part of a restaurant group with Burger King, Bennigan's and others. Pillsbury then spun off Steak & Ale in 1982 (along with Bennigan's) into S&A Restaurant Corp. Rapid growth in the 1970s and 1980s led Steak & Ale to be one the the preeminent casual dining chains of its time, peaking at 280 locations. Competition ensued and differentiation became harder to achieve. In 1988, Metromedia purchased Steak & Ale (keeping the S&A company name) and merged it with Bonanza and Ponderosa in 1993. With no improvements in site, 𝗦&𝗔 𝗥𝗲𝘀𝘁𝗮𝘂𝗿𝗮𝗻𝘁 𝗖𝗼𝗿𝗽. 𝗳𝗶𝗹𝗲𝗱 𝗳𝗼𝗿 𝗯𝗮𝗻𝗸𝗿𝘂𝗽𝘁𝗰𝘆 𝗶𝗻 𝟮𝟬𝟬𝟴, closing all Steak & Ale and non-franchised Bennigan's locations. In 2015, Paul Mangiamele (CEO of Bennigan's during its "comeback" attempt) and his wife closed on a management buyout becoming owners of the Steak & Ale and Bennigan's brands. The new company created was Legendary Restaurant Brands, LLC. Despite 2016 and 2020 announcements that Steak & Ale would return with locations in Mexico, these never materialized. 𝗜𝗻 𝟮𝟬𝟮𝟯, 𝗮 𝗨.𝗦. 𝗰𝗼𝗺𝗲𝗯𝗮𝗰𝗸 𝘄𝗮𝘀 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗱 𝘄𝗶𝘁𝗵 𝗮 𝗻𝗲𝘄 𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗽𝗲𝗻𝗲𝗱 𝗶𝗻 𝗕𝘂𝗿𝗻𝘀𝘃𝗶𝗹𝗹𝗲, 𝗠𝗶𝗻𝗻𝗲𝘀𝗼𝘁𝗮. The Steak & Ale website shows no other locations coming soon but there is one is Texas that has been planned. The website also shows franchising opportunities and really focuses on the history of the concept. #nostalgicrestaurant #restaurants #brands #retailrealestate #cre

Mexican fast-casual concept Qdoba Restaurant Corporation signed an agreement for 20 restaurants in New Hampshire and Rhode Island. It marks the second deal for the brand with APR Island Management/Cafua Management, led by Mark Cafua, David Burns and Gregory Cafua, alongside Ricardo Gonzalez. Cafua Management Company, a Dunkin Franchisee is the largest Dunkin’ franchisee in the United States, signed on in 2024 to open five Qdoba Restaurant Corporation in Pennsylvania. Established in 1995, Qdoba Restaurant Corporation has 800 locations in the U.S., Canada and Puerto Rico. https://lnkd.in/gfWHsiMv

As price-conscious Americans cut back on eating out, fast-casual restaurants are bucking the trend and continuing to attract consumers. This is notably the case with buzzy Mediterranean chain CAVA. The eatery has been rapidly expanding its number of locations and plans to offer steak next month — a move that led the company to boost its full-year sales outlook. CAVA expects same-store sales of 6.5% for the year, up from 5% previously estimated. It opened another 14 restaurants last quarter, bringing its total to 323. After a recent opening in Illinois, CAVA is now open in 25 states and Washington, D.C.

Pollo Campero, a global quick-service restaurant chain, is building a new eatery in Huntington, replacing a shuttered Dairy Queen as part of the brand's Long Island expansion. https://lnkd.in/gK5hUC3R

Popeyes Louisiana Kitchen, commonly known as Popeyes, is one of the most popular fast-food chains in the world, renowned for its spicy fried chicken and Southern-inspired menu. Founded in the early 1970s, Popeyes has grown from a single restaurant in Louisiana to an international brand with thousands of locations. This article explores the origins, growth, and milestones that have defined Popeyes’ journey.

Interesting developments in the quick-service restaurant industry! Love’s Travel Stops is opening its first-ever standalone Whataburger location in 2025, signaling a new frontier in roadside dining. With drive-thru lanes becoming essential for fast, convenient service, this move highlights how technology, location strategy, and customer experience are shaping the future of drive-thrus. Story link in comments. As restaurant technology evolves, the industry keeps pushing the boundaries of what drive-thru service can be. What do you think about this move? Will more QSRs follow suit? Let’s discuss it in the comments below. #drivethru #QSR #newopening #sanantonio #texas #whataburger #fastfood #drivethrulane #dining #customerexperience #restauranttechnology #restaurant #restaurantowner

“When the industry experiences periods like this, it’s where you have to focus on the X’s and O’s of the business,” Jon Rolph, CEO of Thrive Restaurant Group, a large Applebee's Neighborhood Grill + Bar operator said. “It’s important to recognize the macro environment that you’re in, and then look at how you can win inside that environment. So, what’s important to us is making sure we’re out-operating our competitors, because when people cut back, they’re going to go to the establishments they trust the most.” https://lnkd.in/gchmrCUz

Wild Eggs has bought fast-casual chain Crazy Bowls and Wraps, with plans to expand its presence through virtual kitchens and franchising. The first digital kitchen for Crazy Bowls & Wraps opened in Jeffersontown, Kentucky, and Wild Eggs will use existing kitchens and delivery partners to introduce Crazy Bowls & Wraps to the Louisville market while maintaining brand independence. #restaurants #diningout #construction #restaurantindustry #restaurantbusiness #restaurantnews #fastcasual #foodlover #foodie #Food #foodblogger

Restaurant Bankruptcies Reportedly at Highest Level Since Pandemic As was reported by PYMNTS today December 5, 2024 chain restaurant bankruptcies are reportedly at their highest level since the pandemic. Among the most recent examples is the casual dining franchise TGI Friday’s, one of more than a dozen high-profile eateries to seek bankruptcy protection between January and October of this year, Bloomberg News reported Thursday (Dec. 5), citing BankruptcyData. According to the report, that’s the most through that date since 2020, and next year could bring more turmoil, with restaurant prices jumping due to increased labor costs, supply chain issues and steeper interest expenses, lessening consumer demand for meals away from home. Bloomberg cited data from Black Box Intelligence showing that restaurant prices rose 44% between 2015 and March of this year, compared to a 26% uptick in grocery prices during the same timeframe. In addition to TGI Friday’s, the Italian chain Buca di Beppo, fish taco restaurant Rubio’s Coastal Grill, owner of burger and pizza chains BurgerFi and Anthony’s Coal Fired Pizza, and Red Lobster are all among companies seeking reorganization via bankruptcy in a year that has not been easy on the dining industry. And while global names like these are seeing sales fall, smaller restaurants are dealing with challenges of their own, like scaring up capital, Mitchell Hipp, divisional vice president at Rewards Network, said in an interview with PYMNTS posted earlier this week. “Most restaurants are undercapitalized to begin with, and it’s the #1 business that fails in the U.S.,” he said. Most small-to-mid-sized restaurants only have enough funding to remain open for six months, though they should — ideally — have the capital to keep running for a few years. Selected text is © PYMNTS, 2024. All Rights Reserved. Graphic is © Mark S. Mandula, CLO BCR Learning, 2024. All Rights Reserved.

In Woodbridge, Virginia, LongHorn Steakhouse will take over an old TGI Fridays. In Watertown, New, York, a former Red Lobster is being converted to a Northern Credit Union bank. And Chick-fil-A is taking over a shuttered Red Lobster in Naples, Florida. Vacant restaurant chains are creating prime real estate for a wide range of companies looking for spots to grow, especially fast-food chains that want to install drive-thru lanes on spots where diners once sat down for dinner. Chains like Red Lobster and TGI Fridays filed for bankruptcy this year and closed more than 175 restaurants combined. Red Lobster was driven into bankruptcy by mismanagement under a previous owner, global shrimp supplier Thai Union, while TGI Fridays fell under private equity owner TriArtisan Capital Advisors. Denny’s is also closing 150 restaurants. All three typically cater to low- and middle-income customers, and the chains have also been struggling because their customers are squeezed. Diners are opting to eat at home or at cheaper fast-food and fast-casual chains such as Chick-fil-A and Chipotle, which can be more profitable to run than sit-down table service. “Family dining has had it the worst post-pandemic,” Denny’s CEO Kelli Valade said on an earnings call last month. Customer traffic to full-service restaurants like Denny’s has dropped 0.5% so far this year, while it has increased 3.2% at fast-casual restaurants and 0.6% at fast-food restaurants, according to data from Placer.ai. But these sit-down restaurants aren’t staying empty for long. In many cases, landlords are eager to replace the aging chains because they can find new tenants that pay higher rents and draw in more customers. “This is not an ‘oh my God’ kind of moment. This is completely expected,” said Jeff Kreshek, a senior vice president at Federal Realty, which owns one vacant Red Lobster property in Maryland and two TGI Fridays real estate locations that remain open in Maryland and California. “I look at this as an opportunity. It’s real estate that hasn’t been available to the broader market in 20, 30 years.” https://lnkd.in/e34ZiXds