Nation's Restaurant News On the Go #100
Nation's Restaurant News
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Is it the holiday season of moderation?
It’s Nation’s Restaurant News senior food & beverage editor Bret Thorn, chiming in after a Thanksgiving break of moderate eating.
I spent the holiday itself with a friend’s family here in New York City, because most of my relatives live far away and flying during the busiest travel weekend of the year is not my idea of fun.
Besides, I have a Black Friday tradition with college friends that’s so old that we don’t even call it Black Friday, because that term wasn’t in use when we started.
Our day-after-Thanksgiving dinearound occurred for the 39th time last Friday. I have missed a few of them — I lived overseas for a while, and I spent Thanksgiving of 2020 alone in my studio apartment — but it is a cherished tradition that is worth staying in New York City for. We start in Chinatown, at Joe’s Shanghai, for pork-and-crab soup dumplings, followed by a drink or two at Whiskey Tavern, and then over to Great New York Noodletown for wonton duck noodle soup. Then we play it by ear, eating and drinking until we’ve had enough.
In the olden days, we would have gone out gorging ourselves until late at night, stopping by eight or more places as the mood struck us — salumi, cheese, and wine at an Italian restaurant, oysters and Cava at a seafood spot, pizza, well, wherever we felt like it, maybe interspersed with stops in bars for beer, whiskey, wine, or cocktails.
We seemed to have endless capacity.
Now, two of us have gout, one of us is on weight-loss drugs, and none of us has anything to prove anymore, our manly pride now tied up in our family, careers, or other things of substance, not how many wings we can polish off.
So on Friday, after New York Noodletown we went to Alex Stupak’s East Village taqueria, Empellón Al Pastor, for one beer each (or just water), and a taco, and then called it a night. I was home by 5 p.m. and took a nap.
But what about Thanksgiving itself? I gorged myself then, right?
No. I had moderate amounts of turkey, stuffing, and mashed potatoes with Brussels sprouts, string beans, and one small slice of pumpkin pie. It was washed down by a fair amount of Beaujolais and a digestive whiskey, sure, but nothing crazy.
Why am I telling you this? Because many of your customers are getting older and I suspect that they, too, are exercising moderation.
Research by KFF, formerly known as the Kaiser Family Foundation, indicates that 6% of American adults are now on the group of weight-loss drugs called GLP-1s — arguably the first such drugs that actually work — and many other older Americans, who tend to have more money than younger ones, are feeling their age and watching what they eat. The youngest Baby Boomers are now 60, and the oldest Millennials celebrated their 40th birthdays a few years ago.
Does a loss of appetite combined with a focus on fitness mean the end for restaurants? Of course not. Banning smoking didn’t close restaurants (well, some, but not many), removing trans-fats from our food system cost some money, but the industry adapted. Most restaurants even survived COVID, the supply-chain nightmare, and inflation. Responding to an aging health-conscious populace should be a snap by comparison.
We’ve already seen the first GLP-1 related menu items, from Smoothie King, that are high in protein and fiber, and there will be more to come. As more consumers’ priorities shift, the time might be right for restaurant operators to encourage its customers to consume less, but better — premium proteins, delicious produce, beverages that sing with flavor (and maybe texture if you’re selling boba), without weighing people down. The new year is approaching, and with it will become a bunch of menu revamps and menu items intended to foster those observing Dry January or trying to follow their resolutions to lose weight.
I’m looking forward to seeing what new menu twists we’ll see over the next couple of months.
Taco Bell is testing a beverage concept called Live Más Café
Taco Bell has launched a new beverage concept called Live Más Café in San Diego in partnership with its longtime franchisee Diversified Restaurant Group. The café includes specialty drinks like Chillers, Agua Refrescas, coffees, and more, alongside traditional Taco Bell menu items.
The company describes it as "a unique experience where fans can enjoy specialty drinks ... This café redefines the Taco Bell experience with an innovative beverage lineup and Bellristas, providing exceptional flavor and hospitality in a cozy, inviting atmosphere, all while maintaining the great value customers love."
Indeed, the chain’s innovation wheel has tilted heavily toward beverages of late. In late 2023, Taco Bell began testing Coffee Chillers and Churro Chillers, for instance. In July, the company launched a Limonada Freeze lineup, while earlier this year, the company began testing Agua Refrescas, a new line of beverages infused with fruit flavors, mixed with real fruit pieces and a green tea base. Taco Bell also began testing cold brew coffee options in 2022, while last year, it began testing Baja Blast Charged Berry, and Mtn Dew Energy Baja Blast. Earlier this year, chief marketing officer Taylor Montgomery said the company wants to "make our beverages just as iconic as our food."
What to expect from 2025: Chipotle gains, chicken surges, full-service retrenches
It’s that time of year again, when we all polish up our crystal balls in an attempt to predict what the New Year might have in store for us. That task may be more daunting than usual, given the curveballs 2024 has thrown at us.
But we just happen to have Technomic’s crystal ball, which is made out of all sorts of data points. Technomic’s annual Top 500 list will officially be released in the spring, but those data points are already starting to crystalize some forecasts based on fourth-quarter metrics. Here’s a look at some 2025 predictions from Technomic Ignite Company.
Chipotle leapfrogs
Chipotle has been well positioned in the industry for several years and, in fact, the fast-casual chain has experienced just one quarter of negative same-store sales comps since 2018 and that was in the throes of the pandemic. While much of the industry experienced eroding traffic numbers and flat-ish sales in 2024, Chipotle touted its value proposition to gain customers who were trading down from casual dining and up from quick-service. Simultaneously, it generated a 15% year-over-year sales increase through Q3. Its momentum isn’t expected to slow anytime soon – despite a chief executive officer change in August – as the company recently announced accelerated unit growth and broader international ambitions.
Because of this consistently strong performance, Chipotle is predicted to jump past both Burger King and Subway into the No. 7 spot overall on Technomic’s Top 500 report when it’s released in the spring. The chain finished 2023 at No. 9.
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Pizza Hut unveils first drive-thru restaurant menu
Pizza Hut announced today the opening of its latest restaurant design — and first-ever drive-thru restaurant menu — in Plano, Texas. The new omnichannel-focused restaurant features self-service kiosks, pickup cabinets, a guest-facing pizza station, and the Yum Brands company’s first-ever drive-thru-specific menu.The drive-thru lane will feature a specially curated “Hut N’ Go” menu of ready-made items that customers can order and pick up right away at the drive-thru window.
"At Pizza Hut we are laser focused on amplifying the experience for everyone who engages with our brand, and we understand that guest experience – particularly one that combines delight with digital convenience – can be a key differentiator," Shannon Garcia, President, global franchise markets and global operations for Pizza Hut, said in a statement. "For example, the digital and tech-driven features of this restaurant design in particular – from order kiosks to self-access pick-up cabinets to the digital drive-thru menu – help guests easily guide their own journey with Pizza Hut and allow our restaurant team members to better serve them."
In addition to these new off-premises-focused features, the new Pizza Hut restaurant is also an eco-friendly design, with energy-efficient lighting and ovens, auto-lift fryers, and in-vent hoods.
Chi-Chi’s is plotting a comeback next year
Tex-Mex casual dining chain Chi-Chi’s was founded in 1975 by Marno McDermott and Max McGee and grew to more than 200 locations during its heyday in the last 20th century. By 2004, however, the chain had closed the doors of its last remaining domestic restaurant.
Apparently, however, not for good.
Twenty years later, the founder’s son, Michael McDermott, has announced an agreement with Hormel Foods to bring the Chi-Chi’s restaurants back next year through a new company called Chi-Chi’s Restaurants LLC. Hormel owns Chi-Chi’s trademarks for its retail products, including tortilla chips and salsa.
McDermott has built his career in the restaurant industry with brands such as Kona Grill and Rojo Mexican Grill. In a statement, he said he was determined to honor his family’s legacy by combining the classic Chi-Chi’s restaurant experience with modern influences.
"I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry," he said. "We have seen the impact our restaurant has had on individuals and families across the country and believe there is a strong opportunity to bring the brand back in a way that resonates with today's consumer – an updated dining experience with the same great taste and Mexican flavor."
The brand’s comeback will not impact its retail business.
Meet Brassica, the Ohio based Mediterranean chain that scored investment from Chipotle
Chipotle Mexican Grill, the Newport Beach, Calif.–based fast-casual chain founded by Steve Ells in 1993, has had a remarkable 31-year arc that has seen it become a top 10 restaurant chain in the U.S. while redefining both fast food and Mexican cuisine this side of the Rio Grande River.
Perhaps it’s fitting, then, that the company wants in on the restaurant industry’s next big thing: Mediterranean fast casual.
In October, Chipotle announced that its $100 million Cultivate Next venture fund — which makes “early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World,” according to the company — had made a minority investment in Brassica Sandwiches & Salads, a Mediterranean fast casual based in Columbus, Ohio, with the intent of helping it scale to new markets.
“Investing in emerging culinary concepts that align with Chipotle's commitment to using real, fresh ingredients and making craveable food daily is consistent with our mission to Cultivate a Better World,” said Nate Lawton, chief business development officer at Chipotle, in announcing the deal. “Funding from Cultivate Next's minority investment will help Brassica scale to open new locations and expand to new markets.”
Jersey Mike’s sale, McDonald’s struggles, Subway’s CEO change: 2 restaurant magazine editors debate
Join NRN editor in chief Sam Oches and Restaurant Business editor in chief Jonathan Maze as they discuss the latest headlines from around the restaurant industry, including Jersey Mike’s sales to the private equity group Blackstone, McDonald’s struggles with E. coli and its news value menu, and Subway’s announcement that its CEO of five years would retire.
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