Nation's Restaurant News On the Go #93
Nation's Restaurant News
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Hi all, managing editor Leigh Anne Zinsmeister here.
With CREATE, the event for emerging restaurateurs, behind us now, my colleagues and I have spent this week catching up on the non-breaking news and trends in the restaurant industry. One thing I didn’t expect to see? SpongeBob SquarePants is everywhere as he celebrates 25 years on the air — and by everywhere, I do mean at more than 100 restaurants, from giant chains like Wendy’s to smaller brands like Harlem Shake and even food hall Serious Eats.
Of course, marketing and menu tie-ins with movie launches and television shows are hardly unusual, but I’m not sure I’ve seen something of this scale since I started covering the industry more than eight years ago. Luckily, my colleague Alicia Kelso satiated my curiosity and dove into the giant push from Nickelodeon and Paramount. (For the record, as a millennial, I am pro-Krabby Patty at every establishment).
In other happenings this week, Starbucks’ relatively new CEO Brian Niccol started making changes at the coffee chain, KFC officially declared the chicken sandwich wars are “old news,” and McDonald’s… is going plant based? Not entirely, but some of their McNuggets are, in France. It’s no Krabby Patty, but I’d be happy to give it a try.
Restaurants go all-in to celebrate SpongeBob
In an environment of depressed traffic, limited-time offerings are skyrocketing, and brands are ramping up their marketing campaigns to garner attention and customers. Several are using SpongeBob SquarePants to do so, and for good reason.
To understand the cultural significance of SpongeBob SquarePants, consider that the show is translated into more than 30 languages in more than 180 markets. An estimated 90 million people watch the Paramount/Nickelodeon cartoon each quarter. It is one of the most widely distributed television shows ever and, after 25 years on the air, it is a rare phenomenon that unites generations. The show’s signature Krabby Patty, served by the fictional restaurant the Krusty Krab, provides plenty of inspiration for menu launches. That’s why SpongeBob, Nickelodeon and Paramount, in partnership with Off The Menu and The MRG Group, launched the Krabby Patty Kollab, featuring several restaurant concepts’ interpretations of the burger.
"SpongeBob SquarePants began his journey as a fry cook, flipping Krabby Patties in the pilot episode of the series 25 years ago, and the coveted patty has since remained an enduring fixture in Bikini Bottom," Nickelodeon and Paramount senior vice president of studio franchise strategy and operations Sherry Liu said in a statement. "Though its formula remains a secret, SpongeBob SquarePants fans will now be able to enjoy imaginative interpretations of the legendary Krabby Patty through this unique collaboration."
Wendy’s is the exclusive national QSR brand in "The Krabby Patty Kollab," bringing the Krabby Patty Kollab Burger and Pineapple Under the Sea Frosty to the menu.
Starbucks is backing off its short-lived discounting strategy
One of the first changes Brian Niccol is making in his new tenure as CEO of Starbucks is to back away from the coffee chain’s short-lived discounting strategy and return to the Seattle-based chain’s positioning as a premium brand, as first reported by the Wall Street Journal.
Former Starbucks CEO Laxman Narasimhan announced the company’s first-ever combo meals in June following disappointing second quarter results in an attempt to attract cash-strapped customers back to the brand. The first promotion was the limited-time pairings menu, which combined a savory breakfast item with a tea or coffee for $5 or $6, and was followed by extra loyalty points on Tuesdays and other deals on Saturdays.
With Narasimhan gone, the plan to expand Starbucks’ discounting has been abandoned and the company has quietly scaled back on its flurry of promotional activity. Starbucks is not planning to run offers during the holiday season and will instead promote new and returning beverages via a robust advertising strategy, the company said in an October meeting with store leaders.
Since making the high-profile move from Chipotle CEO to head of Starbucks, Niccol has quietly returning the company back to pre-Narasimhan strategies and largely erasing many of the recent changes made. For example, the company has seemingly gotten rid of the position of global chief merchant and product officer. The role was created under Narasimhan’s leadership and responsibilities included product development, consumer insights, and data science.
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KFC has introduced new Original Recipe Tenders
KFC is declaring the chicken sandwich wars “old news,” and shifting its attention to the chicken tenders battle with the launch of its Original Recipe Tenders. The double hand-breaded tenders include KFC’s signature 11 herbs and spices.
The Original Recipe Tenders Box is now available for $5 and includes three new tenders, Secret Recipe Fries, and two of KFC’s signature sauces. There are three sauces from which to choose, including a new, zesty Comeback Sauce; Sticky Chicky, which combines sweet and tangy flavors such as pineapple, garlic, vinegar, and chile; and KFC Sauce, a blend of tangy and sweet flavors.
KFC began testing the new tenders a year ago in Cincinnati and surrounding areas. According to Claire Brandenburg, KFC’s product innovation manager, the Original Recipe tenders are different than the chain’s previous tenders because of the breading process. Both are double hand-breaded, but the current tenders go through the Extra Crispy breading system, while the tenders in test are put through the Original Recipe system. Before the company’s new nuggets were launched last year, only the company’s chicken on-the-bone products were breaded through the Original Recipe system.
McDonald’s is selling plant-based McNuggets in France
McDonald’s is launching plant-based McNuggets in France in partnership with Beyond Meat. According to a release from Beyond Meat, the Veggie McPlant McNuggets are made with pea and wheat proteins.
“With Veggie McPlant Nuggets, we are responding to an increasingly strong desire among French consumers to vary their protein intake without compromising on pleasure. This innovation is the result of close collaboration between Beyond Meat and McDonald’s,” McDonald’s France chief marketing officer Jean-Guillaume Bertola said in a statement.
That collaboration was solidified in early 2021 when the companies announced a strategic partnership making Beyond the “preferred supplier” for the patty in the McPlant burger. The McDonald’s/Beyond Meat partnership was initially a three-year deal in which Beyond was also tasked with exploring the “co-development” of other plant-based items, such as chicken, pork and egg, as part of the chain’s McPlant platform.
Shortly after the partnership was formed, McDonald’s began testing a plant-based meat patty in eight markets. In the United States, however, that test ended about a year later after analysts reported that sales of the McPlant were lower than expected.
Reflecting on CREATE, McDonald’s/Krispy Kreme expansion, and SpongeBob SquarePants taking over menus
In this week’s episode of Extra Serving, NRN editor in chief Sam and executive editor Alicia Kelso recap the CREATE and Investment Summit events, which brought emerging restaurateurs together in Nashville to network, exchange ideas, and explore financing opportunities.
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