Aaron Allen’s Post

Recently CNBC published an article entitled "Every restaurant chain wants to beat Chick-fil-A, but it's stronger than ever.” Considering some of the impressive stats shared about Chick-fil-A, it’s no wonder that competitors have set their sights on the chain. For example, the average non-mall Chick-fil-A location does $8.7M in sales annually which is nearly 2.5 times the annual sales of an average McDonald’s location that has been open for at least a year. Another example, Chick-fil-A’s market share in the chicken fast food category is almost four times the market share of the next largest chain, and is more than the market shares of the next five competitors combined (i.e., Popeyes, KFC, Raising Cane’s, Wingstop, Zaxby). These are amazing business results to say the least. This article makes a lot of great points about Chick-fil-A’s success, but it positions a chicken-centric menu as the secret ingredient of Chick-fil-A’s success, and I think that misses the point. If it was just about the chicken or the size of its footprint, shouldn’t KFC be the chain that everyone is chasing? The secret sauce that fuels Chick-fil-A is Customer Obsession. They have built their reputation on the superior experience they deliver, and that’s what has converted their customers into rabid fans vs. casual consumers. If other chains want to catch up that’s the page they need to take out of the Chick-fil-A playbook. #customerobsession #customerobsessed #customerexperience #cx #chickfila #cnbc

Amid changes in the restaurant industry, there seems to be a decline in “value” menu items, which were once a big draw to many chains and franchises, but not at Happy Joe's 🍕. A reduction in portion size may, or may not, be what's necessary for some brands to keep pace with inflation. But without offering something of real value many restaurants may lose steam when it comes to customer interest and eventually have to close. Restaurants like Happy Joe's 🍕 need to get creative with new menu products that guests still see as a value and not a discount OR a reduction in size to drive guests in. #Restaurant #Leadership #RestaurantBusiness

Over the last few weeks, restaurants have made HEADLINES. From McDonald's adding a $5 meal to Red Lobster filing for bankruptcy. Here's a clip from my interview with Carl Izzi, where we discuss the challenges the Restaurant industry is facing and how to approach marketing in 2024 and beyond. Link to the full video is in the comments. #restaurantmarketing

SSWK - Steve Dominates Down-Market #strategy #simplystrategic #downmarket #advancedskills Trained at a top-notch culinary school, Steve Ells found work as a sous chef in a fine dining restaurant in California. When not working, he loved to explore the street taco scene that featured authentic Mexican food at reasonable prices. Steve knew nothing like it existed in his home state of Colorado, so he moved home and opened a restaurant inspired by what he’d seen.    Steve’s thinking was that he’d use the small Mexican place as a stepping stone to his ultimate goal—opening a fine dining restaurant in Denver. Instead, Steve pioneered a simple ordering experience, partnering it with flavor packed fast food. Customers couldn’t get enough. Steve would spend the next 25 years expanding his iconic restaurant chain Chipotle, which now boasts over 3,000 locations around the world. As Steve said in an interview a few years ago, “I’m not a good planner. I didn’t have this grand vision for doing all these things in a very linear progression.” As a Strategy Guide, I work with leaders just like Steve. They don’t start with a grand vision, and many have never developed a detailed plan or even formally decided on their strategy. Instead, these business leaders work hard and focus on customers. And sometimes these entrepreneurs pair that hard work and customer focus to a set of skills that are uniquely valuable in their market. Steve built a fast-food restaurant chain that cared deeply about serving great tasting food. He applied his “up-market” skills to a “down-market” opportunity, creating a Preferred Winning Position by overdelivering on the value customers received.    As a small or mid-sized business leader, consider if you can bring advanced skills to bear in your market, or take your existing advanced skills down market, to distance your business from the competition. Applying advanced skills as part of your strategy can lead to outsized success.  

🚨FOOD INDUSTRY NEWS🚨 Chipotle Mexican Grill to splurge on bigger portions to keep diners happy. The burrito chain will take a hit by ensuring workers serve “correct and generous portions,” Chief Financial Officer Jack Hartung told analysts during the company’s earnings conference call. Chipotle found that about 10% to 15% of its restaurants were getting a disproportionate number of comments about portion sizes, he said in a separate interview. The company is “doubling down” on training at those stores to ensure workers serve the right amount of food, including the required two generous scoops of rice and four ounces of meat. Meeting those standards will cost the company an extra $50 million. Despite the criticisms about the portion sizes, Chipotle is one of only a handful of large restaurant chains that has consistently grown traffic in recent quarters. #mexico #earnings #fastfood #foodindustry #newsletter

Latest Farm to Fork: The Innovators Podcast episode is now live with one of the really good guys in the industry Michael Halen from Bloomberg Intelligence. Mike provides health assessments on a lot of the players in the foodservice supply chain including the consumer, franchisors, franchisees and foodservice distribution. Listen on your favorite podcast players or on the links in the post below. Datum FS

Interesting news today that Yum! Brands, owner of KFC, Pizza Hut, and Taco Bell, saw a decline in sales for the first time since the pandemic. This could signal a shift in consumer spending habits, with people dining out less often. What do you think is driving this? Is it inflation causing sticker shock, or are preferences changing? Recently, Red Lobster, another seafood restaurant chain, has also been facing financial difficulties. While they haven't declared bankruptcy yet, this highlights the challenges facing the restaurant industry. Maybe the decline in sales faced by Restaurants in the US points to a need for menu innovation, an overhaul of the management structure or promotions to keep up with the competition. I will be glad to receive thoughts on this. #fastfood #restaurants #consumertrends #inflation #yumbrands #kfc #pizzahut #tacobell #redlobster

Food cost is going up faster than most Chefs can keep up with. It is scary and it is crippling restaurants everywhere. So they rely on a few strategies that they are comfortable with in order to keep up. Typically that means they raise prices, or cut portions. However these are the three things that I see them missing almost every time. 1- Storage organization 2- Ordering to either fill the shelves or cut the orders to try to spend less 3- Rushing to place orders at the last minute So here are three things I recommend to every Chef who is battling food cost so they don’t have to rely on raising prices. 1- Label all of your storage 2- Actually order what you need and need what you have 3- Schedule time to order in a calm manner Do these three things moving forward and you will start to see opportunities you didn't know were there. 👋 I’m Simon Zatyrka 🥄⚙️🔪 ➡️ I am on a mission to improve restaurant culture, systems and profit. #chefs #restaurants #mentors #leadership #hustlewithcare P.S. Please Repost if you Find This Useful♻️

While consumers balk at rising prices across the restaurant industry, Chipotle Mexican Grill burritos and bowls continue to sell, The Wall Street Journal reports. The chain has upped its prices six times since 2021 — and is set to do so again in California — yet sales grew 8.4% last quarter. Chipotle has benefitted from a higher-income customer base and a perception that its customizable menu items are more diet-friendly than burgers, according to The Journal. It has plans to open about 300 new restaurants in 2024. -------------------------------- FOR Hire: Vince L.   10+ years in the radio business seeking a new radio home.   Board Operations/ Promotions/Production   E-mail through my Linkedin or firemaster4448@gmail.com Thanks! ----------------------------------------------------

Lots of buzz today about Papa Johns CEO Rob Lynch getting ready to make the jump to Shake Shack to replace Randy Garutti upon his retirement - mostly, people seem to be surprised by the move. And I can see why, because at a glance, what do QSR pizza and fast-casual burgers really have in common? But Joanna Fantozzi is here with this excellent analysis on why this transition actually makes a lot of sense. Check it out on Nation's Restaurant News.