News Briefs

Dine Brands Global Inc. has selected Cognizant to assist in the creation of its A.I. Innovation Foundry. Dine Brands is one of the world’s largest full-service dining companies and parent company of Applebee’s Neighborhood Grill + Bar®, Fuzzy’s Taco Shop®, and IHOP® restaurants. Dine Brands’ A.I Innovation Foundry will incubate, develop, and test cutting-edge A.I. solutions.

“We are excited to work with Dine Brands to launch their A.I. Innovation Foundry. This collaboration promises to deliver cutting-edge A.I. technologies designed to be transformational for Dine Brands and its restaurant brands,” said Anup Prasad, SVP & Head of Cognizant's Consumer Business Unit.
This collaboration demonstrates Dine Brands’ commitment to explore A.I. technologies aimed at boosting productivity across its brands.

• Related : 35% say general AI is driving POS purchasing decisions, according to HT's 2024 POS Software Trends Survey

“Our A.I. Innovation Foundry is a pivotal milestone for us. It bridges technology and hospitality, empowering our brands with A.I. to meet strategic goals, support franchisees, and enhance the guest experience in restaurant,” said Justin Skelton, Chief Information Officer of Dine Brands.

The recent developments in A.I. signify a shift in technology. As new use cases are continuously identified, tested, and deployed, this innovation is poised to significantly impact businesses by enhancing productivity, improving quality, and saving time.

Mark Shambura has joined Panera Bread as Chief Marketing Officer. Shambura will lead all aspects of marketing at Panera, including Brand Building, Digital & Loyalty, Product Strategy & Consumer Insights. An accomplished marketing leader with broad expertise in the restaurant industry, Mr. Shambura has previously held marketing leadership roles during pivotal growth periods for top brands including Chipotle, MOD Pizza, and most recently Papa Johns.

"Mark brings an impressive background building brands and leading marketing teams for fast-casual restaurants, and we’re thrilled to welcome him to Panera Bread,” said José Alberto Dueñas, Chief Executive Officer. “As Panera continues to evolve our brand, guided by listening to our guests, Mark’s depth of experience and ability will help drive our growth as a brand that serves great food you feel good about eating.”

Shambura previously served as CMO at Papa Johns, where he led a revitalization of the brand by enhancing its iconic “Better Ingredients, Better Pizza” platform, and developing a more modern, innovative omnichannel approach to transform how Papa Johns appealed to both new and loyal consumers. As Executive Director at Chipotle, Mr. Shambura guided the marketing function through periods of both sustained growth and transition, providing leadership over brand strategy, advertising, digital, social, events/sponsorships, promotions, and field marketing, including playing a key role in spearheading its “Real Ingredients” brand strategy.

“I’m proud to join the Panera Bread team and excited to build on the momentum of the brand's transformation as it continues to evolve in service of our guests,” Mr. Shambura said. “Panera propelled and cemented its position at the top of the fast casual restaurant segment through its promise of high-quality ingredients and freshly prepared food, and I’m thrilled to join a highly talented team to help shape its next chapter.”

Prior to his tenure in the restaurant industry, Mr. Shambura gained extensive marketing agency experience, working with a broad array of top global consumer brands for over a decade. Shambura will report directly to José Alberto Dueñas, Chief Executive Officer, and officially assumed the role of Chief Marketing Officer on July 29, 2024.

Chris Kung has joined Zaxby's as its new Chief Digital Officer. He will lead the transformation and acceleration of the company's Loyalty and e-Commerce initiatives.  

"Zaxbys rapid expansion requires the investment of world-class leaders and resources," said Bernard Acoca, Zaxbys CEO. "Chris's expertise in e-Commerce and loyalty programs will help drive incremental growth and enhance the Zaxbys experience as digital touchpoints continue to proliferate throughout the customer journey. His arrival will help us build stronger relationships with our guests by deepening our understanding of their needs and rewarding their patronage with personalized experiences." 

Growing Loyalty

Kung brings over 20 years of innovation and strategy experience to Zaxbys and most recently served as Chief Digital Officer at Dollar General, where he led initiatives that transformed the company into a digital innovator. Kung played a central role in creating the myDG loyalty program. Under his leadership, the company's e-Commerce sales grew 40x in three years, app usage surged from 1.8 million to 7 million monthly active users, and the DG App earned the distinction of the #1 couponing app in America.

Prior to Dollar General, Kung held key leadership positions at Macy's Inc., where he drove omnichannel technology and innovation.

Zaxbys is establishing a new Loyalty & e-Commerce Team, which will report to Kung. This new team will spearhead efforts to make Loyalty and e-Commerce significant contributors to its growth. The creation of the Chief Digital Officer role will open capacity and drive focus for Mike Nettles, Chief Technology Officer, and Patrick Schwing, Chief Marketing and Strategy Officer, who both previously oversaw a portion of this role.  

A major leadership chage is underway at two brands.

Chipotle Mexican Grill Inc.  announced that Brian Niccol, Chairman and Chief Executive Officer, has accepted the role as Chairman and Chief Executive Officer of Starbucks and will be leaving the company effective August 31. Niccol has served as Chipotle's CEO since 2018 and as Chairman of the Board since 2020.

Meanwhile at Starbucks, Laxman Narasimhan is stepping down as CEO and as a director effective immediately. Starbucks chief financial officer, Rachel Ruggeri, will serve as interim CEO  until Niccol offiically joins Starbucks on September 9. Mellody Hobson will be lead independent director. 

• Related: How Starbucks is Adapting to a ‘Challenging Operating Environment’

Chipotle's Board of Directors has appointed Scott Boatwright, Chief Operating Officer, as Interim CEO. Boatwright joined Chipotle in 2017 and has been instrumental in driving restaurant operations for the company's more than 120,000 employees and over 3,500 restaurants. He also led the integration of new technology into restaurants, built a strong culture aligned to the organization's values, and achieved industry-leading retention rates yielding impressive results and improvements in throughput and the overall guest experience. Boatwright played a critical role as part of the leadership team that created and executed the turnaround strategy that has delivered incredible results since it began in 2018. Boatwright and the leadership team will continue to execute the company's strategic plan without interruption.

In addition, Jack Hartung, who recently announced his retirement from Chipotle in 2025, has agreed to remain with the organization indefinitely as President of Strategy, Finance and Supply Chain to ensure a smooth transition. In this new role, Hartung will support Boatwright as Interim CEO, and continue his current oversight of Adam Rymer, Vice President of Finance and incoming CFO, as well as Carlos Londono, global head of Supply Chain.  

With this leadership change, Scott Maw, Chipotle's Lead Independent Director, has been named Chairman of the Board, effective immediately.

Porto's Bakery & Café is collaborating with Tillster to enhance the digital ordering experience for Porto's guests, further streamlining operations and expanding guest engagement.

Founded in 1976 by Rosa Porto, Porto’s Bakery & Café has grown from humble beginnings to become a Southern California iconic destination, renowned for its delectable Cuban pastries and cakes. With six locations across Southern California and a highly anticipated seventh location coming to Downtown Disney in Anaheim in 2025, Porto’s Bakery & Café serves over 2 million guests a month and has earned numerous accolades, including being voted the Best Bakery in the Southland by the Los Angeles Times. Porto’s also ships the most popular pastries and cakes directly to fans nationwide through its growing e-commerce offering, Porto's Bake at Home.

Tillster, with its extensive expertise in digital ordering solutions, is set to revolutionize Porto’s Bakery & Café’s online ordering system, making it easier and more convenient for customers to place orders from any device, anywhere, and at any time. By simplifying the ordering process and improving customer engagement, Tillster aims to further solidify Porto’s Bakery & Café’s position as a leader in the bakery industry.

"We are thrilled to partner with Tillster to enhance our digital ordering capabilities," said Raul Porto, CEO of Porto’s Bakery & Café. "As we continue to grow and expand our reach, it's crucial for us to provide our guests with a seamless and convenient ordering experience. Tillster's innovative technology will enable us to better serve our guests while staying true to our commitment to quality and excellence."

Perse Faily, CEO of Tillster, expressed excitement about the partnership, stating, "For decades, customers of Porto’s Bakery & Café have come back over and over again due to the incredible customer experience. We’re honored to help further that legacy through Tillster’s enhanced digital ordering capabilities, enabling best-in-class service both in the bakery and on guests’ devices. Our deep expertise and experience driving impactful digital transformation in the food and beverage space will mean more streamlined operations, stronger sales and an even better customer experience for Porto’s guests.”

The partnership between Porto’s Bakery & Café and Tillster underscores both companies' commitment to innovation and customer satisfaction. By harnessing the power of technology, Porto’s Bakery & Café aims to elevate the customer experience and continue its legacy of providing delicious pastries and cherished moments for generations to come.

For more information about Porto’s Bakery & Café, please visit www.portosbakery.com. For inquiries about Tillster and its digital ordering solutions, please visit www.tillster.com.

Square released the latest edition of its Quarterly Restaurant Report, which uses data across Square’s food and beverage sellers to examine dining trends, along with shifts in consumer spending and restaurant wages.

Restaurant Service Fees

Service fees, a percentage-based or fixed amount added to a transaction total that is different from a surcharge, are seen by sellers as a way to help offset certain operational or overhead costs across various areas of the business. While they are still relatively uncommon, Square found that they are growing as more restaurants implement the add-on charge. In Q2 2024, about 3.7% of restaurant transactions included a service fee, more than doubling since the beginning of 2022. 

“Cafe Venetia is an espresso bar and our philosophy has been European from the start. Our business uses a service fee to ensure we can keep our European operating model and support our team’s growth. We ensure our service fees are clearly displayed on all our menus to avoid confusion from customers,” said Leigh Biddlecome, Head of Public Relations at Cafe Venetia. 

“Margins are slimmer than ever for restaurants, and sellers have needed to find ways to offset higher costs,” said Ming-Tai Huh, Head of Restaurants at Square. “We know restaurants use service fees for many reasons like managing unpredictable shifts in their operations or overhead, maintenance, and administrative costs, among others. As a restaurant owner, it’s important to be clear and transparent about these fees so customers can understand dining costs and what fees are being allocated for.”
 

Wage Growth 

According to the Square Payroll Index, when analyzing restaurant worker hourly pay (including base wages, tips, and overtime), yearly growth continued to be higher than the rate of inflation. Even though restaurant workers' pay growth has slowed since COVID-19 highs, average hourly earnings were up 4.10% compared to the inflation rate of 2.98% as of July 2024. 

• Related: Tipping Turmoil: The Debate Over Digital Tipping

“The result is good news for restaurant workers, but we are starting to see some warning signs of a softening labor market. The rate of wage growth has declined significantly from its 2022 peak, and unemployment, although historically low, has recently ticked up, alongside layoffs,” said Ara Kharazian, Square Research Lead and principal developer of Square Payroll Index. 

Nightlife is Hopping

Cities across the country are continuing to experience strong nightlife. Square analyzed the share of in-person restaurant and bar transactions between 7 pm and 4 am, and found that while New York and Miami continue to nab the top spots, Boston has seen the most explosive growth. In Q2 2019, just 12% of restaurant and bar transactions in the city happened late night, increasing to 31% in 2024.

A similar trend can be observed in Richmond where 35% of transactions occurred between 7 pm and 4 am in 2024, compared to just 23% pre-COVID. Philadelphia’s nightlife has also rebounded and is now at 31% versus 23% in Q2 2019. 

Following COVID-19, Washington D.C. has experienced many changes due to factors like remote and hybrid work, revitalization efforts, and others. As a result, neighborhoods and suburbs outside of downtown areas have seen increased restaurant traffic. 

In Washington, D.C., data shows significant gains in restaurant activity in neighborhoods which have seen increased housing development, such as Navy Yard and NoMa, as well as parts of Glover Park and Tenleytown. Areas adjacent to the National Mall and tourism sites have remained stable, helping support downtown businesses, while significant declines in activity were observed east of The Potomac River.