News Briefs

Fourth announces the release of Fourth iQ, the Artificial Intelligence for Restaurants. Fourth iQ is used by restaurant chains to optimize their entire workforce and inventory operations to maximize profitability, increase productivity and enhance the experience of employees and customers.

Many of Fourth's customers are already benefiting from Fourth iQ, including Pizza Hut, Noodles & Company, and Chili’s. As part of the expanded capabilities offered by Fourth iQ, customers can utilize AI forecasting for scheduling and inventory, plus a Real-Time KPI dashboard to track their key metrics across all locations. A further range of advanced Fourth iQ features will deliver new ways to increase profitability centrally across all locations and boost the productivity of general managers at each location.

"With 25 years in the restaurant game, we are acutely aware of the challenges our customers face—profit margins are tight, as labor and food costs continue to rise; and the responsibility for driving efficiency is dependent on the decisions made by overburdened general managers who are often reliant on incomplete information and legacy technologies. Fourth iQ can overcome these challenges by using AI to generate ‘the next best actions’ informed by multiple data sources and defined goals; providing managers with real-time recommendations of how best to efficiently deploy labor, grow sales, and reduce waste,” said Fourth CEO Clinton Anderson.

Tangible Benefits

In essence, Fourth iQ is a multi-faceted AI and Analytics capability that works across the entirety of restaurant chains’ operations, including recruitment, HR, scheduling, payroll and inventory management. Fourth iQ is embedded into Fourth’s established suite of solutions, including HotSchedules, PeopleMatter, and MacromatiX.

"By creating a layer of intelligence across all locations in a restaurant chain, Fourth iQ produces what we call ‘above store insights that drive in-store action’, to ensure every opportunity to drive profitability and efficiency is identified and actioned, whether by managers or entirely automated,” said CTO Christian Berthelsen.

The tangible benefits of Fourth iQ are already being realized by Fourth’s customers; AI-driven forecasting has enabled Noodles & Company to increase their sales forecasting accuracy by 20%, leading to a $4 million reduction in labor costs. The same increase in forecast accuracy resulted in Chili’s saving 600 labor hours per week nationally.

Bar Louie, a 63 location Gastrobar concept, is another Fourth customer embarking on their AI journey with Fourth iQ. Roberta Frierson, Senior Vice President of Technology, shared their ambition to become AI-driven. “At Bar Louie, we see the promise of AI. Not just for front of house, but for our back of house processes like recruiting, hiring, scheduling, and paying team members. As we incorporate AI into our tech stack, we believe it will make managers more effective and streamline our operations.”

Enabling customers to easily bring AI into their tech stack is core to Fourth’s vision for the industry. “In creating Fourth iQ, we are providing every restaurant chain the simplest and most effective way to get started on their AI journey,” says Christian Berthelsen. He continues, “Our underlying AI platform provides the infrastructure to securely integrate data sources and train AI, then put it to work via our solutions and apps. Our experienced implementation teams do all the heavy lifting, including configuring the AI within Fourth iQ to what makes your business unique. There really is no barrier to getting started today.”

To learn more about Fourth iQ, visit the Fourth website.

Shift4 has acquired a majority stake in Vectron Systems AG, a European suppliers of point-of-sale (POS) systems to the restaurant and hospitality verticals. 

Based in Germany, Vectron has 65,000 POS locations across Europe, representing. Shift4 is expected to acquire additional ownership of Vectron through a public tender offer that is expected to conclude within the next month, with a de-listing and formal integration process to occur shortly thereafter.

The acquisition is expected to provide Shift4 with an expansive customer footprint across Europe as well as a distribution network of ~300 POS resellers. As a result of the acquisition, Shift4 believes it will be able to add its integrated payment services to current Vectron customers and products, while also empowering the sales force with a compelling all-in-one POS and payments solution unrivaled in Europe.

“Shift4 was at the forefront of the convergence between software and payments in the restaurant and hospitality verticals in the US. We see an incredible amount of demand for a similar all-in-one solution across Europe,” states Shift4 CEO Jared Isaacman. “With our integrated payments and SkyTab offering, we believe we have the best solution at the right price point. Vectron will provide valuable local expertise, infrastructure, and the distribution necessary to meet the demand. This acquisition is right out of the Shift4 playbook – enabling us to unlock synergies, expand our distribution, and monetize payments for a large existing install base.”

Completes Revel Systems Acquistion

In addition to the acquisition of Vectron, Shift4 has also completed its previously announced acquisition of Revel Systems. Revel has over 18,000 merchant locations across the United States and internationally which Shift4 estimates represents a $17B+ payment opportunity. Revel also has a direct sales and dealer distribution network which Shift4 believes can be leveraged to accelerate SkyTab distribution both domestically and abroad. 

Shift4 has signed a definitive arrangement agreement to acquire Givex Corp., a global provider of gift cards, loyalty programs and point-of-sale solutions. 

The Arrangement Agreement is subject to customary closing conditions and the transaction is expected to be completed in the fourth quarter of this year. 

With across more than 100 countries, Givex serves a wide range of businesses in various industries, including 7-Eleven, Wendy’s, Best Western, Texas Roadhouse. 

The company offers robust gift card and e-gift solutions as well as customizable loyalty programs, and a point-of-sale (POS) system for various business types, among other value-added services.

 “Givex has a considerable footprint around the world which will dramatically increase Shift4’s overall customer base,” states Shift4 President Taylor Lauber. “At the same time, their gift card and loyalty solutions are second to none and will add significant value for our current customers, creating stickier relationships andh 130,000+ active locations enhancing our overall value proposition. Similar to other deals we have recently completed, this acquisition aligns perfectly with how we like to deploy capital – adding blue-chip merchants at a low customer acquisition cost while delivering additional benefits to our customer base.” 

“The Givex team looks forward to joining the Shift4 family and bring our enterprise gift card capabilities and loyalty programs to hundreds of thousands of new customers,” says Don Gray, CEO of Givex. “By combining Shift4’s end-to-end payment solution with our value-added engagement services, we can deliver an unparalleled package to both of our customer bases.”  

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.

BurgerFi International, Inc., owner of the casual dining chain Anthony's Coal Fired Pizza & Wings and BurgerFi, has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.. 

All 144 locations of the company's two brands throughout the United States, including in Puerto Rico, and in Saudi Arabia, will continue normal, uninterrupted operations. The Chapter 11 filing by the Company includes only the 67 corporate-owned locations of both brands. Franchisee-owned locations of BurgerFi and Anthony's Coal Fired Pizza & Wings are excluded from the bankruptcy proceedings.

"...In the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process," said Jeremy Rosenthal, Chief Restructuring Officer of BurgerFi International, Inc. "We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital."

The board brought in Carl Bachmann as chief executive officer and Christopher E. Jones, chief financial officer in July 2023 to turnaround and strengthen the brands and operations. Faced with legacy operational challenges, they quickly developed and implemented a strategic plan to address foundational issues including declining same store sales, high employee turnover and a stale menu. As part of the turnaround efforts, the company initiated a top-to-bottom evaluation of its operations, which is continuing.

As a result, the company has aligned its footprint with current business standards through the closure of 19 underperforming corporate-owned stores and reduced related operating costs.  
 

Red Lobster Chapter 11 Update

In related news, Red Lobster Management LLC,  announced Sept. 5 that the company has received court approval of its Chapter 11 plan. RL Investor Holdings LLC will acquire the Red Lobster restaurant chain. As HT previously reported, the former CEO of P.F. Changs is poised to lead Red Lobster. The acquisition is anticipated to close before the end of September.  

TouchBistro has launched its Inventory Management and Labor Management solutions for restaurant operators, following its acquisition of restaurant management software, Peachworks. 

The new offerings bolster TouchBistro’s comprehensive suite of back-of-house (BOH) solutions and help restaurateurs improve profitability, streamline operations and deliver a great guest experience.

“TouchBistro’s acquisition of Peachworks allows us to better serve operators through one comprehensive tech stack,” said Samir Zabaneh, Chairman and CEO of TouchBistro. “We deeply understand the pain points of operators in today’s restaurant industry, and our new Labor Management and Inventory Management products are a major step forward in making data-backed decisions that help them keep costs down and run a sustainable business.”

Both products include a seamless TouchBistro POS integration that allows the latest data to flow into one centralized system in near real time so operators can make data-backed decisions faster. With the continuous input of data, this also ensures operators have the insights needed to forecast accurately to save on both labor costs and food waste.

Inventory Management
TouchBistro Inventory Management is a powerful inventory and recipe management platform that integrates seamlessly with the TouchBistro POS to help operators save time, reduce food costs and manage their inventory with ease.

From TouchBistro’s 2024 State of Restaurants report, over half (58%) of operators noted that inventory costs were their biggest source of financial strain. Moreover, 60% of operators reported that all or most of their suppliers have raised prices in the past year, with the average expenditure on food increasing by a whopping 41% in the past year alone.

Many operators are operating on razor thin margins. With TouchBistro’s new inventory management software, operators can gain better insight into their costs and more easily find areas to optimize. The solution arms operators with the ability to:

• Automate the inventory process and say goodbye to time-consuming spreadsheets with a digital database of all their items and up-to-date counts of their consumables.
• Put profitability first with recipe costing tools that allow operators to optimize new and existing recipes for maximum profitability and ingredient usage.
• Ensure there’s always sufficient inventory on hand and prepped for service with data-driven food prep forecasting that takes actual and ideal usage into account.

Labor Management
TouchBistro Labor Management is a robust restaurant staff management and scheduling software that integrates directly with the TouchBistro POS to help operators simplify scheduling, streamline team communications and keep labor costs under control.

Through TouchBistro’s new, fully integrated labor management solution, operators can:

• Manage availability, schedule changes, time off requests and blocked dates from one centralized system, even across multiple locations.
• Eliminate confusion, miscommunication and missed shifts by sending important updates in real time via in-app messages, emails and SMS notifications.
• Reduce costs by more accurately predicting and forecasting labor needs based on labor percentage, hours, costs or number of employees, using net sales or guest count as the driver.