News Briefs

Restaurant365  released findings from its midyear industry survey. Restaurant leaders representing nearly 3,700 QSR, fast casual, casual dining, and fine dining locations shared 2024's top challenges and opportunities alongside plans for investment in back-of-house technology, increased sales, and team training, benefits, and support.

Participants reported continued food and labor cost increases with slight shifts compared to the end of 2023. So far this year, 80% said labor costs increased, with 64% noting it at 1% to 5%. Those totals are down from the end of 2023.  Meanwhile, 80% of operators said food costs are up, with 51% saying 1% to 5% and 40% putting the increase at 6% to 14%. 

Looking at potential top challenges for the rest of the year, 38% identified sales as the top concern. 24% said recruiting and retaining staff, 18% said labor costs, and 16% said food costs.

While sales were a concern, 49% of restaurant leaders reported increased sales in 2024, and 34% reported a drop.

With restaurant leaders experiencing challenges, many are adjusting priorities to preserve profitability and grow revenue.

"After more than a decade of building technology to help restaurants thrive, we've seen many cycles of the industry and know how resilient restaurant leaders are adjusting to changes in market dynamics," said Restaurant365 CEO and Co-founder Tony Smith. "We're committed to investing in our product to provide the helpful tools they need to become the profitable and successful restaurant of tomorrow."

As the landscape changes, 39% of leaders said they're prioritizing investments in sales, marketing, and related technologies for the rest of 2024. 

• 83% say using data to understand guest preferences and behavior is impacting POS upgrade decisions in 2024, according to HT’s 2024 POS Software Trends Survey

Another 37% are focused on staff enhancements, including additional training, recruitment, salaries, and other benefits.

With a heightened focus on team training, operators are also looking to revamp how they skill up teams. More than 55% of respondents said employees spend one to two hours a week training. The largest percentage, 40%, rely on shoulder-to-shoulder training. Only 18% of survey respondents said they used any form of digital or mobile training. 

At the same time, restaurant leaders continue to explore ways to generate additional revenue while cutting Prime Cost. 37% said they're expanding catering operations. Another 25% said they were investing in special events and one-off promotions, and 24% said they were prioritizing takeout and delivery operations. 

Finally, restaurant leaders are doubling down on sustainability as an investment in their business and the future. More than 68% reported implementing sustainability practices. More than 39% said they focused on food waste tracking, 21% are investing in improved forecasting to optimize ordering, and 16% are enhancing training to prevent employee-level waste. 

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.  

Yum! Brands, Inc. is expanding its use of Voice AI technology across Taco Bell drive-thru locations in the U.S., targeting hundreds of stores by the end of 2024. The Company aspires to implement Voice AI technology in drive-thrus at its brands globally in the future.

The rollout of Voice AI technology in Taco Bell, currently in more than 100 Taco Bell U.S. drive-thrus across 13 states, is designed to enhance back-of-house operations for team members and elevate the order experience for consumers. Benefits include easing task load for team members, improving order accuracy, providing a consistent, friendly experience, and reducing wait times, while driving profitable growth for Taco Bell, Yum! Brands and their franchisees.

“Yum! Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy,” said Lawrence Kim, Chief Innovation Officer, Yum! Brands. “We’re expanding and accelerating our AI capabilities like Voice AI to deliver leading-edge technologies to our franchisees and to enhance the consumer and team member experience. With over two years of fine tuning and testing the drive-thru Voice AI technology, we’re confident in its effectiveness in optimizing operations and enhancing customer satisfaction.”

Yum! Brands and Taco Bell have collaborated closely, including incorporating input from Taco Bell franchisees, so that Voice AI benefits both team members and consumers. This technology takes advantage of Taco Bell’s strong drive-thru customer experience ecosystem, which is powered by digital menu boards, Yum! Brands’ propriety Poseidon POS system and the next generation of the Taco Bell Rewards loyalty program which the brand is excited to integrate later this year. The Voice AI technology uses a holistic approach that leverages feedback, data, and insights to enhance consumer relationships with an emphasis on intuitive, user-friendly technology to create a seamless ordering experience.

“Innovation is ingrained in our DNA at Taco Bell, and we view Voice AI as a means to improve the team member and consumer experiences,” said Dane Mathews, Chief Digital & Technology Officer, Taco Bell. “Tapping into AI gives us the ability to ease team members’ workloads, freeing them to focus on front-of-house hospitality. It also enables us to unlock new and meaningful ways to engage with our customers.”

In addition to the expansion of Voice AI across Taco Bell U.S. drive-thrus, five KFC restaurants in Australia are simultaneously testing Voice AI technology in drive-thrus, which is also being positively received by consumers and restaurant team members.

Yum! Brands has been both acquiring and creating technologies, and in select cases working with leading partners, powered by its global scale that enable and accelerate easy experiences, operations and insights for consumers and team members while driving profitable growth for franchisees. The Company has made massive strides in scaling its proprietary digital and AI-driven ecosystem in partnership with franchisees, equipping them with distinctive capabilities to differentiate its brands.

2023 marked a significant milestone for successfully scaling Yum! Brands' suite of proprietary technologies globally. In 2023, Yum!’s digital sales approached $30 billion with over 50% of its sales coming through digital channels as of the first quarter of 2024. The Company’s digital business has more than doubled since 2019, demonstrating the power of its digital ecosystem and capabilities to meet changing consumer needs around the world.

Papa John’s International Inc. has appointed Todd Penegor as President and Chief Executive Officer, effective immediately. Penegor was most recently President and Chief Executive Officer of The Wendy’s Company.

Penegor succeeds Ravi Thanawala, who has served as Interim CEO since March 2024 and will continue in his role as Chief Financial Officer.

A QSR Veteran

Penegor is a proven leader with 20 years of experience in the restaurant and consumer goods industries. During his tenure as President and Chief Executive Officer of Wendy’s, the company achieved substantial growth in sales, earnings and new restaurant counts, including the expansion of Wendy’s footprint to more than 7,000 restaurants worldwide and the 12^th consecutive year of same-restaurant sales growth, among other achievements. Prior to Wendy’s, Penegor held key leadership roles at Kellogg Company and Ford Motor Company.

“Todd has an outstanding record of leading winning teams and scaling franchised operations globally through trusted partnerships, product innovation and digital transformation,” said Christopher Coleman, Chair of the Papa Johns Board of Directors.  “He has also demonstrated his ability to effectively allocate capital, drive value and enhance profitability. We are excited to welcome Todd to Papa Johns and look forward to his contributions as we work to create significant, sustainable value for our shareholders and franchisees.”

Penegor said Papa Johns has “an exceptional foundation in place, and I’m confident in our ability to win in the QSR space.”

Knowland, a provider of data-as-a-service insights for hotels, convention centers, and conference centers, announced the launch of an enhanced user-friendly navigation infrastructure within its industry-leading platform. This update gives customers a more intuitive and efficient way to access features and functionality. The streamlined horizontal navigation bar, featuring simple icons and clear descriptions, empowers users to quickly access actionable insights and drive sales performance. 

The enhancements to the navigation infrastructure represent a significant step forward in Knowland’s ongoing commitment to provide exceptional user experiences. This update previews the elevated user platform currently in development, which will deliver even greater efficiency and value to Knowland users. By fostering an intuitive user experience, Knowland empowers hotels, convention centers, and CVBs to unlock the full revenue potential of data-driven insights and advance total sales growth.

• Enhanced User Experience and Discoverability – The horizontal navigation bar offers a clear and predictable layout, making it easy for users to quickly find the information they need. By prominently displaying menu items by intelligence category, including accounts and events, competition, and markets, Knowland empowers users to explore different features and functionalities, maximizing the platform’s value and the user’s skill set.
• Increased Efficiency and Productivity – Users can now easily access frequently used functions, leading to faster task completion, simplified sales workflows, and efficient decision-making to drive sales performance. The streamlined navigation tailored to the user’s subscription level contributes to a positive user experience, fostering increased satisfaction and continued adoption of the Knowland platform by enterprise stakeholders, commercial strategists, sales leaders, and sellers.
• Improved Overall Performance Metrics – The most popular menu items are more prominent with clear, easy-to-understand visual icons and descriptions, such as the Weekly Calendar: See at a glance which accounts have been to your competitive set in a weekly calendar view. This leads to higher engagement with the platform’s full suite of features and improved overall platform retention. Faster access to critical account data translates to improved sales success rates and a competitive edge in the group business landscape.

Jeff Bzdawka, CEO of Knowland, said: “As the hotel sales models continue to evolve, hotel sales resources have broader market responsibilities and, as a result, less time to actively prospect. This new navigation is a direct response to these challenges. It is about empowering our users to focus on what matters most: building relationships and driving revenue. By quickly delivering the right information to their fingertips, we free them up for more productive selling time.”

Prismm (formerly Allseated) (www.prismm.com), a provider of spatial design technology, and Perfect Venue (www.perfectvenue.com), an innovative event management solution provider, have announced an integration partnership that enables event planners and venues to experience the best of breed technologies in one seamless integration.  

Events industry technology has evolved tremendously in recent years, providing event managers and planners with innovative tools to perform their jobs more efficiently and with improved results. Still, the volume of tech platforms can be overwhelming. The newly announced partnership offers the key technological capabilities needed by event pros, providing a seamless experience for Prismm and Perfect Venue users and their customers.   

Prismm’s 3D spatial design technology brings venue spaces to life, a perfect addition to Perfect Venue’s event management software that helps restaurants and venues compete with big chains by streamlining the event sales process. The partnership deepens both platforms' offerings to professionals in the events management industry by enabling Perfect Venue users to integrate Prismm’s floor plan design tools easily. By making the sales and planning of events easier, the partnership furthers Prismm’s commitment to transforming how businesses interact with clients and dynamically traverse any environment.  

The integration is effortless - Perfect Venue customers wishing to use these tools can create a Prismm account, pair it with their Perfect Venue account, and start incorporating floor plans into their proposals and event summaries, providing customers with clear visualizations of their events. Prismm clients interested in event management software that enables them to leverage their event floor plans into their event sales process can subscribe to Perfect Venue and connect their Prismm account. It’s that simple. 

Yaron Lipshitz, Chief Executive Officer at Prismm, said: “At Prismm, we take dynamic 3D capabilities to the next level with 3D spatial design and management. This partnership allows us to broaden our clients, ultimately driving towards an event management industry with equity and sustainability at its core.”  

Luke Hutchison, Chief Executive Officer at Perfect Venue, said: “Perfect Venue is excited to announce our partnership with Prismm, the premier provider of floor plan solutions for venues of all sizes. As guests increasingly seek high-quality 3D layouts before booking, our collaboration with Prismm allows us to offer a top-tier floor planning tool. This will enhance our venue offerings and boost sales, save time, and elevate the overall event experience.”  

This partnership with Perfect Venue follows Prismm’s announcement of a new company identity and unified Prismm platform in January.