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Thank You to the Friday Night Party at the Post Office Guests!
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You’ll never forget where you were for the Great Chicago Dust Storm!
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So many new operators and sponsors joined
DMA’s members on the rooftop this year. We are grateful to everyone who enjoyed
the beautiful beginning to the evening – and braved the first ever dust storm
near the end of the event.
What a great
way to kick off another National Restaurant Show week! Thanks to the more than
100 operator brands (including our new friends from the Healthcare and C&U
segments) represented at the event...and, of course, DMA's Member distributors
who support those Superior Operator Partners every day.
Make sure to
follow DMA on LinkedIn if you’d like access to the full
event photo gallery, coming soon! We hope to see you on the rooftop next year!
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5 Major Trends on Display at NRA 2025
CHICAGO – The Windy City served as the nexus of the foodservice industry May 17-20, as stakeholders gathered for the 2025 National Restaurant Association Show (NRA).
Held at McCormick Place, the four-day event featured the latest and greatest in foodservice innovation, ranging from international flavors to brand mashups to data solutions. Here’s some highlights:
International Flavors and Comfort Foods CombineMany products on display in Chicago combined comfort foods with international flavors, resulting in memorable flavor profiles.
The Nestlé Professional Solutions booth had a variety of interesting and unique products on display, but their play on chicken and waffles was the perfect example of the trend. The chicken was tossed in a honey-harissa sauce before being placed on a mini waffle with sausage gravy.
Meanwhile, The Campbell Soup Co. presented four unique soup flavors that were exclusive to foodservice channels at an NRA press event. The soup varieties included chicken and dumplings, Mexican street corn, Caribbean-style jerk chicken, and harissa white bean.
Pizza Solutions Become Simpler for Operators Chef Tom Moran, senior corporate chef for Nestlé Professional Solutions, shared three pizzas from the company’s portfolio with The Food Institute team. He highlighted the ease of cooking the products and their versatility.
Palermo’s, a major player in the frozen pizza space, highlighted its new frozen pizza crust called Pinsa. The dough is made with rice and soy flour, which results in a unique cell structure base.
The company shared both pizzas and sandwiches made with the Pinsa bread, with COO and CRO Peter Cokinos sharing that an automated facility was expected to launch later this year to support production of the product.
Beverages Steal the NRA SpotlightFunctional beverages were on full display at the conference, with Evolution Fresh sharing samples of its Evolution Fresh Functional Sodas. The high-fiber products were designed for soda drinkers who were looking for a better-for-you option.
Additionally, Olipop was on the show floor providing samples of its functional soda products. The company specifically highlighted its Ridge Rush, a new variety which fused lemon, lime, and orange juice flavors.
CBD- and THC-infused beverages were also available in the Beverage Pavillion. Señorita, a non-alcoholic THC-infused margarita brand, was one such example.
Brands Partner for CollaborationsMike’s Hot Honey is a brand that’s leveraging its success to establish strong partnerships with other companies in the food space. The company highlighted a variety of its co-branded products at the show.
Mike’s Hot Honey founder Mike Kurtz specifically pointed to a recently-released and limited-time collaboration with Utz – Cheese Pizza Cheese Balls – which featured the company’s hot honey. He also highlighted a recent partnership with KFC.
C4 Energy, a maker of protein powders and energy drinks, also showcased brand collaborations. On the energy drink front, it showcased products incorporating the flavors of Jolly Ranchers and Hawaiian Punch. For its protein powders, the brand exhibited collaborations with Hershey’s and Reese’s.
Data, Analytics, and AI: Oh MyPlacer.ai’s R.J. Hottovy noted that many of the people he spoke with at his company’s booth were looking for solutions providing operational efficiency.
Meanwhile, MenuData launched a new product at the show: MenuData AI. The menu insights company highlighted how the language learning model could allow users to ask questions and receive actionable insights curated from menu, social, and retail trends from across the food industry. Food Institute Focus
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The Future of Fast Food: How Top QSRs Are Using AI Tech to Get Ahead
Technology like AI is reshaping everything – including how we dine. Intouch Insight recently released its 2025 Emerging Experiences study, which took a look at how top quick-service restaurants are leveraging new technology to enhance the customer experience and outpace competitors.
“QSRs aren’t just adopting technology – they’re using it to redefine guest experiences,” Sarah Beckett, VP of Sales and Marketing at Intouch Insight, said in a press release.
“Our study shows that success hinges on more than just speed and convenience. The brands that stand out are blending efficiency with genuine human connection at every touchpoint.”
The study looked at tech used by Wendy’s, Panera, Chipotle, Bojangles, Dutch Bros, McDonald’s, Wing Stop, Taco Bell, and Shake Shack. The primary technologies these trend-setting QSR’s utilized were AI, mobile ordering, and kiosks.
While QSRs are revolutionizing the dining experience by integrating AI, mobile ordering and kiosks, their success ultimately depends on balancing efficiency with human connection. Intouch Insight’s 2025 study highlighted how industry leaders are using innovative tech to create efficiencies.
Let’s take a look at the benefits and drawbacks related to modern technology that the study uncovered.
Voice AI Voice AI drive-thru ordering systems outperformed traditional drive-thru methods by being quicker but also receiving a higher “friendliness” ranking. However, it’s worth noting that 22% of AI orders still required employee intervention last year.
Mobile Ordering Mobile ordering is more efficient overall, with customers spending an average of 3.5 minutes less in the restaurant and almost 2 minutes less in the drive-thru. The technology also offers relatively effortless personalization of orders. The main drawback to mobile ordering is that there’s less opportunity for upselling by the restaurant, which may leave money on the table.
Restaurant Kiosks Ordering at a kiosk is easy for customers but some found it to be less friendly and too impersonal. Friendliness ratings dropped from 78% with traditional counter service to 66% when the order was placed at a kiosk, which is lower than any other ordering method examined in the study.
These findings demonstrate that customers largely appreciate the technology, yet there’s still a human element that consumers demand to make their experience as pleasant as possible. Although it may streamline the process, human interaction remains important, which restaurants must not lose sight of.
Ultimately, Intouch Insight’s study revealed that the key to remaining on top as a QSR entails striking a balance between cutting-edge technology and good old-fashioned hospitality. Food Institute Focus
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Despite a Rough Q1, Investors Believe Fast Food Will Rebound
After a recent rally, the U.S. stock market has recovered most of the losses driven by tariff fears. The Standard & Poor’s 500 index is down about 3% year-to-date. But, with one exception, fast food stocks have performed quite well. Yum! Brands (owner of Taco Bell, KFC, and Pizza Hut) has gained 12% year-to-date; McDonald’s over 8%, and Restaurant Brands International (Burger King, Tim Hortons, and Popeyes) +3%.
What might seem strange about the gains in fast food stocks is that the performance of the underlying businesses in the first quarter was ugly (here, too, with one exception).
Clearly, investors are looking forward, perhaps in part because the unified story the major QSR chains are telling provides some certainty in very uncertain times.
Looking backwards, that unified story centers on weak traffic. In Q1, McDonald’s global same-restaurant sales fell 1%, though were roughly flat excluding the impact of Leap Day in the year-prior quarter. U.S. performance was much weaker, however: comparable sales were down 3.6%, “primarily” due to lower traffic.
For Yum!, KFC comps were negative 1%, and Pizza Hut minus 5%. The one bright spot for Yum!, and the industry, was Taco Bell at a stunning plus 8%. Wendy’s couldn’t buck the trend, with U.S. same-restaurant sales down 2.8%.
Investors took these numbers in stride for a couple of reasons, the biggest of which was that nothing here was much of a surprise. The market knows that the consumer is generally stretched, though notably both McDonald’s and Wendy’s said that consumer sentiment weakened as the quarter went on.
It also seems clear that fast-food chains took a bit too much in the way of pricing as inflation soared in 2022 and into 2023. McDonald’s CEO Chris Kempczinski said last summer that his company had lost its “value leadership gap” the industry as a whole has turned back to promotional and value offerings to reinstate that gap against fast casual, in particular. It will take time for those offerings to fully permeate consumer consciousness.
Kempczinski emphasized that he expected traffic and same-restaurant sales to improve as the year rolls on. (The CEO also said that the chain had “fully recovered” from the impact of last year’s e.coli outbreak.) Peers offered similar commentary.
Looking forward, the market clearly believes Kempczinski is right: McDonald’s stock is not terribly far from all-time highs, after a decade of being one of the most consistent winners in the entire market. (Including dividends, shareholders have more than quadrupled their money over the past decade.) Yum! too has caught a bid, while Restaurant Brands (which reports this week) and Wendy’s – excluding the worst of March 2020 trading, now at an eight-year low – lag more for company-specific reasons than for broader sector concerns.
There’s a clear cause for optimism, at least for shareholders. Management teams across the sector think AI and tech more broadly can be transformative for their businesses.
McDonald’s partnered with Google Cloud in late 2023 to set up edge computing at the company’s restaurants. Its restaurant equipment is now equipped with sensors that can predict failures, and its “Ready on Arrival” application allows crew members to prepare mobile orders before customers arrive.
Wendy’s has its own program, FreshAI, which is now in 168 locations on the way to a year-end target of 500 (about 8% of the total). That platform will automate drive-thrus, ideally lowering labor expense while improving the customer experience.
Taco Bell has partnered with chipmaker Nvidia for its own tech innovation. Chief financial officer Christopher Turner said on the Q1 call, echoing Wendy’s, that the partnership would aim to develop voice-automated drive-thru technology; computer vision (something McDonald’s has floated as well) can eliminate errors in the back of the house, while “advanced restaurant intelligence” can provide better data and planning for general managers.
One analyst on the call even floated the idea of Yum! eventually selling its operating system, likening the effort to Amazon Web Services, an internally-designed platform that now supports a good chunk of that company’s $2 trillion valuation.
In short, the market is looking forward, not backwards. It’s looking to traffic improvements in the coming quarters, and a tech-driven future in which consumers get more accurate orders and better food and franchisees have lower labor expense. In a time of immense uncertainty, investors are still willing to bet on fast food. Food Institute Focus
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Store News:
Applebee’s
has brought back its All You Can Eat promotion for Riblets, Double Crunch
Shrimp, and Chicken Tenders. The LTO is offered to dine-in guests for $15.99.
Full Story
Krispy
Kreme is being sued over its delayed McDonald’s partnership. The chain has been
accused of making misleading statements about the sale of its doughnuts inside
McDonald’s restaurants after the delay caused shares to plunge, reported Restaurant
Business. Full Story
Smoothie
King unveiled its latest category today: hydration smoothies made with coconut
water for a natural electrolyte boost. The beverages are available in Pineapple
Mango, Hydration Berry, and Hydration Watermelon flavors. Full Story
Starbucks launched a series of beverages for the summer season. The LTO
drinks include a new Iced Horchata Oatmilk Shaken Espresso and Summer-Berry
Refreshers, a fan favorite from last year, reported QSR. Full Story
In-N-Out
Burger has been replacing artificial ingredients with more natural alternatives
in the wake of the FDA’s decision to phase out petroleum-based synthetic dyes.
The chain will replace the Yellow 5 dye in its pickles, chilies, and burger
spreads with turmeric and color its strawberry shakes and pink lemonade with
beta carotene and vegetable juice in lieu of Red 40 among other changes,
reported Restaurant Business. Full Story
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Store
News (continued):
Whataburger
announced a new joint venture with longtime franchise partner KMO Burger. As
part of the partnership, Whataburger will contribute its 16 company-owned units
in the Kansas City and Springfield, Mo. markets, while KMO Burger will
contribute its 13 existing locations and will own and operate all 29 units
under the Whataburger brand. Full Story
Texas
Roadhouse has partnered with West Madison Foods to launch Texas Roadhouse Dairy
Dips. The line includes three ready-to-eat dips inspired by the casual-dining
chain's appetizers, including Cactus Blossoms, Rattlesnake Bites, and Fried
Pickles. Full Story
Carl’s
Jr. launched a $5.99 Build-Your-Own-Bag special that’s available through July 8
from 8:00 p.m. to close. The late-night LTO includes a 4-piece order of Chicken
Stars, a Single Cali Classic Burger or Spicy Chicken Sandwich, and a small
Natural Cut Fry or Onion Rings. Full Story
Shake
Shack is opening its second U.S. support center alongside a new flagship
restaurant in Atlanta later this year. The chain has also opened a kitchen
innovation lab nearby allowing its operations and development teams to test new
layouts and equipment before it is rolled out to new restaurants, reported Restaurant
Dive. Full Story
Subway is
continuing to invest in its global expansion following its second straight year
of net restaurant growth. Over the past three years, the chain has signed
commitments to open 10,000+ units in new markets including Paraguay and
Mongolia, reported QSR. Full Story
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Store
News (continued): The Red
Chickz, a fast-casual concept known for its West Coast spin on Nashville hot
chicken, announced it signed a new 3-unit franchise agreement in Bakersfield,
Calif. "Our brand was born in Los Angeles ... so we’re always excited when
we get to increase our presence in the place where it all began," said
Spencer Sabatasso, VP of development. Full Story
Jollibee
is opening its sixth location in N.J. on May 14. The chicken chain plans to
accelerate its growth in North America, with the goal of becoming a $1 billion
business in the region by 2028. Full Story
Wendy’s is
testing four-packs of fresh burger patties in Kroger and King Soopers stores in
two markets: Denver and Columbus, Ohio, reported USA Today. Full Story
Pappas
Restaurants plans to acquire On the Border Mexican Grill & Cantina, which
filed for Ch. 11 bankruptcy in March. If approved, the purchase will expand
Pappas’ portfolio, which includes Pappas Bar-B-Q, Pappasito’s Cantina, Pappas
Bros. Steakhouse, and Pappadeaux Seafood Kitchen, reported NRN. Full Story
Church’s
Texas Chicken just launched a new Real Deals menu allowing guests to mix and
match two fan-favorite items for $4. Alongside the launch, the chicken chain is
debuting all-new Boneless Wings, reported QSR. Full Story
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Executives on the Move: Taco
John's is enhancing its leadership team with an internal promotion and new
hires. The Mexican QSR chain appointed Tom Perella as VP/Technology and Damian
Hanft as VP/Human Resources. Taco John’s also promoted Kristin Nuss to General
Counsel and Corporate Secretary. Full Story
JAB
Holding, the parent company of Panera, tapped former RBI CEO Jose Cil to work
as chairman of its restaurant concepts. In the U.S., Cil will oversee Panera
Brands, including Panera, Caribou Coffee, and Einstein Bros. Bagels. In
addition, Cil will also oversee Pret a Manger in the U.K. and Espresso House in
Scandinavia, reported QSR. Full Story
Brinker
International, Inc. announced the promotion of longtime Brinker
leader Aaron White to EVP, COO, and Chief People Officer for its restaurant
brands, Chili's Grill & Bar and Maggiano's Little Italy. White began her
Brinker career 29 years ago as a Chili's server and bartender. Full Story
Twin
Hospitality, the parent company of Twin Peaks, hired Kim Boerema as CEO,
effective immediately.
Boerema, who has held leadership positions at Parry’s Pizzeria & Taphouse,
California Pizza Kitchen, and Texas Roadhouse, will take over for Ken Kuick,
who has served as interim CEO since Joe Hummel’s April resignation, reported Restaurant
Dive. Full Story
Dairy
Queen CEO Troy Bader said that, while consumers are dining out less, its U.S.
franchisees can withstand the economic pressures as many products and ingredients are
either made or sourced in the U.S. Bader also noted that the QSR chain’s sales
softened in April, reported MSN. Full Story
Sweetgreen
named Jason Cochran, a former Pizza Hut franchisee and former Chipotle
executive, as its COO,
the company announced Tuesday. Cochran will succeed Rossann Williams, who
announced her exit earlier this month, reported Restaurant Business. Full Story
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CEOs Tighten Belts Amid Tariff Uncertainty
Instead of spurring investment and ordering new U.S. factories built, CEOs wary of President Donald Trump’s tariffs and cuts to government spending apparently have started pulling back, cutting costs wherever possible.
The on-again, off-again tariffs have caused turmoil in boardrooms and on the stock market, raising the specter of recession, inflation and empty store shelves. At first, the president shrugged off the warnings, but in recent days, after input from mega-donors and CEOs, he has indicated he might alter course.
Nonetheless, Starbucks CEO Brian Niccol, after laying off more than 1,000 employees, is trying to streamline operations, cutting back on “overly complex” menu offerings. Boeing CEO Kelly Ortberg has told executives to save money by flying commercial instead of going by private jet. Providence Health & Service CEO Erik Wexler said hiring restrictions have been imposed and sports sponsorships cut as the company also sues insurers for slow-walking reimbursements.
And there are more. From railroads to consumer goods manufacturers, companies are taking steps to improve their financial positions, just in case.
“We came out of the election, there was a surge in business confidence. Our discussions and the tenor of our discussions with our clients was improving, and so we were quite optimistic,” The Wall Street Journal reported Robert Half CEO M. Keith Waddell told investors. “And that changed.”
Other companies taking action: - Dow is delaying construction of a new chemical plant
- Boston Scientific is cutting discretionary spending
- Norfolk Southern is examining consultant fees
- Procter & Gamble is looking for ways to soften the impact of tariffs
Norfolk Southern CEO Mark George told investors and analysts the key is to “control the controllables,” the Journal said.
Trump imposed 145% tariffs on some Chinese goods in early April, triggering an estimated 60% drop in cargo shipments, Bloomberg reported. Walmart and Target are among the retailers who warned Trump of the likelihood of higher prices and empty shelves, leading Trump to admit Chinese tariffs likely would come down substantially. Automotive industry groups warned the tariffs could cripple U.S. vehicle production, leading to plans to exempt car parts.
Apollo Management’s Torsten Slok has predicted the tariffs’ impact will be felt not only at the retail level, but throughout the economy. The global freight industry moved to reduce capacity in the face of expected lower demand. The result could mean bottlenecks at ports if the situation changes.
Retailers are in limbo as they try to prepare for the back-to-school and holiday seasons.
Xeneta reported air cargo shipments to the U.S. are down 50% from December, and were back to pre-pandemic levels as of March 9 but then surged 20% two weeks later as Trump softened his rhetoric.
James Caulfield, PepsiCo’s chief financial officer, said in an earnings call the soft-drink maker is actively taking steps to mitigate the effects of the tariffs.
“Some of those we’ll be able to execute more quickly. Some of those will take more time to execute,” Caulfield said.
{PepsiCo CEO Ramon Laguarta added in an earnings release: “As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs.
“At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook.” Food Institute Focus
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March Sales Up 0.9% Despite Traffic Decline
Comparable
sales for the restaurant industry increased 0.9% year-over-year despite comparable traffic
dropping 2.2% during the month, according to Black Box Intelligence.
The results were improved from the prior month, but February was not the strongest month on record, according to Black Box.
Same-store sales growth was 0.3% during the first quarter of 2025, while Q4 of 2024 posted sales growth of 0.9%. For same-store traffic growth, the -3.0% experienced in Q1 represented a sharp drop from the -1.7% reported for Q4 2024. Full
Story
Selected Results: Cava beat
Wall Street estimates for fiscal Q1 revenue as its same-store sales climbed
10.8%. CFO Tricia
Tolivar noted that the Mediterranean chain saw 7.5% traffic growth in the three
months ending April 20 as customers purchased higher-priced items like pita
chips, reported CNBC. Full Story
Burger
King saw a decline in U.S. same-store sales in Q1, but it isn’t hanging its
head just yet.
Though comps dropped 1.1%, the chain reported that it’s still outperforming the
broader QSR burger category, fueled by its ongoing Reclaim the Flame turnaround
plan, reported QSR. Full Story
Texas
Roadhouse reported a 3.5% increase in Q1 same-store sales year over year,
including 1.1% traffic growth. The chain’s same-store sales grew 5.5%, 0.5%, and 4.6% in
the first three months of 2025, respectively, reported Restaurant Business. Full Story
Restaurant
Brands International missed its Q1 revenue and profit estimates as demand fell
at its restaurants.
The company’s total same-store sales across brands rose 0.1%, down from the
4.6% increase reported a year earlier. Full Story
Bloomin’
Brands expects its same-store sales in the current quarter to fall in the
1.5-2.5% range.
Comparable Q1 sales fell 0.5% overall, with Outback Steakhouse sales dropping
1.3% and Bonefish Grill declining 4%, reported MSN. Full Story
El Pollo
Loco’s renewed focus on menu innovation has reportedly been successful,
reflected in its systemwide same-store sales gain of 0.6% in Q1. Earlier this year, the chain
launched Mango Habanero Chicken, which drove trial of the menu item, and more
menu updates are on the horizon, reported NRN. Full Story
McDonald’s
revenue dropped 3% in the latest quarter, with its same-store sales down 3.6%
due to declines in U.S. traffic. This marks the second consecutive quarter of declines,
reported MSN. Full Story
Taco
Bell’s U.S. same-store sales rose 9% in Q1 2025, marking its biggest jump in
domestic comparable sales since Q1 2023, Yum Brands said in its Q1 earnings release.
KFC, on the other hand, saw a 1% drop; however, the pilot location of its Saucy
concept has performed well and ranks among the top 15 KFC units in the nation,
reported Restaurant Dive. Full Story
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