First Bite

MOD Pizza has been sold. The wave of restaurant discounts appears to be working. And Chili's gets sued by the Beastie Boys. This is the last episode to appear on the First Bite channel! If you would like more daily updates on the restaurant industry, subscribe to Restaurant Daily at Apple Podcasts here and Spotify here.

It's a strange moment for restaurant mergers and acquisitions. Chipotle's CFO is retiring. And Burger King is heating up its menu. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Customers found a loophole in McDonald's $5 meal deal. Fast-food restaurants in a California city are switching to reusable cups. And two big AI suppliers are joining forces. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

A fast-growing pizza chain is expected to file for bankruptcy protection. Panera's overhauled menu appears to be a hit. And Dave's Hot Chicken is expanding to a new country. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

MOD Pizza is reportedly considering a bankruptcy filing. Fast-food restaurants in LA are facing more labor regulations. And menu innovation is defying the dog days of summer. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

How is California's new fast-food minimum wage impacting restaurant traffic? Boston Market's creditors are finding there's not much in the bank. And the president is cracking down on heat safety for workers. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Restaurant Brands International is buying back its China business. Craveworthy Brands opened a food hall. And Chipotle taps Olympic athletes for its latest promotion. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

The summer of the value meal is upon us. Kura Sushi says business slowed in California. And which chains saw the most organic growth last year? First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

An Arby's operator declared bankruptcy. Panera Bread confirms it was hit with a cyberattack. And consumers are finding less value at Chick-fil-A.First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Starbucks is serving its customers an added jolt. Perkins is undergoing an extreme makeover. And Grubhub is taking a big plunge into grocery delivery. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Hooters closes some struggling restaurants. A Subway franchisee files for bankruptcy. And see the brands that are doing the best at satisfying their customers. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Uncle Julio's apparently has a potential buyer in the wings. American Express bought reservations platform Tock. And, if you've noticed a lot of steak on fast-casual menus, you may be onto something. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

A number of small restaurant chains have filed for bankruptcy recently. Pizza Hut is trying to terminate one of its largest franchisees. And another bankrupt chain gets hit with an employee lawsuit. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Accomplished chef James Kent has died. Fast-casual pizza chain Blaze overhauled its brand. And Asian concepts were among the winners in casual dining last year. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

McDonald's is ending its AI drive-thru test. Former Red Lobster employees are suing the chain. And a TGI Fridays operator files for bankruptcy.First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

The Supreme Court delivers a win for Starbucks. The economy comes for Dave & Buster's. And yet another chain launches a meal bundle. First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Alamo Drafthouse has been sold. There's good news and bad news on the menu price inflation front. And Starbucks is joining the value wars.First Bite is becoming Restaurant Daily! Don't forget to subscribe at Apple Podcasts here and Spotify here.

Today's episode is bittersweet, as it is the last episode of First Bite — but with an exciting twist.

Starbucks and Grubhub announced a partnership on Thursday that would allow customers to order Starbucks delivery via the Grubhub app for the first time ever. The delivery partnership will roll out to select markets in Pennsylvania, Colorado, and Illinois in June, and expand to the rest of Grubhub's markets across the 50 states by August. According to Grubhub, Starbucks is the most searched merchant on its app that is not yet available. Overall, Starbucks has been slower to partner with third-party delivery companies than many other top chains in the foodservice industry. While the company began offering third-party delivery through Uber Eats in select markets in 2018, Uber Eats delivery was not available nationally until 2020. Starbucks did not begin offering delivery with DoorDash until last January, and the partnership was not expanded nationally until March 2023. Grubhub is the final delivery company of the “big three” that Starbucks is now partnering with, though the company has the smallest delivery market share at 8% (as compared with DoorDash's 67% and Uber Eats' 23%), according to Bloomberg Second Measure.

Chipotle was one of very few winners from Q1's financial reports and the company's momentum certainly didn't start there. In fact, you'd have to go back to the second quarter of 2020 – the pandemic quarter, if you will – to find a negative same-store sales number.The company's engine has no doubt been churning at full speed of late, as evidenced by share prices jumping by nearly 75% since October alone. There are several factors pushing the company to new heights, including a sharpened focus on throughput and a prioritization of the employee proposition. For that latter piece, Chipotle has continuously evolved its benefits to include mental healthcare, expanded parental leave, tuition reimbursement, English as a Second Language classes, pet insurance, and more. Most recently, the company added a service that provides faster access to paychecks, as well as a matching contribution to 401(k) workers' student loan repayments. This continuous evolution of benefits is informed by town hall meetings each quarter, a “pulse survey” every other year that goes out to all the company's 120,000 employees, and a benefits department that is highly in touch with workers' changing demands.

Less than a week after abruptly closing nearly 50 California locations, Rubio's has filed for Chapter 11 bankruptcy protection. The company said it is pursuing this action to facilitate the sale of the 41-year-old business, adding that its remaining 86 locations in California, Arizona, and Nevada will continue to operate as is.The company has cited challenging economic conditions, diminishing in-store traffic driven by sustained work-from-home trends, rising food and utility costs, and “significant increases to the minimum wage in California.” On April 1, California's minimum wage increased by 25% to $20 an hour.Rubio's is seeking court approval to continue operations during the sale process to ensure continued payment of employee wages and benefits. All gift cards and rewards will be honored at the remaining 86 locations.

Utah-based dirty soda chain Swig announced Monday the appointment of former Dutch Bros executive, Daniel Batty, as the fast-growing concept's first chief development officer.In jumping from one fast-growing beverage chain to another, Batty will help Swig to achieve its long-term goal of growing from 70 locations to 1,400 units over the next eight years.Swig is best known for being at the forefront of the dirty soda beverage trend — which combines soda, dairy creamer, and flavored syrups and is popular in Utah — and was one of the fastest growing new concepts last year. According to Technomic Top 500 data, Swig had the second-fastest sales growth rate across the beverage and snack category at 39.1%. Swig also had the third-fastest unit growth rate in the category, behind only Crumbl and HTeaO.With an ambitious long-term goal of building more than 1,300 stores in mind, the company will probably be about 900 franchised shops and 500 corporate stores, with corporate growth likely to move along quicker than franchise growth. Batty is currently in talks with the Swig leadership team to put a development plan in place.

Cracker Barrel Old Country Store – the brand best known for rocking chairs out front, a gift shop of tchotchkes inside, and for being the restaurant of choice for road tripping families — has been struggling for a long time.After several quarters of negative traffic and sales, new CEO Julie Felss-Masino announced last month that the family-dining chain would be undergoing a brand makeover to become more relevant, with five pillars of change, ranging from store remodels and tech investments to menu changes and pricing. While brand makeovers are not unusual (Domino's and Papa Johns both announced new strategic overhauls at the start of the year), Cracker Barrel needs to walk a pretty narrow balance beam of modernizing the brand without drifting from the kitschy, homey vibe the chain is famous for.During Cracker Barrel's investor update call, which was hosted just two weeks before the company's Q3 quarterly earnings, Massino broke down the ways in which the company is trying to dig itself out of the red and onto a positive path forward. While these company updates typically don't pique the interest of the public outside of investor and restaurant news circles, mainstream media picked up the story, and Cracker Barrel was trending on X, the social media platform formerly known as Twitter.

While pricing continues to be a hot topic and challenging conundrum for restaurant operators in 2024, Domino's Pizza is confident in its firm stance on the pizza delivery value equation. The Ann Arbor-based company purposefully did not raise prices last year and has not done so thus far this year, which has been beneficial for the bottom line, Domino's CEO Russell Weiner said in a fireside chat during the annual Bernstein's Strategic Decisions conference.As most quick-service restaurant chains struggle to balance profitability with perception of value and affordability, particularly for lower income consumers, raising prices has been a common strategy. However, as NRN recently reported, 78% of Americans now believe that fast food is a luxury purchase, according to a new LendingTree study.According to Russell Weiner, Domino's saw the writing on the wall about consumer spending in this inflationary environment and pumped the brakes on pricing a bit earlier than most.

BurgerFi announced that it would be rebranding to ChickenFi as it introduces new chicken sandwiches. There is no indication if this is a permanent rebrand or a temporary marketing move.The Fort Lauderdale, Fla.-based fast-casual restaurant brand debuted a fried-chicken sandwich and a grilled-chicken sandwich on its permanent menu on May 21.The chain's chicken breast is prepared sous-vide. The new sandwiches come grilled or hand-breaded and fried, topped with fresh lettuce, tomato, pickles, and honey mustard.The new sandwiches join the brand's Jumbo Chicken Wings, Chicken Tenders, and Grilled Chicken Bowls.Since the debut of Popeyes' chicken sandwich in 2019, there's been a surge in chicken-sandwich products across the industry, many brands trying to chase Chick-fil-A's success in the category.Technomic data shows that chicken sandwiches are continually increasing on menus despite their seeming ubiquity. In 2023, chicken sandwiches grew on menus by 0.4% and the five-year growth is expected to be 1.1%.

A recent CNN study of earnings calls and analyst notes finds that the word of the summer – on Wall Street, at least – is “bifurcation,” or the division of something into two parts. In this specific instance, bifurcation means that high-income consumers are plugging along just fine, while low-income consumers are really starting to struggle.Indeed, 80% of American households have less cash available than they did in 2019, while credit card debt has reached a historic high. Meanwhile, a JP Morgan survey found that over 70% of low-income consumers are having a hard time making ends meet. Notably, middle-income households are also feeling pinched; 67% believe their income is falling behind the current cost of living.

The fast-casual category first became a thing in the 1990s (about the time Chipotle emerged) and came of age in the 2010s following the Great Recession, when consumers wanted more bang for their buck in the form of value, speed, and quality. The category came to be defined as a sort of elevated QSR but without the full-service component of casual dining.Fast forward to this post-pandemic environment and fast casual has become a rare sweet spot of growth for the industry as price point lines continue to blur between segments. In the past several quarters, as inflation-weary consumers pull back on visits to most casual-dining concepts and some quick-service concepts, fast-casual players like Potbelly, Chipotle, Wingstop, CAVA, and Shake Shack have enjoyed traffic lifts — in some instances quite significant. The segment has also outperformed on sales. According to recently released Technomic data, fast-casual sales in 2023 grew by 11.2%, followed by quick-service sales at 7.9%. Family-dining restaurants grew by 5.7% and casual-dining chains grew by 4.7%.

No matter how it's defined, growth in any capacity requires capital and capital remains expensive; the Fed raised interest rates 11 times between March 2022 and July 2023 to combat relentlessly high inflation. A cooldown has yet to happen, which has kept a lot of investors on the sidelines.Of course, there's an ironic twist at play here. Those rates remain high because demand remains high. Driving much of this environment is a sturdy set of consumers with more wages in their pockets and a continued pent-up demand from the pandemic. Those consumers, especially younger ones, have also proven that they really, really like to frequent restaurants. And so here we are, with a murky understanding of what exactly growth means at this post-pandemic juncture. The consensus is that most of the industry's growth from this point will come from higher demand concepts focused on convenience. High rates haven't derailed the quick-service or fast-casual segments, for instance, or many bigger players in general. According to Technomic data, the top 500 chains increased sales in 2023 by $31 billion, or nearly 8%. During the recent Restaurant Leadership Conference, Technomic Managing Principal Joe Pawlak called it a “very, very strong growth year” for those at the top.

The most popular technology tool on display at the 2024 National Restaurant Association Show in Chicago was mostly invisible. What do the robotic arms, POS systems, back of house analytics tools, and more booth gadgets have in common? Most of them are powered by and supported by data. Data — whether it's collected by machine learning or AI — has proven to be the universal currency of restaurant technology in 2024 and beyond.Operators are waking up to the significance of data collection and optimization in operational decision-making, from employee scheduling and inventory management, to marketing data about customers. This was especially evident at the Restaurant Show, where almost every booth at the tech pavilion went into detail about the data their software (and sometimes hardware) provides.

The restaurant industry has a labor shortage problem. That is certainly not breaking news. Employee engagement is at an 11-year low. That might surprise some folks.Gusto founder/CEO Nate Hybl said this conversation about employees is long overdue.The bigger companies are already focusing more on the employee proposition, but smaller brands need to make people development a part of their budget, Hybl added. He suggested taking 1-2% off the topline to invest in people.Hybl said acknowledging and understanding the Gen Z mindset of work/life balance and diversity and inclusion are more important than they've ever been, in fact, he added that the pandemic changed the employee mindset and gave more leverage to hourly workers.

There have been many iterations of eatertainment over the years. It began with stalwart chains like Chuck E. Cheese and Dave & Buster's, places to play arcade games and win tokens that would lead to prizes.Over the past 10 years, that idea has been flipped. Eatertainment had moved onto larger-scale games like bowling and pool. Chains like Punch Bowl Social, founded in 2012, were also focused on offering upscale food and drink in a hipper environment.Following the struggles of Punch Bowl Social, which filed for bankruptcy in December 2020, a new class of eatertainment venues have arrived. For the most part, they are concepts based on sports ranging from golf to pickleball to bowling. They're just as focused on elevated food and drink offerings as their predecessors, but the concepts focus on just one or two larger-scale games rather than several.With the focus on just one game, these eatertainment concepts have been able to drill into what makes each brand special. For most of them, it's technology that elevates gameplay.

Restaurant value used to be a much simpler calculation: Discount-driven customers would seek out dollar meals at quick-service restaurants, call for pizza delivery on Friday nights (sans delivery fees), and then splurge on full-service meals on rarer occasions. But in 2024, with dollar menus all but extinct, and newer variables like convenience pricing, service fees, shrinkflation, and dynamic pricing in the mix, the consumer value equation has never been more complex.Or has it? Customers may have more options than ever before, from ordering almost any food they want from the comfort of their own home to choosing to dine out “the old-fashioned way” (and every “channel” in between), but spending habits have not changed as much as we might think they have. According to data from Technomic, customers are roughly as price-conscious now as they were just before the pandemic. In a survey, half of customers said that they picked restaurants with lower prices in Q1 2020, while 52% of customers said they do so in Q1 2024, and the exact same percentage of customers (68%) said they pay close attention to menu prices in both Q1 2020 and Q1 2024.

Red Lobster abruptly closed some 87 restaurants on Monday as the chain faces apparent cash-flow issues and loss of confidence from its largest owner. USA Today compiled a list of all of the shuttered restaurants listed on the chain's web site. The closed locations are in 28 states, with the largest number, 16, in its home state of Florida, including three in Orlando.Auction site Tagex has listed 48 closed Red Lobster locations and has put all of their contents up for sale in an auction scheduled to end on Tuesday. They're “Winner Takes All” auctions, meaning buyers are bidding on the total contents of each restaurant.Thai Union, which has long been a large minority shareholder in Red Lobster, said in January it would sell its stake in the company and has reportedly been looking for buyers ever since.

Since we're officially more than halfway through Q1 earnings reports, it's fair game to derive some of the winners from the start of 2024. Unquestionably among them is Chipotle, which experienced a 7% increase in same-store sales driven in large part by a 5.4% increase in traffic.To understand the secret of Chipotle's momentum of late, it's important to understand its sharpened focus on throughput. Indeed, the word “throughput” was mentioned 33 times during the company's earnings call April 24. Unsurprisingly, several brands, from Cheesecake Factory to Starbucks to Portillo's, have noted a more intentional prioritization of throughput, because why wouldn't they want to emulate Chipotle's recent success? That said, they all have some catching up to do to get on the same playing field as Chipotle.

TikToker “MiriTheSiren” was known for posting her creative Chick-fil-A meals, videos that were meant to inspire consumers to think of innovative ways to eat fast food. The TikToker, whose real name is Miri, was a Chick-fil-A employee, sharing how she mixed items at the store for her free meal every day.Quickly, Miri gained a following with her videos going viral, garnering tens of millions of views on her videos between January and April of this year. But Chick-fil-A wasn't happy.The Atlanta-based chicken chain made Miri stop posting videos because they violated the employee handbook, as she explained, and the company would not be making an exception for her or collaborating on any future posts.“People do that stuff as it's convenient, and they back-burner more often,” said Lena Katz, lead, creator-integrated services at Ampersand (AOI-Pro). “Once one side begins to feel exploited, the relationship sours or ends.”

Los Angeles-based Sweetgreen is besting many of its restaurant competitors in the first quarter. The fast-casual chain reported 5% same-store sales increases and a 26% revenue increase year-over-year.Sweetgreen CEO Jonathan Neman stated that while January was tough with weather, the benefit of two holidays in the first quarter was a boon to business.The quarter, ended March 31, saw most of its success from 41 net new store openings over the past year, resulting in $21.1 million in additional revenue.CFO Mitch Reback mentioned that Sweetgreen was impacted by AB1228, increasing wages in late February. While it's too early to see the full results, he said, the brand has made some adjustments.

Papa Johns' customers are spending less than they had previously, and when they do spend money on pizza, they are more likely to choose third-party aggregators over the company's first-party delivery channels. This shift in mix balance was a primary driver behind the Atlanta-based pizza chain's 2% decline in North America same-store sales, as well as revenue and overall sales deflation for the first quarter ended March 31, 2024. Sales from aggregator channels have grown to 16% this quarter, as compared with 12% the same quarter of 2023, meanwhile organic delivery has declined year-over-year, while carryout remains flat. This highlights the quandary operators face when utilizing third-party apps: they are crucial to pull in new and non-regular customers, but operators lose revenue from these transactions.

Dine Brands' first quarter results included same-store sales declines at both Applebee's (-4.6%) and, for the first time in 11 quarters, IHOP (-1.7%), highlighting a continuing narrative across the industry about increasing consumer sensitivity. Despite a few exceptions, that narrative has impacted concepts across segments, from McDonald's and KFC to First Watch and Starbucks.

At a time when many restaurant companies are struggling to get customers in the door, Dutch Bros is one of the better success stories for the first quarter of 2024. In Q1, the Oregon-based coffee chain saw 10% same-store sales growth, attributable mostly to menu pricing increases, discounting, and positive traffic trends.Traffic will likely continue an upward growth trajectory after Dutch Bros starts accepting mobile order and pay, which the company will begin offering for the first time by the end of 2024, in partnership with Olo. The new partnership and mobile order and pay solution is currently in test mode at seven locations, and is meant to boost operational efficiency, especially for guests that want to cut down on wait times at the drive-thru lane.

Whataburger is upgrading its coffee offerings with new hot and iced coffee, a new sweet cream, and a limited-time shake to promote the change. They're being rolled out on May 7.The same blend of Arabica coffee beans from Colombia, Nicaragua, Guatemala, and Honduras are being used for both hot and iced coffees, but the roast is different.

Squash doesn't seem like the most charismatic of vegetables. Even the name sounds like a failure. But many chefs are into them. They say each one has its own unique qualities, with summer varieties offering fresh, clean tastes and winter ones providing sweetness and a sort of implied richness, despite their low fat content, that can help lighter dishes seem more satisfying.The difference between chefs' love for squash and consumer perception might be reflected in Technomic's Ignite menu data, which indicates that mentions of squash on United States menus overall decreased by 7% between the end of 2022 and the end of 2023. But butternut squash soup mentions are up by 19.6%, and squash mentions in fine-dining restaurants are up by 8%.One big squash advocate is Dan Barber, chef of Blue Hill at Stone Barns in Pocantico Hills, N.Y., and Family Meal at Blue Hill in New York City.Barber also is the founder of a seed company, Row 7, that essentially got its start developing new squash varieties, including the popular koginut, a variation of butternut that is now grown nationwide.

Starbucks reported a same-store sales decline for the second quarter of 2024, for the first time in almost three years since the peak of the pandemic, as shares of the Seattle-based coffee chain plummeted 16% over the past day.According to CEO Laxman Narasimhan, the global same-store sales drop of 4% was driven by declining traffic in North America, issues in China and the Middle East, bad weather, and “a more cautious consumer overall.” Additionally, Starbucks revised its annual fiscal guidance to reflect a more reserved growth outlook as the company attempts to reverse this negative sales trend.Besides reaching these occasional guests, Starbucks leadership emphasized that many of the issues over the past quarter came down to challenges with meeting demand, particularly during peak morning hours.

During Yum Brands' earnings call Wednesday morning, executives were somewhat upbeat, touting the resiliency of the company's brands in a challenging operating environment and pointing to core operating profit gains and digital sales increases as reasons for their optimism. Additionally, executives cited sequential improvements from January's weather impacts, as well as easing headwinds from tension in its Middle East markets.Technology was the focal point of that optimism, with CEO David Gibbs noting that Q1 marked the first time the Yum system surpassed over 50% in digital sales, representing about $30 billion in annualized, digital sales. These sales were driven by the continued rollout of Click and Collect and kiosks.One example is voice AI at the drive-thru, which Yum has been testing at five Taco Bell restaurants in California. The company is expanding the test into 30 restaurants in Q2 based on positive feedback. Yum is also piloting AI in its proprietary app, which makes it easier for general managers to access information to make decisions.

Domino's Pizza is starting the fiscal year off strong with Q1 earnings highlights that include 5.6% same-store sales growth driven by transaction growth from the company's new loyalty program.In a Q1 earnings call, Domino's CEO Russell Weiner discussed how the loyalty program is synergistic with other elements of the company's previously announced “Hungry for More” strategy for 2024, including menu innovation. For example, the new New York Style pizza launching this week, made with thinner crust and a provolone cheese blend, is now available as a rewards deal.All roads lead back to the loyalty program: Domino's highly successful “Emergency Pizza” promotion, which gave away $1 million of free pizzas last fall, was effectively a rebranded “BOGO” coupon, that allowed customers to come back and cash in their free pizza at a later date. For Domino's, it allowed the company to welcome new customers and lapsed customers back into the fold.

Chipotle reported first quarter results after market close Wednesday and the company once again bucked the industry's declining traffic trends, turning in a plus-5% increase in transactions. Credit Chicken Al Pastor, barbacoa, and improved throughput to meet demand for both.The company also generated 7% comp sales growth, while system sales grew 15% to reach $2.7 billion. CEO Brian Niccol said in-store sales were up by nearly 20% as throughput reached its highest level in four years. That throughput improvement has stemmed from the company's Project Square One, first put into place during the summer of 2022 to prioritize a focus on operational fundamentals for a workforce that largely dissipated during the pandemic. The company improved its throughput by nearly two entrees during its peak 15-minute timeframe versus last year, with sequential improvements each month. Niccol said its operations initiative focuses on four areas, including expediting the bagging and payment process and ensuring the manager supplies both lines with food to avoid interruption.

As food delivery becomes synonymous with the restaurant experience — data from McKinsey and Company shows that the value of the food delivery industry has more than tripled since 2017 — the need for guardrails around the still-budding segment of the restaurant industry has grown. The amount of both regional legislation and individual litigation attempting to regulate and mitigate issues with the food delivery industry has escalated recently. Over the past two months alone, Florida passed a bill requiring delivery apps to get permission from restaurants before arranging pickups, a New York City councilmember just proposed a bill that would require delivery apps to allow customers to tip before placing orders, and California put forth a bill that would require delivery app providers to provide an itemized breakdown of fees at checkout, including a disclosure of restaurant-facing fees.

While restaurant operators continue to struggle with both labor costs and employee retention, the foodservice industry may very well have deeper employee-side problems. According to a study of Glassdoor reviews just released from BBADegree.org (an organization that provides resources for prospective business professionals seeking higher education), workers in the restaurant and foodservice industry complain about burnout the most, as compared with other industries.Chipotle Mexican Grill scored a 97.72 out of 100 on the organization's burnout rating score, second only to Progressive Insurance as the workplace with the most complaints of burnout, with “stressful” being the most common word used to describe the workplace environment. According to the Glassdoor reviews that mentioned burnout, Starbucks was also in the top 10 companies out of the 550+ companies surveyed. As non-franchised organizations, the reviews of both Starbucks and Chipotle are overwhelmingly from corporate employees.

Starbucks and the National Labor Relations Board faced off Tuesday at the U.S. Supreme Court hearing of Starbucks vs. McKinney, which will determine the scope of the National Labor Relations Board's power in stepping in to resolve labor disputes. Starbucks argued before the Supreme Court against a previous district court order that had ordered the coffee chain to reinstate seven previously fired workers in Memphis, Tenn., who were terminated in 2022 during an attempt to unionize the store.According to the legal representation for Starbucks, the highest court in the land should reconsider the district court decision in part because the NLRB's request for a temporary injunction was approved on the grounds of a two-factor test, even though other circuit courts use a more rigorous four-factor test to determine if the injunction will be granted.

Bankruptcy filings, no matter the industry, are the result of a thousand cuts.This month has produced filings and rumors of more to come in the pandemic-shaken restaurant industry.Maitland, Fla.-based Tijuana Flats Restaurants filed for Chapter 11 protection in the Florida Middle District Bankruptcy Court after closing a total of 40 restaurants this year, 11 of them last week.And, while Tijuana Flats is in the fast-casual segment, North Aurora, Ill.-based Oberweis Dairy filed April 12 for Chapter 11 bankruptcy reorganization at the 43-unit dairy and retail concept.And Bloomberg reported April 16 that Orlando, Fla.-based Red Lobster, a stalwart in the casual-dining segment, was talking with experts about a possible bankruptcy filing. The company named Jonathan Tibus, known for his restructuring expertise, as CEO in late March.Senior editor Ron Ruggless helps us make sense of it all.

Who has power in the restaurant industry? What does power really mean when it relates to one of the largest industries in the country, one that employs more than 12 million Americans this year and will achieve roughly $1 trillion in annual sales?The answer is always shifting, and Nation's Restaurant News' annual Power List has evolved alongside it, recognizing everyone from chief executives to tech entrepreneurs to general managers. This year, though, a clue can be found in the official definition of power: “possession of control, authority, or influence over others,” according to Merriam-Webster.Influence. With influence comes power, and increasingly a horde of social-media users are gaining power by capturing consumers' attention and driving their purchasing decisions.

Last week, we talked about the tech takeaways from the Restaurant Leadership Conference. Today, executive editor Alicia Kelso is joining us to talk about her takeaways.The main takeaway is labor. There was a lot of discussion about labor and wages against the backdrop of California's AB1228 which went into effect earlier this month, raising the minimum wage to $20 an hour. One operator told Alicia he'll “never” expand in California again, while another felt confident about the combined pricing and technology strategies her team has put into place to soften the inflationary blow. We've seen plenty of stories so far about layoffs and kiosk implementations and even menu adjustments to navigate these higher wages, but time will tell how it ultimately shakes out. Will this $20 watermark trickle beyond QSRs? Likely. Other markets? Maybe. Will California's restaurant growth stagnate a bit? Perhaps among smaller players, but not likely among the bigger players who have the advantages of scale to absorb the higher costs.