Restaurant Leadership Conference - 2024

7 lessons from RLC Inside the premier event for restaurant leaders

LEADERSHIP Restaurant Leader of the Year: Jersey Mike’s Peter Cancro

OPERATOR SPOTLIGHT 30+ executives talk labor, growth trends, AI, more

Exclusive event photos and video

LABOR Adapting to the $20/hour era

MENU 5 tips for smarter R&D

TECH Understanding unified commerce

https://www.youtube.com/watch?v=cSerjcMkX6I

W hat happens when you bring thousands of the restaurant industry’s top leaders together for four days in Arizona? A whole lot of game-changing education, idea sharing, deal making and networking. And some pickleball, too. We recently wrapped the 2024 Restau- rant Leadership Conference, the premier event for restaurant industry leaders, and it was arguably our best ever. After a lit- tle R&R — golf, pickleball, hiking and jeep tours — it was time to get down to busi- ness. Leaders from the biggest brands and most innovative suppliers tackled the most important issues of the day, including artificial intelligence, $20 mini- mum wage, consumer sentiment, real es- tate and growth trends, and much more.

Whether you were there and couldn’t take it all in, or you want a peek at what you missed, we’ve got you covered. The teams from Restaurant Business and Na- tion’s Restaurant News were there, cap- turing the biggest trends and insights directly from leading executives. In the following pages, you’ll find video, photos, podcasts and exclusive data from the event, plus insights from our award-win- ning editors. There is no shortage of challenges facing operators today — rising costs, consumer pullback and tech integration hiccups, to name a few — and RLC is de- signed to send attendees home brimming with innovative ideas for how to navigate them. We hope this report provides you with a few new ideas of your own. We’ll see you back in Phoenix in 2025.

Chris Keating EVP, Conferences, Informa Connect Foodservice

COVER PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

KEYNOTE Martha Stewart: ‘Restaurants are one of the hardest businesses on earth’ 14

Keynoter Martha Stewart talks with PepsiCo’s Anne Fink during the keynote session.

Contents

GROWTH BRANDS These are the rising stars of the eatertainment space Highlights from the RLC stage

TRENDS RLC 2024: 7 lessons we learned at this year’s event LEADERSHIP Peter Cancro: Jersey Mike’s is ‘always for sale’ LEADERSHIP The 2024 Pacesetter Award goes to: CAVA Operator Spotlight

LABOR TRENDS California restaurant operators raise prices, look for solutions and try to remain optimistic

MENU TRENDS 5 secrets to leading with an impactful menu A Look Inside Restaurant Leadership Conference 2024

DATA & INSIGHTS Higher prices and more locations drove chain restaurant sales last year

TRENDS

RLC 2024: 7 lessons we learned at this year’s event Kiosks’ benefits aren’t on the labor line, casual dining does some soul searching and you can’t eat ice cream while on the phone. T he Restaurant Leadership Conference (RLC) con- cluded last month and, as always, the four-day has had kiosks for years, “you need more people to handle your larger business.” Jonathan Maze Editor-in-Chief Restaurant Business Joe Guszkowski Senior Editor Restaurant Business Patricia Cobe Senior Editor Restaurant Business

Lisa Jennings Executive Editor Restaurant Business

to transform their tech stacks into cleaner, more flexible systems. Benefits of integration include a more centralized view of data, a more consistent experience for the cus- tomer and the ability to more easily add new technology in the future. It was this philosophy more than any single tech product that stood out at the event. “Technology integration is gon- na be a key driver of business suc- cess,” said Rich Shank, VP of innova- tion at Technomic. That demand was reflected on the trade show floor, where many vendors were hawking “unified” tech solutions for restaurants. But maybe not at the ice cream shop

event in Scottsdale, Arizona was a good temperature check on the state of the industry, its opportuni- ties and challenges. The editorial staff of Restaurant Business, a sister company of RLC, was everywhere at the conference, talking with operators and moder- ating or attending sessions. Here is what we all learned. Oh so you think that kiosks will save your labor line from the per- ils of a $20 wage? Think again. The self-ordering devices have generally not replaced actual people, at least among the companies that have im- plemented them to date. Dave’s Hot Chicken fast-tracked kiosks when the company learned about the California fast-food wage last year. But, said president Jim Bitticks, it didn’t cut the need for people. “We didn’t pull labor out,” he said. The benefits were elsewhere. “Average check went up by 15% when people use the kiosk,” he said. “It’s an indirect price increase.” Said Kerri Harper-Howie, a 21- unit McDonald’s operator that Kiosks are no money-saver

Casual dining does some soul-searching It was a tough few days for casual dining. During a presentation Mon- day on the state of the restaurant industry, leaders from Technomic shared data showing that the seg- ment’s growth is lagging behind oth- ers, and that consumers are seeing less value in casual-dining chains. Menu prices have risen by dou- ble-digits over the past three years, and consumers are shifting their spending to lower-priced quick-ser- vice brands and limiting their visits to sit-down places. It led to a lot of soul-searching among full-service operators at the event, who grap- pled with how to offer customers a bang for their buck while still pro- tecting their margins. As if to underscore those chal- lenges, it was reported during the event that casual-dining stalwart Red Lobster is considering a bank- ruptcy filing. Integration is the hottest thing in tech Integrate or die. That was essential- ly the message from RLC attend- ees, who are increasingly looking

“You can’t eat ice cream while talking on your phone,” said Jenni- fer Schuler, CEO of Handel’s Home- made Ice Cream. Handel’s is the antidote to the world of tech and AI and she aims to keep it as a place to get away from it all and celebrate. Waiting in line is part of the experience, so whipping “ How people feel ab has evolved.” - Kelly C

Restaurant Leadership Conference 2024

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

RLC Recapped IN 30 SECONDS

DAY 1

https://vimeo.com/945924932

DAY 2

al strategy for improving the team member experience. “How people feel about coming to work has evol- ved,” she said. Employers don’t need to sim- ply provide a job and a paycheck. They need to address the full scope of human needs. “Before the pan- demic, people went to your compa- ny so their work would be better,” she said. “now, people come to your company so their life will be better.” Don’t skimp on anything Here is one major lesson that came out of the whole event: The busi- ness is competitive. To wit, the pan- el of eatertainment CEOs noted that they work to keep both ends—the eater and the tainment—in good graces with their customers. There’s no skimping on either side. “We truly believe long-term suc- cess in this space is a fun and com- pelling game,” said Joe Vrankin, CEO of the minigolf-and-food concept Puttshack. “That’s a barrier to en- try. But we also have to create an equally strong dining experience.” If there is one lesson from the event, that’s it. Don’t skimp on the business. Consumers are demand- ing, particularly now when they’re dining out less often than they would like. They are not going to go out for something less than special.

people through the line is not what they do. People come in happy and they leave happier. Yes, Chef Look for opportunities to build cul- tural currency. Cindy Syracuse, CMO of BurgerFi and Anthony’s Coal Fired Pizza, is active on TikTok and no- ticed that a lot of consumers were trying to replicate the cheeseburg- er Ralph Fiennes cooked for a guest during the movie The Menu. She had her chef follow each step of the cooking sequence, freezing the frames on YouTube, un- til he perfected it. When it launched at BurgerFi, they called it the “Yes, Chef” burger and it became a hit— especially when “The Bear” debuted six months later and that phrase became part of the lexicon. Keep the team happy The guest experience is only as good as the team member experience. Kelly Costanza, CAVA’s chief people officer, stressed the impor- tance of creating a very intention-

https://vimeo.com/945925018

DAY 3

https://vimeo.com/945925182

DAY 4

https://vimeo.com/945925335

bout coming to work Costanza, CAVA

LEADERSHIP

Peter Cancro: Jersey Mike’s is ‘always for sale’ The sub shop CEO, in accepting the 2024 Restaurant Leader of the Year award, said he just hasn’t received the right offer yet for the fast-growing chain.

J ersey Mike’s Subs is “al- ways for sale,” CEO Peter Cancro told Restaurant Leadership Conference attendees Monday, while accept- ing Restaurant Business’ 2024 Restaurant Leader of the Year award. It’s just that nobody has stepped up with the right offer. “I thought it would’ve been maybe 15, not eight,” Cancro said, referencing the reported $8 billion valuation the sandwich chain was in talks to fetch from investment giant Blackstone. Talk of sale aside, Cancro, in conversation with RB Edi- tor-in-Chief Jonathan Maze, seemed squarely focused on growing the concept he has been connected to for nearly half a century—and, perhaps, adding another brand to the fold. “We’re looking at other con- cepts,” Cancro said. “And, if we get the right brands, we pick up the phones and we’ll have hun- dreds in development on a na- tional level. We have the con- struction, we have the real estate … We have infrastructure all around the country of dynamic young people that, quite frankly, By Heather Lalley Managing Editor Restaurant Business

Peter Cancro, center, accepts the 2024 Restaurant Leader of the Year award with, from left, Chris Keating of Informa, Anne Fink of PepsiCo, Hugh Roth of PepsiCo and Jonathan Maze of Restaurant Business.

will make it happen.” RB’s editors selected Cancro to receive the honor because of his extended track record of success with Jersey Mike’s. The 2,700-unit chain grew its sys- temwide sales by 25%, to $3.34 billion, in 2023, according to Technomic. Average unit vol- umes have blossomed to more than $1.3 million.

Jersey Mike’s sees opportunity to open up to 7,500 stores in the U.S., with more planned interna- tionally, he said. And the chain has become known for giving back as much as its financial success. This year, Jersey Mike’s March fundraising drive generated $25 million for 200 local charities. “The whole giving culture,

Restaurant Leadership Conference 2024

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

that’s the greatest joy I think we all have as a company,” he said. But with good deeds come great rewards. Cancro paid $175 million a couple of years ago to remod- el all Jersey Mike’s locations, a financial burden almost always borne by franchisees. “Everybody thought I was crazy,” he said. Paying for the remodels, though, allowed the process to be completed swiftly, and the refreshed stores began achiev- ing unit volumes that were about $500,000 higher than their predecessors. Jersey Mike’s thought it might take seven or eight years to re- coup its investment; the chain made its money back on the re- models in two or three years. As the sub chain has built its brand, it has also built an in- house tech operation that just might have legs outside of Jer- sey Mike’s. “We started our IT compa- ny,” Cancro said, adding that the tech offering is more efficient, better and more affordable than third-party options. “Domino’s and Starbucks say they’re IT companies but so do we. We have about 80 to 100 people in the office, a separate entity.” When asked whether that technology arm works with companies besides Jersey Mike’s, Cancro replied: “Not yet, but we will.” Past winners of the Restau- rant Leader of the Year hon- or have included Mark King of Taco Bell, Jose Cil of Burger King parent Restaurant Brands International, Claudia San Pedro of Sonic, Greg Creed of Yum Brands, Brian Niccol of Chipotle, Ron Shaich of Pane- ra Bread, Greg Flynn of the mega-franchise operator Fly- nn Group, and Danny Meyer of Shake Shack and Union Square Hospitality Group.

2024 Restaurant Leader of the Year ‘A natural born leader’ A look back at Jersey Mike’s CEO Peter Cancro’s impact over nearly 50 years in the restaurant industry

https://vimeo.com/932629227

2024 Restaurant Leader of the Year ‘We pull people along’ Peter Cancro talks with Restaurant Business’ Jonathan Maze about supporting franchisees and employees

https://vimeo.com/942129846

Restaurant Leadership Conference 2024

LEADERSHIP

The 2024 Pacesetter Award goes to: CAVA The newly public fast casual has carved out a sweet spot with a fresh and healthful Mediterranean menu with broad appeal. T hose looking for a great success story in the chain restaurant world should look no further than CAVA. By Lisa Jennings Executive Editor Restaurant Business

The Washington, D.C.-based fast- casual chain is the winner of this year’s Pacesetter Award, which honors concepts that have moved from up-and-coming brand status to become category leaders. Known for its healthful, Mediterranean-flavored menu, CAVA has carved out a sweet spot within the “cultural cuisine” category, as CEO and co-founder Brett Schulman likes to say. It was a landmark year for CAVA Group Inc. in 2023, the chain’s first year as a public company after a successful initial public offering in June that nearly doubled its stock price on opening day. At the time, the company was reporting negative numbers. But by the end of the year, CAVA recorded net income of $13.3 million, com- pared with a loss of $59 million the prior year. Same-store sales were up an enviable 18%—including traf- fic growth of more than 10%—on revenues that grew by nearly 60% to $717.1 million. CAVA’s market cap is now close to $8 billion, with units averag- ing $2.6 million in sales. And, with sights set on reaching 1,000 units by

Kelly Costanza (left), Andy Rebhun and Beth McCormick of CAVA

cluding more drive-thru locations. The loyalty program will be re- launched later this year after an upgrade. And CAVA is testing some restaurant ambiance enhancements to make restaurants more inviting for dine-in guests. Schulman sees CAVA as a brand that can offer both convenience and hospitality, bridging the gap between limited- and full-service dining. Kelly Costanza, CAVA’s chief peo- ple officer, accepted the Pacesetter Award on Sunday with chief experi- ence officer Andy Rebhun and chief information officer Beth McCormick. CAVA’s “secret sauce” is simple, said Costanza: “Staying true to who you are; staying true to your brand,” she said. “We really believe in our delicious Mediterranean food.”

2032, CAVA is now settling into what Schulman expects will be more “normalized” same-store sales growth of 3% to 5% this year—lap- ping a strong year—as the IPO halo dims. No other fast-casual Mediterra- nean brand comes close in terms of footprint, and CAVA has surpassed healthy fast-casual rival Sweetgreen (221) in unit count, though it has a long way to go to catch Chipotle’s 3,400 units. CAVA expects to open between 48 to 52 new restaurants this year, where Chipotle expects to add 285 to 315. CAVA has also evolved into a multi-channel business, with about 36% of sales coming from digital and delivery orders. Schulman sees a big opportunity with catering, as well as new restaurant formats, in-

Restaurant Leadership Conference 2024

Everything you need in one platform Meet

Operator Spotlight

Elisia Flores of L&L Hawaiian Barbecue talks with Nation’s Restaurant News’ Sam Oches about the brand’s growth plans and the art of finding the right franchisees. L&L Hawaiian Barbecue

https://www.youtube.com/watch?v=Yj3QcYP0oII&t=1s

CAVA

Andy Rebhun of CAVA talks with Nation’s Restaurant News’ Leigh Anne ZInsmeister about the chain’s approach to menu development, and how to ensure that every new item adds real value to the brand.

https://www.youtube.com/watch?v=1y81JSRLGAI

Taziki’s

Julie Wade of Taziki’s talks with Restaurant Business’ Joe Guszkowski about why attention to detail for every customer touchpoint — store design, signage, employee in- teractions and more — is es- sential to creating its “upscale fast-casual” experience.

https://www.youtube.com/watch?v=_PSJUEPsCCQ

Restaurant Leadership Conference 2024 10

The Habit Burger Grill

Shannon Hennessy of The Habit Burger Grill talks with Nation’s Restaurant News’ Alicia Kelso about how she’s working to ensure better unit economics without impacting the experience fans know and love. Or as she puts it, “same magic, more margin.”

https://www.youtube.com/watch?v=wIequkmt8IE

Eggs Up Grill

Ricky Richardson of Eggs Up Grill talks with Restaurant Business’ Pat Cobe about the brand’s growth plans and how it uses menu innovation to stand out in the crowded breakfast and brunch space.

https://www.youtube.com/watch?v=wvolHrxgb_c

Duck Donuts

Betsy Hamm of Duck Donuts talks with Nation’s Restau- rant News’ Joanna Fan- tozzi about the brand’s mar- keting strategy and how it uses text messaging, TikTok and perhaps even influenc- er collaborations to connect with younger consumers.

https://youtu.be/5D9VGh7-noE

Restaurant Leadership Conference 2024

DATA & INSIGHTS

Higher prices and more locations drove chain restaurant sales last year Technomic Top 500: Chain restaurants continued to record strong growth last year, but mostly without higher traffic. And there were wide variations in performance throughout the ranking. C hain restaurants con- tinued to grow at a healthy pace in 2023, according to the 2024 By Jonathan Maze Editor-in-Chief Restaurant Business

and now represent 44% of all Top 500 sales, up from 42% in 2019. The very largest chains have more resources to spend on ad- vertising, technology and remod- els that have helped them open some distance between them and the remaining chains. McDonald’s, as it has every year since the ranking’s incep- tion, remains the country’s larg- est restaurant chain by sales, with system sales last year of

sales growth, as average restau- rant prices increased 7.1% last year. The combined increase in prices and unit count suggests that consumers either visited chain restaurants less often or ordered lower-priced options or some combination of both. Sales were somewhat top heavy, as the 10 largest restau- rant chains grew at a faster rate than the rest of the Top 500. The Top 10 chains grew 9.1% last year

Technomic Top 500 ranking of the country’s largest restaurant brands by sales. Total sales for the 500 chains increased $31 billion, or 7.8%, to $424 billion, continuing a three- year run of strong sales growth. “It was a very, very strong growth year for our Top 500,” Technomic managing principal Joe Pawlak said at this year’s Restaurant Leadership Confer- ence. But that sales growth came from two sources: Higher prices and more units. Top 500 chains added more than 4,000 net new locations, or 1.8% growth. That’s the fast- est rate of unit count growth in seven years. Top 500 chains now operate 233,490 locations, or nearly 6,000 locations more than in 2019, before the pandemic led to thousands of closures. Price increases also fueled

Sales among restaurant chains in the Technomic Top 500 Chain Restaurant Report grew 7.8% last year and an average of 6% since 2019. Limited-service restaurants led the charge in 2023. Top 500 Sales by Sector

Restaurant Leadership Conference 2024 12

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

Top 500 Chains Growth in 2023

$31 Billion INCREASE IN TOTAL SALES

4,000 NET NEW LOCATIONS

7.1% AVERAGE PRICE INCREASE

“ The Top 10 chains grew 9.1% last year and now represent 44% of all Top 500 sales, up from 42% in 2019.” ment now accounts for $49 bil- lion in total sales. 7 Brew’s immense growth also highlights the rapid expan- sion of drive-thru coffee chains, including Dutch Bros (24% sales growth) and Scooter’s (41% sales growth). Pizza chains of all kinds, however, have hit a plateau. Sales at such chains grew just 3%, after recording just 2.1% sales growth in 2022. Companies like Domino’s, Pizza Hut, Papa Johns and Little Caesars have slowed after thriving coming out of the pandemic.

$53 billion. It is larger than the combined sales of the second and third largest chains, Star- bucks and Chick-fil-A. But both those chains grew at a health- ier clip (12.5% and 14.7%, re- spectively) than did the Chica- go-based fast-food chain (9%). The one major move on the Top 10 came from Chipotle Mex- ican Grill, which leapfrogged Domino’s to be the 9th largest chain. But there is a big drop be- tween the No. 10 and No. 11 chain on the ranking. Domino’s is about $2.6 billion in sales larger than Panera Bread, mean- ing it will be some time before a new chain is able to break into that group. Limited-service restaurants also continued to outperform full-service concepts. Sales at fast-casual chains grew 11.2% last year, followed by quick-ser- vice at 7.9%. But midscale or family-dining restaurants grew 5.7% and casual-dining chains 4.7%. Technomic is a sister company of Restaurant Business. It com- piles the data through a variety of sources, including compa- ny submissions, publicly avail- able documents and estimates.

The ranking features some of the country’s fastest growing chains that have thrived with a combination of strong sales and aggressive unit growth. 7 Brew, the drive-thru coffee chain, was the fastest-growing concept in the country last year, with total system sales growth of 267%, including 350% unit growth. Close behind was the Asian chain KPOT Korean BBQ and Hot Pot, which grew sales by 252%. Dave’s Hot Chicken, which has been among the fastest growing chains in recent years, doubled in size in 2023. But for all of that growth there were plenty of chains that saw steep declines. That in- cludes Boston Market, the big- gest decliner of the year, with sales cut 57%. That likely has fallen much further this year as more of its restaurants have closed. The casual dining chain O’Charley’s closed more than half of its units and saw sales decline 48%. Chicken chains continued to thrive, with sales in that seg- ment up 12% in 2023, the fifth straight year of double-digit sales growth. Led by companies like Chick-fil-A, Raising Cane’s, Popeyes and Wingstop, the seg-

Restaurant Leadership Conference 2024 13

KEYNOTE

Martha Stewart: ‘Restaurants are one of

the hardest businesses on earth’

The legendary businesswoman and multimedia maven shared lessons learned from opening her first restaurant at age 80. M artha Stewart’s career as a businesswom- an, media mogul, and champion of home- “Here I am at 80 years old, and why I didn’t do a restaurant sooner, I will never know,” Stewart said. Opened in Aug. 2022, The Bed- ford is modeled after her real home, with “the same furniture, the same accessories,” and illuminated win- dows that offer video “views” of her garden and farm. By Joanna Fantozzi Senior Editor Nation’s Restaurant News

Another piece of advice for op- erators: Don’t be afraid to embrace the old-fashioned way of doing things, even if it seems like every- one else is chasing down trends. “People like deliciousness and sometimes tradition,” Stewart said. “They like the familiar and not too much of the unfamiliar. … It’s a fine balance between what you choose to serve, what you choose to pro- mote, and how you serve it and show it.” But that does not necessari- ly mean that restaurant operators should be stuck in their ways or rooted in the past. Stewart said she embraces new technology and hinted that there could be an AI collaboration with her brand sometime in the future, with “little Marthas” that home cooks, homemakers, and others could ask for advice. “I take ad- vantage of whatever comes along,” Stewart said.

“Restaurants are one of the hard- est businesses on earth,” Stewart said, prompting cheers from the appreciative crowd, though she did have a couple of pieces of advice from her own experience as a first- time restaurant owner. The first: Always believe in the value of your product. “When we were planning the menu, we wanted to charge for a breadbasket and they said, ‘you can’t do that, the bread is free!’” Stewart said. “But when they saw what went into the breadbasket, they rethought it, and now they’re charging $19 for it!”

makers has always revolved around the foodservice world but never di- rectly embraced it. In fact, as the keynote speaker for the 2024 Restaurant Leadership Conference she spoke about her ca- reer beginning as a stockbroker who invested early on in McDonald’s. She went on to become a caterer, began writing cookbooks (she just published her 100th book), starred in countless television shows, and started her own print media empire. But until 2022, when The Bed- ford in the Paris Las Vegas Hotel opened, she had never owned her own restaurant.

Restaurant Leadership Conference 2024 14

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

Fueling the Restaurant Commerce Revolution

Quick Service and Fast Casual restaurants have been held back by disjointed systems and old architecture for too long. Break into the digital age with Qu’s unified commerce platform and unleash the power of data for your enterprise.

https://youtu.be/4YPouHs373Q

Connect with Qu Here

Harnessing the power of unified commerce Amir Hudda, CEO of Qu, talks with Nation’s Restaurant News’ Sam Oches during the 2024 Restaurant Leadership Conference about how Qu helps quick-service and fast-casual brands unify their tech stacks and leverage data to enable real-time decision making.

Amir Hudda, a seasoned tech entrepreneur, has launched and expanded four startups over two decades. He’s skilled in acquisition, scaling, and restructuring, with a focus on mentoring budding entrepreneurs. Currently CEO of Qu, he pioneers data-first unified commerce in the restaurant industry. Prior roles include CEO of Nomi (formerly Brickstream), Apptix, and Entevo Corporation. Hudda holds an M.S. in Computer Science from Georgia Tech and a B.E. in Computer Engineering from PICT, University of Pune, India.

Amir Hudda CEO, Qu

jkern@qubeyond.com cmadden@qubeyond.com

www.qubeyond.com

Restaurant Leadership Conference 2024 15

GROWTH BRANDS

These are the rising stars of the eatertainment space Leaders of Puttshack, Pinstripes, Alamo Drafthouse and the new Joy Trade platform share their plans for growth. T he explosion of eater- tainment following the pandemic is driven by Millennial and Gen Z leaders offered a look into the rapidly growing niche and plans for growth. Robert Thompson, a By Lisa Jennings Executive Editor Restaurant Business

look for acquisitions to add to the platform’s offerings. The two brands don’t canni- balize each other, said Thomp- son. Jaguar Bolera has bowling, darts, “maker-tainment” options like crafting, and other games. It’s a smaller real estate play, de- signed for more urban locations. Camp Pickleball, meanwhile, is much larger—taking about 5 acres—and designed for sub- urbs. The hugely popular sport of pickleball also appeals to all ages. The platform model will also allow for some crossover with the food-and-beverage program, which Thompson expects will account for up to 80% of sales. In fact, Joy Trade’s culinary is led by Denver Chef Manny Barella, who is the first eatertainment

27-year-veteran of the space who founded and later sold Punch Bowl Social, is now poised to open two new brands: Jaguar Bolera, a bowling-and-games concept scheduled to open its first unit in Raleigh, North Carolina, next month, and Camp Pickle, a pick- leball-and-games complex that will open first in Denver next year. Thompson announced for the first time Tuesday that he is bringing the two brands under a new eatertainment platform dubbed Joy Trade. The platform will allow the two brands to grow with the benefit of a combined infrastructure and enhanced val- uation, and Thompson plans to

consumers looking for fun, inter- active experiences. But the top brands in the space say food and beverage are vital parts of the equation, and most say they are building brands that they hope will bring people back for the food alone. So said top executives of four of the leading eatertainment brands at the Restaurant Lead- ership Conference in Scottsdale, Arizona. In rapid-fire interviews, the parade of eatertainment

The ‘eat’ in eatertainment Joe Vrankin of Puttshack talks with Informa’s Chris Keating about making sure the fun doesn’t pull focus from the food.

https://vimeo.com/942129399

Restaurant Leadership Conference 2024 16

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

“ Games are important, but ‘you have to create an equally strong dining experience,’ Puttshack CEO Joe Vrankin said.”

chef to compete on “Top Chef.” Joe Vrankin, CEO of Puttshack describes his brand as “tech- infused eatertainment,” bringing mini golf to a new level with a ball that has a computer processor, battery system, GPS and is blue tooth enabled, so it keeps score. Puttshack holds a content patent on the technology. Games are important, said Vrankin, but “you have to create an equally strong dining experi- ence.” At Puttshack, for example, diners might find Mediterranean lamb skewers or grilled octo- pus on the menu, which he de- scribed as upscale casual with global flavors. Vrankin said he expects first timers to say the experience was fun, “but I love to hear people say the food was so good, I would come back just to eat.” With 18 units and anoth- er eight under construction, Puttshack also has won a $150 million investment from funds managed by BlackRock. Units are averaging about $13 million in annual sales, with some per- forming close to $20 million, he said. Pinstripes, meanwhile, has

been offering bowling, bocce and elevated Italian American fare for 18 years, and the com- pany went public through a spe- cial purpose acquisition compa- ny earlier this year. Dale Schwartz, Pinstripes founder and CEO, said the plan is to open six to eight new units per year with the goal of reach- ing 100 to 150 within the next 15 years. The venues are large, between 25,000- and 30,000-square feet, and almost half of the business comes from corporate and pri- vate events, he said. Food and beverage account for about 75% of sales, and people do come for lunch just for the food. “We’re a dining destination, unlike our peers, which is hard to do but generally speaking we have done that well,” said Schwartz.

Of these four chains, Alamo Drafthouse is somewhat differ- ent in that it is more a restau- rant disguised as a movie the- ater. The chain has 41 units. Chief information officer Dan- isa Tumbusch said, “It doesn’t feel like a restaurant because we’re so focused on film and the film aspects of our business.” It’s a tech-forward movie theater where guests can order food and drink that is delivered to their seats. Alamo is also known for spe- cial events and “rolling road shows,” like taking a giant in- flatable screen to a place where the film was set. For example, they showed the movie “Jaws” on the inflatable screen while viewers floated in inner tubes on a lake—not knowing that Alamo had hired scuba divers to tickle or yank their feet underwater.

‘The experiential generation’ Nation’s Restaurant News’ Sam Oches talks with Robert Thompson of Joy Trade about why eatertainment concepts resonate so strongly with younger consumers.

Maintaining the magic

Dale Schwartz of Pinstripes talks with Restaurant Business’ Jonathan Maze about preserving the brand’s core identity as it grows.

https://www.youtube.com/ watch?v=Jy_RpAlEsY0

https://vimeo.com/944226014

Restaurant Leadership Conference 2024 17

Highlights from the RLC stage

Ground-Breaking Growth

Jose Armario of Bojangles, Christine Barone of Dutch Bros Coffee and Scott Mezvinksy of Taco Bell talk with Restaurant Business’ Jonathan Maze about the biggest obstacles to ex- pansion and how to overcome them. Sponsored by McLane.

https://vimeo.com/942129630

Impactful Innovation

Paul Fabre of Subway, Jim Norberg of Krispy Krunchy Chicken, and Cindy Syracuse of BurgerFi talk with Pat Cobe of Restaurant Business about how restaurants can develop cre- ative dishes that don’t compli- cate restaurant operations or strain back-of-house employ- ees. Sponsored by Kraft Heinz.

https://vimeo.com/942129510

Making Celebrity Collaborations Work

Tom Boland of Bojangles, Josh Halpern of Big Chicken and Chris Keating of Informa talk about when and how restau- rant brands should capitalize on partnerships with celebri- ties, athletes and influencers.

https://vimeo.com/944923579

Restaurant Leadership Conference 2024 18

Technology for the Future

Ryles Dodd of Chicken Sal- ad Chick, Dave Harris of Shake Shack, and David McKillips of CEC Entertainment talk with Restaurant Business’ Joe Gusz- kowski about how (and how soon) artificial intelligence will unlock opportunity for restau- rants. Sponsored by NCR Voyix.

https://vimeo.com/942129446

Leading with Possibility

Shannon Hennessy of The Habit Burger Grill and Jenni- fer Schuler of Handel’s Home- made Ice Cream talk about building brands that cre- ate “slow moments of joy” in a fast-paced digital world. Sponsored by NCR Voyix. CEO v. CEO Sara Bittorf of Red Lob- ster, Kelly Costanza of CAVA, and Laura Rueckel of Fred- dy’s Frozen Custard & Steak- burgers talk with Nation’s Restaurant News’ Alicia Kel- so on why employee engag- ment, not turnover, is the metric operators should fo- cus on. Sponsored by PepsiCo.

https://vimeo.com/942129756

https://vimeo.com/942129262

Restaurant Leadership Conference 2024 19

LABOR TRENDS

How California restaurants are adapting to higher wages Restaurants have raised prices to offset the $20 wage. But how much depends on the concept. Others look to technology and menu innovation for solutions. R estaurant operators in California have spent months testing and im- plementing strategies the company has formed a task force to develop strategies to deal with the law’s impact. Those efforts include spending $15 million on ad- vertising and other efforts in the state, which Bloomberg reported earlier this week. The goal is to get customers ex- cited about coming in, which also means the return of bagel breakfast sandwiches in the state, which the company hasn’t had on the menu since 2020. By Jonathan Maze Editor-in-Chief Restaurant Business

the economy. “We’ve taken a cautious ap- proach on menu pricing,” Ellison said. “We’re not looking to say pric- ing is going to solve this problem for us today. The macros for the con- sumer are tight today.” To be sure, operators are defi- nitely raising prices in California to offset the higher labor costs that have come with the $20 wage. The wage is part of a law, known as AB 1228, that created a council to regulate and set wages for fast-food chain restaurants. The result was a sharp, immediate increase in wages by about 25%, a minimum that other businesses and even other restaurants like independents or full-service concepts will not have to abide by. It’s not just regular workers. More experienced employees and even managers will get raises, too. “There will be a ripple effect,” said Jim Bit- ticks, president of Dave’s Hot Chicken.

to increase prices and develop effi- ciencies to offset the $20 fast-food wage the state implemented on April 1. But it’s still too early to tell ex- actly what the true impact from the new law will be, at least accord- ing to a panel of operators at the Restaurant Leadership Conference, moderated by Restaurant Business executive editor Lisa Jennings. How much of an impact the law will have likely will depend on the brand and its customers. At McDonald’s, where operators have been raising prices for months,

“We have realized that we are unable to solve our way out of this challenge just with price,” said Kerri Harper-Howie, a 21-unit McDonald’s franchisee in Los Angeles County. “We can’t do it. Our customers are price sensitive.” Diversified Restaurant Group op- erates about 200 of its 360 loca- tions, most of which are Taco Bells, in California. SG Ellison, CEO of the operator, agreed that the company can’t simply rely on pricing, citing

‘Be ready for it, because it’s coming’ Restaurant Leadership Conference speakers share how they’re adapting to rising wages in California, and whether other markets will follow suit.

https://vimeo.com/942129127

Restaurant Leadership Conference 2024 20

PHOTO CREDIT: W. SCOTT MITCHELL PHOTOGRAPHY

SCAN FOR MORE PRODUCT DETAILS

Fiorucci’s handcrafted, Italian-inspired flavors have made life taste beautiful for over 170 years. Enjoy our pre-sliced and diced labor-friendly oerings for Foodservice operators.

MARKETING INQUIRIES FIORUCCI FOODS marketing@fioruccifoods.com

NANCY LUSTY, NATIONAL SALES DIRECTOR FIORUCCI FOODS nancy.lusty@fioruccifoods.com P: (214) 662–4410

FIORUCCIFOODS.COM/FOOD-SERVICES/

How California restaurants are adapting to higher wages

LABOR TRENDS

NEW EPISODE

‘Cost and Culture’ Nation’s Restaurant News executive editor Alicia Kelso shares top labor takeaways from operators at RLC.

That has created an uncertain- ty among operators that they will lose customers by increasing prices, because the balance of the dining public will not be getting the same wage increase that restaurants will be paying. “Minimum wage increases are good for sales,” said Michael Halen, analyst with Bloomberg Intelligence. “People have more money to spend and you can pass along price in- creases. But it’s harder in this sce- nario because it’s not statewide.” It also comes amid a backdrop of mounting concern about fast-food prices in general, not just in Califor- nia. Traffic at a wide array of chains has been in decline, as higher menu prices have led to a reduction in traffic at many concepts. Chains with strong sales and business models and plenty of de- mand, particularly among consum- ers who have more earnings, will likely weather the storm more easily. Dave’s Hot Chicken raised prices in two waves, first in November and again in February, for a total of 9%. “We didn’t see much degradation at all,” Bitticks said. “We feel pretty good about it.” Brands have looked at oth- er methods for dealing with price hikes. McDonald’s has sped up the implementation of a workforce management program to help man- agers and crew with scheduling, switching shifts and other issues. But the company’s task force is

also helping operators in different parts of the state work together on other concrete solutions. “We have been working together, trying to come up with a plan that we can scale and execute on a statewide basis,” Harper-Howie said. “It’s go- ing to be up to us as franchisees to figure it out and get through it. We have been very lucky to get support, guidance and leadership from the organization.” Kiosks are another potential solution. Dave’s Hot Chicken considered it, but that effort sped up when the California situation took hold. The kiosks are not big labor sav- ers. But they do increase sales. “Check average went up by 15% when people use the kiosk,” Bitticks said. “It’s an indirect price increase.” The company also added large-sized drinks, which he called a “self-se- lected price increase.” Yet the operators also expressed at least some optimism about the state and its restaurants. “I was born an optimist,” Ellison said. “I would not be in this busi- ness if I wasn’t. I bought restaurants in California the last three years at a large scale, knowing these laws were on the table.” “California is a huge economy,” he added. “It’s not ideal by any means. We have a lot of levers we can pull. But we will be OK at the end of the day.” Turnover could be one potential

10 MIN

benefit. “There’s a correlation be- tween wage inflation and reduced turnover,” Bitticks said. “We do see improvements in turnover.” And that could save on the cost of replacing workers, which is not insignificant. “If you do see reduced turnover, it will be money well spent,” he said. Harper-Howie, meanwhile, called California “one of the best markets to be in.” And then she said that people in other states should not rest easy, because what happens in the state probably doesn’t stay there. “Anyone out here who feels safe, be ready for it, because it’s coming,” she said.

Dale Schwartz Placeholder Text How Dave’s Hot Chicken prepared for California’s recent wage hike

https://www.youtube.com/watch?v=NWpG2UfpVdY

Go behind the scenes with Restaurant Business executive editor Lisa Jennings

Restaurant Leadership Conference 2024 22

Restaurant Business’ Pat Cobe and Nation’s Restaurant News’ Bret Thorn talk menu trends NEW EPISODE 21 MIN

5 secrets to leading with an impactful menu Inflation and increased competition mean that menus have to work harder than ever. Here’s how 5 RLC speakers are making that happen. MENU TRENDS

By Patricia Cobe Senior Editor Restaurant Business

When Troy Hooper, CEO of Hot Palette America, first looked at the menu at the company’s Pepper Lunch concept, he challenged portion size, beef quality and every ingredi- ent that went into the signature “DIY teppanyaki” meals. “About 50% of our customers are under 30, and we felt we had to upgrade a bit,” he said. Challenge the menu. 2 CAVA limits its pantry to 38 ingredients and if the data shows that something isn’t selling, it goes, said Andy Rebhun, chief experience officer at the fast-casual chain. Right now, CAVA is testing steak, “but when we ex- ecute a new protein, it can’t complicate operations, either. We only have so much room on the grill,” he said. When something doesn’t work, take it off the menu. 3 Duck Donuts is focusing on limited-time offers as a way to boost traffic and return visits, said CEO Betsy Hamm. “You have to find the right balance,” she said, and for her brand, launching an LTO every five weeks is a win. Donut breakfast sandwiches are in the works and next up is a donut ice cream sandwich in May. Find the LTO rhythm that best fits your concept. 4 Sauces can be a huge differentiator and a competitive edge. Restaurants that offer a variety of sauces are a step ahead, but a signature spicy sauce is a must-have. “When consumers say they want hot, they want hot, not a commoditized hot that’s for everybody,” said Cindy Syracuse of Burgerfi. The heat is on. 5 “You don’t want to put complexity back at team members,” Scott Mezvinsky of Taco Bell said. “We’re spending time on simplifying operations and using tech to make the team member experience better.” Lessen the impact on labor.

Botrista: An Autopilot Beverage Station Jason Valentine, chief strategy officer of Botris- ta, talks with Nation’s Restaurant News con- tributor Marlon Gordon about how restaurants can tap into growing demand for high-quality cold beverages.

https://www.youtube.com/watch?v=qZqfFkzl2Fo

A LOOK INSIDE

Restaurant Leadership Conference 2024 24

Restaurant Leadership Conference 2024 25

Restaurant Leadership Conference 2024 26

Restaurant Leadership Conference 2024 27

SAVE THE DATE

INTODUCING 2025 KEYNOTE SPEAKER Mark

April 13 - 16, 2025

Wahlberg

Thank you to our 2024 sponsors!

TITLE SPONSORS

MARQUEE SPONSOR

PLATINUM SPONSORS

Inktel Contact Center Solution InMarket Ivey Talent Partners JUICER LambWeston MachineQ, a Comcast Company Matrix Capital Markets Group, Inc. MDSI MistAmerica Corp. Mobivity Momos NEON Nift Oracle Otter PathSpot Prefix Publicis Sapient Red Onion Remcoda Rokt Savi Seda North America Slade Gorton

DTiQ Technologies Dynamic Yield by Mastercard Epsilon Fetch Fourth Enterprises FreedomPay General Mills Georgia-Pacific Harri Howard Technology Solutions HungerRush Incentivio InfoSync IQ BackOffice Inc. ItsaCheckmate Jersey Mike’s Franchise Systems Lineup.ai

Pudu Robotics US Inc. QikServe Qu

Yelp for Restaurants Zero Hour Health Zero-In Ziosk

GOLD SPONSORS

86 Repairs ADM Marketing ADP Inc. Americaneagle.com Aniai Inc. Aprio

Radar Rapid!

SILVER SPONSORS

Retail Data Systems Revenue Management Solutions Rosnet SiteZeus SkyTab SOCi

5&5 7Shifts 858 Partners Alamance Foods Arlington Capital Advisors Attentive Auxis BarTrack C.H. Robinson Card Market ClearPath

Armada Supply Chain Solutions Atmosphere TV Avery Dennison Bikky BILL Bite Black Box Intelligence BMI Botrista Beverages C3 | Creative Consumer Concepts ChangeUp ChefWorks | Bragard Consolidated Concepts Cox Business Crunchtime DailyPay Danone North America Data Delivers LLC Deliverect DeliverThat Digital Restaurant Association Dinova

Soft Swirl SPARKFLY

Spendgo Steritech Superorder SynergySuite Task

CloudKitchens Cost Reduction Management – CRM Essity Evocalize Fishbowl Fountain Franke Coffee Systems GBQ Partners LLC Giving Kitchen

Tattle Thanx The Foodware Group The Largo Group Threads Uniform Agency Tillster Inc. TipHaus Totem TRAY UKG Upside Vericast Virtual Dining Concepts Workstream Worldpay WWT Digital

Loomis LoopAI Lunchbox Marigold Marqii Mastercard Data & Services MoEngage Moss Adams No Kid Hungry Olo Ovation

SoundHound AI SpencerStuart Square Sunday App

GridPoint GRUBBRR GrubHub Hang Hi Auto Ingredion

TAGeX Brands Inc. The Moseley Group Workday Wray Executive Search ZRG Partners

Paytronix PiinPoint

DIRECTV Doordash

Presto Prisma

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28