Restaurant owners should take note that in 2019 labor, food and competition are all expected to increase. But there's good news too.
McDonald's National Owners Association (NOA), the newly formed franchise owners group, is grousing that Uber's delivery fees, compounded by corporate's rent and service fees, are not sustainable for owners with the resulting margins they are currently experiencing. The organization's third meeting is coming up on April 1 in Washington, DC. —Brigid Sweeney, AdAge
QSR managers work hard, but in spite of that are not generally thought to have particularly good wages. That's not the case for In-N-Out Burger managers. They make substantially more than college graduates with some of the better marketable degrees.
The chicken business in the U.S. is an oligopoly, dominated by the likes of Tyson, Pilgrim's Pride and Perdue. Costco, which reported selling 78 million of its $4.99 rotisserie chickens in 2014, wants to keep the price of that loss leader low, but the price of chicken has increased 24 percent over the last ten years. The company is moving to gain more control over the price and quality of the chicken it sells, including raw chicken, by establishing its own vertically integrated chicken business in eastern Nebraska.
Chains are racing to add more restaurants in an oversaturated marketplace and produce unmemorable branding messages in a cluttered ad market.
Good ratings significantly affect a restaurant's revenues, writes Dennis Zink in the Herald-Tribune, a Sarasota, Florida, newspaper, citing Harvard Business School researcher Michael Luca. A quick scan of a Luca research paper about Yelp reveals that, according to him, Yelp's ratings have little effect on chains, but significant effect on independent restaurants.
Jack in the Box has confirmed that it plans to sell the building housing its corporate head office and move into a smaller building next door. The company has been in the news much of late, what with rumors of the sale of the company itself, accompanied by news of soft sales. Moreover, its independent franchisee association has called for the ouster of CEO Leonard Comma, as well as filed a complaint in California against the company for its change in handling franchisee restaurant leases. Association members consider the lease change a threat to their financial well-being.
What can a journalist learn that might interest us from working just one day at Chick-fil-A? We already know that the chances of being accepted as a franchisee after applying are slim, if not none. But what else?
Kathleen Elkins, CNBC reporter, spent one day at a Manhattan Chick-fil-A, which she writes is one of the brand's busiest locations, completing up to 3,500 transactions some days.
An eye-opening study in the United Kingdom has found traces of gut and fecal bacteria on touchscreens at all eight McDonald's locations that were inspected. It pointed up a problem that all owners and managers with restaurant touchscreens must consider: how to reassure customers that their screens are sanitary and safe to use just before a meal.