Tag Archives: restaurant with limited service

The CEO Behind KFC, Taco Bell Orders Fast-Food Growth To Go On | Instant News


David Gibbs just signed

Yum brand Inc.

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the first restaurant acquisition in years and is planning a convention for nearly 1,000 fast food franchisees worldwide when the pandemic cripples the global economy in March.

The sudden crisis threatens to wipe out most of the $ 17 billion that companies and franchisees make in annual dinner sales at all KFC, Taco Bell and Pizza Hut restaurants in more than 150 countries. Mr. Gibbs, a 31-year Yum veteran who became CEO a year ago, went from advancing the company’s expansion strategy to competing with thousands of closed restaurants.

Since then, many large fast food companies mostly recovered from the early pandemic close, and Yum’s comparable US sales rose in the third quarter from a year ago. But Mr. Gibbs said he was rethinking how Yum – which has more than 50,000 restaurants, more than any other fast food chain – could serve and deliver more food to carry over the long term.

He’s planning a future where pre-ordering fried chicken online is routine, and Pizza Hut customers can get their orders placed in their suitcases without having to walk into the restaurant.

Meanwhile, hundreds of his US Pizza Hut locations, most of which do dine-in businesses, have permanently closed.

The 57-year-old Gibb spoke to The Wall Street Journal via video from Yum’s largely vacant office in Plano, Texas. Below is an edited excerpt.

WSJ: What mistakes did Yum make at the start of the pandemic and how do you learn from them?

Mr. Gibbs: If I look back before the pandemic, I wish we had moved faster for Pizza Hut to be more delivery, run business and less dependent on on-site dining. We’ve talked about it for years. Sometimes large organizations can become bureaucratic. But I think we may be impressed even with ourselves in how fast we’ve spun.


“ I didn’t know that normal appearance was exactly like before the pandemic. Consumers may be more aware of cleanliness in restaurants, and we are looking for new ways to provide a safe environment. ‘


– David Gibbs, CEO of Yum Brands

WSJ: Drive-through has helped many fast food chains stay busy during a pandemic. How does that affect your development plans?

Mr. Gibbs: We’re working on a design that has multiple drive-throughs. The Australian business began building several test units with five drive-throughs in one building.

But the other part of the story is the roadside execution. You see it not only in the restaurant industry, but also in retail. This is good because of our peak drive-through constraints. No matter how hard you ride, you can still fit only X cars in a row.

WSJ: Should the front line workers get food and restaurant early access to vaccines?

Mr. Gibbs: We are very excited about this vaccine. When it’s my turn, I’ll be in line to get it. We hope all our employees get it. But we do know that there are others, such as frontline healthcare workers, who are ahead of us in the queue.

“We support the national minimum wage, and we will work under the minimum wage set by the government,” said Gibbs.


Photo:

Trevor Paulhus for The Wall Street Journal

WSJ: Once a vaccine is more universally available, will you ask employees to get it or have your franchisor consider it?

Mr. Gibbs: We are studying the matter right now and haven’t made any decisions yet. It is important to remember that 98% of our stores are run by these franchisees. So it’s more complex than we just mandating that every store needs to get a vaccine.

WSJ: Even when vaccines start rolling out, it’s unclear when life will begin to return to normal. When did you anticipate this to happen in fast food?

Mr. Gibbs: I didn’t know that normal appearance was exactly like before the pandemic. Consumers may be more aware of cleanliness in restaurants, and we are looking for new ways to provide a safe environment.

WSJ: What management actions have you taken that will survive the pandemic?

Mr. Gibbs: One of the biggest lessons I learned is the power of authentic communication versus the formal written memos someone might send. We bring together various groups of franchisees, corporate teams from around the world in video calls. We get hundreds of questions via the chat function – real time, without filters. We learn from that.

WSJ: Do you support a $ 15 minimum wage at the federal level and for your employer and franchisees?

Mr. Gibbs: We support the national minimum wage, and we will work under whatever minimum wage the government makes.

Mr. Gibbs said he hoped Yum “had moved faster for Pizza Hut to be more than a delivery, running business” when the pandemic hit.


Photo:

Joe Raedle / Getty Images

WSJ: How do you expect the dynamics between the CEO and the White House to shift in the new government?

Mr. Gibbs: We are excited to work with the Biden government and share their goal of building back better especially on the economy and fighting inequality. We have been in more than a hundred countries around the world for decades – we have operated in any political environment.

WSJ: The pandemic’s theme is menu simplification, but some customers say Taco Bell went too far in removing options. Were you surprised by the commotion when Taco Bell removed Mexican Pizza?

Mr. Gibbs: I’ve never been surprised by the passion our customers – especially Taco Bell – have for our iconic products. We can always bring back the Mexican Pizza at some point if the request is there.

WSJ: What is your pandemic tranquillizer?

Mr. Gibbs: I often pass through Taco Bell drive-throughs. We introduced grilled cheese burritos during a pandemic, and that’s the definition of a product that was so coveted for me and my college son.

Write to Heather Haddon at [email protected]

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Could Burger King’s reusable packaging change fast food forever? | Instant News


Participating Burger King restaurants will feature a collection system, where customers can return packaging for safe cleaning via Loop and reuse.

Burger King

Burger King is testing reusable packaging, encouraging customers to return these special Whopper boxes and soda and coffee cups to wash and reuse.

The chain, part of Restaurant Brands International
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appears to be one of the first large fast food restaurants to implement this sustainable practice at McDonalds USA
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has plans for reusable coffee cups in the UK

Burger King will launch a pilot program next year with TerraCycle’s waste-free circular packaging service, Loop, whose products can be cleaned and reused hygienically as long as the integrity of the packaging is maintained.

Initial test cities are New York, Portland, Ore., And Tokyo, with more cities expected to be added in the coming months. Loop officials have said previously that consumers should consider their project reminiscent of how households used to get milk – in reusable bottles.

“During COVID, we have seen the environmental impact of increasing takeaway orders, which makes this Burger King initiative even more important,” said Tom Szaky, CEO of TerraCycle and Loop.

The announcement is the latest feature in Burger King’s pledge to get 100% of guest packaging from renewable, recycled or certified sources by 2025.

Take-away or diners who choose reusable packaging will be charged a deposit at the time of purchase, and when the packaging is returned, they receive a refund.

“As part of the Restaurant Brands for Good plan, we are investing in developing sustainable packaging solutions that will help propel the food service industry forward in reducing packaging waste,” said Matthew Banton, Burger King Global’s head of innovation and sustainability. “The Loop system gives us confidence in a reusable solution that meets our high safety standards, while offering our guests comfort while on the move.”

In July, the fast food chain announced a version of Whopper made from lemongrass-fed beef, which it said would reduce methane emissions. The beef industry has become a major target for environmentalists.

Read: Here’s how Burger King thinks it can reduce cow emissions and still sells Whoppers

Another brand restaurant property, Tim Hortons, said this week end the practice of double cupping hot drinks, a move it says will remove hundreds of millions of cups from landfills every year. Coffee and breakfast retailers will introduce paper napkins early next year that use 25% less material and are made from 100% recycled fiber, which is expected to save 900 metric tons of paper a year. And the chain is phasing out plastic straws from its 4,000 restaurants across Canada.

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The Fast Food Chain Sees the Shift Made When Pandemic Pays | Instant News


Fast food restaurants respond to changes in consumer tastes during the coronavirus pandemic in ways that have increased profits in some chains to where they were before the health crisis or even higher.

Some restaurants focus on expanding their takeout and drive-through business, while others are betting on delivery services amid the recent surge in infections and changing regulations in the US. And many expect this effort to pay long-term because the pandemic shows no signs of fading and some consumer habits can change permanently.

Many fast food chains reduce staffing and cleaning costs by closing their dining rooms, and are in no hurry to reopen them. “For fast food restaurants, they don’t want to reopen their dining room because this lowers profitability and increases costs,” said Andrew Charles, an analyst at the investment bank

Cowen Inc.

Brands International Restaurant Inc.,

Burger King brand owners, Tim Hortons and Popeyes of Louisiana Kitchen, are redoubling existing efforts to improve digital offer and delivery services.

“Covid acts as an accelerator for several trends that we have identified in our strategy,” said Matthew Dunnigan, RBI chief financial officer.

The Canadian-US fast food chain relied on its digital sales channels when the pandemic struck, Dunnigan said. The RBI is extending pickup, drive-through and curbside delivery services, he said.

The company now has nearly 10,000 outlets offering shipping in the US and Canada, compared to several hundred in early 2018. RBI added more than 2,000 stores to its shipping network in the first months of the pandemic and boosted investment in its cellphones. application, said Mr. Dunnigan. He declined to give figures for the initiative, but said RBI investment in digital sales channels in recent years was huge.

Church’s Chicken, an Atlanta-based fast food operator specializing in fried chicken, multiplies on drive-through, which has been in focus since 2017, said finance chief Louis “Dusty” Profumo. “We have been doing this for years, and the results pay off. It really benefits our business, “he said, pointing to a 15% to 20% increase in drive-through sales since March, with sales now becoming almost all Church business.

Church’s is looking for ways to reduce the size of some of its restaurants, Profumo said. “Customers want their food anywhere, anytime,” he said. “It’s very efficient to run all of your business through drive-through.” Most dining rooms are closed for now, according to Mr. Profumo

Church’s Chicken launched a new delivery and payment system to restaurants operated by franchise holders, which make up the majority of outlets, Profumo said.

Panda Express in June added its own shipping service, said David Landsberg, chief financial officer of the holding company Panda Restaurant Group Inc. “We have made a greater commitment to delivery since the pandemic began,” said Mr. Landsberg.

Panda has invested $ 40 million since the beginning of the pandemic in improving health and safety measures and its shipping platform. The company is looking to hire 30,000 new employees this year, although it has recently stopped reopening the lobby for customers to carry out their orders.

Panda’s dining room remains closed, even though management wants to reopen it. “This is about when social guidelines distance, and at this point, it might not happen until around 2021,” said Mr. Landsberg.

About a third of RBI dining rooms in the US and Canada have been reopened, Mr Dunnigan said, adding that the company plans to do it for all of them. RBI posted a higher average revenue per order in the drive-through and shipping business compared to dine-in.

Chipotle Mexican Grill Inc.

earlier this month he said open more stores with drive-through lines for digital orders. More than 60% of new stores will include this line, which is specifically for receiving orders that are placed in advance online.

Even restaurants that offer dinner before the pandemic is adjusting their business.

Waffle House Inc., a restaurant chain based in Norcross, Ga., Expects more takeout customers as the pandemic continues, said Chairman Joe Rogers. “We will have a slightly more advanced business, and fewer competitors,” Mr. Rogers said, referring to the financial struggles of some of his rivals.

Write to Nina Trentmann at [email protected] and Mark Maurer in [email protected]

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