Nation's Restaurant News On the Go #89
Nation's Restaurant News
The #1 source of news and business intelligence for restaurant and foodservice industry professionals
It’s Nation’s Restaurant News senior editor Joanna Fantozzi here. This week, Informa just wrapped up a fantastic few days hosting the FSTEC conference in Grapevine, Texas where operators and vendors alike celebrated and learned about everything foodservice tech related. While it would be impossible to detail all the takeaways from this event, I did want to home in on two buzzwords/phrases that I kept hearing throughout the conference:
AI — Artificial intelligence, much to no one’s surprise, was the huge topic of discussion and debate at the 2024 FSTEC Conference. While most attendees and presenters agreed that we’re a long way from perfecting AI technology, there are so many ways today that operators can and should take advantage of this burgeoning umbrella category in the foodservice tech space. Voice AI, generative AI that can create marketing copy and respond to customer reviews, and AI that automates back of house “busy work” functions were some of the most popular AI capabilities we saw at the show.
People — If it’s one thing we’ve learned, it’s that technology is meant to enhance hospitality, not get rid of people. Joe Park of Yum Brands said it best when speaking about Voice AI in the drive-thru lane: “the human touch is innate to the human condition,” which means that for the most part, you’ll see AI, robotic, and more work alongside humans, who are providing the real hospitality in a restaurant, even if they’re not necessarily the ones taking the drive-thru orders, picking up the phone, or making inventory decisions.
White Castle updates its Craver Nation Rewards program
White Castle’s Craver Nation Rewards program has undergone a makeover, and now includes a points system and tiers program. First introduced in 2019, the revamped program allows members to earn points by purchasing menu items and completing “quests,” such as trying new menu items or visiting restaurants during the late-night daypart.
Each quest completed earns members badges and rewards, such as additional offers and points. The program features three levels – Adventurer, Champion, and Legend – that are unlocked through quests and points earned. All members also have access to exclusive offers for special occasions, such as birthdays, and seasonal promotions.
“We’re not using the typical earn-and-burn strategy where customers simply earn points and exchange them for rewards,” digital marketing manager Aaron Lahman said in a statement. “While this newest iteration of our program still offers rewards, it lends itself to more engagement with our Cravers. It’s more like a game where they complete quests to earn badges and unlock new tiers to get special perks, rewards and exclusive benefits not available to nonmembers.”
BurgerFi approved for $3.5 million in funding to operate through bankruptcy
BurgerFi International, parent company of Anthony's Coal Fired Pizza and BurgerFi, has been court approved to receive immediate access to $3.5 million in financing to ensure the uninterrupted operations of its 144 locations as it navigates through a Chapter 11 bankruptcy process.
The funding is provided by TREW Capital Management, which owns much of BurgerFi’s debt and which also provided the company with $2.5 million in emergency funding in mid-August, prior to its Chapter 11 filing, which came last week.
The court also approved the use of the company's existing employee benefits, cash management systems, and customer programs. With the debtor-in-possession financing approved by the court, the company has the liquidity to stabilize its operations and work with its vendors and landlords to continue operating to its standards, it noted in a release.
Red Lobster exits bankruptcy with new owner and CEO
Red Lobster exited its Chapter 11 bankruptcy reorganization Monday and RL Investor Holdings LLC completed its acquisition of the chain, which is now more than 100 units smaller than it was when it filed for protection from its creditors in May.
There are now 545 Red Lobster restaurants in 44 U.S. states and four Canadian provinces. The company is now led by its new chief executive officer, Damola Adamolekun, former CEO of P.F. Chang’s, who replaces Jonathan Tibus, the restructuring expert who Red Lobster hired in March to shepherd it through its bankruptcy.
"Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history," Adamolekun said in a statement. "From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I've been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant – and as I've prepared to step into the role of CEO, I've met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit."
Olive Garden to pilot Darden third-party delivery with Uber
Darden Restaurants Inc. has signed a multi-year delivery partnership with Uber Direct to begin with Olive Garden in late 2024, the companies said Thursday.
The Orlando, Fla.-based casual-dining company, which had been slow to enter the third-party delivery market, said the initial delivery pilot would start from a limited number of Olive Garden locations.
“Upon the completion of a successful pilot, national expansion at Olive Garden is expected to be complete by May 2025,” the company said in a statement.
Once live, customers will be able to order delivery through Olive Garden’s website and smartphone app at more than 900 company-owned locations across the United States, Darden said.
“Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience,” Rick Cardenas, Darden president and CEO, said in a statement.
What to know before raising capital to grow
In this episode of Take-Away with Sam Oches, Sam talks with Andrew Smith, cofounder and managing partner of Savory Fund, a Utah-based private equity firm that counts 10 emerging restaurant brands in its portfolio.
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