How tariffs will affect restaurant equipment costs
How will tariffs affect restaurants?This week’s episode of A Deeper Dive features Neal Sherman, the founder of the used equipment company Tagex Brands.President Trump dramatically escalated the tariff rate on imported goods to an average of 27%, according to the Budget Lab at Yale.That’s expected to have an impact on restaurants. Most restaurant chains source the bulk of their food from within the U.S., but equipment purchases could be another matter.We spoke with Sherman at the Restaurant Leadership Conference. Sherman's company, which operates a secondary market for restaurant equipment, is expected to be a beneficiary as rising equipment costs lead operators to search for better deals. We discuss the potential demand for used equipment as tariffs take hold. We also talk about the state of the restaurant industry and what a difficult economy could do to consumer demand. We’re talking tariffs on the podcast so check it out.
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26:09
A deep look at Chili's marketing
How does Chili’s keep doing this?This week’s episode of the Restaurant Business finance podcast A Deeper Dive features George Felix, the chief marketing officer for Chili’s parent company Brinker International.We spoke with Felix at the Restaurant Leadership Conference. We wanted to talk about Chili’s marketing, and how it’s taken advantage of social media to draw attention to the brand. The chain’s same-store sales have increased more than 31% each of the past two quarters despite a brutal market for full-service chains.Felix talks about the way Chili’s took advantage of consumer frustration over high fast-food prices and he details the company’s thinking as it elevated one of its long-time offers. He also talks about social media in general and how the company recognized consumer affinity for cheese pulls. And he talks about the company’s Lifetime movie.We’re talking Chili’s and marketing on A Deeper Dive so check it out.
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28:40
How Sbarro survived, and thrived, after 2 bankruptcy filings
How do you teach an old pizza chain new tricks?This week’s episode of the Restaurant Business podcast A Deeper Dive features David Karam, the CEO of the pizza chain Sbarro.The pizza chain was founded in 1956 and for years thrived inside mall locations. But the company took on too much debt and filed for bankruptcy twice after the Great Recession. We wanted to talk with Karam to understand what Sbarro did to survive those two bankruptcies. Karam took over the chain between the two filings and has led the it ever since and now owns the concept. Sbarro just opened its 800th restaurant and has found new life in places like convenience stores and airports as well as international markets.Karam discusses these plans and provides insight into how the company was able to find a life past bankruptcy.
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24:09
A look into the Top 500 chain restaurants
How did restaurants do in 2024?This week’s episode of the Restaurant Business podcast A Deeper Dive is all about the Technomic Top 500 Chain Restaurant Report.Kevin Schimpf, senior director of industry research at Restaurant Business sister company Technomic, joins the episode to talk about the ranking. The restaurant industry did not have a great year in 2024 if you look at the overall numbers. Kevin and I talk about that and why restaurants didn’t do as well.We also talk about what sectors did well and what did not. Hint: It’s more menu based than anything else. We talk about the shift from some concepts to others and from some menu types to others and what it means for the future of the industry. We talk about Texas Roadhouse, McDonald’s, Starbucks, KFC, Raising Cane’s, Chick-fil-A and others. And also what sector should not exist.We’re talking Top 500 on A Deeper Dive, so please check it out.
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29:56
How the Hooters and TGI Fridays bankruptcies will disrupt the credit markets
How will the bankruptcy filings of TGI Fridays and Hooters affect the market for securitizations?This week’s episode of the Restaurant Business podcast A Deeper Dive features Ed Cerullo, a credit analyst with Octus, to talk about whole business securitizations and the potential impact those bankruptcies can have on the market. Whole business securitizations use a company’s cash-generating assets to back bonds. Cerullo helps explain how they work, and why they’ve been so popular in the restaurant industry over the past 15-plus years. TGI Fridays was the first bankruptcy of a restaurant chain that used a whole business securitization, and Hooters was the second. Fridays also has the distinction of having lost control of its assets, the first time that had happened in any industry in 15 years. Both were risky investments, however, at the time they went to the securitization market. Cerullo and I talk about that, and whether the investments properly denoted the risks those companies presented at the time. We talk about whether the securitizations promoted this risk, and what the impact will be on the market going forward.
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