Why are consumers less responsive to restaurant marketing right now?This week’s episode of the Restaurant Business podcast A Deeper Dive features Robert Byrne, director of consumer and industry insights with Technomic and a regular podcast guest. We wanted to talk with Byrne about the general state of the industry, mostly because we had this question: Why isn’t anything working?Over the past couple of years, restaurant chains have unleashed more promotions at customers than ever before. They are introducing record numbers of limited-time offers. They have more technology. And the number of deals available to consumers is at record levels. Even fast-casual chains that never before had to push lower prices are doing so.Byrne is an expert on consumer behavior and we talk extensively about what is driving consumers away from restaurants. We discuss consumer concerns about inflation and what they’re thinking when they dine out. In short, consumers’ motivation is a lot different than it was not that long ago.It’s a great conversation on this week’s A Deeper Dive so please check it out.
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29:43
Why so many consumers are dining on a deal right now
Why are so many consumers dining on a deal?This week’s episode of the Restaurant Business podcast A Deeper Dive features David Portalatin, SVP and food industry advisor for the data and technology firm Circana.Circana just released a report showing that 29% of consumers are dining on a perceived deal, a historically high percentage. That has also grown over the past couple of years at a rate not seen since the Great Recession.David on the podcast discusses that report and the factors behind consumer budget dining. This is a fascinating conversation. We talk about price increases, the types of deals being run, how that’s changed over the past 15 years and how restaurants can adjust to these issues. This is a major issue affecting all restaurant operators today and could continue to impact them over the coming months.
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23:43
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23:43
Why PJ's Coffee cut hundreds of food items from its menu
Why did PJ’s Coffee dramatically cut back on its menu items?This week’s episode of the Restaurant Business podcast A Deeper Dive features David Mesa, the president of PJ’s Coffee of New Orleans. PJ’s has 200 locations and is growing at a healthy clip. Mesa joins the podcast to talk about the company’s rebranding.PJ’s is leaning into its New Orleans heritage with that rebranding, including its menu. Mesa provides the details but here’s one interesting nugget: The company dramatically pared down the number of food items from “hundreds” to 18. We talk about a wide range of other issues, including the state of the beverage sector, which is growing at a very rapid clip. We talk about how PJ’s fits.We also talk about development and the barriers to growth PJ’s is experiencing, including interest rates and competition.We’re talking coffee and beignets on A Deeper Dive so please check it out.
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27:32
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27:32
The outlook for the restaurant industry the rest of this year
What is the state of the restaurant industry right now?This week’s episode of the Restaurant Business podcast A Deeper Dive features Rich Shank, senior principal with the data firm Technomic.And it’s a really good question. While the stock market continues to thrive and certain segments of the restaurant industry are busy, a lot of other data suggests operators have a lot to worry about right now. Shank talks about how all this affects the restaurant industry. We talk about Technomic’s forecast and why improving results in the summer appear to have given way to more weakness. We talk about why consumers are ordering so many discounts, and how those discounts have changed. We also talk extensively about Starbucks and what’s behind its weakness.This is a great episode on the state of the industry right now so please check it out.
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27:34
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Why a choosy investor opted to invest in a major 7 Brew franchisee
What goes into an investment into one of the country’s fastest growing restaurant brands?This week’s episode of the Restaurant Business podcast A Deeper Dive features Scott Romanoff, the cofounder and co managing partner of Franchise Equity Partners.Franchise Equity Partners is a long-term investor in multi-unit operators of all types and recently made a big investment in 7 Crew, a 50-unit franchisee of the rapidly growing beverage brand 7 Brew. The beverage chain has been one of the fastest-growing restaurant chains in the country. It is also helping to lead a beverage revolution in the restaurant space. We wanted to ask Scott about that investment and about 7 Brew. We discuss the brand and why it was worth the investment. Scott talked about the operator and why its ability to grow locations was so attractive. We also discussed the environment of the past couple of years and why that’s made Franchise Equity Partners more choosy about its investments. We’re talking 7 Brew on A Deeper Dive so please check it out.
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