Celebrate with Us on the Eve of the 2024 National Restaurant Show in Chicago - May 17 @ 5:00 pm!


RSVP to Save Your Spot at DMA's Invite-Only Celebration!

We are back on the rooftop!

We've expanded the footprint at the Old Post Office to ensure we have both the indoor and rooftop spaces available and expect more than 800 attendees. This event is a one-of-a-kind chance to network and celebrate chains in Chicago on the eve of the National Restaurant Show. View 2023's highlight video here to see what it's all about!

  • Reconnect with your peers from great operators all over the country.
  • Meet the leadership of DMA member distributors.
  • Celebrate safely at a unique rooftop venue - the refurbished Old Post Office!

All chain operators attend free of charge. If you are interested in becoming a supplier sponsor or DMA Partner Supplier, please email Charley today to learn more.

RSVP today!


Understanding Gen Z's ‘Menu Anxiety'

Gen Z reportedly suffers from "menu anxiety," and some young people are scared to order their own food at restaurants, according to a study by Prezzo Italian Restaurant.

The idea of paralyzing menu anxiety may be something of a misnomer; as a recent story from Business Insider points out that menu anxiety may have largely been triggered by the cost of meals; food inflation has receded from where it was a year ago, but not by that much.

Instead, the performative aspect of today's high-tech, instantly gratified consumer lifestyle may be more to blame, as the study of 2,000 British individuals illustrates. Over 400 years ago, Shakespeare wrote, "All the world's a stage / And all the men and women merely players" in As You Like It, and for the generation that grew up with chirping mobile phones in their pockets and the specter of social media haunting the most formative years of their lives, those words hold renewed import for all the influencers, followers, and businesses who benefit – or bend – under their collective eyes (and likes, and shares, and upvotes).

"External pressures have a significant impact on how Gen Z interacts with food and they're more likely than other generations to feel pressure to eat a certain way to show that they're healthy (60%), care about the environment (51%) and care about certain political issues (48%)," said Jimmy Szczepanek, managing director of food at Ketchum, to The Food Institute.

Szczepanek added that as many as 25% of Gen Z feel pressure about their food choices from people on social media whom they've never met – nor have any real business with – in real life. Over 66% feel like their eating patterns are wrong, and "[Gen Z] is more likely than any other generation to attribute negative emotions and less likely to attribute positive emotions to food."

Gen Z & Food's Relationship Status: It's Complicated

"The first thing to remember is that Gen Z is the first fully digital generation," said Cedar Roach, Gen Z communication expert at Arvo PR & Executive Communications (and a member of Gen Z herself).

"Gen Z deals with constant information overload since we are constantly fed new information," she added. "As a result, Gen Z suffers from what's been coined as ‘decision fatigue,' with about 48% feeling anxious most of the time as a result. So ‘menu anxiety' is simply the manifestation of Gen Z's overall ‘decision fatigue.'"

To help combat this, Roach recommends that restaurants limit menu choices, use concise menu descriptions, and provide visual engagement; "As a digital generation, Gen Z has a notoriously low attention span, so having visually engaging menus is important to keep [them] engaged and limit ‘menu anxiety.'"

"Some consumers may like to browse, but more often they demand relevancy," said Ori Bauer, CEO of Dynamic Yield, a data personalization company previously owned by McDonald's and now operated by Mastercard.

"With overwhelming amounts of digital noise and stiff competition for wallet share, consumers are more likely to engage with a brand that delivers relevant, convenient, and engaging experiences across channels," Bauer added.

To further frame this notion, brand strategist and founder of Motif Brands Reilly Newman referred to a well-known player in the American foodscape – In-N-Out Burger – in his comments to The Food Institute.

"Consider the In-N-Out menu, where options are simply numbered #1, #2, or #3, compared to a complex French restaurant where the decision-maker might struggle to pronounce the names of the dishes," he said. "Even if an elevated experience is desired, it can still create a rather frustrating experience for the consumer."

Clear Communication is Key

Chris Schneider has over two decades of hospitality experience and is creator of The Bar Business Coach, a restaurant consultancy. Schneider said much of today's perceived menu anxiety is really out of the control of operators, though training and industry cues can help operators usher menu-torn patrons through their offerings and offer a more enjoyable experience.

"While it is impossible for a bar or restaurant to control the psychological state of our patrons, it is possible to provide an experience that minimizes friction points that make the guests nervous," he told FI. "The main two areas where we can improve the guest experience are in our menu design and standards of service.

"Smaller, simpler, one- or two-page menus make it much easier for a guest to see all the available options at once," he added, noting that menus need to be well organized into clear, concise categories. He also recommended not getting too cute with cuisine or drink names that fail to convey what they are – while it can be enjoyable to have a menu named after a different area of the neighborhood, for example, or after local musicians, authors, or celebrities, "those names do nothing to convey the dish to your guests."

"We need to have conversations with our guests, ask them if they have questions about the menu, and give them time to decide, not rush them into a quick choice that will hurt their overall experience just so a table can be turned a few minutes quicker," he concluded, and those conversations need to be driven by deliberate training to help a bar or restaurant's staff guide patrons through the menu.

Despite the contemporary thrill of being offered what you know you'll enjoy, Newman also points out one aspect often neglected by restaurant and retail technology – spontaneity.

"If all loyalty programs and data focus on delivering a customized experience based on my past interactions, then the predictive error of my future choices becomes that of randomness," he explained.

"Humans are irrational creatures, and past performance never guarantees future results. By allowing individuals to browse and explore, we encourage a more curious experience that adds value...when we browse and discover, there is a sense of pride in our choices. Allowing this freedom empowers the consumer to discover a new favorite, or perhaps the simple pleasure of autonomy is enough to entice them to return."

Gen Z can certainly be forgiven for merely bearing the technological and social circumstances of the world they've inherited; every generation before and since has endured the same. "What is past is prologue," Shakespeare warned in The Tempest, and at the rate technology and the food/bev industry continues to evolve, menu anxiety may be yet another passing blip on the map of today's culture and formidable foodscape – that is, until Gen Alpha comes of age.

Uneasy lies the head that wears a crown, after all – especially in today's economy. Food Institute Focus

Preparing for Launch: CosMc's and the Next Wave of Beverage Chains

Much has been made of McDonald's CosMc's concept in the months since its debut. Social media is rife with brand-happy consumers checking it out for the first time, documenting their journeys via TikTok and YouTube and allowing themselves the rare opportunity to be surprised in the QSR world.

As the calendar turns to 2024 – and as McDonald's targets the likes of Starbucks, Caribou Coffee, Panera, and other afternoon daypart and snack/bev-forward establishments in its galactic crosshairs – other competitors are vying for market share, trying to wrest precious dollars away from the Golden Arches and into their own coffee-stained coffers.

The Food Institute recently sat down with Sam Vise, CEO at Optimum Retailing, to discuss the emergent CosMcVerse and today's QSR foodscape.

The Grimace Shake was one of the top Google searches all year, helped fuel McDonald's Q3 numbers, and was a marketing boon for the Golden Arches. Is this return to previous brand ambassadors a passing fad or a way forward?

CosMc's is playing into the nostalgia theme that McDonald's has been teasing all year with the Grimace Shake and the re-introduction of the Nug Buddies. Even looking at the drive-thru-only style of service, it's reminiscent of carhop service popularized in the 50s when servers would rollerskate food out. McDonald's is bringing out a lot of historical themes in its marketing strategy and it's a brilliant way to revitalize the brand to a new audience.

McDonald's is calling CosMc's a "beverage-forward" establishment for a quick bite or pick-me-up. Do you see this as a viable competitor to Starbucks and other coffee shops?

CosMc's will be a viable competitor to beverage shops with comparable price points and service such as Dunkin' Donuts and specialty beverage shops, which are growing in popularity. The soda industry isn't as strong as it used to be, prompting brands to create alternative beverages and shops that are still fun to drink – bubble tea shops, for example.

CosMc's has strong potential to take a share of customers looking to enjoy a refreshing, sweet beverage, especially given its ability to offer value and convenience among competitors. Despite talk of CosMc's competing with Starbucks, CosMc's pricing and business model structure are very different, which makes them unlikely competitors in the long-run.

We also read recently that Taco Bell is debuting two frozen beverage menu options called Chillers. Are these direct challenges to one another as both brands plan for explosive growth in the next few years?

The popularity of iced coffees and beverages overall are increasing and QSR brands are adapting their offerings in response to the change. Cold beverages made up 75 percent of Starbucks's total drink sales in the company's fiscal third-quarter results, which is telling about consumers' preferences for cold drinks. Gen Z is drinking more cold beverages and making less coffee at home compared to previous generations. Brands are focused on what's popular now, which is cold and enticing-looking beverages. While the release of Taco Bell's new Chiller may not be a direct response to CosMc's, the beverage industry is changing.

What can Optimum Retailing tell us about the Illinois and Texas sites? How do you see those differing?

Being that CosMc's Illinois location is a pilot site, it's hard to say exactly how the Texas locations will look. McDonald's leadership will keep a close eye on what's working during the trial phase and make adjustments based on successes and failures. Their purpose in choosing Texas is likely because the region is so different from Illinois; the format and menu offerings will probably be identical initially to see how Texas-based customers respond, and McDonald's might experiment with localization further down the line when the baseline concept proves to be successful.

The average American store is shrinking; many fast-food restaurants are smaller and leaning on digital orders, delivery, and pickup instead of sit-down, and consumers are more brand-agnostic than ever. Where will CosMc's fit on this spectrum between inviting people into one of the most familiar brands in the world, and catering to today's convenience- and value-oriented consumer?

McDonald's is creating an environment that is experience-forward, convenient, and fits into the lifestyle needs of modern consumers. The concept has bold, fun elements that create memorable experiences, all while being quick and convenient to visit. We're seeing people move away from strictly dining in at restaurants, and many brands are embracing the "phygital" experience of blending in-person interaction with digital touchpoints. McDonald's is noting these shifts in consumer behavior and creating a separate, forward-looking brand that is meeting diners where they are.

Do you see any other market responses from McDonald's competitors, or is it too early in the game for that?

McDonald's competitors are paying attention and will likely introduce variations of their own creative concepts. Competitors probably won't mimic CosMc's strategy directly, but brands will be thinking strategically about store formatting and menu offerings. QSR brands have already been innovating tremendously this year alone when it comes to store formats and in the drive-thru. Chick-fil-A is piloting its drive-thru only locations in 2024 and Taco Bell is focused on cantina and digital-forward location expansion, to name a few. CosMc's is another example of what strategic brands that know their customers' needs and preferences are doing to adapt. Competitors who want to stay relevant will follow suit.

Does anything else bear mentioning McDonald's, CosMc's, the snacking/coffee crowd, and what's in store next in this wild sector of restaurant/foodbev?

For CosMc's to be successful with this concept, it's important McDonald's is willing to pivot to support customers' needs. They're starting off with big, bold branding, but it'll be critical for them to carefully assess the market response early on and make changes based on that.

In terms of the beverage industry overall, this is a very smart play for McDonald's and other brands will follow. Cold drinks overall don't travel well so by offering them, brands are forcing consumers to come to the restaurants and drink them soon afterward. Restaurants benefit more by getting consumers in-store, but third-party delivery apps and an increased standard of convenience have made that more difficult. Offering cold, quick service and fun beverages checks all the boxes of what customers want – making it a win-win for both parties. Food Institute Focus

Global Cuisines, LTOs to Feature Prominently for Foodservice in 2024

The foodservice industry has endured its fair share of turbulence since the pandemic, but where will things go for the industry in 2024?

Lizzy Freier, Director, Menu Research & Insights at Technomic, joined The Food Institute Podcast to discuss how the industry fared in 2023 and notable trends to watch for in the new year.

Foodservice Traffic and Consumer Behavior in 2023

Freier highlighted the challenging landscape for restaurants in 2023, with a modest 1% improvement in consumer traffic among major U.S. chain restaurants. The economic environment, plagued by inflation, significantly influenced consumer behavior. This resulted in a shift where limited-service restaurants outperformed full-service counterparts due to pricing dynamics.

Limited-service restaurants faced challenges as certain fast-casual outlets raised prices higher than some casual dining establishments. Consumers responded by being less inclined to substitute full-service occasions with quick-service orders, leading to an overall decline in foodservice visits.

The number of consumers reporting no visits within the past week increased to approximately 30%, reminiscent of the pandemic months.

The Evolution of Off-Premise Dining and Dayparts

The landscape for off-premise dining transformed in 2023. While third-party delivery services witnessed a decline in weekday orders, the trend remained stable for dine-in experiences. Consumers, reacting to the high prices of third-party deliveries and additional costs for dining in, expressed a preference for takeout and direct delivery, signaling a shift in consumer behavior patterns.

Dayparts also underwent notable changes. Breakfast and brunch occasions observed a rise, presenting themselves as more affordable options for consumers. Conversely, dinner became more of a planned and experiential event due to decreased spontaneous visits. Consumers seemed to view dinner outings as occasions that required planning due to the overall rise in prices across the industry.

The Rise of Global Cuisines and Limited Time Offers

A significant surge in limited-time offers (LTOs) characterized the foodservice landscape in 2023, showcasing a 45% increase in launches over five years. McDonald’s celebrity-backed meals and LTOs, including the BTS meal and the Grimace Shake, utilized social media to generate hype and drive foot traffic.

Simultaneously, international cuisines like West African, Ethiopian, Caribbean, and Middle Eastern flavors gained prominence. Independent and emerging chain restaurants embraced these flavors, demonstrating an upward trend in menu offerings that catered to diverse palates.

The 2024 Foodservice Outlook – Personalization, Customization & Authenticity Anticipating trends for 2024, the focus will be on transparency and authenticity in menu offerings. Menus are expected to become more granular, highlighting ingredient varietals, origins, and influences to emphasize quality and premiumization. This trend aligns with evolving consumer demand for genuine experiences and ties into the rise of international cuisines.

In the coming year, personalized and customizable formats are expected to gain traction, catering to consumers seeking diverse culinary experiences. The ongoing shift in consumer preferences, the transformation of dayparts, and the integration of global cuisines are poised to continue shaping the landscape of the foodservice industry in 2024, fostering innovation and consumer engagement. Food Institute Focus

Sip on the latest beverage trends for your events. Spoiler alert: It's not your father's drink menu. Read here!

Store News:

Burger King's parent company—Restaurant Brands International Inc. (RBI)—intends to purchase the largest U.S. franchisee for about $1 billion in cash in a bid to fast-track an overhaul of hundreds of locations and win back customers. RBI expects to complete its acquisition of Carrols Restaurant Group Inc. by Q2 2024 and plans to spend another $500 million to remodel 600 of Carrols' Burger King locations, reported Bloomberg (Jan. 16). Full Story

White Castle will again host its annual Valentine's Day Dinner—a tradition that started in 1991—on Feb. 14 from 4 to 9 p.m. Reservations will be accepted at more than 300 participating Castles at OpenTable.com. Full Story

The Chuck E. Cheese eatertainment chain, which is reportedly exploring a sale, is adding more adult dishes to its menu, such as Saucy Meatballs and Spicy Hawaiian pizza topped with sweet chili sauce and jalapenos, reported Restaurant Business (Dec. 18). Full Story

In-N-Out has added two new beverages, Lite Pink Lemonade and Cherry Coke, as the fast-food beverage market becomes increasingly competitive, reported Restaurant Business (Dec. 21). Full Story

How did McDonald's get its groove back? By leaning into nostalgia. McDonald's chief marketing and customer experience officer Tariq Hassan said, "We lost our connection with the customer" a few years ago; since then, the brand has been focusing on culture and connection to re-engage with its consumers, resulting in merchandise collaborations, Adult Happy Meals, and more, reported CNBC (Dec. 26). Full Story

California Pizza Hut franchises are planning delivery driver layoffs ahead of a new minimum wage increase. Notices have been filed by several Pizza Hut operators in accordance with the Worker Adjustment and Retraining Notification Act, reported RetailWire (Dec. 26). Full Story

Tropical Smoothie Cafe is planning a $2 billion sale. The sale of the Atlanta-based chain is the latest sign of growing interest in restaurant mergers and acquisitions. Tropical Smoothie is one of the restaurant industry's top-performing chains with 22% system sales growth over the past five years, nearly double the average for quick-service beverage concepts, reported Restaurant Business (Dec. 21). Full Story

Starbucks is adding two new egg dishes to its menu in a bid to boost its $3 billion food business. The chain will add a chicken, maple butter, and egg sandwich to its permanent menu starting this week, as well as a potato, cheddar, and chive bake, reported Bloomberg (Jan. 3). Full Story

Meanwhile, Starbucks now accepts personal cups for drive-thru and mobile orders. The decision follows the company's efforts to expand the availability of reusable cups and foster more sustainable practices. Participation in licensed stores (such as those in supermarkets) may vary, reported Progressive Grocer (Jan. 4). Full Story

Sonic has released its first LTOs of the year – a peanut butter bacon double cheeseburger and peanut butter bacon shake. Full Story

Brazilian acai chain Oakberry has raised $67 million to help fuel its U.S. expansion. The quick-service bowl-and-smoothie chain said it plans to have more than 200 stores in the U.S. by 2026, reported Restaurant Business (Jan. 2). Full Story

TGI Friday's will close 36 stores and sell more to Ray Blanchette, CEO of the chain, who will operate them as franchises. Blanchette called this phase an "era of transformation." The closed stores are scattered across the country and financial details were not disclosed, reported Restaurant Business (Jan. 3). Full Story

Blank Street Coffee was founded in 2020 and has already grown to over 74 units on the East Coast and in London on the strength of its cheaper-than-the-competition subscription coffee program. The store's small footprint and semi-automated espresso machine has found favor with consumers, reported CNBC (Jan. 5). Full Story

Papa John's is planning more marketing, more locations, and is increasing its supply charges. The pizza chain still hasn't recovered from closures in 2017 and 2018 after sales fell in the aftermath of controversial comments from founder John Schnatter, reported Restaurant Business (Jan. 8). Full Story

Taco Bell debuted a new Craving Value Menu, offering 10 items for $3 or less, including options for vegetarians and flexitarians, reported Restaurant Business (Jan. 8). Full Story

Ghost kitchens aren't fully dead; Denny's has signed a 250-unit deal with ghost-kitchen specialist Franklin Junction. The announcement came hours after Denny's released Q4 results; systemwide same-store sales rose 3.5% on the year, reported Restaurant Business (Jan. 9). Full Story

Applebee's is elevating its bar experience with new partnerships and premium options. The restaurant chain created three $9 craft cocktails with Dos Hombres, a mezcal brand owned by actors Aaron Paul and Bryan Cranston, and will also be focusing on Gen Z and younger millennials with zero-proof mocktails, reported Restaurant Business (Jan. 10). Full Story

Meanwhile, Applebee's is offering an exclusive weekly "date night" pass for $200 that includes up to $30 worth of food per week for a whole year. The restaurant stated the date night pass has a value of up to $1,500; a limited number of the passes will go on sale on Monday, Jan. 22 at noon, reported New York Post (Jan. 17). Full Story

Shipley Do-Nuts is poised for major growth. The family-owned doughnut chain of 85 years was sold to a private equity firm in 2021 and now plans to double in size over the next five years, reported Restaurant Business (Jan. 12). Full Story

Jack in the Box has easily outsold its expectations with its new Smashed Jack burger, making twice the expected sales. The burger was two years in development as the chain pushes aggressive new unit growth as CEO Darin Harris said the burger is "hands down one of the best in QSR," reported Restaurant Business (Jan. 9). Full Story

Dave's Hot Chicken has added cauliflower sliders and bites to its menu, marking the first time the chain has expanded its core menu, reported USA Today (Jan. 8). Full Story

Texas-based burger chain Whataburger is working with Morgan Stanley to secure a $340 million leveraged loan. The burger chain plans to use proceeds to buy back preferred equity, a hybrid form of capital that sits between equity and debt, reported Bloomberg (Jan. 10). Full Story

Little Caesars announced Wednesday that it plans to partner with Deliverect to help scale delivery operations. Little Caesars locations will now be able to connect all their third-party delivery channels to their POS system through a single integration. Full Story

Next Level Burger, along with investment fund VegInvest, has acquired Veggie Grill. VegInvest has subsequently joined Next Level Burger as a mission-aligned shareholder. Full Story

Executives on the Move:

Bloomin' Brands named Dave George and Jon Sagal to its board as part of an agreement with Starboard Value, reported The Wall Street Journal (Jan. 2). Full Story

Sodexo named Sebastien de Tramasure as CFO, reported Reuters (Jan. 8). Full Story

The National Restaurant Association has named Jeff Lobdell – president of Restaurant Partners Management – this year's chairman of the board. Meanwhile, the National Restaurant Association Educational Foundation appointed Ohio operator Shaun Beard as its chairman. Full Story

Bonchon's U.S. announced Suzie Tsai as CEO. Full Story


How Will the Red Sea Attacks Affect the Food Industry?

Ongoing attacks on container ships in the Red Sea are causing global shipping carriers, importers, and exporters to reimagine trade routes and merchandising plans in early 2024. That said, how is this evolving dynamic impacting the food industry?

Since mid-November, Houthi militants have been attacking container ships in the Red Sea in response to the war between Israel and Palestine. In response, the U.S., UK, China, and other nations have dispatched naval forces to help safeguard ships making trips between Europe and Asia.

Overview of the Global Shipping Market

While many may immediately think back to pandemic-era supply chain issues, the current situation was unique in regards to a few factors.

"The supply-and-demand that was characterizing the pandemic supply chain disruption has been replaced with the opposite issue: there was more capacity on ships than demand in 2023. Shippers had the upper hand because ocean carriers had more capacity. That's been largely been temporarily erased in the short-term due to the Red Sea attacks," said Michael Murphy, senior director of global supply chain for food importer Camerican International.

Complicating the matter is China's upcoming Lunar New Year Holiday: retailers worldwide are working to stock up on goods ahead of the 15-day holiday, according to a Reuters report. That same report noted many shippers were going around Africa, resulting in approximately $1 million in additional fuel costs per trip. Lars Jensen, CEO and partner of Vespucci Maritime and a long-time global shipping expert, corroborated this figure.

"The low-water problem in the Panama Canal has caused many Asia-to-U.S. East Coast services to be re-routed the longer way through the Suez Canal instead [of the Panama Canal] from November 2023. These now also have to go around Africa," Jensen said in an e-mail to The Food Institute.

Jensen noted the downcycle was set to hit its bottom in 2024, but the attacks and subsequent rerouting of trade routes had changed market dynamics.

"Freight rates from Asia to Europe are rising rapidly with spot rates already having increased 150%. Rates are high, but nowhere near as high as during the pandemic disruptions. Asia-to-U.S. East Coast is also being impacted," said Jensen on Jan. 5.

Impact of Food Supply and Trade

Currently, there does not appear to be any major food supply issues stemming from the attacks, but that could change in the future. As per Jensen, all shipping carriers were being affected, so food products were not immune to the dynamic.

"There are no specific food items that are currently being impacted, but we are preparing for it due to the negative cascading event transferring out to other trade lanes. This affects port congestion and available equipment, so this could slow down trade on trans-Atlantic and trans-Pacific passages in the future, but it remains to be seen," said Murphy.

Jensen said present delays could last between two to three weeks, but believed as routes normalized trips from Asia to Europe around Africa would be reduced between seven and 12 days, depending on the destination port.

In comparison, delays during the pandemic were extended by 40 to 50 days.

Bracing for Future Impacts

Josh Gellert, president of Camerican International, said the global supply chain was at a better place than it had been in years, but there were also additional and possible challenges for importers and exporters in the New Year.

"The international supply chain situation remains very dynamic and fragile. The issues in the Red Sea, Panama Canal, and the threat of East Coast port labor strikes, are all examples of real and potential disruption. Camerican is managing through these issues through forward planning and close coordination with our global supplier partners and logistics providers to ensure on-time and reliable deliveries for our customers," he said in an e-mail to The Food Institute.

Murphy said the industry could work together to help brace against future impacts by ensuring consistent communication between parties.

"Importers and exporters should be prepared to give accurate and timely forecasts. By giving this information to carriers, we can help to avoid some of the supply shocks that can hit the system," he said. Food Institute Focus

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Accelerated November Sales, Traffic Bring Optimism to Restaurants

In November, restaurants saw a comparable sales lift of 1.9% year-over-year, representing the second consecutive month of growth, according to Black Box Intelligence.

Additionally, November's traffic growth (-1.5%) was the third strongest achieved by the industry since February 2022. Traffic was up 0.7 percentage points from October's year-over-year growth.

The best performing region in November was New England; the top performing segment was quick-service, and pizza was the top performing cuisine. Full Story


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