Kitchen United has big plans for expansion of its virtual kitchens across the United States. Delivering a way for restaurants to expand off-premises business, Kitchen United has been opening kitchen centers across the Western United States, and turns its eyes on the Northeast.
Black Box September restaurant sales were slightly positive, reported TDn2K. According to its Black Box sales measurement intelligence data, TDn2K said comparable sales for September grew 0.09 percent from last year. Also, same store traffic decreased 2.96 percent from last year. For the entirety of Q3 2019, restaurants posted a negative comparable sales decline of 0.42 percent, which is not good news. Same store traffic, which has been a weakness for the restaurant industry as a whole, decreased 3.53 percent during the quarter.
In the corporate environment, there’s a push currently to make the c-suite more inclusive. Advocates want to see more women in leadership along with equal and fairer pay. The restaurant industry itself has benefited from female leaders. Many women have risen to the highest ranks and have paved the way for a more diverse landscape. Yet, there’s much more work to be done, particularly in light of the #metoo movement and women banding together to call for such inclusion.
Restaurant Brands International (RBI) announced it had promoted Axel Schwan to Tim Hortons regional president, Canada and U.S. The eight-year executive of RBI served as global chief marketing officer prior to this new role. Continuing to report to Tim Hortons Global Brand President Alex Macedo, Schwan will oversee growth of the business in both countries and deliver on profitability.
The Cheesecake Factory closed its Fox Restaurant Concepts (FRC) acquisition, including Flower Child. It also completed its acquisition of North Italia. The transaction value totaled $308 million paid at closing, matching the amount disclosed earlier. Per the FRC acquisition terms, The Cheesecake Factory will also pay an additional four installments. Split equally, these total $45 million over the next four years.
PFG announced October 1 that it received an inquiry from the Federal Trade Commission (FTC). The request is for additional information related to PFG’s proposed purchase of Reinhart Foodservice. In July, PFG signed an agreement to acquire Reinhart from Reyes Holdings in its bid to become the second-largest publicly-held U.S. foodservice distributor. With these new revenues, PFG would surpass US Foods, currently the number two distributor.
The deadline for three significant restaurant industry awards, organized and hosted by the National Restaurant Educational Foundation (NRAEF) is fast-approaching. The NRAEF will accept applications/nominations for 2020 Faces of Diversity Awards, Ambassador of Hospitality Award and Restaurant Neighborhood Awards until October 7. PepsiCo sponsors the Faces of Diversity Award. It honors individuals in the restaurant industry who have achieved the “American dream through hard work, dedication, and supporting others to do the same.”
Jimmy John Liautaud, founder and chairman, along with its Board, approved Jimmy John’s acquisition by Inspire Brands. The parent of Arby’s, Buffalo Wild Wings, Sonic, and Rusty Taco—Inspire—entered into an agreement to purchase the sandwich chain for an undisclosed amount September 25. A Roark Capital subsidiary, the parent of Arby’s has annual sales totaling more than $14B. Inspire will also become the fourth largest U.S. restaurant company after the Jimmy John’s acquisition closes.
L Catterton has agreed to the Landry’s purchase of Del Frisco’s chains. Landry’s, owned by Tilman Fertitta, will acquire the Del Frisco’s Double Eagle Steakhouses and the Del Frisco’s Grilles for an undisclosed amount. L Catterton just closed its $650M acquisition of the chains, along with Barteca’s restaurant brands, announced back in June. Now, L Catterton is essentially “flipping” the Del Frisco’s chains. The sale to Landry’s does not include (Barteca’s) Barcelona Wine Bar, nor Bartaco, however.
Sweetgreen raised $150M in a new round led by co-led by Lone Pine Capital and D1 Capital Partners. Existing partners also participated to value the company at $1.6B. In November, Sweetgreen raised $200M in a round led by Fidelity Investments. As with the earlier round, the plant-forward fast-casual chain will also use this new capital to further invest in technology, supply chain, the Sweetgreen delivery launch, and social imperatives.
