Has an ordinance to help food delivery drivers hit a pothole? Is a robot recession looming? Which QSR hosted a bridal shower? How do restaurant food prices compare to grocery store prices? Answers to these questions and more This Week in Foodservice.

If you want further proof the future of quick-service restaurants is tech-driven, then take a moment to process some of the latest moves from the likes of Inspire Brands, McDonald’s and Yum! Brands.

Inspire Brands bought Vromo, a delivery software platform, for an undisclosed sum on Monday, per a Restaurant Dive report. This marks Inspire’s first purchase since its $11.3 billion acquisition of Dunkin’ in 2020. Inspire said Vromo can “make delivery channels more profitable.

As part of its growth strategy, McDonald’s continues to prioritize tech as it aims to add 50,000 restaurants by 2027, per a Restaurant Dive story. McDonald’s approach to tech aims to enhance the customer experience, franchise operations and core systems, processes and tools. Yum! Brands stepped up its tech efforts by rolling out more kiosks, enhancing point of sales capabilities and using artificial intelligence and automation, per Restaurant Dive.

Indeed, tech will be a center-of-the-plate option for any QSR chain that wants to grow.

Foodservice News This Week

• Yum! Brands is taking another step to identify future leaders to support its system. The Accelerating Growth executive education programs at the Yum! Center for Global Franchise Excellence will focus on equipping operations leaders to take on senior management roles in franchise organizations, per a company release. The classes will be part of the Yum! Center for Global Franchise Excellence, which has been providing education for aspiring entrepreneurs through the University of Louisville College of Business since 2021. As part of its $100 million global initiative, Yum! Brands will provide more than $800,000 in funding to launch the Accelerating Growth programs, which is in addition to the $3.5 million commitment the company made to launch the Yum! Center for Global Franchise Excellence in 2021. The goal of Yum! Brands’ Unlocking Opportunity Initiative is to create opportunities for education and entrepreneurship for employees, frontline restaurant teams and communities around the world.
• Can Chipotle grow to more than 7,000 units systemwide? CEO Brian Niccol says yes. During a CNBC interview he added, “We view it as a conservative number, and we view it as something that’s very feasible in the long term.” Niccol’s comments come after Chipotle’s fourth quarter earnings came in at $2.52 billion, beating analysts’ projections of $2.49 billion.
• The top three most valuable restaurant brands come from the U.S., per data from Brand Finance, a U.K.-based brand valuation firm. For the eighth consecutive year, Starbucks tops the 2023 list with a valuation of $60.7 billion, a 14% increase from the previous year. McDonald's, brand value up 3% to $38.0 billion, and KFC brand value down 20% to $14.2 billion, come in at second and third place, respectively. American companies account for 19 of the top 25 brands. Asian brands Jollibee and Luckin Coffee showed considerable growth, too.
• If at first you don’t succeed, try, try again? That seems to be the case with the owners of Boston Market. Jay Pandya filed for personal bankruptcy in December, but it was terminated. After losing a lawsuit file by US Foods in recent days, though, he’s seeking debt protection once again, as Restaurant Business reports.
• A Seattle ordinance that sought to pay delivery drivers “a living wage,” seems to be doing more harm than good, per a story from television station K5. Adding a $5 fee to certain third-party delivery orders has led to customers deleting those apps and ordering less. Delivery drivers told K5 they are now sitting out entire dayparts due to a decline in orders. One of the third-party delivery firm projects drivers will get paid $26.40 per hour, plus tips, thanks to the ordinance, which is known as the Pay Up Legislation. A delivery driver counters, reaching that hourly level assumes a driver works constantly during a shift, which appears to no longer be the case.
• Is White Castle synonymous with romance? Perhaps. For years, couples who want to celebrate with sliders can make a reservation at their local White Castle on Valentine’s Day. Now word comes that a couple from Berwyn, Ill., a Chicago suburb, celebrated their 20th wedding anniversary at a White Castle. Their bridal party through the thoughtful celebration, as WGN News reported.

Economic News This Week

• The Consumer Price Index increased 0.3% in January, per the U.S. Bureau of Labor Statistics. This is 0.1% greater than December’s increase. Over the last 12 months, the CPI increased 3.1%, which is greater than the 2.9% most economists had projected, per CNBC. Food at home prices increased 0.4% while food away from home prices increased 0.5%.
• Is there a robot recession looming? The question seems worth asking as American companies ordered roughly 30% fewer robots in 2023, per Reuters. The article cites worries about a slowing economy and higher interest rates as two reasons companies may find it harder to justify the higher price tags that come with these advanced machines. This was the first blip in businesses’ increased use of robots in five years and it comes at a time when robot manufacturers continue to roll out new features and capabilities for this equipment.
• Initial jobless claims decreased 3,000 for the week-ending February 3, 2024, per the S. Department of Labor. The four-week moving average, though, increased by 3,750. The jobs market remains strong and layoffs remain low, as this MarketWatch story explains.
• End-of-the-year consumer credit data offered some mixed results. Consumer credit increased 2.4% in 2023, per the U.S. Federal Reserve. Revolving credit increased 8.4% and nonrevolving credit grew 0.4%. During the fourth quarter, consumer credit increased 2.6%, while in December it increased 0.4%. It’s interesting to note that during the thrust of the holiday season, consumers pulled back on credit, as this U.S. News and World Report story notes. It remains to be seen, though, whether this is a tap on the brakes or a longer-term trend.
• The NFIB Small Business Optimism Index decreased two points in January to 89.9, marking the 25th consecutive month below the 50-year average of 98. The net percentage of owners who expect real sales to be higher declined 12 points from December to a net negative 16%, a negative shift in expectations, er the NFIB. Twenty percent of owners reported that inflation was their single most important problem in operating their business, down three points from last month and one point behind labor quality as the top problem.