How is El Pollo Loco giving customers value without giving up profits?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Liz Williams, CEO of the fast-food chicken chain. 

El Pollo Loco just reported a decline in same-store sales with an increase in traffic and restaurant-level profits. Generally speaking when customers pay less per order it’s hard to generate profit growth. Williams explains how the company did this.

But we talk about a lot of other things, including the company’s development strategy—it just opened its 500th restaurant—and the difficulty of operating in California, especially these days.

We also talk about the chain’s plan for beverages and why that’s a huge opportunity. And the company is testing a couple of intriguing chicken products. 

This is a great conversation with Liz Williams so please check it out. 

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.  

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. 

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. 

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. 

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.

Are restaurants missing a key opportunity on delivery?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Cameron Watt, the CEO of secret shopper firm Intouch Insight.

Intouch recently completed an exclusive study on delivery for Restaurant Business and we’re chatting about some of the conclusions. We caught up with Cameron at the recently concluded FSTEC conference.

The study featured some fascinating results. For one thing, first-party delivery on average isn’t much better, performance-wise, than it is ordering from third-party delivery companies themselves. That may be a missed opportunity for restaurants. Cameron and I talk about that.

We also talk about the growing influence of third-party delivery companies and the overall results from the study. And we talked about what restaurant companies can do to improve the delivery experience for customers. 

We’re talking delivery on A Deeper Dive so please check it out.

Why is McDonald’s taking on the tip credit? 

This week’s episode of the Restaurant Business podcast A Deeper Dive takes a hard look at the fast-food giant’s stand on the tip credit, which enables businesses to pay a subminimum wage to tipped workers, so long as the tips make up the difference. 

We feature three guests on this podcast: Saru Jayaraman, the president and cofounder of the labor advocacy group One Fair Wage; Martin Murch, an independent restaurant operator out of Chicago, and Joe Kefauver, managing partner of Align Public Strategies and cohost of the Working Lunch podcast. 

(Working Lunch also looked at the topic last week.)

We examine the tip credit, why McDonald’s and labor groups are against the wage and why many full-service restaurants believe they need it to remain in business. We also examine McDonald’s strategy in taking the topic on, and why it would choose to leave the National Restaurant Association over the issue. We also examine whether it really does give full-service restaurants an advantage. 

We’re taking on the tip credit on A Deeper Dive so check it out.

What is the country’s fifth largest pizza concept doing to expand its reach?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Tom Brennan, the chief merchandising officer for the Iowa-based convenience-store chain Casey’s.

That is right. Casey’s is the fifth-largest pizza concept in the U.S., at least based on sales. 

This is a fascinating conversation with a top executive of a company that is a growing competitor with a number of different restaurant chains, including much of the pizza business. 

We talk about that pizza business and how it became so vital to the company. Casey’s has been generating strong pizza sales this year even as fast-food pizza chains have been stagnant. Tom explains the company’s secret.

We also talk about the company’s broader foray into the food business and we also talk about beverages and how Casey’s plans to improve its sales in that area. 

We’re talking convenience store pizza on A Deeper Dive so please check it out. 

Why are some restaurants having such a tough time this year?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Chad Moutray, the chief economist for the National Restaurant Association. 

We wanted to talk with Chad for two big reasons: First, the association published its data abstract on the restaurant industry, which shows some surprisingly low profitability for both full-service and limited-service restaurants. 

We talk about why restaurants are less profitable today compared with before the pandemic.

But we also talk about the economy and why it’s so unfriendly to fast-food restaurants in particular. 

Many fast-food chains are seeing weak traffic, which has some speculating that lower-income consumers are cutting back. Moutray helps clear that up.

We’re talking about the restaurant economy on A Deeper Dive so please check it out.

What is Todd Penegor doing at Papa Johns?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Todd Penegor, who has been CEO of the Atlanta-based pizza chain for just over a year. 

This is a great conversation. Penegor has helped Papa Johns regain sales momentum during a particularly difficult time, both for the sector and the fast-food business in general. The company has done this through a variety of means. 

We talk about the company’s focus on its core pizza. Todd talks about that effort, and he gives some hints at what may be coming. 

We talk about technology, including artificial intelligence, and the work being done on that front. We talk about loyalty. And we talk extensively about third-party delivery, and how Papa Johns can maintain its first-party service even as aggregators take more delivery business away.

We also talk about marketing, and especially local marketing. Papa Johns has worked to shift marketing back to local after moving that spending nationally under the previous management.

We’re talking pizza on A Deeper Dive so please check it out.

How are franchisees dealing with the current operating environment?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Raj Patel, a multi-brand franchisee out of the Chicago area. 

Patel’s group operates nearly 100 Dunkin’ locations and a number of Dave’s Hot Chicken restaurants, among others. We wanted to talk with him to get a franchisee’s perspective of the current environment. 

He provides some insight from a franchisee’s view of both those brands and why they are doing really well right now. What makes those brands tick?

We also talk extensively about development strategies. Patel provides some interesting insight into competition for restaurant real estate right now. He talks about what sites cost more, whether drive-thru-only locations make any sense and the best time to walk away from a potential location.

We’re talking restaurant development and franchising on A Deeper Dive so please check it out. 

What kind of technology are restaurant companies looking for?

This week’s episode of A Deeper Dive features Juan George, a former Olo executive and cofounder of 858 Partners, which connects restaurants with technology companies.

Technology remains a key area of investment for a lot of companies. We were interested in hearing from George about what companies are looking for. He does not disappoint on that front. 

We also talk about a lot of other stuff, including the state of technology mergers and acquisitions and why there is so much consolidation in that sector right now. Restaurant tech firms were getting massive, often ridiculous valuations a few years ago. 

We also talk about what will happen with Olo as a private company.

We’re talking Tech on A Deeper Dive so please check it out. 

Zaxbys is ready to fulfill its destiny.

This week’s episode of the Restaurant Business podcast A Deeper Dive features a discussion with Bernard Acoca, the CEO of the fast-casual chicken chain.

Acoca was hired as CEO three years ago and was the first non-founder to lead the Atlanta-based chain.

He has spent that time “bunkering” and working to fix the brand’s operations. Now he’s ready to talk and agreed to come on the podcast to detail everything being done at Zaxbys over that time. 

Zaxbys has what it takes to be a major player in the chicken business but its sales have not reflected that more recently. System sales grew just more than 4%, according to Technomic, well under rivals like Raising Cane’s and Dave’s Hot Chicken. We talk about why that is.

We also talk about new management, unit economics, drive-thru speed, digital sales and, because it’s 2025, AI. 

We’re talking Zaxbys on the podcast this week, so check it out.

How does a restaurant chain go from parking lot startup to $1 billion valuation in less than a decade?

This week’s episode of A Deeper Dive focuses on the recent sale of Dave’s Hot Chicken to Roark Capital. It features the fast-casual chain’s CFO, James McGehee, and SVP of Finance Scott Putman. 

Dave’s Hot Chicken was founded in a Los Angeles parking lot—yes, a parking lot—by four friends in 2017. 

They got favorable local reviews and the concept took off. It brought in investors and professional management and took advantage of a consumer that wants a lot more chicken and spicier options. 

Dave’s has been one of the fastest-growing restaurant chains in the U.S. over the past several years, including nearly 60% system sales growth last year, according to Technomic. And it earned the company a $1 billion sale to the private-equity firm Roark Capital.

While some industries such as technology can reach $1 billion valuations in a hurry that kind of growth is nearly unheard of in the restaurant space. 

We explore exactly how a company can achieve that kind of success, that quickly. Check it out. 

Why doesn’t Handel’s Homemade Ice cream have an app?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Jennifer Schuler, CEO of the Ohio-based Handel’s Homemade Ice Cream.

This is a great conversation. Handel’s was founded in Youngstown Ohio in 1945. It has been franchising for decades. But it has taken off last year—sales rose 38%.

Schuler was named CEO early last year and we wanted to talk with her about the brand and its strategies. 

We talk about the chain’s extensive menu of ice cream flavors and how it trains franchisees to make that ice cream on site. 

We also talk about the need for hospitality in that business and specifically why that chain doesn’t have its own mobile app. We also talk about why brands thrive when they focus more on hospitality. 

We’re talking ice cream on A Deeper Dive so please check it out. 

Why is La Madeleine adding more fireplaces? 

This week’s episode of the Restaurant Business podcast A Deeper Dive features John Dillon, CEO of the Dallas-based fast-casual chain La Madeleine. 

This is the last in our series of podcast episodes recorded during the National Restaurant Show in May. 

La Madeleine operates 91 locations, mostly across the South. Dillion was named CEO of the chain earlier this year.

He talks about the need for more hospitality and in-store business in the restaurants, which is increasingly vital these days. That’s why the company has decided to ensure all new restaurants have fireplaces. 

We talk about Dillon’s history with the brand, his reaction when he got the job, the music in the dining room and the French lessons in the bathroom. We also talk about value and numerous other topics.

We’re talking French lessons on A Deeper Dive so please check it out. 

How does a 106-year-old brand keep customers coming back? By tapping into nostalgia.

This week’s episode of the Restaurant Business podcast A Deeper Dive features A&W CEO Betsy Schmandt. 

This is the latest in our series of podcasts recorded during the National Restaurant show.

This is a great conversation. We wanted to get to know Betsy, who was named chief executive of the chain earlier this year.

A&W was founded in 1919, making it one of the oldest restaurant chains in the country. Betsy talks about that history and we talk about some of the memories we’ve had visiting the concept growing up. Schmandt discusses why that works for the brand and how the company plans to tap into consumer nostalgia.  

We also talk extensively about hospitality and why consumers today expect a lot more from their restaurants—and what A&W is doing about it. We also talk about the chain’s history of drive-ins and we talk about ways the company is adding technology into its restaurants. Betsy reveals a few things in that part of the conversation. 

We’re talking A&W on A Deeper Dive so please check it out. 

What’s the story behind the growth chain Mo’Bettahs?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Rob Ertmann, the CEO of the fast-growing Hawaiian-style chain Mo’Bettahs.

This is the latest in our series of podcast episodes recorded at the National Restaurant Show in May. 

We wanted to talk with Ertmann to get the story behind Mo’Bettahs, which is one of the industry’s more fascinating growth concepts. The company grew system sales 30% last year, according to Technomic.

We talked about the chain’s history and how it’s been able to fund its growth. We talk about growth plans and what kind of barriers are standing in the way of that growth. We also touch on a variety of other topics, including tariffs, traffic, portion sizes and what’s popular today.

It’s a wide-ranging episode on the podcast this week so check it out.

How do you take a 56-year-old brand into the future?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Heather Neary, the CEO of the fast-food Mexican chain Taco John’s.

This is our latest in a series of podcast episodes recorded from the National Restaurant Show in May.

Neary took over as CEO of Taco John’s last year. We speak with her about what she’s done over the past year-plus on the job.

We were particularly interested in the company’s technology initiatives, including its voice-activated drive-thru AI test. We talk with Neary about how well it works, how it benefits Taco John’s and what the company does with the labor that no longer has to take orders.

Neary discusses the company’s franchising strategy and its expansion plans. She also talks about the chain’s menu development efforts.

We’re talking tacos on A Deeper Dive so please check it out.