Recap of July 21, 2023: In N Out Bans Masks, Poultry Price Fixing Lawsuit, Sales of Spirits Eclipse Beer at Restaurants

Welcome to Restaurant News Roundup, your go-to source for the latest updates and happenings in the restaurant industry. In this special recap article we roundup stories on Toast u-turn on charging a 99-cent delivery fee, Russia-Ukraine conflict drives all-time high wheat prices, Domino’s partners with Uber Eats, and more breaking news. Our mission is to bring you a rapid-fire of the ten top stories covered in under ten minutes. We strive to keep restaurant professionals informed of the current affairs of the industry.

To watch the Videocast of this installment of Restaurant News Roundup, click here

1. Toast Axes 99-Cent Fee by Caitlin Mullen - Restaurant Dive

Toast has reversed course on a recently added 99-cent fee for online orders that was to be paid by consumers. The company said Wednesday it would remove the fee by the end of this week.

The fee had been met with backlash from restaurants and consumers alike. Some saw it as an overstep on Toast's part, to get between a restaurant and its customers.

"We made the wrong decision in adding the 99-cent fee. We understand that this was not how the change was perceived by some of you, and we apologize for any inconvenience it may have caused." - Chris Comparato, CEO of Toast

Question:

Is this a major misstep for Toast that leaves an opening for other POS companies to challenge them?

Article Link: Read More

2. First-Time Distilled Spirits Eclipse Beer in Restaurants by Mandy Ellis - FSR Magazine

According to a recent report from FSR Magazine, the category grew by 20% in 2022, while beer sales only grew by 10%.

The report attributed the growth to a number of factors, including the rise of cocktail culture, and the growing availability of high-quality spirits at a variety of price points.

The report also found that spirits are now being served in a wider variety of restaurants, including casual dining chains, fast-casual restaurants, and even some quick-service restaurants.

Question:

What does this mean for the craft beer scene, which has been shrinking for some time now?

Article Link: Read More

3. Some Massachusetts Restaurants Are OK'd to Accept SNAP Payments by Peter Romeo - Restaurant Business Online

A new law in Massachusetts allows some restaurants to accept SNAP payments, formerly known as food stamps. The law, which was signed by Gov. Charlie Baker, allows restaurants that meet certain criteria to accept SNAP payments for prepared foods.

The criteria include having a seating capacity of at least 10 people, offering a full menu of prepared foods, and being located in a low-income area.

The law is expected to benefit both restaurants and SNAP recipients. Restaurants will be able to attract new customers, and SNAP recipients will have more options for where to use their benefits.

Question:

Do you think other states will follow suit?

Article Link: Read More

4. Domino's, Uber Eats, Postmates Announce New Partnership by Anthony Robledo - USA Today

Domino’s has been a digital first company for quite some time, developing its own online ordering platforms, delivery infrastructure and more to be the premier delivery pizza option in the market. They have had a definitive stance against joining any of the third-party food delivery platforms up until now. 

The announcement of this partnership boosted Domino’s stock value by several percentage points and sales have already shown an upward trajectory. 

Question:

Does this say more about the status of third-party delivery as a mainstay in the restaurant industry or Domino’s own need to continue to fight for market share? 

Article Link: Read More

5. Wheat Prices Soar as Russia-Ukraine Tensions Stoke Food Crisis Fears by Sam Meredith - CNBC

Wheat prices have soared to their highest level in more than a decade after Russia threatened to treat ships heading for Ukrainian ports as military cargo carriers.

It comes shortly after the Kremlin pulled out of the Black Sea Grain Initiative, a critically important wartime deal that provided a maritime humanitarian corridor for the export of Ukrainian grain.

Russia is the world's largest exporter of wheat, and Ukraine is the fifth-largest. If the conflict between the two countries escalates, it could lead to a significant disruption in the global wheat supply.

Question:

Does this create more demand for alternative floors, even cricket flour? 

Article Link: Read More

6. Pilgrim’s Pride facing restored price-fixing accusations By Ryan McCarthy - Meat + Poultry

This latest lawsuit brings up similar allegations that companies and executives were part of a nationwide conspiracy to fix prices and rig bids for broiler chicken products going back as far back as 2008. The allegations included companies coordinating pricing for restaurants, grocery stores and wholesale chicken buyers.

Pilgrim’s Pride entered a plea agreement in October 2020 with the US Department of Justice over charges the poultry processor engaged in a price-fixing scheme and agreed to pay $110.5 million.

Question:

Who has faced ridiculously high chicken prices? Are you concerned this type of practices could be the chase, and affecting other skyrocketed food prices?

Article Link: Read More

7. Tabit Enjoys Symbiotic Relationship with Florida International University by Michal Christine Escobar - Hospitality Tech

Tabit, a Point of sale and restaurant management software company, is enjoying a symbiotic relationship with Florida International University. The company has partnered with the university to provide its software to FIU's hospitality students.

Michael Cheng Dean of Chaplin School of Hospitality at Florida International University - “We cannot run from technology. We have to embrace it. Our learners do best with a kinesthetic approach and need to know how to interact with technology, like Tabit, from the dining room, to the kitchen to reports in the back office.”

Question:

Why aren’t more hospitality tech companies and hospitality-culinary schools teaming up? Tech needs to invest in future industry leaders and schools have long been criticized for their training being antiquated. 

Article Link: Read More

8. Consumers Want Robots Out of Sight and Out of Mind When Eating Out by Pymnts

A new study by Pymnts has found that consumers want robots out of sight and out of mind when eating out. The study, which surveyed over 1,000 consumers, found that only 14% of respondents would be comfortable with a robot taking their order.

The study also found that consumers are more likely to be comfortable with robots performing tasks that are not directly related to customer service, such as cleaning tables or preparing food.

Question:

I’m torn, so I want to hear from you, are you more comfortable with robots serving you food or with preparing your food?

Article Link: Read More

9. Kettner Exchange, Puesto, Tony Hawk to Open New Restaurants at San Diego International Airport by Candice Woo - Eater San Diego

Terminal 1 will include 19 new restaurants across 32,000-square-feet of space as well as an additional 14,000-square-feet of retail.

Novecientos Grados is an all-new restaurant backed by skate legend Tony Hawk that centers around an open kitchen that’ll showcase the Cali-Mex cuisine of chef Claudette Zepeda, the “Top Chef Mexico” alum and James Beard Awards semifinalist.

Question:

Best airport food anywhere in the country or in the world? Let me know where I need to be flying into?

Article Link: Read More

10. In-N-Out Burger Bans Masks in 5 States by BY Madeline Garfinkle - Entrepreneur

In-N-Out Burger has banned masks in five states, including Texas, Colorado, Nevada, Utah, and Arizona.

The company's reasoning, per a memo leaked on social media, is that it wants to highlight the "importance of customer service" and "show Associates' smiles" as well as "other facial features."

Since the memo leaked, the company's social media pages have been flooded with comments from users criticizing the policy. "Talking about 'cleanliness' and 'values' while preventing your employees from wearing protective gear during an ongoing pandemic is hypocrisy at its finest,"

Question:

Are you in support or opposition of this decision by In n Out?

Article Link: Read More

Thanks for joining us for this week's recap from Restaurant News Roundup. We hope these summaries keep you informed about the latest industry updates. Remember to follow along with our fast-paced show every week, where we deliver ten stories in under ten minutes. Fridays at 8am EST on Best Served Podcast Facebook and YouTube pages.