Is America ready for Chizza?

Happy Friday!?

I went long on Tuesday with a piece about the fascinating restaurant company Dodo Brands. Thanks to everyone who took the time to read it (and if you haven’t yet, here’s the link).

As for this email — I promise it won’t be 3,000 words. To the news!

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3 Numbers

199,808

Total number of QSR franchises the International Franchise Association expects to be open in the U.S. by the end of 2024, a 2.2% increase over 2023’s total. That would make QSRs the second-fastest growing industry in all of franchising this year. (No. 1: Personal Services.)

$55 million

Amount Wendy’s plans to spend on breakfast ads over the next two years. The company sees its early-morning daypart as a key incremental sales driver; new CEO Kirk Tanner (bullishly!) said on last week’s earnings call that he believes the marketing push can increase breakfast sales by 50%.

10 million +

Total meals made by Chef Robotics, a food automation startup that’s been in business since June 2022. The company seems to be catching on: It took a year for it to make a million meals, but now it’s churning out a million every two weeks.

What’s In the News

DoorDash is getting pretty close to credibly being called a super-app, which means it generates a lot of news. Here are four recent stories of note:

• The company announced its Q4 earnings last week, beating revenue expectations (rising 27% year-over-year to $2.3 billion), but losing more money than expected ($154 million for the quarter).
• It’s delivering a lot of food (and other stuff) now: 574 million orders in Q4 (a 23% YoY increase).
• Well, everywhere except for Seattle — order volume there has dropped by 30,000, the company says, since it instituted a flat $5 fee to bring delivery driver pay in line with new local regulations. (Driver compensation in the Emerald City is now $26 an hour before tips, plus guaranteed pay for mileage.)
• Finally, here’s a hot new DoorDash scam to look at for.

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Perhaps Poutine Waffle Fries are in our future — Chick-fil-A?announced that it’s expanding its presence in Canada. The company will open three new restaurants in Alberta this year, with plans to open up to 20 in the province by the end of the decade. (The stores will be Chick-fil-A’s first in Canada that are located outside of Ontario.)

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Don’t look now, but KFC is about to release something with true meme potential:

Yes, Chizza. It’s not pizza, it’s Chizza!

Featuring two Extra Crispy filets topped with marinara sauce, mozz, and pepperoni, Chizza is already a bit of an international star, having made KFC menus in Korea, Taiwan, India, Mexico, and the Phillippines — where it originally debuted in 2015 — among other countries.

It hits American menus on Feb. 26.

(You kinda want to try this, right? I think I’m going to be there on Day 1. This feels like the Double Down phenomenon all over again.)

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About that report last week that the Flynn Group is pursuing a sale: CEO Greg Flynn said at a conference that his company is not entertaining bids; instead the mega franchisee is currently undertaking an equity recapitalization.

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The restaurant industry doesn’t give out MVP awards, but Wingstop just had a Shohei Ohtani-level year:

• 18.3% same-store-sales growth
• 255 net new stores
• Average unit volumes are now $1.8 million

Not bad!

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Focus Brands, which owns Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s, Moe’s, and Schlotzsky’s, is rebranding as GoTo Foods. Interestingly, the brand name will be more consumer-facing than those of most restaurant holding companies — expect to see GoTo Foods gift cards and (possibly) catering services.

Name That Chain!

You’ve got three guesses to name this week’s mystery chain:

• The business plan for this chain earned its founder a B- in his college class (the lowest grade given by his professor)
• Later, the founder’s worked on an oil refinery and Alaskan fishing boat to raise the cash to open his first store
• The chain has several stores in the Middle East — its mascot, though, wasn’t included in the expansion

Last week’s answer: Auntie Anne’s

#Content Recs

• 13 minutes of Beard Meets Food eating maybe the largest pizza I’ve ever seen. (A sidenote… I’ve recently gotten some pushback from readers who are “grossed out” by competitive eating videos. All I can say is: these are typically the most clicked-on links in this fine newsletter. And Industry Bites readers are a well-informed bunch. We have no choice but to conclude that these videos are important.)
• Now featured at the new and improved Dave & Buster’s: a 40-foot wall of TVs, more games for groups and… VIP bottle service.
• An illuminating interview with the leaders of Uncommon Brands — a new restaurant holding company targeting emerging concepts with upside.
• Weather continues to have a deeply underrated impact on sales. RB looks at how the industry was affected by a messy January.

‘Member When?!

The year: 1997.

You’ve finally speed-read enough books to earn a BOOK IT! certificate from Pizza Hut. You’re chaperoned to your local Hut and enter its brick-walled dining room. Pizza Hut-branded lamps — nay, chandeliers — hang over red-checkered tablecloths.

You walk past the buffet. You’ll be skipping that today. You’ve earned a free personal pan pizza.

Anyway, here is a comprehensive list of every existing “Pizza Hut Classic” (compiled by hero Rolando Pujol). What is included in the Pizza Hut Classic experience? From Pujol's blog, The Retrologist:

1. The old logo is used in pole signage as well as at the top of the (usually but not always) red-roofed restaurant. The pole sign features the addition of the word “Classic.”
2. The interior features cozy red booths and old-school Pizza Hut lamps.
3. Stickers featuring the long-discarded character Pizza Hut Pete are found on the door.
4. Posters feature classic photos from Pizza Huts of yore.
5. A plaque displays a quote from Pizza Hut co-founder Dan Carney, explaining the concept as a celebration of the brand’s heritage.

Of course, nowadays the staff may be confused when you ask for a free pizza because “you just finished The Wager.” But the rest of the experience should still press all the nostalgia buttons.

Thanks for reading! We’ll be back next Friday with a recap of industry news.

Andy