Domino’s CEO Patrick Doyle Stepping Down

Domino’s CEO Patrick Doyle Stepping Down

After eight years leading the largest U.S pizza chain, Domino’s Pizza CEO Patrick Doyle has announced he will be stepping down on June 30th. Doyle is widely regarded as the leader of a groundbreaking turnaround at Domino’s, as supported by chairman of the board David Brandon.

“Patrick excelled at every role he served at Domino's for more than 20 years, and during the past eight he distinguished himself as one of the best leaders in the restaurant industry,” Brandon said in a statement.

Under Doyle’s leadership, the Ann Arbor, Mich.-based Domino’s opened more than 5,500 stores and launched in more than a dozen new countries.

Domino’s reworked their pizza recipe in 2009 when Doyle was president of the chain, a move that marks the beginning of Domino's rise to the top. Since becoming CEO he has overseen many exciting campaigns such as the world’s first drone pizza delivery and allowing customers to order with a pizza emoji.

When taking on the CEO position in 2010, Doyle had set three goals for himself.

“I wanted us to become the No. 1 pizza company in the world; I wanted Domino’s to provide our franchisees with the best possible return on their investment by creating a dramatically better experience for our customers; and I wanted to have a leadership team in place that would be ready to create even better results into the future. I’m proud to say that we’ve accomplished all of those goals, and I will leave Domino’s knowing that it is in great hands,” said Doyle in a statement.

According to Reuters, shares in Domino’s fell 2.8 percent to $201 in aftermarket trading, following news of Doyle’s pending departure.

Doyle has dismissed rumors that he might move to Chipotle after founder Steve Ells stepped down into the executive chairman role in November and, instead, has shared plans to take a 6-month break to consider his future plans. Richard Allison, president of Domino’s International, will take over as CEO.

Read more about Domino’s new leadership team on “Nation’s Restaurant News.”

Read More

McDonald’s Commits to New Tiered Dollar Menu

McDonald’s Commits to New Tiered Dollar Menu

McDonald’s just launched its new $1 $2 $3 Dollar Menu across the US hoping to win back the nearly 500 million customer visits it says it’s lost since 2012. In addition to the remodeling of established restaurants, updating its menu with items like the buttermilk crispy chicken tenders and rolling out mobile ordering, the new tiered value menu is expected to help the fast food giant bounce back.

And their efforts are already showing some promising results. After a sustained decrease in visits between 2013 and 2016, McDonald’s showed a healthy jump in comparable sales in the second and third quarters of 2017, according to “Ad Age”.

This new tiered menu is the latest of McDonald’s price focused menus. Back in 2002, the chain launched its Dollar Menu where it offered eight items for a dollar each. Since then different types of menus have been shuffled across the board such as the Extra Value Menu, the Dollar Menu and More, and the You Pick Two menu.

The new $1 $2 $3 Dollar Menu is being promoted nationwide with TV, radio, digital and social campaigns all sharing the same funny and relatable storylines. The campaign, expected to run about six to eight weeks, will also be supported later in the year, as well as into 2019. "It's one that we are not going to walk away from," says U.S. Chief Marketing Officer Morgan Flatley.

Competitor chains like Taco Bell and Wendy's, aware of McDonald's plans for the $1 $2 $3 Dollar Menu, also introduced new or updated low-priced offerings this month. For example, Taco Bell is promoting the variety of $1 items it sells and will introduce $1 Nacho Fries on Jan. 25.

The $1 $2 $3 Dollar Menu is now offering a choice of a sausage burrito, McChicken, cheeseburger, or any size soft drink for $1. For $2, customers can get Sausage McGriddles, 2-piece Buttermilk Crispy Tenders, a Bacon McDouble, or a small McCafé beverage. For $3, there's the Sausage McMuffin with Egg, the new Classic Chicken Sandwich, the Triple Cheeseburger, and a Happy Meal.

Later this year, McDonald’s will be introducing new "hot off the grill" fresh beef to its menu, which will also receive a heavy promotional campaign. You can read more about McDonald’s new menu on “Ad Age.”

Read More

Why Dave & Buster’s Latest Quarterly Earnings Report May Spook Investors

Why Dave & Buster’s Latest Quarterly Earnings Report May Spook Investors

The past success of Dave & Buster’s proves that guests gravitate to restaurants that offer an array of entertainment outlets. With huge arcade rooms, pool tables, huge screen TVs, and much more ­–  Dave & Buster’s is so much more than a place to get some grub. 

While other restaurant chains have struggled significantly in the last two years, this brand has been able to maintain comparable-store sales growth. The company’s most profitable revenue stream is what it makes from the games guests play while eating at the stores.

However, in its most recent second-quarter earnings report, it shows that the company has continued to grow but at a much slower rate. While the report showed impressive gross margins from its games and amusement offerings and that the company’s income tax rate has been cut in half due to an accounting improvement, the growth rate is less than it has been in the last few years. 

Read More

Due to Hurricane Irma and Harvey These Restaurant Chains Are Bound to see a Slump

Due to Hurricane Irma and Harvey These Restaurant Chains Are Bound to see a Slump

Mother nature has been on a tear in last few weeks. With both Hurricane Irma and Hurricane Harvey making landfall in the U.S. this summer, thousands of restaurants were forced to close their doors.

Several establishments in Hurricane Irma and Harvey’s path have been damaged and many of the restaurants fortunate enough to be able to quickly recover offered a lending hand to the local communities. 

13,000 stores of publicly-traded restaurant chains in the U.S were in exposed hurricane areas. This is 15% of total units, according the Credit Suisse’s Jason West. 

This means that these chains, many of which are in the quick-serve and casual dining segment, are bound to see a summer slump.

Here are some of the chains that had to close the most stores—

Read More

Can Blue Apron Solve Operational Problems and Change Public Investors' Minds?

Earlier this month, the meal delivery service Blue Apron released its first quarterly earnings report after the company went public in June of this year.

It declared a surprising $238 million in revenue (a number which surpassed analyst estimates of $235.8 million, according to Bloomberg,) but a disappointing $31.6 million in losses and a decline in subscribers. Blue Apron had 1 million customers before going public, which dropped to 938,000.

On an earnings call, the loss in costs were blamed on Blue Apron’s fulfillment center expansion from a smaller warehouse in Jersey City, New Jersey to a larger facility in Linden, New Jersey.

This new warehouse comes with technology improvements, which will help the company become more automated. The transition requires further training on new systems for employees at this new fulfillment center and has forced Blue Apron to cut costs by firing part of its recruitment team. The company announced it is also implementing a hiring freeze on salaried employees and is reducing its marketing budget.

As a result, Blue Apron shares dropped 18 percent to $5.14 by the end of the trading day in New York on August 10.

With a smaller marketing budget, limited capital, and a shrinking subscriber pool— how can Blue Apron assure steady growth?

Luckily, after Jana Partners disclosed a 2 percent stake in the company, shares rose as much as 5.3 percent and the stock was up 3.1 percent to $5.28 on August 14.

But even with the small stock hike, Blue Apron’s shares are down almost 50 percent since their debut in June and are currently trading lower while the stock is down over 4 percent as of 2:10 p.m. in New York on August 29.

When Foodable first reported on Blue Apron’s IPO debut, the e-commerce subscription business had detailed a $800 million in annual revenue and 54.9 million in losses in 2016. It will be interesting to see how Blue Apron performs in its first year of going public as it goes head to head with other subscription-box and meal-kit companies, as well as e-commerce giants like Amazon as it becomes more of a well-defined competitor in the multifaceted food space with its recent acquisition of Whole Foods. 

Read More