CosMc’s blasts off in a big way. One FE&S Hall of Famer enters another Hall of Fame. Another chain takes a run at using robotics for preparing burgers and fries. Sales among the top 1,500 chains were strong in 2023. These stories and more This Week in Foodservice.

The buzz surrounding McDonald’s latest concept is out of this world. Literally.

Photo by Scott Olson/Getty Images

McDonald’s describes CosMc’s as a “small-format, beverage-led concept.” As part of a limited test of this concept, McDonald’s opened its first location in Bolingbrook, Ill., a Chicago suburb. The company plans to open “approximately 10 CosMc’s pilot locations” by the end of 2024.

The lines to try CosMc’s menu were more than two hours long on opening day, per various local media reports. As one might expect, that much demand can make for a hectic first day, as Eater reports. And this Chicago Tribune story provides a view of the opening day festivities in pictures.

This is an off-premises-only location, meaning there’s no seating and guests were only able to get their food via the drive-thru. The Eater story predicts future locations will be about half the size of this one.

Many in the media see CosMc’s large and unique beverage menu as a way for McDonald’s to take on Starbucks, which does well in the afternoon hours with its collection of iced drinks. A QSR magazine story takes a closer look at the possibility.

• CaliBurger is the latest restaurant chain to test robotics and artificial intelligence. Using its CaliExpress format, the chain will open an autonomous restaurant that features automated grill and fry stations using a combination of AI and a robotic arm, per a Restaurant Technology News story. The restaurant will use a biometric verification system where upon arrival guests will check in at self-ordering kiosks. While at the kiosks guests will receive personalized ordering recommendations and will be able to process their payments.
• Sales for the top 1,500 chain restaurants will increase 8% on a year-over-year basis in 2023 for a total of $450 billion, per a forecast. Sales growth will mainly be the result of widespread increases in menu pricing, an uptick in overall chain restaurant locations and strong sales results from industry giants like McDonald’s, Starbucks and Chick-fil-A.
• Could labor peace be one of Starbucks’ New Year’s resolutions? The Seattle-based coffee giant said it wants to resume contract talks with the union representing its baristas, starting in January, per a CNBC report. For nearly two years, Starbucks baristas at company-owned stores continued to make headlines by voting to unionize in many locations. No locations, though, have reached a contract with the company. The potential restart of talks opens a window to resolving a stalemate between Starbucks and the union.
• McDonald’s will expand its Ready on Arrival pilot to its top six markets by 2025, per a Restaurant Dive report. This program uses geofencing to alert employees when a mobile order customer is nearing the restaurant so they can get the customer’s food ready. The chain deployed geofencing on its mobile app in March but tested the technology as early as 2017. The company reported a 62-second reduction in wait times for mobile pickup customers who collected their orders curbside or in the restaurant after deploying ROA geofencing. The company feels this effort will help grow its loyalty user base to 250 million 90-day active users and capture $45 billion in sales from loyalty members by 2027 — more than double its $20 billion in current annual loyalty sales.
• Grocers continue to invest heavily in meal solutions as consumers seem to have insatiable appetites for the convenience these products can provide. From in-store restaurants to revamped deli areas to limited-time offers, increasing their share of stomachs seems important to grocers, per this piece from Grocery Dive.
• Kudos to Rodney Wasserstrom on being inducted into the Ohio Restaurant & Hospitality Alliance’s Hall of Fame. Wasserstrom has worked in the foodservice industry for more than 50 years. He is part of the third generation of family leadership at The Wasserstrom Co., a Columbus, Ohio-based foodservice equipment and supplies dealer. He started with the company in 1961 in a sales role and worked his way to company president and now CEO. This is one of many accolades Wasserstrom has earned throughout his career. For example, in 2008 Wasserstrom received FE&S Hall of Fame Award.
• Zaxby’s opened a to-go-only location in Memphis. The 2,400-square-foot location features a double drive-thru, digital menu boards, a payment window, a drive-thru delivery door and a walk-up window. The location offers no indoor seating. Zaxby’s also plans to expand its Midwest presence by opening restaurants in Vincennes, Ind., Henderson, Ky., and Madisonville, Ky.

Economic News

• The Consumer Price Index increased 0.1% in November, per the U.S. Bureau of Labor Statistics. This comes after the CPI was unchanged in October. Over the last 12 months, the all-items index increased 3.1%. The index for shelter continued to rise in November, offsetting a decline in the gasoline index. The index for all items less food and energy rose 0.3% in November, after rising 0.2% in October. Food away-from-home prices increased 5.7% for the month, which is 3.6% greater than food-at-home prices.
• NFIB’s Small Business Optimism Index decreased 0.1 in November to 90.6, which marks the 23rd consecutive month the study is less than its 50-year average of 98. Twenty-two percent of owners report inflation as their single most important problem in operating their business, unchanged from October but 10 points less than this time last year. On a somewhat positive note, business owners expecting better business conditions over the next six months increased one point from October to a net negative 42% seasonally adjusted.
• The U.S. economy added 199,000 jobs in November, per the U.S. Bureau of Labor Statistics. As a result, the unemployment rate edged down to 3.7%. At first glance, this data may seem incredibly positive, but a closer look shows a more neutral picture. For example, job gains occurred in healthcare and government, which most economists agree are not good indicators about the state of the economy. Manufacturing employment increased but it reflects the return of workers from a strike, which is also not a great indicator as to how the jobs market is performing, as this Forbes story notes. In terms of the restaurant industry employment, it surpassed pre-pandemic levels, but the extent of the industry’s recovery varies significantly by segment, per the National Restaurant Association, which points out the industry added a net 38,300 jobs in November.
• Private sector employment increased by 103,000 jobs in November and annual pay was up 5.6%year-over-year, per the November ADP National Employment Report. While service-providing businesses led the way by creating a net total of 117,000 positions, it’s worth noting leisure and hospitality companies saw a decline of 7,000. “Restaurants and hotels were the biggest job creators during the post-pandemic recovery,” said Nela Richardson, chief economist, ADP. “But that boost is behind us, and the return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024.”
• S.-based employers announced 45,510 cuts in November, per data from Challenger, Gray & Christmas, Inc. This represents a 24% increase from October and 41% decrease from the same month in 2022. In fact, this is the second time this year when job cuts were less than the same month in the previous year. What does it all mean? “The job market is loosening, and employers are not as quick to hire. The labor market appears to be stabilizing with a more normal churn, though we expect to continue to see layoffs going into the New Year,” said Andrew Challenger, a labor expert and senior vice president of Challenger, Gray & Christmas, Inc.
• Initial jobless claims increased 1,000 for a total of 220,000 for the week ending December 2, 2023, per the U.S. Department of Labor. The 4-week moving average was 220,750, an increase of 500 from the previous week.