Einstein Bros. Bagels rolls out an innovative design. Value meals continue to prove their value. The economy takes a bite out of Portillo’s growth plans. These stories and more, This Week in Foodservice.

Add Einstein Bros. Bagels to the list of companies updating their prototype designs. The new layout places a display case of fresh bagels front and center. The design also features a pick-up area for customers who order via the chain’s digital channels. Customers who choose to order on-premises can belly up to the register.

This design will be part of new Einstein Bros. stores set to open in Ohio, Utah, Georgia, and Nevada later this year. The design will also be part of select remodels moving forward, per a company release. Overall, Einstein Bros. plans to open more than 100 locations this year, the release added.

Image courtesy of Einstein Bros. Bagels

Foodservice News

• Three operator segments enjoyed a strong first half of 2025, per a report from Placer.ai. Coffee chains led the way with overall visits increasing 2.8%, followed by Mexican-inspired chains (1.9%) and chicken chains (1.6%). In contrast, burger and sandwich chains saw overall visits decline 1.7% and 3.2%, respectively, per the Placer.ai report.
• Taco Bell plans to open more than 30 of its Live Mas Cafes. The concept is part of Taco Bell’s plans to drive $5 billion in beverage sales by 2030, per an Orange County Business Journal story. The cafes feature more than 20 specialty drinks.
• Value menus continue to drive valuable foot traffic for restaurants. Consumer-perceived value menu traffic increased by 1% across the total foodservice industry in the quarter ending June 2025, per data from Circana. This growth takes on additional significance when considering overall restaurant traffic declined by 1% during the same period. Circana’s data notes that 50% of consumers who had not recently dined out would be motivated to do so by lower prices. Among households making less than $75,000 annually, 54% said they would visit restaurants more frequently for better prices.
• RaceTrac’s deal to acquire Potbelly represents the latest example of how the boundaries between foodservice channels are eroding, as Hospitality Headline explains. In some respects, the deal symbolizes the way c-stores now choose to compete head to head with quick-service and fast-casual restaurants. Adding Potbelly to its portfolio allows RaceTrac to not only meet customers where they are at but to do so with speed and convenience.
• The challenging economy is taking a bite out of Portillo’s growth plans. The Chicago-based chain reduced the number of restaurants it plans to open this year to eight from twelve, per various published reports, including this one from QSR magazine. Portillo’s will also discontinue its breakfast pilot program.
• Chipotle will open its first restaurants in East and Southeast Asia next year. The company inked a development deal with a South Korean company, SPC Group. Plans call for the first units to open in Singapore and South Korea, per a company release.
• Food & Wine released its list of the Best New Chefs for 2025. The 10-person class includes chefs from legendary culinary hotspots such as New York City and New Orleans but also some from Oakland, Calif., and Portland, Maine. These chefs honor “heritage while fearlessly experimenting, creating dishes that are as personal and expressive as they are inventive, and together they signal an exciting new chapter in American dining,” the magazine said.
• Wondering where the best new restaurants introduced in 2025 are located? From a Mexican seafood joint in New Orleans to soul food in San Francisco, Bon Appetit magazine has you covered.

Economic News

• American consumers continued their spending ways in August. U.S. retail and foodservices sales increased 0.6% for the month and 5.0% compared to the same period in 2024, per data from the U.S. Census Bureau. Total sales for the June 2025 through August 2025 period increased 4.5% compared to the same period one year ago. August 2025 sales at eating and drinking places were up 6.5% compared to the same month in 2024.
• Inflation increased 2.9% for the 12-month period ending in August, per the U.S. Bureau of Labor Statistics. This includes a 0.4% increase in the monthly Consumer Price Index. This marks inflation’s highest levels since January. Economists polled by Dow Jones had projected a 2.9% increase for the 12-month metric and a 0.3% increase for August, per multiple published reports, including this one from MSNBC. August’s monthly increase follows a 0.2% uptick in the previous month. The cost of groceries rose 0.6% while restaurant prices increased 0.3%. Looking closer at the food-away-from home category, year-over-year, full-service menu prices were up 4.6% in August, an acceleration from 4.4% in July and the fastest annual pace since September 2023, per an analysis from the National Restaurant Association. Limited-service prices increased 3.2% over the past year, a post-pandemic low. Despite recent gains in full-service pricing, inflation in both categories has moderated significantly from earlier peaks: full-service prices surged as high as 9.0% year-over-year in 2022, while limited-service prices peaked at 8.2% in April 2023.
• The Producer Price Index declined 0.1% in August, the U.S. Bureau of Labor Statistics reported. This comes after the PPI increased 0.7% in July and 0.1% in June. While the monthly performance was better than what many expected, some economists caution this could be a sign of a slowing economy and that shrinking businesses’ margins could foretell higher prices for consumers in the near future, per a CNN story. For the 12-monhth period ending in August, PPI increased 2.6%. The BLS attributes the August decrease in the PPI to a 0.2% decline in prices for services. In contrast, prices for goods edged up 0.1% for the month.
• Industrial production ticked up 0.1% in August, per data from the U.S. Federal Reserve. This reverses a 0.4% July decrease. Manufacturing output grew 0.2% in August after edging down 0.1% in July. Within manufacturing, the production of motor vehicles and parts increased 2.6% in August, while factory output elsewhere grew 0.1%. At 103.9% of its 2017 average, total IP in August was 0.9% more than its year-earlier level.
• Small business owners’ outlook improved in August. The NFIB Small Business Optimism Index posted a 0.5-point increase for a reading of 100.3. Driving this optimism was the fact that more owners reporting “stronger sales expectations and improved earnings,” per a NFIB spokesperson.
• Consumer sentiment softened a little in September, per the University of Michigan’s Index of Consumer Sentiment Study. While consumers’ view of current economic conditions held steady, their expectations declined significantly. “Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation,” said a university spokesperson. “Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month. Still, sentiment remains above April and May 2025 readings, immediately after the initial announcement of reciprocal tariffs.”