Restaurant industry performance remains mixed. Operators come to terms with the latest vaccine requirements. Digital salad bars come to six East Coast Grocery stores. Pink’s Hot Dogs honors the late Betty White. These stories and more this week in foodservice.

Reporting on the foodservice industry’s performance remains somewhat of a mixed bag.

Take, for example, Technomic’s TIndex. This study shows the foodservice industry’s performance took a slight hit in November. The study shows foodservice performance registering 97.2 in November, marking the second consecutive monthly decline. The index totaled 97.8 in October and 98.9 in September. “Based on this data, the industry is down 2.8% over a 2-year basis but has grown by 22% compared to the same month in 2020,” says Joe Pawlak, managing principal at Technomic.

In contrast, the National Restaurant Association’s Restaurant Performance Index (RPI) hit 104.8 in November, up 0.2% from October. The association attributes the growth in its monthly composite index to “positive sales and traffic conditions and a generally optimistic outlook for business conditions.”

Restaurant operators continued to report positive same-store sales and customer traffic compared to year-ago levels in November, per the NRA. Looking forward, restaurant operators’ optimism for business conditions is at its highest point since the August survey period, though it remains somewhat dampened from the elevated levels reached during the first half of 2021. Still, 6 in 10 operators expect their sales to rise in the months ahead.

In addition, 70% of restaurant operators said they made a capital expenditure for equipment, expansion or remodeling during the last 3 months. That represented the eighth consecutive month with readings greater than 60%.

Regardless of which study someone prefers, the fact remains individual performers in the foodservice industry continue to fight hard for any gains, and it would seem that will remain the case for a while longer.

Economic News This Week

• The number of job openings decreased to 10.6 million on the last business day of November, the U.S. Bureau of Labor Statistics reported. Hires totaled 6.7 million, which represents little change from the previous month. Total separations increased to 6.3 million. The rate of people quitting their jobs hit 3.0%, matching a high last seen in September 2021. The layoffs and discharges rate was unchanged at 0.9%. Over the 12 months ending in November 2021, hires totaled 74.5 million and separations totaled 68.7 million, yielding a net employment gain of 5.9 million.
• The November Manufacturing PMI registered 61.1%, an increase of 0.3% from October, per the Institute for Supply Chain Management. This marks the 18th consecutive month where the manufacturing segment grew. The New Orders Index totaled 61.5%, up 1.7% from October. The Production Index totaled 61.5%, up 2.2% from October. At 82.4%, the Prices Index dipped 3.3% from October. The Backlog of Orders Index totaled 61.9%, which is 1.7% less than October. The Employment Index registered 53.3%, up 1.3% compared to October. “The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement. All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products. Coronavirus pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential,” per Timothy Fiore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.
• The Services PMI registered another all-time high of 69.1% in November, per data from the ISM Report on Business. This represents a 2.4% increase compared to October’s level of 66.7%, the former all-time high. Previous records were set in March (63.7%), May (64%) and July (64.1%). All 18 of the subindexes showed growth. Specifically, the Business Activity Index reached 74.6%, an increase of 4.8% from October. The New Orders Index registered 69.7%, flat compared to October. This study has shown growth for 18 consecutive months.
• Construction spending was estimated at $1,635.9 billion in November, up 0.4% from October, per the U.S. Census Bureau. The November figure is 9.3% greater than November 2020. During the first 11 months of 2021, construction was up 7.9% compared to the same period in 2020.

This week in Foodservice

• Amid rising cases of COVID-19 across the country, Chicago is the latest major municipality to require patrons to show proof of vaccination in order to dine on-premises. The city announced the move late last year before it took effect on Jan. 3, 2022. Exactly how operators will enforce this latest requirement could vary by establishment, as the Chicago Tribune reports. It’s important to note Chicago is not alone in this. New York began requiring proof of vaccination to eat in restaurants in the fall of 2021 and eventually expanded that requirement. In some areas of the country where governments have not yet issued such edicts, some operators have decided to require proof of vaccination on their own, including a few Washington, D.C., restaurants. Regardless of how an operator feels about vaccine requirements for both customers and crew, there’s no denying this adds another logistical layer to operating a restaurant during an already challenging period. While some operators have expressed concern about the vaccine mandate, they all agree on one thing: the industry can’t afford to return to reduced capacities or, even worse, another shutdown, as Sam Toia of the Illinois Restaurant Association said in this interview with WGN Radio.
• Starbucks will require employees to be fully vaccinated or undergo weekly testing. John Culver, the coffee chain’s chief operating officer, announced this new policy via a Dec. 27, 2021, email to the chain’s 220,000 employees, who will have until Jan. 10, 2022, to disclose their vaccine status. This move comes as Starbucks continues to deal with teams at various locations across the country who continue to explore unionization. In one of the latest chapters of that saga, employees at a Starbucks location in Chicago’s infamous Loop neighborhood joined the push to unionize. Starbucks has said it will bargain in good faith with the workers at the Buffalo location that were the first to unionize.
• Albertsons Cos. is piloting a digitally managed salad bar concept at six supermarkets on the East Coast. The modular bar has a digital food freshness system, digital labels, smart cooling algorithms and displays to communicate with customers. The unit connects to a cloud-based monitoring system enabling active and passive control of store-level parameters and remote support, per published reports. Each salad bar container has a QR code that be scanned to check that ingredients aren’t staying out too long and to signal the need for refills. The digital management system collects data on consumption, product performance in different locations, cleaning schedules and temperature, enabling retailers to optimize the bar’s assortment and maintenance.
• Potbelly’s is sticking its toe in the breakfast daypart. Approximately 20% of its locations now offer breakfast service, including a Dallas unit that is promoting a 3-sandwich menu aimed at the morning meal, per published reports. This development bares monitoring given that lunch and dinner have been the cornerstones of Potbelly’s business for years.
• FAT Brands plans to open 15 Fatburger and Buffalo's Express locations in Orlando over the next 6 years.

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• Finally, actress Betty White died on Dec. 31, 2021, just a few weeks shy of her 100th birthday. In honor of White, several restaurants have developed special menu items, including Pink’s Hot Dogs. The Southern California concept will donate 100% of the sales from its Betty White naked hot dog menu item to the Los Angeles Zoo. And Sobelman’s in Waukesha, Wisc., added the Betty White Burger as a limited time offer in January. The burger is made with aged white cheddar, bacon, fried onions, two golden onion rings and honey mustard sauce. Over the course of her illustrious career, White was part of several sketches that relate to the foodservice industry. So, we thought it appropriate to enjoy one last laugh courtesy of her. Here’s a Saturday Night Live skit where White plays a muffin maker.