Plus, some employees are ghosting their employers. Some operators run promotions to offset the price of gasoline. These stories and more This Week in Foodservice.

The U.S. Census Bureau reported total retail sales increased 0.5% in March from February and were up 6.9% from March of 2021. In the first 3 months of this year total retail sales have risen 12.4% from the comparable period in 2021.

Sales at foodservice and drinking places rose 1.0% in March compared to February and increased 19.4% from March of 2021. In the first 3 months of 2022 sales at restaurants and bars have increased 25.7% from a similar period in 2021.

Please bear in mind that sales numbers from the U.S. Census Bureau’s advance report are not adjusted for menu price increases and that the Consumer Price Index showed food away from home prices increased 0.3% in March.

Also note this study does not include data from hotels and resorts, retailers like C-stores, entertainment operators (bowling allies, theaters etc.) as well as the institutional sector which would include employee feeding, schools K-12, colleges and universities, hospitals, nursing homes, retirement facilities and military feeding. Thus, the Census Bureau’s sales figures skip roughly a third of the foodservice industry.

Economic News This Week

• Initial jobless claims totaled 185,000 for the week ending April 9, 2022, per the U.S. Department of Labor. This represents an increase of 18,000 from the previous week. The 4-week moving average was 172,250, an increase of 2,000 from the previous week.
• There’s a twist with respect to the “great resignation” phenomenon. The quit rate reached a 20-year high in November when it appears many dissatisfied employees expressed their unhappiness by leaving their jobs. Some of the top reasons cited for separating from their employers include low pay, lack of opportunity for advancement and feeling disrespected. A recent study has found that 1 in 50 are walking off the job without giving notice. Borrowing a term from the dating world, leaving without letting one’s employer know your intention is called “employee ghosting.”
• The Producer Price Index for Final Demand rose 1.4% in March, per the U.S. Bureau of Labor Statistics. This followed increases of 0.9% in February and 1.2% in January. Final Demand Prices in the past 12 months ending in March jumped 11.2%.

Foodservice News This Week

• Should your next restaurant employee be a robot? That’s a question posed by Forbes. Given the foodservice industry remains desperately short of employees, robots may be able to fill some of the voids. The problem is operators need tens of thousands of workers and the robots currently actually working in restaurants seem primarily to be one here and one there. For the present, no operation has made a commitment to robots on a major scale. That will be the real test and if successful, can lead to major investments by foodservice operations.
• Panera Bread Co. is testing an automated coffee system. The system uses artificial intelligence to monitor coffee volume and temperature as well as provide predictive analytics that reveals what kind of joe customers enjoy and when. Other chains, including Chipotle Mexican Grill, White Castle and Inspire Brands, are testing something similar. The system costs operators a few hundred dollars a month.
• Some foodservice operators are running promotions to reduce consumers’ pain at the pump due to high fuel prices. The Bojangles chain handed out $1 million in $10 gift cards a couple of weeks ago, while some Krispy Kreme locations have reduced prices on Wednesdays to help customers cover higher gas prices. A number of retailers like Sam’s Club are encouraging consumers to sign up for their loyalty programs take advantage of the chains’ lower gas prices.
• PF Chang’s sales increase was due, in part, by improving customers' on-premises dining experience and by raising-off premises volume, per published reports. The chain added some color to the dining room, introduced music in its restaurants and lowered the lighting level. The menu was adjusted by eliminating non-Asia items. The company then committed to a PF Chang’s to go program. The result of these changes was a 31.7% sales increase in 2071 over the previous year.
• Three strategies helped improve improvement the performance of Applebee’s and IHOP over the past two years, per CEO John Peyton. First is enhancing hygiene and safety protocols. The second is improving the off-premises experience which led to more than doubling takeout and delivery business from 2019. To help improve the off-premises experience the chains enhanced the packaging they use. The third strategy was to streamline operations by reducing menu items and identifying new revenue sources. This led to more efficient kitchens, less food waste, faster prep time and improved quality and consistency.
• Inspire Brands’ CEO insists the company is not anxious to make another acquisition. Arby’s parent company has made a handful of acquisitions since 2018, purchasing Baskin Robins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, the Rusty Taco and Sonic. Paul Brown, the president of Inspire Brands, says the company has 32,000 restaurants now so it does not need to buy more to achieve scale and the company is happy with its current concept mix.
• A hot menu item in the 90’s, the bloomin’ onion continues to blossom on menus at some independent restaurants. While it requires a special piece of equipment and needs rounded onions that will require staff to sort through the onion supply, some operators feel these extras are worth it since the bloomin’ onion is considered a fun product that increases the dining experience.
• Growth Chains: Jerimiah’s Italian Ice opened its 50th store and now has 200 locations in its development pipeline. FAT Brands’ Quick Service Division (Round Table Pizza, Great American Cookies. Marble Slab Creamery, Hot Dog on a Stick and Pretzelmaker) signed development agreements for more than 50 stores.
• Comparable Store Sales Reports: Gourmet Hamburgers up 40.1%

For comparable store sales of other chains, please click here for the latest Green Sheet