An update on the unionization efforts at a Portillo’s location. Robot news for both the commercial and non-commercial foodservice industries. Consumer confidence offers some mixed messages. These stories and more This Week in Foodservice.

Sales for the 500 largest chain restaurants totaled $392.8 billion in 2022, per data from Technomic. The 8.2% growth rate was greater than the 4.4% average rate in the 8 years before the pandemic. Yet total sales growth barely kept pace with menu price inflation over the course of the year, as Restaurant Business reports.

Other key data points from Technomic’s annual study include:

• The combined footprint of the top 500 restaurant chains includes roughly 230,000 locations, exceeding its comparable 2019 benchmark.
• The pace of chain merger and acquisition deals saw a noticeable deceleration in 2022 after a high volume of activity in 2021.
• Three more chains crossed the billion-dollar sales threshold in 2022, expanding the list of billion-dollar chains within the Top 500 to 53 companies.

Foodservice News This Week

• In the foodservice industry robots will never be able to replace or even replicate the human touch but they might help operators accentuate this all-important element of hospitality. Take, for example, The Commons. At this senior living facility in Egan, Minn., operators use a robot to run meals to guests tables and take tickets to the kitchen, with staff members placing food on tables and interacting with the customers, the Star Tribune reports. This approach allows The Commons to make more effective and efficient use of what labor it does have.
• Uber Eats expanded its partnership with an autonomous robotics company to offer food delivery via bots in Fairfax, Va., per a report by Restaurant Dive. The technology will be available for food delivery with select merchants within the Mosaic District. This pilot program will run through April 2024 and could be extended under a multi-year partnership.
• McDonald’s continues to tinker with its menu. The burger chain now offers two versions of cold brew coffee in Southern California, Restaurant Business reports. It will also start to sell Big Mac Sauce Dip Cups for a limited time starting April 27.
• The story about workers in a Portillo’s production plant took an interesting turn late last week. The chain issued the following statement: “After uncovering instances of illegal conduct by the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers union in connection with the April 13^th election at our Addison, Illinois food production facility, Portillo’s yesterday formally requested that the National Labor Relations Board (NLRB) set aside the election’s results and order that a new free and fair election be held. Supported by the first-hand testimony and affidavits from witnesses, the filing with the NLRB describes promises made by union representatives in their effort to secure a winning majority. The improper activity noted in the filings includes promises by union representatives to team members that in exchange for voting yes, the union would provide them a pathway to citizenship, including by providing them with green cards. For 60 years, Portillo’s has prioritized the well-being of our team members. As we work through the next steps with the NLRB, we will continue to put our team members first.”
• True Food Kitchen will enter the quick-service restaurant arena when it opens its first takeout only location later this year, per various published reports. Known as True Food to Go, the Tempe, Ariz., location will feature a walk-up counter, self-checkout and shelves for orders. Indoor and outdoor seating, along with a grass area, will be available for customers. The location will feature many of the chain’s better-for-you menu items as well as a few unique ones.
• Growth chains: Better-burger chain Killer Burger opened a location in Salem, Ore. This is the 21st Killer Burger to open and follows the company’s 20th opening in Eugene, Ore., from earlier this year. Gatti’s opened a location in Converse, Texas, that features a drive-thru. Salad and Go opened a location in Tucson, Ariz., its fifth in that area. Overall, the company now has more than 50 Arizona locations and more than 90 nationally. Shake Shack’s international development plans will take the chain to Israel. The chain plans to open a unit in Tel Aviv in 2024. Sweetgreen opened a location in Cranston, R.I., its first in the state. The Toasted Yolk, a full-service concept serving breakfast, lunch and brunch, will open a restaurant on Monday, May 1 in Savannah, Ga. It is the first Toasted Yolk location in the state of Georgia.

Economic News This Week

• Sales of single-family homes increased 9.6% in March 2023 compared to February, per data from the U.S. Census Bureau. The 683,000 single-family homes sold in March 2023 was 3.4% less than the same month in 2022.
• Existing-home sales declined 2.4% in March from the prior month, reports the National Association of Realtors. This also represents a a 22% decline in sales from the same period in 2022. The median existing-home sales price dipped 0.9% from the previous year. And the inventory of unsold existing homes rose 1.0% from the prior month to 980,000 at the end of March, or the equivalent of 2.6 months' supply at the current monthly sales pace.
• Despite a relatively favorable assessment of the current business environment, consumer confidence declined in April, per The Conference Board. The organization’s Consumer Confidence Index totaled 101.3 in April, down from 104.0 in March. The Present Situation Index increased to 151.1 in April from 148.9 in March. The Expectations Index fell to 68.1 in April from 74.0 last month. Notably, the Expectations Index has been at less than 80, the level The Conference Board associates with a recession within the next year, every month except one since February 2022. There was an uptick in December 2022.
• The Conference Board Leading Economic Index for the U.S. for the U.S. dipped 1.2% in March 2023 for a reading of 108.4. This is the index’s lowest level since November and this latest dip comes on the heels of a 0.5% February decline. The LEI is down 4.5% for the six-month period between September 2022 and March 2023 — a steeper rate of decline than its 3.5% contraction over the previous six months. “The weaknesses among the index’s components were widespread in March and have been so over the past six months, which pushed the growth rate of the LEI deeper into negative territory,” said a Conference Board spokesperson.
• Initial jobless claims increased by 5,000 for the week-ending April 15, 2023, per the U.S. Department of Labor. The 4-week moving average decreased of 500 from the previous week.