Which entertainment company is ready to enter the foodservice game? Is there anything new with the CHEERS Act? Which foodservice pro is up for Entrepreneur of the Year?  How do consumers feel about the future? Answers to these questions and more This Week in Foodservice.

What are the feeding factors that drive visits to fast-food establishments? It varies by daypart, per data release by YouGov.

For example, when it comes to breakfast, 46% of consumers said convenience was their main feeding factor. In terms of lunch and dinner, 48% and 52% of consumers said taste was the most important feeding factor. And when it comes to late-night purchases, 57% said speed was the main feeding factor.

Another interesting point from the study was that 8.7% of monthly quick-service restaurant customers visit these operations more than 15 times per month and 57% of those consumers are between the ages of 25 and 44 years old.

Foodservice News This Week

• Uncle Julio’s could soon find itself under new ownership. Sun Holdings, which owns Taco Bueno and is a franchisee of such chains as Burger King and Popeyes, has its sights set on the Mexican-themed chain, per a Restaurant Business report. A Texas-based company acquired the debt on Uncle Julio’s on the secondary market, RB reports, and a deal involving Sun Holdings would likely occur via a debt-for-equity swap. This could also lead to a bankruptcy filing by Uncle Julio’s.
• Add grocers to the list of operators offering value meals. In addition to expanding its ready-to-eat options, Kroger has developed a value meal with a cost of $3.50 per person, Grocery Dive reports. That’s “a fraction of what it would cost to eat out at restaurants,” said Rodney McMullen, Kroger chairman and CEO in a call with investors. He later added, “We see a significant growth opportunity to deliver convenient restaurant quality meals at an attractive value.”
• What would be better than owning a luxury SUV? Owning one with an electric pizza oven in cargo hold, of course. That is exactly what Lexus has included in its GX 550. The SUV also includes a bar and a chilling compartment to store ingredients. This vehicle is the result of a collaboration with a luxury appliance manufacturer. Right now, this is a concept car that was on display at the Food & Wine Classic earlier this year in Aspen, Colo., per an Autoweek story.
• Netflix made a name for itself by bringing entertainment to its customers. Now Netflix is trying to lure customers to its physical entertainment facilities. The company will build two Netflix Houses, one in Pennsylvania and the other Texas, that will feature an array of shopping, eating and experiential activities tied to some of its more renowned franchises like “Bridgerton,” “Stranger Things” and “Squid Game,” per this Variety report. The locations will occupy former department stores and span more than 100,000 square feet. The goal is to have these locations serve as marketing vehicles to drive customer engagement and support its core subscription business.
• Miele Professional opened a technology training facility at its headquarters in Princeton, N.J. The facility is fully operational with running water and electricity for demonstrations and hands-on training, with specialized areas for a variety of product types, including commercial dish units. There is also a conference room space for technical support group meetings.
• Ernst & Young LLP named Jim Zink the 2024 Entrepreneur Of The Year for its East Central region. Zink is a managing partner for Zink Corporation, which includes a variety of foodservice-related businesses including rep firm Zink Foodservice. He was selected by an independent judging panel made up of previous award winners, leading CEOs, and other business leaders. Candidates were evaluated based on their ability to create long-term value through entrepreneurial spirit, commitment to their purpose and the demonstration of growth and substantial impact, among other key indicators. As an East Central award winner, Zink Corporation is now eligible for consideration for the Entrepreneur Of The Year 2024 National Awards. The National Award winners, including the Entrepreneur Of The Year National Overall Award winner, will be announced in November.
• The movement to treat “qualified energy-efficient draft property as energy-efficient commercial building property for purposes of the tax deduction” remains alive and kicking. Supporters of this bill, known as The CHEERS Act (Creating Hospitality Economic Enhancement for Restaurants and Servers Act) have support from 13 trade associations as well as three retail employers. To help keep interested parties abreast of the latest developments of this legislation, the group has established a website where it will post updates on its advocacy efforts and more. The CHEERS Act defines qualified energy-efficient draft property “as property that is principally used in the trade or business of operating a restaurant, bar, or entertainment venue, and that is a stainless steel or aluminum container, or related commercial tap equipment used to distribute or sell alcohol.”

Economic News

• Consumer confidence remains, well, complicated. In June, for example, The Conference Board’s Consumer Confidence Index came in at 100.4, which is down from 101.3 in May. Consumers had contrasting views on their current and short-term expectations for the business and labor markets.
• The Conference Board Leading Economic Index declined 0.5% in May. This was 0.1% less than April’s decline. A Conference Board spokesperson attributed the dip to a decline in new orders, weak consumer sentiment about business conditions and lower building permits. For the six-month period spanning November 2023 to May 2024, the LEI fell by 2.0%., which is less than the 3.4% decline experienced in the previous six-month period.
• Building permits for privately owned homes declined 3.8% in May compared to the previous month, per the U.S. Department of Housing and Urban Development. This was 9.5% less than in May of 2023. Housing starts declined 5.5% in May compared to the previous month and 19.3% less than May of 2023.
• Initial jobless claims decreased by 5,000 for a total of 238,000 for the week of June 15, 2024, per the U.S. Department of Labor. The 4-week moving average was 232,750, an increase of 5,500 from the previous week. Overall, the job market remains something of a riddle. “Layoffs are still low overall suggesting businesses remain reluctant to reduce headcount in large numbers,’’ Rubeela Farooqi, chief U.S. economist at High Frequency Economics told ABC News. “However, there has been a gradual increase in recent weeks that merits watching for signals about a more material weakening in demand for workers going forward.’’
• Sales of existing homes declined 0.7% in May compared to the previous month, per the National Association of Realtors. Sales declined 2.7% compared to May of 2023. The median price of existing home sales increased 5.8% from May of 2023 and the inventory of existing homes for sale reached a four-year high, per a Yahoo! Finance story.