A legendary local gets a new owner, while another legacy brand plots its comeback. Plus, small business operators’ optimistic outlook. These stories and more This Week in Foodservice.

Summit Grill Restaurant Group has acquired Neighborhood Grill. With a history that spans more than 150 years, Summit Grill is in Lee’s Summit, Mo., and the restaurant got its start as a wagon repair shop.

Over the years it has gone through various iterations from Clarence Brown Shoe Store to restaurant concepts Browns Steakhouse and Chuck Wagon before becoming Neighborhood Grill.

Neighborhood Grill joins a portfolio of other concepts owned by Summit Grill Restaurant Group, including Summit Grill, Pearl Tavern, Boru Asian Eatery and Third Street Social.

Foodservice News

• The restaurant industry entered expansion territory for the first time in a while in October. The National Restaurant Association’s Restaurant Performance Index increased 1.6% for the month for a total of 100.4%. Any reading of more than 100% indicates expansion. The growth came as operators’ outlook for the future became brighter. The study’s Expectations Index came in at 101.2%, the first time in seven months it surpassed 100. The Current Situation Index, though, serves as a reminder of the challenging business conditions operators face. It came in at 99.5%.
• Pizza Hut’s latest prototype is a significant departure from the chain’s previous designs. The new location includes self-serve kiosks, a drive thru and more, as restaurant development + design points out in this piece.
• Another legacy brand is poised to make a comeback. Twenty years after the last restaurant bearing its name closed, Chi-Chi’s is plotting its return under the leadership of Michael McDermott, who is the son of the chain’s founder, per a release. The new company, Chi Chi’s Restaurants, LLC, is securing funding and plans to open its first two restaurants in 2025, per a story by The Food Institute. Although the restaurants have been closed for two decades, the Chi Chi’s name never went completely dark. Hormel foods owns the trademarks and sells a collection of salas, chips and tortillas under the Chi Chi’s name.
• Are restaurant chain revenues starting to normalize? Per data from Chicago-based Technomic, from 2015 to 2019, sales among the top 1,500 chains grew by an average annual rate of 4.3%. For 2024, Technomic projects sales will increase 4.2% among the top 1,500 chains.
• Consumers are eating dinner earlier and making more last-minute reservations, per data from online ordering platform Toast. During the third quarter of 2024, reservations made for the 5 p.m. and 6 p.m. hours were up 8% and 6%, while reservations for the 8 p.m. and 9 p.m. hours declined 1% and 2%. And 45% of reservations were made for the same day.
• Polar Leasing Co. opened a delivery hub in Sumterville, Fla. This is the first hub outside of Indiana for the provider of electric ground-resting outdoor walk-in freezers and refrigerated rental units.
• Feast & Fettle acquired meal delivery firm WECO Hospitality. Founded in 2016, Feast & Fettle operates from its Rhode Island commercial kitchen and its in-house team delivers fully prepared meals directly to customers across the Northeast. The deal enhances Feast & Fettle’s East Coast presence as the company prepares to launch in Brooklyn next month, per a release.

Economic News

• The U.S. economy added 227,000 jobs in November, per the U.S. Bureau of Labor Statistics. Economists had projected the job growth to come in at around 214,000, per a Wall Street Journal story shared by MSN. The unemployment rate came in at 4.2%, which is 0.1% greater than October. Employment trended up in health care, leisure and hospitality, government, and social assistance. After what many considered a disappointing October jobs report, November’s results came as a relief.
• Private sector employers added 146,000 jobs in November, per the ADP National Employment Report. This is down from the 184,000 jobs added in October, per ADP. Economists had projected the private sector would add 163,000 new positions in November, per MarketWatch. Small businesses, specifically, businesses with 20 to 49 employees were hit hard in November, losing 29,000 positions. Hospitality and leisure added 15,000 positions.
• Initial jobless claims increased 9,000 for the week-ending November 30, 2024, per the U.S. Department of Labor. The 4-week moving average was 218,250, an increase of 750 from the previous week.
• Job cuts announced by U.S.-based employers increased 3.7% in November compared to the previous month, per data from Challenger, Gray & Christmas. The cuts announced in November 2024 represents a 26.8% increase from the same period in 2023. For the year, announced job cuts have increased 5.2% compared to the same period in 2023.
• Consumer credit increased 4.5% in October, per the U.S. Census Bureau. This is significantly greater than September’s 0.8% increase and more than what economists had projected, per a MarketWatch story. Credit card debt drove the increase by coming in at 13.9% more than the previous month. Nonrevolving credit also increased at an annual rate of 1.1%.
• Small business operators’ outlook for the economy took a big step forward in November. The NFIB Small Business Optimism Index rose by eight points in November for a reading of 101.7, its highest reading since June of 2021. “Main Street became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations,” said Bill Dunkelberg, NFIB’s chief economist.
• Labor productivity increased 2.2% in the third quarter of 2024, the U.S. Bureau of Labor Statistics reported. This is consistent with the preliminary estimate provided by the BLS in late October.
• New orders for manufactured goods increased 0.2% in October, per data from the U.S. Census Bureau. This comes after a 0.2% decrease in September.
• Despite a slight decline, economic activity in the services sector expanded for the fifth consecutive month in November. Per the Services ISM Report on Business. The Services PMI came in at 52.1% for the month, which is down from 56% in October.