If you give a robot lemons can it help make lemonade? How has CosMc’s orbit changed? How are c-stores satisfying consumers caffeine cravings? Which foodservice equipment manufacturer is updating its Texas presence? How can you support restaurants impacted by the California wildfires? Answers to these questions and more This Week in Foodservice.

For more than a week now, much of the world has been transfixed by the wildfires scorching the earth in Southern California. The blustery Santa Ana winds continue to fan the flames resulting in devastating loss and heartbreak. An Eater Los Angeles story chronicles some of the many restaurants lost to the fire.

Yet, through this unspeakable tragedy, the foodservice industry continues to rise to the occasion in countless ways. Notably, there are many stories about restaurants feeding first responders, as this LA Times story shows.

The efforts go beyond providing a much-needed meal, though. For example, Restaurants Care, a program of the California Restaurant Foundation, made an initial commitment of $100,000 to support operators impacted by the fire. The grants, which can total up to $1,500 per recipient, will aid individuals who lost their homes, jobs, or both.

If you’re looking for a way to participate, Food and Wine compiled a list of organizations supporting the California restaurants impacted by this tragedy.

Foodservice News This Week

• Consumers’ interest in coffee continues to percolate. For the latest example, look no further than c-store chain Casey’s, which launched its Darn Good Coffee lineup last week, per a C-Store Dive story. It includes eight, high-end flavors.
• When it comes to robots, is the squeeze worth the juice? Chick-fil-A is finding out. The chicken chain opened a plant just north of Los Angeles where it now uses robots to squeeze as many as 1.6 million pounds of lemons before bagging the juice and sending it to the Chick-fil-A stores throughout the country, per a Fox Business report. Once at the restaurant, staff members add sugar and water to make the chain’s famous lemonade. Prior to this, staff members at restaurants would squeeze the lemons.
• The beverage business continues to hold satisfying appeal for some operators. The latest example comes from Chicago-based Lettuce Entertain You Enterprises. The multiconcept operator opened Gus’ Sip and Dip, a cocktail bar with fancy drinks at affordable prices in the city’s always buzzing River North neighborhood, as Eater reports. Gus’ Sip and Dip features 30 drinks as well as a tight food menu that includes an Italian beef sandwich. Gus’ Sip and Dip replaced Hub 51, another LEYE concept.
• McDonald’s plans to update the orbit of its emerging CosMc’s concept. It spent the past year testing location sizes and setups to see what works best. As a result of these efforts, the company plans to close three units in Texas and open two smaller ones in the Lone Star State as it continues to evaluate and evolve this concept. In explaining these moves, McDonald’s said, “We learned that the smaller format stores allow us to test new, unique circumstances that are reflective of our customer base.”
• Restaurant acquisitions are starting to pick up thanks to private equity. Just last week, two chains were acquired: Kelly’s Roast Beef and Rita’s Italian Ice & Frozen Custard. Real estate investment and management firm AAM15 bought Kelly’s Roast Beef in a deal that deal also includes the chain’s restaurant locations in the Massachusetts cities of Saugus, Medford, Danvers and Revere Beach. AAM15’s background includes “years managing full-service hotels and food and beverage operations under globally recognized brands,” per a company release. The chain is more than 70 years old and has long been a staple in the Massachusetts restaurant scene. Maple Park Capital Partners bought a majority stake in Rita’s, which has more than 575 locations, per a company release.
• Just Salad opened its first unit with a drive-thru. The Livingston, N.J., restaurant seeks to attract “on-the-go families,” commuters and other individuals. The unit also offers on-premises dining. Just Salad plans to open other units that feature drive-thru service this year, per a company release.
• Atosa is renovating its Rockwall, Texas, facility. When the project is complete, likely in early 2026, it will serve as the multiline foodservice equipment manufacturer’s Culinary Innovation & Research Center. The facility will be a place for “product development, automation, and culinary exploration,” per a company release. Atosa currently operates what it refers to as Culinary Innovation Centers in Fairfield, N.J., and Brea, Calif. The company also plans to open a Culinary Innovation Center in Atlanta.

Economic News

• The Producer Price Index for final demand advanced 0.2% in December, per data from the U.S. Bureau of Labor Statistics. This was less than 0.4% Dow Jones economists had projected, per a CNBC report. Excluding energy, the core PPI was flat. Economists had projected a 0.3% increase. Final demand prices rose 0.4% in November and 0.2% in October. The index for final demand increased 3.3% in 2024 after growing by 1.1% in 2023.·      Small business owners appear to be in a great mood. The NFIB Small Business Optimism Index rose 3.4 points in December for a total of 105.1. This marks the second consecutive month where the index was greater than its 51-year average of 98. This was also its highest reading since October of 2018.
• Overall, consumer sentiment remained relatively consistent in January, per data from the University of Michigan. Its Index of Consumer Sentiment came in at 73.2, down ever so slightly from December’s reading of 74.0. Consumers’ perception of current economic conditions improved to 77.9, up from 75.1. In contrast, consumers' expectations dipped to 70.2 in January from 73.3 in December.
• The U.S. economy added 256,000 jobs in December, per data from the U.S. Bureau of Labor Statistics. This was significantly more than the 156,000 positions economists projected, per various published reports, including this one from CNN. The higher jobs report led some to wonder whether the U.S. Federal Reserve might change its plans regarding interest rate cuts for the coming year. Employment trended up in healthcare, government, and social assistance. Retail trade added jobs in December, following a job loss in November.
• The private sector added 122,000 jobs in December, per the ADP National Employment Report. This was down from 146,000 positions in November and less than the 136,000 economists had projected, per a CNBC story. Service-producing businesses led the way in December by creating 112,000 jobs, of which 22,000 came from the leisure and hospitality sector. “The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains,” said Nela Richardson, chief economist, ADP. “Healthcare stood out in the second half of the year, creating more jobs than any other sector.”
• Job cuts announced by U.S.-based employers declined 33% in December, per data from Challenger, Gray & Christmas. In the final quarter of 2024, the number of job cuts announced dipped by 13% compared to the third quarter but was up 30% compared to the same period in 2023. In 2024, job cuts announced by employers increased 5.5%.
• Initial claims totaled 201,000 for the week-ending January 4, 2025, per the U.S. Department of Labor. This represents a decrease of 10,000 from the previous week. The 4-week moving average was 213,000, a decrease of 10,250 from the previous week.