One chain uses AI to enhance the guest experience. Consumers’ mindset is a focus of two studies. A legendary member of the National Restaurant Association team announces his retirement: these stories and more This Week in Foodservice.
Fast-casual chain Just Salad is using artificial intelligence to help guests personalize their orders.
The chain describes the Salad AI a feature available via its mobile app as a “personal recipe assistant” that delivers customized recommendations based on data the guest provides. Guests start by taking a brief survey on lifestyle preferences, nutritional goals and taste.
Once complete, Salad AI generates four personalized order recommendations, per a company release.
Foodservice News
- Consumer spending at restaurants will increase moderately in 2025, per projections from Fitch Ratings data shared by Restaurant Dive. Fitch projects low-single-digit increase in consumer restaurant spending and customer traffic will remain relatively flat or decline slightly “due to the cumulative effect of inflation as well as the expectations for a cooling labor market.” Average check growth will remain in line with inflation.
- K.-based chain PizzaExpress plans to go globetrotting. As part of a larger international expansion plan, the upscale PizzaExpress plans to open its first U.S. location in Florida later this year. PizzaExpress also plans to go to Hong Kong, the United Arab Emirates, Asia, the Middle East, and Europe, per The Food Institute. The chain will open its first U.S. location in Florida and has a goal of 1,000 global restaurants by 2030. PizzaExpress has 360 locations in the U.K. and Ireland and 110 internationally.
- S.-based Captain D’s plans to make its maiden voyage to the U.K., as restaurant development + design notes. The chain inked a 20-unit development deal and will open its first London location later this year.
- Wahlburgers are off the menu at Hy-Vee grocery stores. The Iowa-based grocery store chain plans to convert the 79 Wahlburgers stores co-located in its units back to Hy-Vee’s Market Grille concept. At the end of the process, Hy-Vee will operate 221 Market Grille and Market Grille Express locations, per a Progressive Grocer story. Hy-Vee plans to update the Market Grille menu, too.
- After 38 years with the association, Hudson Riehle of the National Restaurant Association will call it a career in April. Maybe you have not personally encountered Riehle but if you’ve ever used any of the NRA’s data in your business, then you’ve benefitted from his work. Riehle focused on survey research to help better define upcoming consumer and economic trends that would impact the restaurant industry. He helped create the NRA’s Restaurant Operations Data Abstract, Restaurant Industry 2030 Report and more. Riehle has always been incredibly generous with his time and expertise. In fact, his insights were always a key part of FE&S forecast stories, including the piece that takes a look at 2025. Chad Moutray, Ph.D., will succeed Riehle as senior vice president of the NRA’s Research and Knowledge Group and chief economist of the Association.
Economic News
- Consumers’ outlook is starting to darken. The Conference Board’s Consumer Confidence Index declined by 5.4 points in January to 104.1. And the University of Michigan’s Index of Consumer Sentiment came in at 71.1 for December, down from 74.0 in November. The Conference Board’s Present Situation Index fell sharply in January, dropping 9.7 points. The Expectations Index fell 2.6 points to 83.9 but remained above the threshold of 80 which usually signals a recession ahead. In the University of Michigan study, consumer perception of both the current economic conditions as well as their expectations dipped. Despite reporting stronger incomes in December, concerns about unemployment rose; about 47% of consumers participating in the University of Michigan study expect unemployment to rise in the year ahead, the highest since the pandemic recession.
- The Conference Board Leading Economic Index for the U.S. declined 0.1% in December 2024 for a reading of 101.6. This comes after an upwardly revised increase of 0.4% in November. The LEI declined by 1.3% during the second half of 2024, slightly less than its 1.7% decline over the first half of the last year, which signals “fewer headwinds to U.S. economic activity ahead,” per a spokesperson for The Conference Board, who added the organization expects U.S. real gross domestic product will grow by 2.3% in 2025.
- New orders for durable goods decreased 2.2% in December, per the U.S. Census Bureau. This follows a 2.0% November decrease.
- Sales of new single-family houses in December 2024 beat expectations. December sales were 3.6% greater than November, per data from the U.S. Census Bureau and the Department of Housing and Urban Development. This is also 6.7% more than December 2023. Economists polled by Reuters had projected sales of 675,000 units and the fact that December’s totals came in at 683,000 is seen as a positive sign.
- December’s existing home sales had both good and bad news. First, the bad news: the 4.06 million homes sold during the month was the lowest level in nearly 30 years, per data from the National Association of Realtors. Now the good news: December’s total represents a 2.2% increase from November and the highest level since February 2024.
- Initial jobless claims climbed 6,000 for a total of 223,000 for the week-ending January 18, 2025, per data from the U.S. Department of Labor. The 4-week moving average was 213,500, an increase of 750 from the previous week. While the number of new claims remains relatively low, recurring claims are pretty high, signaling the unemployed seeking work continue to have trouble finding employment, as this Reuters story