This Week In Foodservice

The editorial team aggregates key industry information and provides brief analysis to help foodservice professionals navigate the data.

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A Look at Huddle House's Brand Renovation and More Foodservice News

Freddy’s starts testing an automated cooking system. Food hall Wonder continues to fuel its growth. Taking a closer look at “The Kitchen Condition.” Identifying Pope Leo’s favorite pizza. A cooking equipment manufacturer hires a new brand ambassador. These stories and more this week in foodservice.

Huddle House Drive ThruImage courtesy of Huddle HouseHuddle House has launched a brand renovation that includes new prototype designs that will emphasize what would be considered non-traditional formats for the 60-year-old family dining chain.

Working with Studio 11 Design, Huddle House developed what it calls a QSR conversion format that focuses on drive-thru and walk-up ordering to cater to off-premises dining occasions. The units will measure 500 to 1,200 square feet and target such high-traffic locations as airports, colleges, malls, and travel centers. The chain will test this prototype with a select group of franchisees, the release added.

Foodservice News

  • Big Apple-based Shake Shack has big plans for the Peachtree State. The fast-casual chain plans to open a flagship restaurant in Atlanta that will be a company-owned restaurant with a full bar, per a Nation’s Restaurant News. Nearby, Shake Shack will open a support center that will include 25,000 square feet of office space as well as a test kitchen. A licensed Shake Shack with a bar has been operational in the Denver International Airport since 2021.
  • Freddy’s Frozen Custard & Steakburgers is testing a fully automated fry cooking system. The test is in progress at Freddy’s Training and Innovation Center and will move to select restaurant locations in the coming months, per a release. The robotic solution will handle everything from filling and shaking to cooking and dumping by using dual linear arms working independently and in sync. The robotic fryer is designed to retrofit into existing kitchen layouts, the release adds. As part of the pilot program, Freddy’s plans to evaluate the robotic solution on a variety of performance-driven metrics, including cook time, throughput, product quality, and team efficiency.
  • Food hall and delivery startup Wonder continues to raise funds to feed its growth. The latest company of note to hop on the Wonder train is venture capital firm NEA, which was part of another $600 million round of funding, per a Restaurant Business story. Wonder plans to use the fresh capital to accelerate the openings of its brick-and-mortar stores. It currently has 46 locations and plans to have more than 90 operational by the end of the year, all in the Northeast. The Wonder Group’s Marc Lore discussed his vision for the company during this presentation at The NAFEM Show earlier this year.
  • Pappas Restaurants is in line to acquire On The Border Mexican Grill and Cantina out of bankruptcy. The parent company of Pappasito’s Cantina was selected as the winning bidder during an auction to determine the next owner of On The Border, per a company announcement. The deal is subject to court approval. On The Border filed for bankruptcy in March.
  • Dine Brands likes what it sees from its co-branded restaurants. In fact, the company’s first domestic dual-branded IHOP/Applebee’s restaurant is “performing above expectations” and generating three times the sales compared to when it was a standalone IHOP location, per a Restaurant Dive story. The company is on track to have 14 dual-branded locations in the U.S. by the end of the year.
  • Starbucks will take another run at the late afternoon daypart. The coffee chain plans to launch an Aperitivo Menu, which would likely include sparkling beverages, coffee drinks and more savory snacks, per a report by The Food Institute. The goal is to boost traffic during the 2 p.m. to 5 p.m. window. While popular in Europe, Aperitivo menus are not necessarily part of Americans’ daily routines, so some analysts wonder whether this will fill a customer need. Others wonder how it fits in with Starbucks’ back-to-basics movement.
  • As part of beefed-up expansion plans, McDonald’s intends to hire 375,000 U.S. restaurant employees this summer, the Associated Press reports. The company plans to open 900 more restaurants by 2027. McDonald’s has more than 13,500 restaurants in the U.S.
  • Over the past year, 79% of chefs have considered leaving the profession altogether, per a study called “The Kitchen Condition.” The study, which was commissioned by The Burnt Chef Project and Halton Group in collaboration with 1473 Media, also shows that roughly four out of five chefs reported difficulties recruiting new staff during the past year. Working conditions were a common concern, with 90% of respondents saying poor environments hinder their ability to operate efficiently. An overwhelming 97% felt these conditions significantly harm their physical health. If there’s a positive to take from this, it’s the fact that chefs are becoming more health-conscious. “It can be overwhelming trying to fix the wider issues, but taking a pragmatic approach to improving kitchen conditions will help. I feel positive we can change the narrative,” said Kris Hall, CEO of The Burnt Chef Project.
  • RATIONAL USA appointed pastry chef Antonio Bachour to serve as its newest brand ambassador. He has earned global awards for Best Pastry Chef and a Michelin Bib Gourmand for Bachour in Miami. With restaurants in the U.S. and Mexico, he is known for his imaginative desserts and mentoring the next generation of chefs, per a RATIONAL release.
  • What pizza does Pope Leo XIV like to eat when visiting Chicago? He likes to visit Aurelio’s Pizza, according to a Chicago Eater story. If you’re headed to Chicago for the National Restaurant Show and want to eat like a pope, that’s a place to visit. The story also recaps how the marketing teams at a variety of Chicago restaurants kicked into gear when the first American-born pope was elected.

Economic News

  • The Consumer Price Index for increased 0.2% in April, the U.S. Bureau of Labor Statistics reported. And for the 12-month period ending in April, CPI increased 2.3%, its lowest level since February of 2021. The monthly reading was in line with estimates from Dow Jones while the 12-month rate was 0.1% less than the anticipated growth rate, per a CNBC story. While this data is certainly encouraging, economists continue to warn that tariffs being levied by the Trump administration remain an economic wildcard. Food-at-home prices fell 0.4% during the month, while food-away-from-home prices saw 0.4% growth (seasonally adjusted). On an unadjusted YoY basis, the gap between food-away-from-home (3.9%) and food-at-home (2.0%) inflation has widened.
  • The NFIB Small Business Optimism Index declined by 1.6 points in April to 95.8. This marks the second consecutive month where the index came in at less than its 51-year average of 98. The Uncertainty Index decreased four points from March to 92 but remained greater than its historical average of 68. “Uncertainty continues to be a major impediment for small business owners in operating their business in April, affecting everything from hiring plans to investment decisions. While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of business investments,” said Bill Dunkelberg, NFIB chief economist.
  • Labor productivity decreased 0.8% in the first quarter of 2025, the U.S. Bureau of Labor Statistics reported. Economists had projected a 0.7% decline, per published reports. Output decreased 0.3% and hours worked increased 0.6%. This is the first decline in labor productivity since the second quarter of 2022. Compared to the same quarter a year ago, productivity increased 1.4%.
  • Consumer credit increased 1.5% during the first quarter, per data from the U.S. Federal Reserve. Revolving credit increased at an annual rate of 2.3%, while nonrevolving credit increased at an annual rate of 1.2%. In March, consumer credit increased at an annual rate of 2.4%.

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