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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Moe’s Southwest Grill Expansion Plans and More Foodservice News

A smart kitchen operating system takes flight. Another chain tests delivery robots. Operators seem poised to invest in their businesses. Plus a whole bunch of M&A news. These stories and more, This Week in Foodservice.

Image courtesy of Moe’s Southwest GrillImage courtesy of Moe’s Southwest GrillGoTo Foods extended its Moe’s Southwest Grill concept. Moe’s Casa Mexicana seeks to take advantage of consumers’ interest in fast-casual Mexican-inspired fare in international markets.

GoTo Foods has developed full-scale, in-line, dine-in and kiosk prototypes. The smaller footprints and dedicated international supply chain support “make the concept ideal for high-density urban areas and developing markets alike,” the company said in a release.

The first locations will open in India, where GoTo Foods has a franchise partner for the new concept. The multiconcept operator reports that 60% of its development pipeline focuses on international units.

Foodservice News

  • Restaurant industry performance held steady in June, per data from the National Restaurant Association. The organization’s Restaurant Performance Index came in at 100.0 for the month, which represents a 0.1% decline from May. Operators reported higher same-store sales for June and are cautiously optimistic about sales moving forward. Another encouraging note: 54% of operators report having plans to make a capital expenditure for equipment, expansion, or remodeling in the coming months. That’s the highest this statistic has been in six months, per the NRA.
  • Wingstop’s smart kitchen operating system is helping ticket times take flight. The new KDS includes four touch-screen monitors and uses predictive order management to help drive more precise operations. Restaurants using the Wingstop Smart Kitchen have seen ticket times decline by 40% within the first four weeks, per a Restaurant Dive story. The chain’s CEO says the operating system also helps deliver a more consistent guest experience.
  • White Castle is testing robotic delivery in Chicago, per a release. This is being done in a partnership with Uber Eats and a robotics company. Customers place their order via Uber Eats. When the robot arrives at their location, the customer receives an alert, and they meet it outside, where they use a code to unlock it and access their food. The robotics company has had units operating in Chicago since 2024, the release added.
  • Investment firm L Catterton beefed up its restaurant portfolio. The company acquired Kisshokichi, a 50-unit chain specializing in Kobe beef. Its locations are mostly in Japan. Per L Catterton’s website, its current restaurant investments include Bartaco, Goiko and Urban Egg.
  • New York-based private equity firm Pacific General made an investment in Naya Group. The restaurant chain specializing in Middle Eastern cuisine has 35 units across six states. TriSpan, a longtime investor in Naya Group, remains with the fast-casual chain.
  • The Justice Department is dropping its case against FAT Brands and its chairman, Andy Wiederhorn, per a company release and multiple published reports. In May of 2024, Wiederhorn and the company were indicted by a federal grand jury on charges of wire fraud, tax evasion and other counts in a scheme that allegedly netted Wiederhorn $47 million, per a CNBC report. Wiederhorn maintained his innocence throughout.
  • Can a stronger emphasis on hospitality reverse a chain’s sales slump? Starbucks thinks so. Last week the chain began training baristas on its new “Green Apron Service” program, per a CNBC story. The company aims to stand out by enhancing the guest experience and even making visiting a Starbucks a habit. The program is backed by changes to ensure proper staffing and better technology to keep service times fast. It was born out of growth in digital orders, which now make up more than 30% of sales, and feedback from baristas.
  • PizzaForno is headed west. The automated pizza vending machine will have locations on three college campuses in Southern California this fall including Los Angeles City College, Rio Hondo College, and Long Beach State University, per a company release.
  • Pizza Hut hopes to satisfy the hunger of late-night wedding guests with its latest menu innovation. Customers in Atlanta, New York City and Los Angeles have a chance to win The After Pizza cake, which consists of pizzas from the chain’s Hut Lovers Line that are “stacked high in an unforgettable, tiered, crave-worthy centerpiece,” per a Media Post story.
  • Private equity firm Freeman Spogli has acquired Philz Coffee. Philz will continue to be led by CEO Mahesh Sadarangani, who first joined Philz in 2021, and the existing leadership team, per a release announcing the deal. Philz Coffee was founded in 2003 in San Francisco by Phil Jaber and his son Jacob, who transformed a corner store into a neighborhood café with more than 75 units systemwide.
  • Contract feeder Whitsons Culinary Group expanded its reach in New England. The company acquired The Abbey Group, a Vermont-based contract foodservice prover specializing in schools.
  • The sale of Structural Concepts to the Hoshizaki Alliance is final. Mason Wells received $430 million for Structural Concepts, per a release from the private equity firm. The deal was announced in June.
  • Middleby has added to its food processing portfolio. The Elgin, Ill.-based multiline manufacturer acquired Frigomeccanica S.p.A. The Italian company manufactures solutions for drying, defrosting, fermentation, and refrigeration in the food processing industry, per a company release. Frigomeccanica has annual revenues of $30 million, the release added. The acquisition comes shortly after Middleby announced it was exploring the sale of its food processing business.

Economic News

  • Real gross domestic product grew 3.0% during the second quarter of 2025, per the advance estimate issued by the U.S. Bureau of Economic Analysis. In the first quarter, U.S. GDP declined 0.5%. The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending, the BEA reports. While the overall growth beat expectations, it may overstate the actual health of the economy, which many feel is losing steam. Looking deeper at the data, consumer spending increased at a rate of 1.4% and the underlying GDP growth grew by 1.2%, per a Reuters analysis.
  • Disposable personal income and personal consumption expenditures both increased 0.3% in June, per the U.S. Bureau of Economic Analysis.
  • Consumer confidence increased slightly in July, based on a slightly more positive view of the future, per data from The Conference Board’s Consumer Confidence Index. The study’s Present Situation Index declined 1.5 points for a reading of 131.5. In contrast, the Expectations Index rose four points for a reading of 74.5. Consumers are starting to feel less pessimistic about future business conditions and employment and more optimistic about future income, per The Conference Board. Still, a reading of less than 80 usually signals a recession, and the Expectations Index has failed to exceed that threshold for six consecutive months.
  • The U.S. economy added 73,000 jobs in July, per data from the U.S. Bureau of Labor Statistics. This is a far cry from the 115,000 jobs analysts expected the economy to add, per the Associated Press. Revisions also shaved 258,000 jobs off the May and June payrolls.
  • Private sector employers added 104,000 jobs in July and pay increased 4.4% year-over-year, per the ADP National Employment Report. Leisure and hospitality led the way by adding 46,000 of those jobs.
  • The number of job openings totaled 7.4 million at the end of June, per the Job Openings and Labor Turnover Summary published by the U.S. Department of Labor. This met economists’ expectations, per various published reports, and was less than the 7.7 million openings in May. While business demand for workers is declining, the number of available workers continues to decline, too, as USA Today reports.
  • Economic activity in the manufacturing sector contracted in July for the fifth consecutive month, per the Manufacturing ISM Report On Business. Manufacturing activity has contracted in 31 of the past 33 months.
  • New orders for manufactured durable goods decreased 4.8% in June, per data from the U.S. Department of Commerce. This follows an 8.3% May increase. This is generally in line with economists’ estimates, which called for a 4.9% decline.