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This Week in Foodservice

Taco Bell Announces New Hiring Plan, Starbucks Shares its Recovery Plan and More

Lots happening on the restaurant front with respect to COVID-19. Here are a few updates worth noting:

Economic News This Week

Foodservice News This Week

  • Starbucks tells of problems and plans. The coffee giant revealed a 35% to 40% decline in U.S. comparable store sales from the same period last year. Less than half of the chain’s U.S. stores were open last month. Meanwhile Starbucks’ same-store sales in China are down 20% from last year. Starbucks expects 90% of its stores to be open in June. The company had a plan in place to add more drive thru widows and “to go” stores in the next 3 to 5 years but now will advance that to 12 to 18 months.
  • Starbucks’ CFO asks landlords for rent concessions for at least one year. The company stressed changes had not been confirmed and that conversations were “ongoing.”
  • Will Boston Market’s new owner and new president spark a growth spurt? Engage Brands purchased Boston Market in April, providing an infusion of capital to the long struggling chain. Boston Market veteran Randy Miller was named president. He plans to expand the chain by growing in areas where it is strong.
  • Taco Bell plans to hire at least 30,000 employees this summer. The chain will use some of new staff to meet the demand generated by the increase in off-premises business. Taco Bell will train some of the new hires to signal customers their order is being properly and safely prepared. The overall goal is to enhance speed and efficiency.
  • It’s a simple fact: a lot of people who enjoy eating seafood do it when they eat out but seldom eat seafood at home. As a result, foodservice accounts for the bulk of fish sales. With so many restaurants closed for on premise dining the distributors processors and fishermen are hurting. Seafood purveyors are focusing on sales to retailers, but it remains a struggle and the captains are parking their boats.
  • CFRA Holdings, a 49-unit IHOP franchisee, has filed for bankruptcy protection. The Pinellas County, Florida-based company operates IHOP restaurants in North Carolina, South Carolina, Tennessee and Virginia.
  • Growth Chains: Travel Centers of America plans to open eight franchised locations the first six months of this year and six franchised locations in 2021. Rise Southern Biscuits & Righteous Chicken signed an area development agreement for the state of Virginia that calls for the opening of a minimum of 25 Rise locations in the next 9 years.
  • Comparable Store Sales Reports: BBQ Holdings (Famous Dave’s company-owned locations down 6.8% and franchised units down 13.1%) and Texas Roadhouse (company-owned locations down 8.4% and franchised units were down 8.5%.)

For details and same-store sales of other chains Please Click Here for the most recent Green Sheet.

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