On this week's Extra Serving, NRN editor in chief Sam Oches and managing editor Leigh Anne Zinsmeister discuss the latest restaurant industry news, including Wonder’s investment from DoorDash, Chili’s intentions to grab market share from Taco Bell, and Dave & Buster’s confession that the economy was not solely to blame for its misfortunes.
First up is Wonder, which had a big week: The ghost-kitchen business received a $125 million investment from DoorDash while also introducing its Infinite Makeline kitchen, an automated system it acquired from Sweetgreen that helps make food prep faster and more efficient. It also announced a round of layoffs following the closure of two production facilities. Sam and Leigh Anne unpack all of the news and what it means for the future of Wonder, a company that aims to shake up the off-premises competition by streamlining delivery orders through centralized facilities.
Next they talk about Chili’s, whose parent company Brinker International hosted an investor day last week to offer insights into the business and where executives expect to go in the future. At the event, CMO George Felix and CEO Kevin Hochman suggested that Chili’s had already competed directly with burger chains like McDonald’s and chicken chains like Chick-fil-A, and that now it planned to go after QSR Mexican chains. Sam and Leigh Anne discuss what this could mean for chains like Taco Bell, and whether some friendly competition might be a good thing for both businesses.
They then shift the conversation to Dave & Buster’s, an entertainment brand that has suffered from 14 straight quarters of same-store sales declines. New CEO Darin Harper claimed the brand’s back-to-basics strategy was working, but noted that the games business was struggling more than food and beverage. Sam and Leigh Anne talk about the issues Dave & Buster’s is facing, and use it to springboard into a bigger conversation on the broader eatertainment category.
They wrap their discussion with a quick look at other headlines from the week — including bankruptcy filings from Wendy’s and Domino’s franchisees, Tropical Smoothie’s new rebrand, and LeBron James’s investment in Mike’s Red Tacos — before rolling to a conversation between NRN senior food and beverage editor Bret Thorn and Jimmy Wang, executive director of product innovation for Panda Restaurant Group.
For more on these stories:
DoorDash invests $125M in Wonder as part of strategic partnership
Chili’s is taking on the fast-food giants, and Taco Bell could be next
Dave & Buster’s bets on simpler marketing to boost visits
