Good Service Won’t Save Your Restaurant. Hospitality Will 1
By: Jeff Dervech - November 24, 2025 Good Service Won’t Save Your Restaurant. Hospitality Will

The restaurant business has changed drastically over the last 20 years. Once a very much in person experience, many customers now purchase from a restaurant without ever placing foot in the dining room with online apps and delivery platforms, it has changed the way consumers interact with the restaurant brand. “Service fills stomachs, hospitality fills seats”.  The purpose of restaurants is much more than just serving a meal, long term players in the space, invest...

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A look at Target’s approach to generative AI 2
By: Jeff Dervech - November 24, 2025 A look at Target’s approach to generative AI

Good to Great! Machine Intelligence, AI Driven Tech and Improved Customer Interface. Target is a retailer that continues to invest in their business and leads the pack in innovation. Putting the right products in the right places at the right time throughout their online platforms has led to higher overall average checkout baskets, happier customers turned raving fans and a retailer that continues to innovate in the world of an ever-changing retail environment.    __________________________________________________________________________________________________________ Target...

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Why Menu Simplification Remains an Underutilized Strategy 3
By: Jeff Dervech - October 10, 2025 Why Menu Simplification Remains an Underutilized Strategy

Simple is better! Offering a limited option menu can lead to restaurant efficiencies, cost savings and operational benefits. Have you ever experienced going to the Cheesecake Factory and browsing through their 21-page food menu? They offer everything under the sun, it takes way too long to review the whole menu, takes away from the experience of enjoying your company and picking what you want to eat for that meal. Menu simplification is a route many...

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How Drones Are Reshaping Restaurant Delivery 4
By: Jeff Dervech - October 8, 2025 How Drones Are Reshaping Restaurant Delivery

Food delivery has changed over time. It used to involve calling in and ordering a pizza, waiting 45 minutes, and having the doorbell ring with a delivery person looking for a signature and a tip. Now, with technologies such as DoorDash and Uber Eats, you can virtually order almost anything from your phone from a long list of restaurants with just a few clicks on an app. These services track your meal and have a...

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Why QSR’s Should Treat TikTok Like a Second Menu Board 5
By: Jeff Dervech - September 8, 2025 Why QSR’s Should Treat TikTok Like a Second Menu Board

Today’s QSR customer journey begins on social media, with TikTok playing a pivotal role in shaping Gen Z consumers’ perceptions long before they step into a restaurant. With over half of Gen Z internet users favoring TikTok over Google for search, the platform serves as a powerful discovery engine where viral menu hacks and custom creations influence ordering decisions. Brands that actively participate in TikTok trends by engaging with food creators, encouraging user-generated content (UGC),...

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McDonald’s to Cut Combo Prices in Nationwide Effort to Reclaim Value Edge  6
By: Jeff Dervech - September 4, 2025 McDonald’s to Cut Combo Prices in Nationwide Effort to Reclaim Value Edge 

McDonald’s is actively working to enhance its perceived value across all day parts by implementing strategic pricing initiatives. The company and its franchisees have agreed to reduce the prices of eight combo meals, making them approximately 15 percent cheaper than if purchased separately, with these changes set to begin in September and continue through early 2026. Additionally, McDonald’s will introduce new value offerings such as breakfast meal deals and “Extra Value Meals,” including $5 Sausage...

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Ad of the Month: Jersey Mike’s ‘Pocket’ Packs Starpower 7
By: Jeff Dervech - August 29, 2025 Ad of the Month: Jersey Mike’s ‘Pocket’ Packs Starpower

For advertisers, success can sometimes come down to brevity, as exemplified by Jersey Mike’s 15-second ad featuring Danny DeVito. The spot effectively leverages its short duration by showcasing DeVito’s warm, genuine enthusiasm for Jersey Mike’s cookies, using humor and a surreal twist with a tiny pocket companion to create a memorable and playful experience. DeVito’s performance helps establish an emotional connection with viewers before the quirky ending, making the ad feel authentic rather than sales-driven....

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Lululemon increasing markdowns at ‘alarming rates’ as momentum fades 8
By: Jeff Dervech - August 27, 2025 Lululemon increasing markdowns at ‘alarming rates’ as momentum fades

Lululemon is facing increasing challenges as it ramps up markdown activity and shifts its merchandise strategy to attract younger consumers, according to Jefferies analysts. Recent store visits revealed widespread markdowns across core categories and inconsistent pricing on identical items, signaling struggles with product sell-through. The company is also moving away from its traditional yoga-focused offerings by introducing bolder colors and logo-centric designs to appeal to a younger demographic. However, this approach raises concerns about potential...

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How Bob’s, Ikea are bucking the trend of furniture retail stagnation 9
By: Jeff Dervech - July 11, 2025 How Bob’s, Ikea are bucking the trend of furniture retail stagnation

Despite a slowdown in the home furnishings market, with sales declining from a peak of $12.7 billion in January 2023 to $11.8 billion in May, retailers like Bob’s Discount Furniture and Ikea are expanding their footprints through strategic focus on value, convenience, and omnichannel experiences. Bob’s plans to open 20 new stores this year, while Ikea is opening eight across the U.S., both emphasizing low prices and seamless integration of online and in-store shopping. These...

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Chick-fil-A Still Has the Most Satisfied Customers in Fast Food 10
By: Jeff Dervech - July 11, 2025 Chick-fil-A Still Has the Most Satisfied Customers in Fast Food

In 2024, Chick-fil-A achieved a significant milestone with systemwide sales surpassing $22 billion, positioning it among only three U.S. restaurant chains to reach this level, alongside McDonald’s and Starbucks. Despite being smaller in store count—3,109 compared to McDonald’s 13,559 and Starbucks’ 16,935—Chick-fil-A’s high average-unit volumes, particularly in drive-thrus, highlight its operational efficiency and strong consumer loyalty. While its growth rate slowed slightly amid softer traffic and economic pressures, the brand maintained its top customer satisfaction...

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Starbucks to deploy generative AI tool for associates 11
By: Jeff Dervech - June 17, 2025 Starbucks to deploy generative AI tool for associates

Starbucks is introducing a new AI assistance tool called “Green Dot Assist” to support store associates at 35 locations starting in June 2025, with plans for wider deployment across the U.S. and Canada in the fall. The tool, built on the Microsoft Azure DeepAI platform, is loaded onto iPads behind the counter and allows baristas to ask both verbal and typed questions about tasks such as order preparation or equipment issues. The AI provides instant,...

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Walmart debuts Sparky, its generative AI assistant for customers 12
By: Jeff Dervech - June 17, 2025 Walmart debuts Sparky, its generative AI assistant for customers

Walmart has launched Sparky, a customer-facing generative AI assistant integrated into its app, designed to assist shoppers by summarizing reviews, answering questions, offering recommendations, and aiding in purchase planning. Building on its earlier deployment of Wally, an AI tool for merchants, Walmart aims to enhance its retail operations and customer experience through AI-driven solutions. Sparky is expected to expand functionalities to include reordering and service booking, and it will soon support various input types such...

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As Wages Climb and Margins Shrink, is Pizza’s Automated Future Finally Here? 13
By: Jeff Dervech - June 3, 2025 As Wages Climb and Margins Shrink, is Pizza’s Automated Future Finally Here?

The quick-service industry has long discussed robotics and automation, but widespread adoption remains limited. A November 2024 PMQ article explores why, despite the promise of labor savings and efficiency, robots like burger-flipping machines or pizza automation tools have not yet become mainstream. Factors such as high costs, technological discomfort, and uncertainty about how pizza-specific automation fits into existing workflows have delayed their proliferation. However, experts believe that rising wages and the need to keep menu...

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Dick’s plans to ‘execute the heck’ out of Foot Locker acquisition 14
By: Jeff Dervech - June 3, 2025 Dick’s plans to ‘execute the heck’ out of Foot Locker acquisition

Weeks after announcing its intention to acquire Foot Locker, Dick’s Sporting Goods reported its fifth consecutive quarter of over 4% comparable sales growth, with net sales rising 5.2% to nearly $3.2 billion in the first quarter. Despite challenges like tariffs and declining consumer sentiment, the company reaffirmed its full-year guidance, expecting comparable sales growth between 1% and 3% and net sales reaching up to $13.9 billion. During this period, Dick’s continued to revamp its store...

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Home Depot doesn’t plan to raise prices despite tariffs 15
By: Jeff Dervech - June 3, 2025 Home Depot doesn’t plan to raise prices despite tariffs

Despite ongoing tariffs impacting the industry, The Home Depot announced it does not plan to raise prices, maintaining a stable pricing strategy. In its first-quarter report, the retailer showed a 9.4% rise in sales year-over-year to $39.9 billion, although comparable sales declined slightly by 0.3%, with U.S. comps increasing by 0.2%. Operating income grew modestly by 1.1% to $5.1 billion, but net income dropped 4.6% to $3.4 billion. Home Depot’s leadership expressed confidence that they...

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Why Dining Rooms Still Matter in a Digital-First World 16
By: Jeff Dervech - June 3, 2025 Why Dining Rooms Still Matter in a Digital-First World

Since its debut in 2011, CAVA has evolved its dining spaces from minimalist, industrial designs that reflected a post-recession aesthetic to warmer, more inviting environments that emphasize hospitality and community. In 2022, the brand launched Project Soul, aiming to create a more welcoming atmosphere with softer lighting, plush seating, and greenery, aligning with the Mediterranean values of sharing meals and fostering human connection. CEO Brett Schulman highlights the importance of balancing physical and digital channels...

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Core retail sales up 7% year over year in April as consumers stocked up pre-tariffs 17
By: Jeff Dervech - May 19, 2025 Core retail sales up 7% year over year in April as consumers stocked up pre-tariffs

In April, retail sales experienced a notable increase as consumers actively pulled forward purchases to avoid anticipated price hikes resulting from tariffs. Core retail sales, which exclude restaurants, auto dealers, and gas stations, rose by 0.9% month-over-month and 7.11% year-over-year, according to the CNBC/Retail Monitor based on anonymized credit and debit card data. Overall, total retail sales—including restaurants but excluding automobiles and gasoline—grew by 0.72% month-over-month and 6.76% year-over-year. These gains contributed to a year-to-date...

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Cold play: Toy industry faces ‘devastating’ impact from tariffs 18
By: Jeff Dervech - May 15, 2025 Cold play: Toy industry faces ‘devastating’ impact from tariffs

Isaac Larian, CEO of MGA Entertainment, is facing significant challenges as tariffs imposed during the Trump administration threaten the toy industry and his company’s expansion plans. His factory in Ohio, which has been producing toys for over six decades and employs around 700 workers during peak season, is now on hold due to the high tariffs—rising to 145% on imports from China—making production costs skyrocket. Since approximately 80% of toys imported into the U.S. come...

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Investing in frontline workers is investing in customers 19
By: Jeff Dervech - May 13, 2025 Investing in frontline workers is investing in customers

Retail’s frontline workers are vital to delivering a positive customer experience, yet they often remain overlooked when it comes to technological innovation. As retailers face economic fluctuations, a tight labor market, and changing consumer expectations, high turnover rates among frontline staff continue to challenge operations. These workers are essential in providing efficient, personalized service, but are stretched thin managing multiple tasks. Investing in technology—such as Bluetooth headsets, digital tools, and streamlined communication devices—can ease their...

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A ‘Transformational Year’ for Shake Shack Gets Underway 20
By: Jeff Dervech - May 9, 2025 A ‘Transformational Year’ for Shake Shack Gets Underway

Rob Lynch, upon joining Shake Shack last May, anticipated a transformative year for the company. He outlined a long-term growth strategy aiming to quadruple the number of restaurants to 1,500, with a record-breaking 45–50 company-operated locations planned for 2025. In the first quarter, Shake Shack opened four new company units—including drive-thrus—and seven licensed locations, reaching a total of 589 stores globally. Despite this aggressive expansion, Lynch emphasized that the company is simultaneously reducing costs by...

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Culver’s Steady Growth Continues to Set it Apart 21
By: Jeff Dervech - April 30, 2025 Culver’s Steady Growth Continues to Set it Apart

Culver’s, the fast-casual restaurant chain founded in 1984, has navigated the complexities of the restaurant industry during the COVID-19 pandemic with remarkable consistency in its expansion efforts. Over the past five years, Culver’s has opened a steady number of new locations, with 50 restaurants established in both 2019 and 2020, followed by 55 openings in 2021 and 2022. In 2023, the brand added 52 new locations and plans to open 53 in 2024, bringing its...

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Chipotle to make Mexico debut in 2026 22
By: Jeff Dervech - April 30, 2025 Chipotle to make Mexico debut in 2026

Chipotle Mexican Grill is expanding its international presence by entering the Latin American market, having signed a development agreement with Alsea, a prominent restaurant operator in the region. This partnership will facilitate the opening of Chipotle’s first restaurant in Mexico by early 2026, with plans for further expansion in additional markets within the area. Nate Lawton, Chipotle’s chief business development officer, expressed confidence that the brand’s commitment to responsibly sourced and freshly prepared food will...

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Costco reports strong March sales as e-commerce surges 23
By: Jeff Dervech - April 21, 2025 Costco reports strong March sales as e-commerce surges

Costco Wholesale Corp. experienced robust sales growth in March, reporting a net increase of 8.6% to $25.51 billion during the five-week period ending April 6. The company’s total comparable sales climbed 6.4%, with a 7.5% rise in the U.S. and 4.1% in Canada. Internationally, comparable sales grew by 2.9%. E-commerce also showed significant improvement, with comparable sales increasing by 16.2%. The calendar shift due to Easter added an extra shopping day, contributing roughly 1.5% to...

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Add ‘Value’ to the Restaurant Categories CAVA is Winning 24
By: Jeff Dervech - April 21, 2025 Add ‘Value’ to the Restaurant Categories CAVA is Winning

In March, the restaurant industry saw a significant shift in consumer spending, as average monthly dining expenditure dropped 14% year-over-year to $184, driven mainly by consumers with annual household incomes below $200,000. While nearly 49% of respondents reported spending less than the previous year, the amount was moderated by increased spending among more affluent diners. The overall engagement in dining remained robust, with 91% of respondents indicating they dine out at least a few times...

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Checkers Changes the Drive-Thru Game Yet Again  25
By: Jeff Dervech - April 8, 2025 Checkers Changes the Drive-Thru Game Yet Again 

Frances Allen’s early tenure as CEO of Checkers & Rally’s coincided with the onset of the COVID-19 pandemic, presenting both unique challenges and opportunities for the fast-food chain. Having strategically prepared for her role, Allen engaged with employees, franchise advisory committees, and local restaurant visits prior to the pandemic’s escalation. This groundwork enabled her to establish a “crisis committee” that met daily to implement new operational procedures, ensuring the safety of both staff and customers...

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How to meet your customers where they are – virtually 26
By: Jeff Dervech - April 8, 2025 How to meet your customers where they are – virtually

Today’s consumers are increasingly engaged in digital spaces, prompting retailers to adapt their strategies and establish a presence in these interactive environments. The rise of the metaverse offers new avenues for retail engagement, exemplified by Walmart’s innovative efforts to tap into this trend over the past few years. Walmart has created various metaverse experiences, including interactive gaming partnerships and virtual retail environments, effectively positioning itself in immersive platforms that attract customers. By being a pioneer...

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E-commerce is here to stay after a push from the pandemic  27
By: Jeff Dervech - April 3, 2025 E-commerce is here to stay after a push from the pandemic 

As the pandemic struck the U.S. in spring 2020, Walmart, the world’s largest retailer, faced numerous challenges driven by changing consumer behavior, shifting regulations, and increased operational costs. Despite these obstacles leading to a higher gross margin squeeze, Walmart was able to pivot effectively, enhancing its online presence and prioritizing an omnichannel approach that facilitated consumer engagement through pickup and delivery services. This shift aligned with a broader trend as many consumers embraced online shopping...

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Why Farmside Kitchen is One to Watch  28
By: Jeff Dervech - April 1, 2025 Why Farmside Kitchen is One to Watch 

Farmside Kitchen aims to position itself as a prominent name in the fast-casual dining market, competing directly with established brands like Chipotle and CAVA. Co-founders Meg Schiffman and Ben Protheroe draw on their extensive backgrounds in the food industry to offer a unique dining experience centered around their signature product, the Farmbowl, which features healthy grains, local proteins, and seasonal vegetables sourced from regional farms. Each bowl can be customized with various ingredients, and the...

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Dollar General expands private-label partnership with Dolly Parton 29
By: Jeff Dervech - March 21, 2025 Dollar General expands private-label partnership with Dolly Parton

Dollar General has announced a new spring kitchen and housewares collection in collaboration with country music legend Dolly Parton. Building on the success of their first partnership, which launched a kitchen line in July 2024, this spring collection includes a variety of products such as home decor, drinkware, coffee bar supplies, and table linens, all priced at $10 and under. Signature items feature stylish designs, including a French press, tea kettle, and a rotating coffee...

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Taco Bell Spices Up Global Expansion with Cultural Buzz and Cravings 30
By: Jeff Dervech - March 18, 2025 Taco Bell Spices Up Global Expansion with Cultural Buzz and Cravings

Taco Bell is actively addressing its challenge of introducing Mexican cuisine to international markets where consumers have limited exposure to the food category. The company acknowledges that entering new countries requires not only presenting its brand but also educating potential customers on how to enjoy its offerings, prompting initiatives like “Tiltvertizing,” which demonstrates the proper way to eat a taco. Amy Durini, Taco Bell’s International CMO, emphasizes the novelty and enjoyment of this educational approach....

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Foot Locker to refresh 300 stores this year 31
By: Jeff Dervech - March 13, 2025 Foot Locker to refresh 300 stores this year

Foot Locker is accelerating its store strategy, focusing on its “reimagined” store concept, which first launched last April. During a recent earnings call, CEO Mary Dillon announced plans to either open or convert 80 stores to this updated format in the current year, significantly increasing from the eight currently operating. The retailer aims to refresh hundreds of smaller-scale stores in 2025, having upgraded 400 locations last year and targeting an additional 300 stores for this...

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Shake Shack expands partnership with Delta Air Lines 32
By: Jeff Dervech - March 11, 2025 Shake Shack expands partnership with Delta Air Lines

Shake Shack has broadened its collaboration with Delta Air Lines by offering its signature cheeseburger to first class passengers departing from airports in Atlanta, Los Angeles, New York-LaGuardia, and Seattle. This menu addition comes after a successful launch in Boston last December. The cheeseburger, which features American cheese and toppings typically found on Shake Shack’s ShackBurger, is available for lunch or dinner on flights longer than 900 miles. It is served with chips, a Caesar...

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TJX maintains momentum in Q4 with gains across divisions; to open 90 U.S. stores 33
By: Jeff Dervech - March 6, 2025 TJX maintains momentum in Q4 with gains across divisions; to open 90 U.S. stores

TJX Companies concluded the year with impressive earnings and sales figures that exceeded analysts’ expectations, driven by strong customer demand across all its store banners. The off-price retail powerhouse reported a net income of $1.4 billion for the quarter ending February 1, translating to earnings of $1.23 per share, slightly up from $1.22 per share in the previous year. Despite net sales remaining flat at $16.35 billion, they surpassed estimates of $16.21 billion. The company...

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How QSRs Can Use Digital Signage to Power Growth and Guest Engagement  34
By: Jeff Dervech - March 4, 2025 How QSRs Can Use Digital Signage to Power Growth and Guest Engagement 

Digital transformation is reshaping the quick-service restaurant (QSR) industry by streamlining operations and enhancing customer experiences, with digital signage emerging as a pivotal tool in this shift. Its versatility allows QSRs to incorporate elements such as dynamic menus, interactive ordering, and engaging promotional displays, ultimately improving customer engagement and operational efficiency. By dynamically showcasing menu items and promotions, digital signage not only drives sales but also captivates customers, with studies revealing that over 80% of...

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Monthly retail sales from the US Commerce Department 35
By: Jeff Dervech - February 25, 2025 Monthly retail sales from the US Commerce Department

In January 2025, U.S. retail sales in core segments—excluding food, auto, and fuel—rose by 3.9% year-over-year, reaching a total of $234.88 billion, as reported by the U.S. Department of Commerce. E-commerce sales experienced a similar growth of 3.8% during the same period. Despite typically being a sluggish time for retailers, the January figures were viewed as impressive, particularly given the challenging winter weather that encouraged consumers to buy outerwear and warm clothing. The National Retail...

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Retail in the age of AI vision  36
By: Jeff Dervech - February 22, 2025 Retail in the age of AI vision 

The potential of AI in the shopping landscape is immense. The author utilizes ChatGPT to locate the main water shutoff valve in their home. This experience illustrates how AI can facilitate daily tasks and hints at its future role in retail. By querying ChatGPT about a product, such as the Nike Pegasus 36 Trail running shoe, the author receives detailed, conversational responses that prove AI’s effectiveness as a shopping assistant. This interaction suggests that customers...

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