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download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Restaurants raised prices to offset the new wageCalifornia raised its minimum wage for workers at limited-service restaurants to $20 an hour on April 1. To offset their higher labor costs, restaurants have raised prices, turned to technology and automation like order kiosks, and considered reducing their opening hours. In-N-Out told KTVU that it had raised prices "incrementally" on April 1. Californian residents are divided: Some acknowledge that fast food is a tough gig and support the new minimum wage, while others say it will push prices up too much.
Persons: , Burger King, Hottovy, Jack Organizations: Service, Golden State, Business Locations: Burger, California, Golden, Placer.ai, McDonald's
The CEO of Applebee's owner, Dine Brands, told CNBC that the chain offers a better value proposition than its fast-food rivals. Applebee's diners are buying cheaper items and visiting less often. But even if it is winning over some fast-food customers, Applebee's sales are still falling. Applebee's diners are cutting back, tooBut casual dining chains have been raising their prices, too, because of wage and food inflation. Have you switched from fast food to casual dining chains like Applebee's, Chili's, and Olive Garden?
Persons: they're, , John Peyton, Bacon Burger, Applebee's, Burger, Peyton, It's, That's Organizations: Dine Brands, CNBC, Service, Dine Locations: Applebee's, Olive
Analysts say fast-food prices feel particularly painful because they're rising faster than grocery prices. Fast-food prices have been shooting upRestaurant prices are determined by "two major categories" — food costs and labor costs, Citi analyst Jon Tower told BI. Related storiesFast-food chains put up their menu prices to reflect the higher food costs and payrolls. AdvertisementGrocery inflation is coolingFast food seems particularly expensive right now because grocery inflation is cooling much more rapidly, analysts BI spoke to said. AdvertisementBut the inverse is also true — grocery stores benefit much more than restaurants when food inflation cools.
Persons: , Jim Sanderson, Jon Tower, Sharon Zackfia, William Blair, Price, Danilo Gargiulo, Bernstein, Gargiulo, they've, Garguilo, Sara Senatore, Chad Frye Organizations: Analysts, Service, Northcoast Research, Citi, US Bureau of Labor Statistics, Bank of America Locations: Russia, Ukraine, California
Chipotle's CFO said that says that fewer customers are ordering ahead as its service speeds up. A key metric for the chain is how many entrées each restaurant makes in its peak 15 minutes. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementChipotle says that its service is becoming so much speedier that fewer customers are bothering to order ahead on its app. During the pandemic, many fast-food and fast-casual chains rolled out ways for customers to order ahead so that customers could skip the line.
Persons: , Chipotle, Jack Hartung, Brian Niccol, Niccol, Hartung Organizations: Service, Business, Boston
Read previewA former Chick-fil-A worker said that the fried-chicken chain asked her to stop posting videos of her staff meals on TikTok because she was breaking company policy. Food reviews are hot stuffRestaurant reviews and food rankings are popular topics for TikTok videos. Webb's last Chick-fil-A video before the company's PR team contacted her, which has 3.4 million views, shows her reviewing the four drinks in its limited-edition Cherry Berry range. AdvertisementWebb's TikTok account also features videos of her reviewing her staff meals at Aldi, where she also has a job. In her video announcing the end of her Chick-fil-A staff meal videos, Webb said that other brands wanting to collaborate with her should reach out.
Persons: , Miriam Webb, Webb, Chick, I'm, Miriam Webb's, Cherry Berry, commenter Organizations: Service, Business, PR, Aldi Locations: Los Angeles County, TikTok
Read previewA California franchisee has warned that some of his customers think fast food is becoming a "luxury" as restaurants increase prices to cover the state's new $20 minimum wage for fast-food workers. AdvertisementThe new wage in California comes amid rising prices of fast food across the US more generally. A combination of wage and food inflation pushed prices up during the pandemic, and some diners say they're cutting down on how much fast food they eat because it's no longer affordable. "The appetite that my customers have for price increases is not unlimited," Scott Rodrick, a McDonald's franchisee with 18 restaurants in northern California, previously told BI. Is fast food no longer affordable?
Persons: , Brian Hom, I've, Scott Rodrick, Tony Nix Organizations: Service, Business Locations: smoothie, San Jose, California
A group of former McDonald's workers reunited at their old restaurant 50 years later. AdvertisementA group of former McDonald's workers went back to their old restaurant in Missouri for a "Class of 1975" reunion to mark nearly 50 years since they worked together. Courtesy of McDonald'sElhoffer was 16 when she started working at the Hazelwood restaurant, she told BI. AdvertisementThey became close friends while working at the restaurant, Elhoffer said, with some of them playing on the restaurant's softball team. AdvertisementCourtesy of McDonald'sThe biggest change since she started working at McDonald's has been the introduction of drive-thrus, Elhoffer said.
Persons: , Joan Elhoffer, Elhoffer, they'd, McDonald's, St Louis . Seven Organizations: Service, Michelin, McDonald's, Hamburger University, St Louis Locations: Missouri, Hazelwood, Arkansas , Florida , Ohio, Tennessee, St, McDonald's
California school districts are worried about workers could leave for $20 jobs in fast food. The state put the minimum wage for fast-food workers up to $20 an hour on April 1. AdvertisementSchool districts in California are worried about food and cafeteria workers leaving for higher-paying jobs at fast-food restaurants after the state boosted the sector's minimum wage to $20 an hour. School districts "are all very worried about it," Carrie Bogdanovich, president of the California School Nutrition Association, told The Associated Press. Are you a worker in California considering moving to a fast-food chain for the $20 wage?
Persons: , Carrie Bogdanovich, Sal Vitalie Organizations: Service, California School Nutrition Association, Associated Press, Garden Club, Business Locations: California, South San Francisco
A McDonald's franchisee who's raised prices because of California's $20 minimum wage is worried about scaring off diners. "I can't charge $20 for a Happy Meal," the franchisee told CNN. California put its minimum wage for fast-food workers up to $20 an hour on Monday, a 25% increase on the state's general minimum wage. Related storiesThe state's fast food council can raise the minimum wage by up to 3.5% yearly, depending on inflation. Are you a fast-food worker excited about the new minimum wage?
Persons: who's, , Scott Rodrick, Rodrick, I've, Angelica Hernandez, Hernandez Organizations: CNN, Service, Los Angeles County, KTLA, Fox News, Fast Food Council Locations: California, Sacramento, Los Angeles
Fast-food giants are rapidly deploying more order kiosks in the US. AdvertisementMajor US fast-food chains plan to aggressively add more digital order kiosks to their restaurants – and bring in bigger checks in the process. They make up "well over" half of its in-restaurant orders at these locations, CFO Katie Fogertey told investors in November. As well as labor savings, kiosk orders "tend to skew to dine-in" and thus use less packaging than other digital orders, she said. In the US, digital orders currently make up just 15% of Burger King's sales.
Persons: Patrick Doyle, , Burger, Josh Kobza, Shack, Katie Fogertey, Chris Turner, Turner, Sharon Zackfia, William Blair, Fogertey, Grace Dean, Randy Garutti, cashiers, Fogerty, Andy Barish, Jon Tower, Kobza, Zackfia, Barish, Popeyes, Tim Hortons Organizations: Service, Restaurant Brands, Brands, Taco Bell, KFC, Business, Jefferies, Citi, Burger, Firehouse, North Star Locations: Taco, China, London, millennials
"You can't raise prices enough," the Los Angeles franchisee told KTLA 5 News. From April, California's minimum wage for fast-food workers will be 25% higher than the general one. AdvertisementA McDonald's franchisee in Los Angeles says that if she wanted to raise her prices to fully offset California's incoming $20 minimum wage for fast-food workers, her burgers and fries would be unaffordable. AdvertisementThe minimum wage for fast-food workers in California is going up to $20 an hour starting April 1 — 25% more than the state's general minimum wage. Correction: March 21, 2024 — An earlier version of this story incorrectly described two places in Los Angeles County.
Persons: , Kerri Harper, Howie, Harper, who'll Organizations: Los Angeles, KTLA, Service, Food, Harper Locations: Los Angeles, California, Inglewood , California, Los Angeles County, Inglewood, Compton
More diners are using restaurant loyalty apps to get cheap or free food. AdvertisementDiners are turning to fast-food loyalty apps for cheaper meals as years of price hikes catch up with customers. Many restaurant apps give diners points based on how much they spend, which can be redeemed for free food. AdvertisementPeople on Reddit say they're using loyalty apps to save money and get free meals. Some restaurant apps give diners points based on how much they spend.
Persons: McDonald's, , Wendy's, Taco Bell, I've, Chipotle Martin Jennings, Jennings, Warren Colehour, Sharon Zackfia, William Blair, Annie Smith, Chris Kempczinski, Joe Erlinger, Erlinger, Laxman Narasimhan, Brady Brewer Organizations: Starbucks, Service, Bell Locations: Florida, Kentucky, Canada
Read previewTrader Joe's mini tote bags have only been on sale for a couple of weeks — and they've already sparked a lucrative online resale market. Hundreds of people have already bought the mini tote bags from the online marketplace. "The size is ideal for smaller shopping trips, to pick up those few items you forgot the first time around," Trader Joe's says in the product description. Probably not," one TikToker said in a video of her mini tote. Have you bought a mini tote bag from Trader Joe's?
Persons: , they've, Stanley, Joe's, Quencher, Alphas Organizations: Service, Business, eBay
Costco is now selling packs of 25-count packs of silver Royal Canadian Mint coins for $625. They wrote in reviews that the tubes weren't sealed when they arrived and the coins were loose and scratched. AdvertisementSome Costco shoppers buying its new $625 packs of silver coins say that they didn't arrive in sealed tubes as promised, leading to some of them showing up scratched. One reviewer said that when they opened their package, "the coins just spilled out of the UPS box." They said their coins arrived "tightly wrapped in plastic and still in the sealed tube."
Persons: , King Charles III Organizations: Costco, Royal Canadian, Service, Royal Canadian Mint, UPS, Eagle, Business
AdvertisementBurgers, tacos, and pizzas will get more expensiveDiners should expect to pay more as fast-food restaurants put menu prices up to offset higher wages. But restaurants already paying workers higher wages will feel less of an impact from the new legislation. Jon Tower, an analyst at Citi, said the higher prices could be hard for some diners to accept. However, higher wages at McDonald's, Subway, and Burger King will likely prompt other employers to offer higher pay so they can compete for labor. AdvertisementPeople will have more money to dine outAs fast-food workers' wages increase, they'll actually have more disposable income to spend dining out.
Persons: , Gavin Newsom, It's, Jack, Sharon Zackfia, William Blair, Andy Barish, Sara Senatore, Chris Kempczinski, they're, Jon Tower, Barish, Zackfia, Burger, Danilo Gargiulo, Bernstein, Matt Clark Organizations: Service, Golden State, Gov, Jefferies, Bank of America, Citi, Bureau of Labor Statistics Locations: California, McDonald's
AdvertisementChains like McDonald's, Shake Shack, and Taco Bell say they're only planning small price increases in 2024 as inflation cools. But in the year to January 2024, prices at limited-service restaurants rose just 5.8%, per BLS data. Martin Jennings, a 51-year-old truck driver from Florida, told Business Insider that his family was being deterred by higher prices at fast-food chains. Customers are looking for app deals and choosing value menusCustomers are looking for ways to get cheaper meals at fast-food chains. Chipotle said it's eyeing a price increase in the mid-single digits, depending on consumer sentiment and actions taken by other fast-food chains.
Persons: , Taco Bell, Martin Jennings, Ben Heyworth, Burger King, McDonald's, Ian Borden, Jennings, David Gibbs, Kempczinski, Gunther Plosch, Chipotle, it's, Katie Fogertey Organizations: Service, Bureau of Labor Statistics, Shack, Taco, Brands Locations: Florida, Orlando, Burger, Taco Bell, California, America
Five expats to Iceland told Business Insider about the biggest challenges they faced. "I used to be afraid of winter coming," Jewells Chambers, who relocated from Brooklyn seven years ago and makes the podcast All Things Iceland, said. Public transport is 'terrible'"Driving is the standard in Iceland," Chambers said. "I think tourism has been wonderful for Iceland," Basappa said. And the main street in Reykjavik used to be Icelandic boutiques, but "everything got swept up and turned into puffin shops," she said.
Persons: You've, Shruthi Basappa, Jewells Chambers, Grace Dean, Chambers, Sonia Nicolson, Jeannie Riley, Nicolson, Riley, you've, Basappa, Alice Olivia Clarke, She'd, expats, Chambers doesn't, They're, they'd, It's, Soeren, Clarke, Airbnb, Brooklyn . Nicolson Organizations: Statistics, Business, SEI, Hallmark, Toyota, Facebook, Tourism, Getty Locations: Iceland, Statistics Iceland, India, Barcelona, Brooklyn, Texas, Canada, Reykjavik, puffin, expats, Brooklyn .
In 2023, for the first time since 2016, Subway opened more stores than it closed. Subway has closed thousands of stores, resulting in years of decline in net restaurant count. AdvertisementFor the first time since 2016, after years of store closures, Subway finally opened more sites than it shuttered. AdvertisementBut Subway has also been closing thousands of stores, resulting in years of net restaurant-count decline. Restaurant Business previously reported that Subway had closed more than 6,500 restaurants between 2015 and 2022.
Persons: , Gerardo Mora, It's, Roark Capital, Jimmy John's, Dunkin, Roark, Anne's Organizations: Subway, Service, Business, . Subway, Getty, Subway Subway, North, American, Roark Locations: Mainland China, North America
Read previewA restaurant owner in Virginia said that some diners and passers-by have been helping themselves to staff's takings, including one job candidate who she claimed stuck their hand in the tip jar on the way into their interview. Turbeville said that she didn't report the job candidate she claimed stole money to the police. Related storiesAfter interviewing the candidate, the restaurant's manager noticed that the $5 bill that had been in the tip jar had disappeared, Turbeville told BI. For tipped staff, tips can make up up to $9.87 of this, but employers have to pay these workers at least $2.13 an hour. But since the restaurant posted a video of the tip jar being stolen on Instagram, "everyone's been really supportive of us, she said.
Persons: , Kendall Turbeville, Turbeville, it's, she'd, hasn't, It's, everyone's Organizations: Service, Business, Virginia Beach Police Department, BI, Local NBC Locations: Virginia, Virginia Beach, City
Read previewA 16-year-old TikToker claims that her parents have spent around $3,000 buying her every Stanley cup on the market. This story is available exclusively to Business Insider subscribers. The Quenchers were the most-featured item in Gen Z Christmas-haul videos on TikTok, a youth consumer-trends analyst previously told Business Insider . A shopper passes empty shelves once stocked with Stanley tumblers at a Target store in Canoga Park, California on January 9, 2024. Do you collect Stanley cups?
Persons: , Stanley, Amelia Awad, Stanley Quencher, I'm, Stanley tumblers, Brian van der, Awad Organizations: Service, Business, Wall Street Journal, Starbucks, Hydro, Los Angeles Times, Getty Locations: Birmingham , Alabama, Canoga Park , California
Waffle House workers want their wage to go up to $25 an hour. AdvertisementAdvertisementWaffle House workers are demanding a $25 minimum hourly wage and constant security in restaurants. The Union of Southern Service Workers, which is supported by the Service Employees International Union, is organizing Waffle House workers. AdvertisementAdvertisementAs well as concerns about workplace safety, wages are a major point of contention for Waffle House workers. "I can't get the things I need for my family off a Waffle House check," Kasiyah Giles, a Waffle House worker and USSW member, said in a statement published by the union.
Persons: They're, , Jessica Gantt, Waffle House she'd, Gerald Green, Axios, That's, Green, Kasiyah Giles, Gantt, who's, Waffle Organizations: Waffle, Workers, Service, Union of Southern Service Workers, Service Employees International Union, Waffle House, Guardian Locations: Georgia, Norcross , Georgia, South Carolina, Atlanta, North Carolina, gdean@insider.com
A Dunkin' customer says hot coffee fell on her lap at a drive-thru, causing "severe" burns. The lawsuit says a Dunkin' worker hadn't put the lid on properly. When an employee handed the cup of coffee to the woman, its lid wasn't secured and came off shortly after, spilling the hot coffee on her legs and body, her lawyers said. Morgan & Morgan attorney Benjamin Welch said in a statement that the woman "had to re-learn how to walk due to the severity of her burns." Dunkin' – formerly known as Dunkin' Donuts – wasn't named as a defendant in the lawsuit, CNN reported.
Persons: Dunkin, hadn't, , Morgan, Golden, Benjamin Welch, Welch, didn't Organizations: Service, Golden, Morgan, Grady Health, CNN Locations: Atlanta, Sugar Hill , Georgia, New Mexico
Grace Dean is a Senior Business Reporter at Insider's London office. She covers retail, transport, tech, and other breaking business news. She particularly enjoys writing about the restaurant industry, fast-food giants, retail trends, and the labor market. Grace joined the team in August 2020 after studying German & Business at Newcastle University and spending a year as the Editor-in-Chief of its student newspaper the Courier. She spent a semester at Carl von Ossietzky Universität Oldenburg in Germany and also speaks conversational Dutch.
Persons: Grace Dean, Grace, Carl von Ossietzky Universität Organizations: Business, Newcastle University, Courier, Sky News, BBC Locations: Carl von Ossietzky Universität Oldenburg, Germany
McDonald's is increasing royalty fees for new restaurants by 25% from January. The burger giant is set to increase its monthly royalty fees from 4% to 5% of gross sales for new restaurants opened by franchisees, starting January 1, CNBC first reported. McDonald's is also changing the name of the charge from service fee to royalty fee. McDonald's currently charges a 5% royalty rate "in all owned markets, except for the US and Canada," the company said in another memo to franchisees. AdvertisementAdvertisementMcDonald's first set its service fee at 1.9% in 1955.
Persons: McDonald's, Joe Erlinger Organizations: Service, CNBC Locations: Wall, Silicon, Canada, McDonald's
Tesco is giving all its frontline staff the chance to wear body cameras, The Mail on Sunday reported. Retail crime, including both theft and abuse of workers, is soaring in both the UK and US. "Crime is a scourge on society, and an insult to shoppers and retail workers," Tesco CEO Ken Murphy wrote in an opinion piece for The Mail on Sunday. He also demanded changes in the law, such as making abuse and violence towards retail workers a specific offence in itself. Other British grocery chains, including Sainsbury's, the Co-op, and Waitrose, have also offered body cameras to staff.
Persons: Ken Murphy, Murphy, John Lewis Organizations: Tesco, Service, Waitrose, Ireland, British Retail Consortium, Walgreens Locations: Wall, Silicon, The
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