The Americas
Starbucks share price improves as new CEO outlines return to ‘community coffeehouse’ strategy
Shares of Starbucks moved up 3.2% on Wednesday afternoon following a statement from new CEO Brian Niccol outlining plans to improve the chain’s operations and restore its place as a “community coffee house”. Niccol, previously CEO of the Mexican food chain Chipotle, replaced Laxman Narasimhan in the role last month and takes over a company facing a variety of challenges including falling sales and customer boycotts over alleged ties with Israel.
Niccol admitted that in some Starbucks locations, especially in the US, the company is not “always delivering” and that the business “can feel transactional” for customers. “Menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better,” he said, outlining key areas where the chain can improve its offering, including providing staff with career and growth opportunities, delivering customers quality drinks and food on time and reestablishing Starbucks as a “community coffeehouse.”
Beleaguered BurgerFi files for Chapter 11 bankruptcy protection
Troubled Fort Lauderdale-headquartered fast-casual burger chain BurgerFi International Inc. has filed for Chapter 11 bankruptcy protection. According to the filing the company – along with Anthony’s Coal Fired Pizza, which it also owns – has accumulated between $50-$100 million in assets, and up to $500 million in debt. BurgerFi has declared bankruptcy having warned investors on August 19 that it could not report its latest quarterly earnings by the requisite deadline because of “significant adverse developments that occurred with respect to the company’s business and liquidity.”
Former Smashburger president Carl Bachmann took over as CEO of BurgerFi earlier this year, telling Nation’s Restaurant News at the time that the company had “lost its way,” and that his primary strategy was to focus on and improve both brands’ products and menu innovation.
Asia Pacific
Agora Hospitalities and Dorsett Hospitality collaborate with ‘Dorsett by Agora‘
Tokyo, Japan-headquartered Agora Hospitalities Co., Ltd. has announced a collaboration with Hong Kong-headquartered Dorsett Hospitality International to introduce a new brand: Dorsett by Agora. The brand will launch its first property, and the 10th property under the Agora Hotel Alliance, Dorsett by Agora Osaka Sakai, which is scheduled to open in Spring 2025. The brand aims to offer “an unprecedented lodging experience by combining contemporary and stylish design with Dorsett’s signature Stay Vibrant ethos and exceptional personalized service” according to a company statement.
Dorsett by Agora Osaka Sakai will be located a 10-minute train ride from the heart of Osaka’s Minami district, Namba. The hotel is situated in a prime location surrounded by Osaka’s only World Heritage site, the Mozu-Furuichi Kofun Group, as well as areas rich in the history and culture of Sakai, Japan.
McDonald’s China invests in digital transformation
McDonald’s China, which operates one of the biggest quick-service restaurant chains on the Chinese mainland, has invested in application programming interface (API) digital architecture. The move makes the chain “a pioneer in implementing the API-first concept in the market,” according to news website The Asian Business Review. “By adopting the API ecosystem as its digital foundation, McDonald’s China, as a restaurant business, possesses sufficient system resilience, scalability, and data assets to capitalise on the benefits of digital development,” McDonald’s China said. Artificial intelligence (AI) technology has also been introduced into McDonald’s China API design governance.
Europe, the Middle East and Africa (EMEA)
UK hospitality businesses being held back by admin tasks
American Express and payments platform Square has launched research that reveals the challenges faced by the UK’s hospitality business. The data reveals admin is the most significant barrier to growing hospitality businesses, with 88% of business owners saying it takes away the time they could be spending on improving their business.
The research also found almost three quarters (74%) expecting profitability to grow in the next year. This growth and progress is being stymied by admin tasks, with the majority of hospitality business owners stating that admin takes away the time they could be spending on connecting with customers and increasing revenue as a result. The majority (94%) of those surveyed wish there was a way to streamline administrative tasks, citing generating and managing business insights (38%) as their top admin challenge.
Uber Eats partners with top chef Simon Rogan with £80 takeaway
Delivery platform Uber Eats has launched a collaboration with the three Michelin-starred chef, Simon Rogan in the UK. The £80 menu was developed with L’Enclume owner Simon Rogan using ingredients cultivated on his Cumbrian farm, close to his restaurant in Cartmel, Lake District. The delivery menu will comprise of five courses, while snacks will include Park House pudding glazed in birch sap, a chicken offal doughnut, and Diana radishes with lovage.
“I’m delighted to be partnering with Uber Eats to shine a light on some of the very best produce we’re able to grow and source in this country, most of which I’m proud my team and I have produced on our very own Lake District farm,” said Rogan.
Michael Jones
