THOUGHT LEADERSHIP FOR 25 YEARS

50
AUGUST 2022 / NO. 294

IAL
S PEC
UAL
ANN
E
ISSU

THE
INDUSTRY’S
LEADING
REPORT In the first full year
following the onset of
COVID-19, the nation’s
top-earning restaurant
chains battled for
market share once
again.

PHOTOGRAPHY: STARBUCKS / CONNOR SURDI

QSR is a registered trademark ® of Journalistic, Inc. QSR is copyright © 2022 Journalistic, Inc. All rights reserved. This report may not be reproduced or shared without express written consent of the publisher.
 QSR 50

YEAR 1 OF COVID-19 WAS To start fiscal 2022, in those six markets, digital
DEFINED BY DIVERGENT sales (mobile app, kiosks, delivery) accounted for more
REALITIES. Quick-service outlets than 30 percent of systemwide sales. That equates to
fared far better than competitors. nearly 60 percent year-year-over expansion. In the U.S.,
Once the initial wave of uncer- McDonald’s generated over $2 billion in digital sales in
tainty passed (was it even safe just Q1 2022.
to get food at the drive-thru?), Delivery also ballooned to more than 33,000 restau-

SR 5
the sector’s long-standing strength
outside its four walls crystalized.
Not only that, however, but the
agility and innovation that’s
always defined the category.
And now? You could argue
quick service, especially drive-
thru, has become the hottest
retail ticket in town. As this year’s
QSR 50 shows, many concepts
aren’t recalibrating in the wake
of the pandemic; they’re
rocketing upward. Major growth
prospects—at times in the four-
digit realm—are on the table
for fast casuals and fast-food
icons alike.
But the coast isn’t free of 1
rants in 100 countries. CEO Chris Kempczinski said in
April McDelivery is now the largest quick-service deliv-
ery program in the world. Direct delivery is coming to
the brand’s U.S. app later in the year.
McDonald’s, which in 2022 held its first worldwide
convention in four years, ended 2021 with 13,443 domes-
tic locations, a net decline of 239 stores. Globally, there
were a tick more than 40,000 following net growth of 838
(China expanded by 608 units, the most of any country).

2
To sum up an eventful calendar, Kempczinski noted,
“It’s clear there has never been a better time to be a part
of brand McDonald’s than right now.”

Starbucks

obstacles. This past year provided

frequent hurdles, from Omicron
McDonald’s
to a continued labor battle that’s
stretching well past the crisis. The top-earner in fast food rewrote its own
Buzzing topics like robotics, AI, record book in 2021. McDonald’s system-
automation, and integration, wide sales bumped 21 percent to more than
$112 billion—a new high mark in company Speaking of jam-packed years, few chains in quick ser-
have popped up in response and
history. Domestically, McDonald’s same- vice are undergoing as many changes as the java giant.
handed operators more threads
store sales climbed 13.8 percent against a It’s a conversation that starts at the top. In March 2022,
to connect with guests than ever.
0.4 percent lap in 2020. This, too, raised the Starbucks announced president and CEO Kevin John-
And in the end, we might just be
son’s plans to retire. Stepping into the interim role was
headed for a golden era of quick- bar; it signaled the highest-recorded comps
none other than founder Howard Schultz, who previ-
service growth unlike anything performance since McDonald’s began
ously served as CEO from 2008–2017 and 1985–2000 and
we’ve seen in decades. ➺ reporting the metric in 1993 (and the sev-
enth consecutive calendar of positive U.S.
as president from 2008–2015 and 1985–1994. In that wide
stretch, Starbucks scaled from an 11-store brand with 100
same-store sales).
employees to more than 28,000 locations in 77 countries.
Naturally, the top-line burst worked
/ And Schultz had no shortage of tasks ahead. He
through the franchise system, which com- higher in Q1 2022 versus the prior year). Traffic remained
BY DANNY KLEIN prises roughly 95 percent of McDonald’s on pace with 2019, for the most part, with monthly dining
DINE-IN RETURNED
TO McDONALD’S,
took a base salary of $1 and began tackling a topic Star-
bucks hadn’t quite faced before. The brand suddenly had
& BEN COLEY
BUT ITS DIGITAL
SALES ARE
domestic base. Operators posted record- visits rising 2.1, 3.8, and 1.1 percent in August, October, REWRITING THE more demand on its hands than it could serve to stan-
RECORD BOOKS,
snapping cash flow, with average growth and December, respectively, according to mobile loca- UP TO $18 BILLION dard, which, from a certain angle, is a decent problem to
IN 2021.
of $125,000 per restaurant. The end result: tion analytics platform Placer.ai. have. But nonetheless, a rather expensive one to fix. As
North of $500,000, or a 50 percent increase While in-store guest counts continue to adjust, Schultz put it in May: “Simply said, we do not, today, have
over the past three years. Additionally, McDonald’s digital sales surpassed $18 billion—also a the adequate capacity to meet the growing demand for
McDonald’s posted unprecedented operat- record—and mixed more than 35 percent of its top six Starbucks coffees.”
ing income of more than $10 billion. markets. In some, digital accounts for more than 50 per- Schultz credited COVID and the brand’s diverted
McDONALD’S, STARBUCKS / MATT GLAC

How McDonald’s got there was a famil- cent of sales, like China and France. The single-biggest focus to navigating the crisis. In turn, disruptions inter-
iar tale for restaurants a year removed from driver of digital adoption was MyMcDonald’s Rewards, fered with Starbucks’ ability to anticipate and invest
ADOBE STOCK / WOLTERKE

COVID’s initial assault on routines. The which launched nationally in July. It lifted to more than ahead of the market. It didn’t adjust store designs, oper-
chain’s same-store sales benefited largely 30 million loyalty members by year’s end, including 21 ations, infrastructure, or tech to service that “relentless
from average check growth as pricing rose million active users. To date, the program has boosted demand.”
about 6 percent (this number was 8 percent frequency among members by more than 10 percent. Perhaps the most publicized corner of this concerns
QSR 50

labor and an ongoing union conflict. Organizing had lectively totaled 75 percent of U.S. company-operated
spread to at least 150 locations by mid-summer. sales in Q2.
In Q2 2022, Starbucks announced it would spend Across 2021, Starbucks’ Q4 global revenue reached
more than $200 incremental this year to investments $8.1 billion—22 percent higher than last year. The quar-
already committed at domestic corporate stores. The terly record closed out a fiscal-year best $29.1 billion.
total yearly bill: about $1 billion, with much of it going “What we have to do is harness the issues that we have
toward training, wage, and equipment updates intended to deal with in terms of capacity, exceeding the expecta-
to improve the company’s proposition, make jobs easier tions of our people,” Schultz said in May. “I’ve been here
and more enjoyable, and yes, more lucrative. long enough to understand what the challenges are and
Starbucks moved all U.S. employees to a $15 per long enough to understand the extraordinary opportu-
hour floor on August 1. It then layered in incremental nity Starbucks has in the marketplace domestically and
increases for domestic store workers. Average hourly around the world.”
pay at Starbucks hit nearly $17 per hour nationally, with
every employee hired on or before May 2 getting either STARBUCKS PLANS 3
TO SPEND UPWARD
a 3 percent raise or $15 per hour (whichever was higher).
Employees with two to five years of tenure got a 5 percent
OF $1 BILLION THIS
YEAR TO BOOST
TRAINING, TECH,
Chick-fil-A
AND THE EMPLOYEE
Anecdotes of packed Chick-fil-A drive-thrus (yet still
bump and those with five-plus years received a 7 percent PROPOSITION.
efficient) were easy to find throughout the pandemic.
hike. Starbucks doubled investments in store manager,
So telling somebody the brand surged out of lockdowns
assistant store manager, and shift manager pay for lead-
doesn’t feel like some grand news leak. But just how high
ers hired on or before May 2.
Chick-fil-A reached was eye-opening. Diving deeper into
Training for baristas jumped from 23 to 40 hours
Chick-fil-A’s financials, of the brand’s 1,836 U.S. free-
and Starbucks redesigned its “First Sip” training pro-
standing restaurants outside of malls (those open and
gram alongside a fresh shift supervisor program as well.
operated for at least a full calendar year, from a total of
Training is no small point for Starbucks, as 70 percent of
2,023), average annual sales volumes clocked in at $8.142
hourly employees were new to the brand last year. CHICK-FIL-A’S
PACKED DRIVE- million last year, with 849 of those, or 46 percent, pro-
Also notable: this suite of updates did not extend to THRUS WERE
ANYTHING BUT A ducing figures at or above. One operator pushed $17.16
stores mired in union activity. MIRAGE IN 2021:
AUVs TOPPED $8M million. Roughly 35 percent of the pool generated annual
Back on demand, Schultz wasn’t overstating. Star- AT FREESTANDING
LOCATIONS. sales volumes under $7.2 million; 34 percent between
bucks’ mobile order and pay, a more than $4 billion
$7.2 and $9 million; and 31 percent above $9 million.
business, is up 400 percent over five years (20
percent above 2021) and now mixes 70-plus
percent of the chain’s U.S. store volume. The
company’s $500 million delivery segment
hiked 30 percent, year-over-year. Starbucks’
Card program, which boasts usage of about
120 million people, is alone larger than the
entire gift card category. Starbucks’ consum-
ers prepaid for $11 billion worth of purchases
last year. Today, there’s north of $1 billion
loaded on Starbucks Cards that hasn’t been
redeemed. And the company’s rewards base
in the U.S. last quarter lifted 17 percent over
Q2 2021 to 27 million members. Rewards
members delivered 54 percent of revenue—
the highest level of engagement on record for
Starbucks, and 2 percentage points up from
STARBUCKS / CONNOR SURDI (2), CHICK-FIL-A (3); TEA: ALI HARPER

last year. Handcrafted cold beverages now

comprise roughly 80 percent of sales.
Going forward, Starbucks said 90 percent
of new store growth will feature drive-thrus.
And this coming fleet will integrate fresh store designs Chick-fil-A’s AUV was also nearly 15 percent better
and technology, including more handheld devices and than its 2020 result. So the brand’s upward mobility is
equipment improvements to boost throughput. Essen- clearly a long-term trend, not one born from the drive-
tially, the line-busting tablets you see at an increasing thru, COVID era.
number of brands coming out of COVID. Even mall stores (no drive-thru) generated AUVs of
Drive-thru, mobile order and pay, and delivery col- $3.2 million last year, nearly that of McDonald’s ($3.42M).
QSR 50

The numbers don’t trail off. Chick-fil-A grew by 155

locations stateside in 2021. Revenue climbed to $5.8 bil-
lion, well ahead of the $4.3 billion it appreciated in 2020
and $3.8 billion the year prior. Comprehensive earnings
of $1.198 billion sailed $715.9 million ($647 million in
2019). Systemwide sales over the past three years lifted
from $12.2 to $13.7 to $16.7 billion.
Amid this boom, Chick-fil-A also underwent a
change of leadership. Chick-fil-A executive Dan T. Cathy
stepped down in November after an eight-year run.
Andrew T. Cathy, Dan Cathy’s son, took over, while Dan
Cathy remained chairman of Chick-fil-A.
Andrew Cathy, only the chain’s third CEO, began his
Chick-fil-A career in 2005, working two years as opera-
tor of a store in St. Petersburg, Florida.
He’s now holding the reins of arguably the fastest-
growing (from a financial perspective) brand in fast Overall, Yum! added 4,180 gross units, putting an
food. In the future, this could include further inter- exclamation mark on what Gibbs called “the stron-
national expansion into Toronto as well as continued gest growth year in our history and setting an industry
growth in Puerto Rico, where the first Chick-fil-A opened record for unit development.”
in March 2022.  For perspective, the company opened a new restau-
All told, Chick-fil-A is fronting a chicken category rant on average every two hours. Taco Bell represented
that shows no signs of slowing. 12 percent of those net new openings with 364.
  Returning to the ops angle, Taco Bell’s drive-thru
4 times last year were 2 seconds faster, year-over-year,
with Q4 marking the eight consecutive period of aver-
Taco Bell age sub-4 minute times. That became nine straight in
This past year saw Taco Bell lean further into what’s Q1 2022. “This is truly an impressive performance con-
historically set it apart—distinctive products, value, and sidering labor availability challenges,” Turner added.
an operational backbone that supports it all. The Yum! Taco Bell’s domestic digital sales rose nearly 20 per-
Brands chain’s 2021 system sales grew 13 percent, driven cent as Yum! collectively pushed a record $22 billion.
by 11 percent same-store sales growth and 5 percent unit Following KFC’s lead, Taco Bell is currently in the pro-
TACO BELL CARRIED
expansion. In the U.S., Taco Bell finished with more than AMPLE MOMENTUM
cess of rolling pickup shelves into stores. Thus far, early
INTO ITS 60 TH
7,000 locations and “ample whitespace for future devel- ANNIVERSARY AFTER
ANOTHER STELLAR tests are freeing up drive-thru capacity. Yum! is also
opments,” CFO Chris Turner said in Yum!’s year-end YEAR.
installing a new kitchen display system and smart hub,
review. Also, Spain became the first international mar-
and leveraging its cloud-based point-of-sale in Taco
ket to surpass 100 units in the quarter.
Bell stores with the hope of modernizing the employee
Taco Bell’s overseas conversation is one worth track-
experience. The systems separate delivery orders from
ing. It added more than 160 net new units on a base of
standard drive-thru ones.
just 600 coming into the year, or 26 percent growth.
This year marks Taco Bell’s 60th anniversary. Gibbs
CEO David Gibbs called Taco bell’s international run-
noted in May the chain would continue to stay relevant
way “probably one of the most exciting stories we have
by championing customer value, including the intro-
right now.”
duction of $2 burritos on Taco Bell’s new Cravings Value
The aim for Taco Bell is to reach scale in a few key
Menu, which joined the chain’s existing $1 offering.
markets and drive brand awareness, ultimately improv-
ing new unit returns to support accelerated growth. And on the marketing side, Taco Bell had plenty to
In 2022, Turner said Taco Bell is on track for another talk about, as usual, with crispy chicken wings hitting
record development year with next-gen assets in the stores for a limited time, as well as Nacho Fries. It then
U.S. and additional markets outside the country. One mic dropped the buzzy return of Mexican Pizza, cut in
recent announcement being Yum! China’s commitment 2020 for simplification and sustainability reasons, with
to expand the brand, which will give Yum! three mar- artist Doja Cat at Coachella (a musical featuring Dolly
kets above the 100-unit lever by the end of 2022 (Spain, Parton premiered on TikTok in late May as well).
U.S., China). Taco Bell’s Q1 2022 system sales hiked 8 percent on
It was a banner calendar, development wise, across 5 percent unit growth and 5 percent same-store sales
all of Yum! in 2021. The company debuted a net of 1,259 expansion. Domestic comps increased 5 percent. All
TACO BELL (4)

restaurants in Q4, pushing the year-end total to 3,057 net were among the top tier of quick-service results indus-
new openings. The previous record was 2,040 in 2019. try-wide to start the year.
QSR 50

In 2022, Wendy’s expects to debut 150–200 REEF

kitchens globally—about 65 percent in the U.S.; 10
percent in Canada; and 25 percent in the U.K. And non-
traditional, broadly, will continue to mix 40–50 percent
of the brand’s path.
As significant a growth stretch as 2021 was for Wen-
dy’s, it still came in at about 2 percent. That’s about to
step up to as high as 6 percent in 2022. Already this year,
Wendy’s kicked off Q1 by opening a net of 67 locations (45
domestic). That was a meaningful bump from Q1 2021
when Wendy’s expanded by a net of 10 stores and “one of
our best quarters in in our history for unit growth,” CEO
Todd Penegor said at the time.
And despite inflationary challenges and other exter-
nal hurdles, Wendy’s stretched its streak of growing or
maintaining category burger dollar share to 11 quarters.
Elaborating on breakfast, the daypart represented
about 7 percent of sales in Q1, which was down from 7.8
percent a quarter earlier due to Omicron and weather
setbacks. But the brand feels confident in its plan to
reach $3,000–$3,500 in average weekly sales per store (it
was about $2,500 in Q1) and grow the business by 10–20
percent for the full year. A reason for optimism—legacy
5 stores that offered breakfast pre-2020 launch are push-
ing $4,000–$4,500 per unit.
Wendy’s As Wendy’s tacks on new units, it’s also reimaged
about 75 percent of its 7,000 locations globally. Revenues
Wendy’s labeled 2021 a “breakthrough year” as it notched
in Q1 climbed 6.2 percent to $488.6 million.
its 11th consecutive run of global same-store sales
Domestic same-store sales gained 1.1 percent to
growth. In Q4 specifically, Wendy’s U.S. comps accel-
begin 2022 against a prior-year lap of 13.5 percent. Glob-
erated to 11.6 percent on a two-year basis. The chain’s
ally, the brand achieved its second consecutive period of
breakfast sales—a daypart that launched on the doorstep
double-digit two-year comps at 15.4 percent. Internation-
of COVID in March 2020—expanded roughly 25 percent
ally, Wendy’s same-store sales gained 14.1 percent, which
across the year (breakfast recently launched in Canada
WENDY’S HAS helped elevate the systemwide figure to 2.4 percent.
on May 2, 2022 as well). TURNED IN SIX
STRAIGHT YEARS
Wendy’s digital business reached 10 percent of sales OF NET NEW
GROWTH. 6
globally in Q4, with its loyalty program upping total
membership by about 75 percent and monthly active Dunkin’
users 25 percent throughout the course of the year. The first change in this year’s QSR 50 comes at No. 6,
With expansion itself, Wendy’s delivered 121 net new with Dunkin’ moving up a slot. The brand spent most
restaurants—it sixth straight year of net new restaurant of 2020 sprucing up its footprint, including the exit-
growth and its highest figure in nearly two decades. This ing of 450 Speedway stores along the East Coast, which
included the opening of Wendy’s first U.K. restaurants represented less than 0.5 percent of U.S. sales. Over-
and its 1,000th international store. Also, the debut of 30 all, Dunkin’ closed a net 547 units that year; these were
Wendy’s delivery kitchens with REEF across the U.S., stores that had low average weekly sales, couldn’t sup-
Canada, and the U.K. port beverage innovation or a NextGen remodel, or were
Worth noting, too, roughly 50 percent of Wendy’s based in areas where traffic shifted and they couldn’t
growth came via nontraditional means (REEF included). DUNKIN’ SAW ITS relocate or add drive-thru. Former Dunkin’ CEO Scott
ADOBE STOCK / ROMAN TIRASPOLSKY, WENDY’S, DUNKIN’

SAME-STORE SALES
On the latter topic, REEF’s units boast average-unit vol- POP 15.5 PERCENT Hoffman called it a “good scrubbing of the portfolio.”
IN 2021.
umes in the $500,000–$1 million range, with Wendy’s But 2021 told a different story. Under new owner
collecting about a 6 percent royalty rate income com- Inspire Brands—which spend $11.3 billion to acquire
pared to its typical collection of 4 percent. So the higher the chain at the end of 2020—Dunkin’ debuted a net of
number turns in similar economics, despite lower AUVs. 161 outlets last year. Same-store sales rose 15.5 percent
But the REEF path, as much as the dollar figures, will in 2021 year-over-year and increased 10.4 percent on a
help Wendy’s narrow what’s historically been a signifi- two-year basis.
cant gap relative to peers—an underpenetrated footprint The beverage and doughnut chain continued its
in urban markets. momentum in February, opening its first co-branded
QSR 50

location with Jimmy John’s inside the main lobby of

Inspire’s Global Support Center in Atlanta. The kiosk is
digital only, meaning all orders are placed ahead of time
through either the Dunkin’ or Jimmy John’s app.

Burger King
Throughout 2021, RBI CEO Jose Cil and his executive
team acknowledged Burger King wasn’t performing up
to expectations. To close last year, the brand’s U.S. same-
store increased 1.8 percent year-over-year, but slid 1.1
percent on a two-year basis. In Q1, comps declined 0.5
percent compared to the year-ago period.
But the quick-service giant put a turnaround strat-
egy in place, starting with promoting previous COO Tom
Curtis to president of U.S. and Canada. The industry 8
veteran, who previously spent multiple decades at Domi-
no’s, was charged with leading a comprehensive agenda
Subway
spanning multiple areas, including operations, digital
SUBWAY’S EAT FRESH For Subway, 2021 was one of the most impactful years in
enhancements, menu innovation, and refresh branding. REFRESH CAMPAIGN
HELPED LIFT AUVs TO recent memory. The chain said it beat sales projections
Two of the biggest accomplishments in 2021 were LEVELS NOT SEEN IN
SEVEN YEARS. by almost $1.4 billion and reached its highest annual
the nationwide launch of the Ch’King Sandwich and the
AUV in seven years. More than 16,000 locations, or about
unveiling of Royal Perks, the company’s new rewards-
75 percent of the U.S. system, experienced a 7.5 percent
based loyalty platform. The brand also looked to elevate
increase in same-store sales versus 2019. Domestic
multiple metrics, including hours of operation, staffing,
comps rose sequentially throughout 2021 and were
speed of service, and average complaint ratios.
positive from Q2 to Q4. In the final month of the year,
More progress was made through the first part of
same-store sales lifted 8.7 percent compared to 2019.
2022. Burger King not only hired a new creative agency
The sandwich chain owed its success to “Eat Fresh
of record—a company that’s also worked with the likes
Refresh,” the biggest menu update in the brand’s 56-year
of Chili’s, Nike, Taco Bell, Pizza Hut—to improve effec-
history. The launch involved 11 new ingredients, six new
tiveness of its messaging, it also put more focus on
or returning sandwiches, and four revamped signature
premiumizing the Whopper. The brand removed the
burger from core discounting and rolled out the Whop- products. Paul Fabre, senior vice president of culi-
nary and innovation, said Subway spent 18–24 months
enhancing the bread alongside a panel of bakers,
including Nancy Silverton, who won the James Beard
Foundation’s Outstanding Chef Award in 2014.
In addition to the menu innovation, the fast-food
chain debuted an updated mobile app with a new dash-
board and less friction and partnered with DoorDash to
roll out direct delivery through its website and app. Sub-
way’s digital sales surpassed $1.3 billion in 2021, which
is three times as much as 2019.
In terms of U.S. development, the brand is continuing
to clean its portfolio. Subway shed a net of 1,043 restau-
rants in 2021, after cutting a net of roughly 1,600 in 2020.

per Melt, which proved to be incremental to the burger 9

platform and showed strong messaging with high-
quality ads. The product was teased as the first of more Domino’s
Whopper-centric innovation to come. Last year was a mixture of positive and not-so-positive
BURGER KING / ASYLAB, SUBWAY

The efforts haven’t been in vain either. In early May, news for Domino’s.
Cil said Burger King narrowed the gap between its peers From the optimistic perspective, unit economics
by a few hundred basis points in Q1 and that guest sat- remained best in class, with U.S. stores earning $1.3
isfaction has elevated sequentially over the past three million in AUV and more than $170,000 in store-level
quarters. EBITDA. Full-year same-store sales rose 3.5 percent—14.7
QSR 50

percent on a two-year basis—marking the 13th consec- What’s more, though, is how Chipotle continues to
utive year of positive growth. Additionally, CEO Russell integrate channels with asset development, which really
Weiner said no one in the pizza category has opened as began with second-make lines for digital orders. Of late,
many U.S. restaurants as Domino’s in the past few years. it’s taken on more visible, guest-facing forms. Chipotle
The brand, which already earns more U.S. sales than any opened 215 new restaurants last year, including 78 in Q4
other pizza chain, surpassed Pizza Hut as the biggest alone. Of those, 174, or 81 percent, included the brand’s
when it comes to domestic footprint, with 6,560 stores. order-ahead pickup “Chipotlanes.”As 2022 arrived, Chi-
However, in the background of all those successes potle had 355 of them. Still, while growing and spreading
has been an ongoing labor shortage that’s carried over quickly, Chipotlanes represent a fraction of Chipotle’s
into 2022. After 41 straight quarters of positive U.S. 2,966-unit system.
comps, Domino’s saw decreases of 1.9 percent in Q3 But going forward, Chipotlanes are going to take on
2021 and 3.6 percent in Q1 2022, driven by shorter oper- a larger role. The brand plans to open 235–250 stores in
ating hours, disruption in customer service, and lapping 2022, and north of 80 percent will be equipped with the
federal stimulus. In the first quarter, the number of com- feature.
DOMINO’S IS FACING
bined lost operating hours equated to the entire U.S. LABOR CHALLENGES
Chipotle’s broader growth appears to have crossed
BUT REMAINS AT THE
system being closed for six days. To mitigate increased TOP OF THE PIZZA
PYRAMID. an inflection point that it’s not turning back from. It
labor and commodity costs, Domino’s switched its $7.99
opened just 40 locations in the three-month period that
carryout deal to only online, a more profitable sales
ended December 31, 2018, or Q4 of that year. The same
channel for the brand. And for its $5.99 Mix and Match
timeframes ending March 31, June 30, and September
deal, it increased the price by $1 for delivery orders.
30 (all in 2019) saw openings of 15, 20, and 25 locations,
Prior to the macroeconomic issues, no company
respectively. In June 2018, Chipotle announced a revamp
rejected third-party delivery companies more than
that included closing 55–60 stores. The chain had 2,408
Domino’s, however, Weiner noted in late April that “noth-
restaurants on December 31, 2017 and 2,491 a year later.
ing is off the table” when asked about future potential
More than half of Chipotle’s stores have built in the past
partnerships.
decade.
Weiner took over as CEO in May for the retiring Rich
So this growth journey evolved quickly. Chipo-
Allison, who joined the company in 2011.
tle arguably saved its biggest innovation for last with
the opening of its first Chipotlane Digital Kitchen in
10
Cuyahoga Falls, Ohio. In addition to the mobile order
Chipotle drive-thru lane, the location includes a walk-up win-
Count Chipotle among the quick-serves rocketing
growth out of the pandemic. The brand announced in
Q4 it was tacking on 1,000 North America locations to
its previous long-view goal, meaning there could be at
least 7,000 stores in time. What’s giving Chipotle con-
fidence is a multifold story. For starters, you can look at
the stock market to get a sense of how far it’s come since
ex-Taco Bell leader Brian Niccol grabbed the CEO reins
in winter 2018. When he did, Chipotle traded for $314.72
on February 1, 2018. As the fast casual reviewed Q4 earn-
ings with investors this past year, the figure was north
of $1,560 per share.
Along the way, Chipotle accelerated several pillars
of its business while shoring up operations. It’s sim-
DOMINO’S (3) CONTACTLESS DELIVERY & PICKUP:º BRENT FEEMAN, CHIPOTLE

ply figured out a way to get food out quicker. The most
talked-about element of this has been digital, where the
chain’s full-year sales hit $3.4 billion last year. For ref-
erence, the figure is nearly three-and-half times what
Chipotle reported pre-COVID in 2019. And that despite CHIPOTLE’S GROWTH dow, but no dining room or frontline. It’s smaller than a
PROSPECTS ARE
the fact two-thirds of guests still use in-restaurant as PICKING UP, AND traditional Chipotlane stores and features a make-line
SWITCHING GEARS,
their exclusive channel, Niccol said in February. WITH 80 PERCENT OF dedicated to fulfilling digital orders from the website/
NEW DEVELOPMENT
In other terms, there are still occasions to chase. INCLUDING PICKUP app and third-party delivery partners.
LANES.
The consumer base deploying both digital and in-store The Chipotlanes, in particular, fit into the brand’s
remains relatively small. Chipotle expanded from 8.5 directive to open in more “small towns” across the coun-
million rewards loyalty members in February 2020 to try as well. We’re talking towns with 40,000-plus people,
north of 26 million by year-end 2021. which isn’t tiny, but is “small” by the brand’s historic
QSR 50

standards. These stores, the company said, deliver unit It’s no great secret what fueled Sonic’s performance—
economics at or better than traditional locations. Chi- its carhop-style, car-picnic ready setup was ideally
potlanes, in general, do that, too; they produce higher matched for a COVID climate. Put differently, the brand’s
volume, skew toward digital (namely higher-margin pull-up design and throwback DNA became the leading
takeout), and generate cash-on-cash returns in the “old-is-new” outlet of a pandemic.
65–70 percent range within a couple of years. But Sonic didn’t sit back on those laurels. Its digital
Chipotle’s financials support the expansion. Total infrastructure, known fittingly as ICE (integrated cus-
revenue in 2021 rose 26.1 percent to $7.5 billion, year-over- tomer engagement), was built to secure a leadership role
year. Same-store sales climbed 19.3 percent and digital in quick-service personalization. And that only picked
sales upped 24.7 percent (45.6 percent of the business). up in 2021. Sonic’s mobile-order ahead technology works
In Q4, revenue rose 22 percent, year-over-year, to $2 as part of an overall environment in ways other chains
billion, and comps hiked 15.2 percent. Digital sales, even
against 2021’s skyrocket from COVID conditions, ticked
up 3.8 percent to 41.6 percent of sales ($811 million, with
delivery mixing about 20 percent). Average-unit vol-
umes also reached $2.641 million from $2.223 million
two years ago.
A key for Chipotle amid growth will be staffing,
where turnover at the hourly level reached 194 percent
last year—well ahead of 141 percent the year prior. While
a kickback of external realities (Omicron-triggered turn-
over exclusions among them), it’s something Chipotle
plans to address throughout. In May, the chain footed
the bill of higher wages, making the call to boost average
rates to $15 per hour by the end of June. The upgraded
scale resulted in hourly employees earning day one pay
of $11–$18. Additionally, Chipotle outlined a path to “Res- can’t replicate via drive-thru or dine-in service alone.
taurateur,” a six-figure GM position hourly workers can Guests scroll through menu options, place an order, cus-
reach within three-and-half years. Chipotle then rolled tomize it, and then drive up to a pad full of pull-in stalls.
a $200 employee referral bonus for crew members and a They upload the number of their stall, get a personalized
$750 one for apprentices and GMs. greeting on a digital menu screen, and sit back and wait.
In 2021, alongside the lofty turnover rates, 90 percent The end solution is something drive-thru brands
of restaurant management roles at Chipotle came from could only hope for as capacity stuffed last year—the
internal promotions. On average, six employees were ability for guests to be first in line every time. So as
promoted per restaurant for a total of nearly 19,000. The queues in the sector crowded across the year, Sonic
company’s internal promotion rate was 77 percent for SONIC’S MODEL WAS didn’t miss a beat. The next choice Sonic made was
BUILT FOR COVID
apprentice and GM roles in 2021. CONDITIONS. NOW, to allow customers to tip carhops via its app. By Octo-
IT’S EVOLVING FOR
  WHAT COMES NEXT. ber, the chain had brought in nearly $12 million in tips,
11 which helped it compete on the labor front.

Sonic Drive-In The capability also followed Sonic’s development of a

web-based ordering platform. Doing so opened the fun-
Sonic parent company Inspire Brands opened more than
nel for a wave of new customers, CMO Lori Abou Habib
1,400 units in 2021, including over 500 U.S. franchise-
said in March: people who might have been quite ready
led stores. The group, founded February 2018 following
to download Sonic’s app, yet wanted to try out its digital
Arby’s Restaurant Group’s $2.9 billion purchase of Buffalo
ordering capability. Guests access rewards as well pro-
Wild Wings (the portfolio now includes Baskin-Robbins,
motions through web ordering, which enables Sonic to
Dunkin’, Rusty Taco, Jimmy John’s, and Sonic as well),
incentivize visits for medium to light users.
generated domestic digital sales growth north of 35 per-
During COVID, Sonic witnessed an influx of first-time
cent, year-over-year, to $6 billion-plus—good for more than
consumers using its app in addition to core users simply
20 percent of U.S. system sales. Inspire also surpassed $1
billion in sales via third-party marketplace. Overall, digi- accessing it more often. The brand deployed a cross-
tal moved north of $7 billion for Inspire. functional acquisition strategy between its text program
Regarding Sonic, the chain turned in the best two- and the app, trying to get one guest to try the other. Sonic
year same-store sales performance of the fleet at 25.8 also did a TV spot talking about the ability to leverage
SONIC DRIVE-IN (3)

percent (Baskin at 13.6 percent; Jimmy John’s 11.8 per- contactless order and payment. Outside of that, though,
cent; Arby’s 11.7 percent; Dunkin’ 10.4 percent; Buffalo Sonic just stayed the course. “A lot of that just seemed to
Wild Wings 1.2 percent followed). happen organically,” Abou Habib said.
QSR 50

This includes the continued development of a than 30-year-old sourdough starter. Inside, wayfinding
“Delight” prototype that’s initial build featured 18 docks, spotlights Panera’s omnichannel movement. The res-
a drive-thru, and a covered outdoor patio where guests taurant includes a pickup area near the door so to-go
could dine under string lights and enjoy lawn games. guests can enter/exit seamlessly without moving far-
ther into the cafe and creating additional congestion.
Additionally, an overhanging mirror reflects a multitude
of treats, and bakery ovens and tables are in full view.
The DNA of the design will be represented in all
Panera restaurants going forward, except for a handful
of units that were conceptualized prior to the fast casual
landing on its prototype.
The NextGen store in Missouri is about 20 percent
smaller than Panera’s most recent standard prototype
as well. Previously, locations required a $1.5 million
investment to build, but the latest design is closer to $1.3
million. Over the past couple of years, Panera’s pivot to
more off-premises and digital orders was fueled by deals
like its MyPanera+ Coffee subscription program, which
offers unlimited iced and hot coffee and hot tea for $8.99
per month—any size, any flavor, and redeemable every
two hours. The company also debuted Flatbread Pizza,
12 a portable food segment that saw record-breaking sales
when dining rooms were restricted.
Panera Bread In April, Panera launched a subscription program for
all of its self-service beverages and other drinks called
The digital revolution didn’t sneak up on Panera. Well the “Unlimited Sip Club.” For $10.99 per month, MyPanera
before 2020, the chain’s off-premises business eclipsed loyalty customers can sign up for the Unlimited Sip Club
50 percent of sales. Yet there was room to innovate and have access to 26 drinks, including hot and iced
around a growing wave, especially within stores them- coffee, hot and iced teas, Agave Lemonade, Pepsi prod-
selves. ucts, and new beverage platform, Charged Lemonades.
In the winter of 2020, just weeks ahead of COVID, According to Apptopia, the deal drove more new installs
Panera started conceptualizing a fresh layout that than the original coffee subscription launch and surged
would eventually be labeled Panera’s “NextGen” model. PANERA IS HEADED engagement. The Panera app, as of May, hit new records
INTO THE FUTURE
It debuted in November 2021 as a 3,500-square-foot venue WITH A NEXTGEN for daily active users almost every day since the launch
RESTAURANT THAT’S
in Ballwin, Missouri, 7.6 miles from the company’s first BUILT FOR AN of Unlimited Sip Club.
OMNICHANNEL
restaurant. Built in tandem with ChangeUp, the same WORLD.  
agency that worked with Taco Bell, Jimmy John’s, and 13
Panda Express, it features a double drive-thru, with one
lane dedicated to mobile orders (called “Rapid Pick-Up”). Pizza Hut
Panera equipped digital menuboards to ease friction and Of all Yum!’s brands, Pizza Hut experienced the biggest
tapped geo-fencing technology to pinpoint MyPanera turnaround. In 2020, it closed a net of 1,063 stores glob-
loyalty members when they arrive at the cafe. Once iden- ally as it continued a years-long shift to adjust assets
tified, the customer is greeted by name. more toward a carryout, delivery friendly fleet. Last
Inside, guests can wait in line, use a digital kiosk, year, however, Pizza Hut opened a net of 742 locations,
pick up their takeout meal, or go straight to a table and or 24 percent of Yum!’s total net unit expansion. Pizza
use Panera’s app to order a contactless dine-in meal. Hut’s international markets debuted a net of 755 units,
Consumers also have the option of pulling up curbside while the U.S. declined by a net of 13 stores. Although
and waiting for an employee to run out. “Panera’s Next- PIZZA HUT’S the company dropped in domestic unit count, it’s still
TURNAROUND BEGAN
Gen cafes signal our company’s vision for the future WITH A TOUCH OF much better than 2020, when U.S. markets closed a net
NOSTALGIA.
of fast-casual dining—a frictionless, tech-powered yet of 745 restaurants.
warm and personalized dining experience,” CEO Niren On the top line, U.S. comps grew 10 percent on a two-
Chaudhary said earlier in the year. “It’s fully focused year basis in Q4, and 9 percent for 2021. Internationally,
PANERA BREAD (2), PIZZA HUT

on taking pride in baking, our strong commitment to same-store sales declined 3 percent in Q4 and dropped 5
our food values, and continuing our leadership in tech- percent in 2021. Pizza Hut ended 2021 with 18,381 stores,
nology.” including 11,833 internationally and 6,548 in the U.S.
The store also boasted a refreshed “Mother Bread” Pizza Hut’s comeback has myriad layers. But it began
logo that nods to Panera’s bakery legacy and its more with a look back.
QSR 50

ery as a service into its point-of-sale—a change that

led to accelerated system adoption, Gibbs added, and
Pizza Hut’s ability to leverage third-party aggregators
to augment its own delivery fleet. The chain noted third-
party drivers during peak periods would help Pizza Hut
address challenges. Also, “it’s part of our strategy for
wanting to be ubiquitous, be everywhere that our cus-
tomers want to do business with us,” CFO Turner said.
One franchisee who moved to aggregator platforms,
the company said, was running about 4 points ahead
of the system on the top line, mainly driven by incre-
mental customers the operator found through those
marketplaces.
Pizza Hut is also piloting its Dragontail platform in
more than 100 U.S. stores. The end-to-end AI-based solu-
KFC’s former U.S. president Kevin Hochman (he PIZZA HUT GUESTS tion automates kitchen flow combined with the process
ARE EMBRACING ITS
headed over to Brinker International in May to suc- OLD-IS-NEW of dispatching drivers.
APPROACH.
ceed retiring Wyman Roberts as CEO), along with  
current Pizza Hut U.S. president David Graves, spear- 14
headed the chain’s repositioning. It started by asking,
“when we were at our best, why was this brand so spe-
KFC
cial?” And the result, in addition to moving away from KFC’s international strength is well-documented—
a heavy dine-in footprint, was to launch a “Newstalgia” 22,981 of its 26,934 restaurants are outside the U.S. But
campaign focused on recognizable and differentiated 2021 marked a domestic turning point. KFC achieved
products, as well as messaging and branding relevant its first net new unit positive run in 17 years, and chief
and memorable across generations (think Pac-Man aug- development officer Brian Cahoe expects the chain to
mented reality). do it again this year.
Also, the introduction of pickup windows in “Hut As sizable as KFC is, especially from a brand equity
Lane” models—late March—that essentially sprung up standpoint, it actually possesses a long runway for
in 1,500 locations overnight. The reason this was feasi- growth. Back in 2000, there were 5,364 KFCs in the U.S.
ble now compared to pre-COVID, was the fact stores were The figure started to fall from 2010–2011, when KFC’s sys-
digitally enabled so customers could simply access the tem retracted by 388 locations. It would drop by at least
feature through the ease of their preferred devices. Pizza 100 units for the next six years, going from 4,780 to 4,109.
Hut had, in fact, drive-thru windows scattered through- And then, a comeback plan centered on the “Re-Colonel-
out the system. They didn’t do much business, though, ization” of the brand, flipped on. Closures slowed to 58,
since guests weren’t digitally connected. Contactless 35, and nine, before 122 in COVID’s first year. As noted,
curbside—which Pizza Hut raced ahead of the pack on the number jumped into the green for 2021.
in mid-April 2020—uncovered the opportunity and intro- So just getting back to where it was would signal
KFC’S CRYSTAL
duced guests to new channels. Pizza Hut expects close BUCKET STORE IN major expansion in the coming years. In domestic
PAINTED POST, NEW
to all of its new non-inline builds to include Hut Lanes. YORK, IS ONE OF ITS markets, KFC’s same-store sales grew 12 percent in Q4
MOST STUNNING.
On the culinary side, hallmark innovations became and 13 percent for 2021, both on a two-year basis. Sales
the staple. Detroit Style Pizza, an early 2021 LTO, sold out were driven by group occasions, digital growth, and the
in a couple of weeks. In May, the company entered the brand’s rising chicken sandwich. The menu innovation
Metaverse. During ComplexLand in late May (a virtual mixed 9 percent in Q4, up from 1 percent last year. Mean-
curated shopping experience), Pizza Hut met pizza lov- while, comps at international markets lifted 3 percent in
ers with custom designed delivery vehicles and drivers,
nine NFTs, and the chance to win free pizza for a year.
Labor challenges have surged of late, however, which
is not unique to Pizza Hut but a challenge facing the
category as a whole in regard to delivery drivers. The
chain’s U.S. same-store sales declined 6 percent in Q1
2022 with flat unit growth. CEO Gibbs said consumer
demand was strong, but the brand experienced soft-
ness through the delivery channel, where capacity
constraints limited ability to meet orders.
PIZZA HUT

In response, Pizza Hut completed integration of deliv-

QSR 50

the quarter, but dropped 1 percent for the full year. while this occurs, Popeyes will bring modernized store
Innovation keyed progress. KFC U.S.’ digital sales designs to market. “Several” of its 2022 openings will be
soared 70 percent year-over-year in 2021, fueled by in New York City, including a fresh flagship in Times
delivery and an e-commerce platform that launched Square. That restaurant, at 1530 Broadway, featured
nationwide early last year. In Q4, the brand rolled out Popeyes’ updated design that pays homage to its Cajun
Quick Pick-Up, in which customers can skip the drive- roots and Louisiana brand heritage, yet layers tech into
thru and grab mobile orders out of cubbies inside the
restaurant.
Most vividly, though, KFC hit a prior goal in 2021
when it converted 70 percent of its system to the
“American Showman” design, recognizable by bright
red-and-white stripes (like a chicken bucket), bucket
chandeliers, and graphics that serve as an allusion to
the Colonel’s hard-working background. That’s stepping
back now, however, in favor of KFCs Next-Gen model,
which arrived in Berea, Kentucky, in Q4 2021. It boasts
a digital-forward and contactless experience, including
the company’s first double drive-thru lane. Models range
anywhere from 1,300 square feet to 2,200, with the lower
end being an off-premises-centric unit without a dine-
in element. There’s a lobby for customers, or couriers, to
walk in and grab their food.
As of February, about 25 percent of KFC’s pipeline
were Next-Gen builds. That’s going to pick up as the the experience. It includes self-order kiosks, a two-story
chain cycles through previous commitments. In time, food transporter for upstairs dining, digital order-ready
all new builds and formats, in the suburbs or cities, will boards, and a merchandising store inside.
be Next-Gen assets. The design mirrors the one Popeyes unveiled in
A lead part of KFC’s go-forward strategy will also take POPEYES IS
March when it re-opened the company’s New Orleans
BUILDING ON ITS
shape across urban inline expansion. KFC’s Next-Gen FAMED CHICKEN
landmark on Canal Street. The 200-year-old building
SANDWICH WITH
design and features are flooding this arena, where the MAJOR GROWTH
represented the domestic introduction of the “NOLA
PLANS.
chain has aggressive plans for New York and St. Louis, Eclectic” image Popeyes is opening in the Big Apple,
and other city centers. Cahoe said this is one U.S. area which first launched in Shanghai.
where KFC is underpenetrated versus its national foot- In addition, Popeyes’ more traditional, freestanding
print. The company opened its first Next-Gen urban
footprint will lean heavily on double drive-thrus this com-
inline in 2021, and more are coming down the pipe
ing calendar. More than 50 percent of stores in its 2022
pipeline currently feature the build—a move designed to
15
serve increased traffic, improve speed of service, and, ulti-

Popeyes mately, “further enhance the guest experience.”

Popeyes is also working to reconfigure and launch
The story for Popeyes, roughly two years removed
back-of-the-house solutions for new kitchen designs.
from its category-busting chicken sandwich launch, is
Popeyes’ updated model developed kitchens and sys-
growth. Since the product’s August 2019 introduction,
Popeyes has pushed banner results across a three-year tems from the ground up to be more efficient and
stretch. Average-unit volumes rose some $400,000 to capable, and also a better place to work. Other contin-
$1.8 million and menu launches, like nuggets, mac and ued evolutions on deck include mobile order and pay,
cheese, and a collaboration with Megan Thee Stallion, curbside pickup, digital order pickup shelves, self-order
continue to produce new news for a chain that’s unit kiosks, and Popeyes Rewards available on the Popeyes
count is starting to reflect its buzz. App. This year, the program will feature exclusive ben-
In 2021, Popeyes opened 208 stores in the U.S. and efits centered on value and frictionless ordering, the
Canada, which brought its total above 3,000 restau- company said.
rants. It exited fiscal 2021 with 2,754 U.S locations and But pulling Popeyes’ story out to a higher level, the
POPEYES (3); KITCHEN: JEREMY LIEBMAN

3,705 globally as last year marked the highest figure of chain, in February, told investors it had “signed more
openings (net of 254, or unit growth of 7.4 percent) since development agreements around the world than ever
Burger King, Tim Hortons, and Firehouse Subs parent before. That includes India, the U.K., Saudi Arabia,
RBI acquired Popeyes in March 2017 for $1.8 billion. Romania, and France, as well as further expansion in
In April, Popeyes said it planned to eclipse the 200 Mexico, the U.S., and Canada. In 2022, Popeyes contin-
bar again this year, but by an even greater distance. And ued its momentum with an agreement in South Korea,
QSR 50

which RBI CEO Cil called one of the largest quick-service

chicken markets in the world.
Popeyes also expects to expand further in China,
Spain, Brazil, Philippines, Mexico, Vietnam, Switzerland,
and Sri Lanka. The China note, without much debate,
could be the biggest as Popeyes has only “a couple of hun-
dred restaurants” in Asia today, brand president Sami
Siddiqui said earlier in the year. KFC appreciates 26 per-
cent of its total system sales from China alone.

16

Dairy Queen
The cult-favorite ice cream chain kicked off the spring
with the rollout of its new Signature Stackburgers
menu—the chain’s most significant product rollout in
the past two decades. The lineup comes in five varieties,
including FlameThrower, Loaded A.1., Bacon Two Cheese
Deluxe, Two Cheese Deluxe, and Original Cheeseburger.

18

Panda Express
PANDA EXPRESS Panda Express, the largest Asian dining concept in
CONTINUES TO PUT
MENU INNOVATION the U.S., brought back plant-based Beyond The Orig-
FRONT-AND-CENTER
IN ITS EXPANSION. inal Orange Chicken for a limited time in November
2021. After a successful launch in New York City and
Southern California the previous summer, the fast
casual expanded the experiment to 70 locations across
California, New York, Georgia, Illinois, Texas, Florida,
Dairy Queen finished 2021 with 4,339 restaurants Washington, Pennsylvania, Maryland, and Virginia.
nationwide, all but two of them being franchised-oper- Following the introduction of the meatless orange
ated units. It was a net decline of 22 locations compared chicken, Panda Express doubled down on its partner-
to 2020. ship with Beyond Meat by launching Mapo Tofu with
Beyond Beef and String Beans with Beyond Beef. The
17 dishes cater to flexitarians, who eat both plant-based

Arby’s proteins and traditional meat.

Arby’s found opportunity to launch multiple pieces of

19
menu innovation throughout 2021. Known for its curly
French fries, the chain decided to add crinkle fries as Little Caesars
a permanent item in March of that year. The brand fol- Little Caesars spent much of its time bolstering its
lowed by launching a new kid’s meal with all-white development pipeline in 2021 after closing a net of 125
meat chicken nuggets and rolling out buffalo wings restaurants from 2018–2020. The pizza chain announced
for a limited time with Classic Buffalo Sauce and Hot several benchmarks throughout the year, including 50
Honey Sauce. more venues in New England, 35 in St. Louis, at least 15
The roast beef chain stepped up innovation even fur- in Denver, 25 in Charlotte, up to 10 in New Orleans, more
ther in 2022 by releasing the Wagyu Steakhouse Burger, than 50 in the Pacific Northwest, at least a dozen in New
DAIRY QUEEN / DAVID PAUL SCHMIT, ARBY’S, PANDA EXPRESS

the first of its kind in the company’s 58-year-history. ARBY’S EVEN GOT York, and 30 in Tampa Bay.
INTO THE BURGER
The 6.4-ounce burger—cooked using sous vide style— GAME RECENTLY The strategy is backed by industry veterans with
WITH ITS WAGYU
was 50 percent larger than McDonald’s Quarter Pounder, STEAKHOUSE years of experience. Craig Sherwood, who joined in
LAUNCH.
Arby’s claimed, and used a blend of 52 percent American September 2020 as vice president of U.S. development,
Wagyu and 48 percent ground beef. previously worked for Yum! Brands, Fazoli’s, and Sonic
Arby’s U.S. same-store sales increased 5.2 percent Drive-In, and Jeremy Vitaro, who was announced as the
in 2021 compared to 2020, and lifted 11.7 percent versus new chief development officer in spring 2021, previously
2019. The brand opened a net of 40 restaurants last year, worked as vice president of domestic development for
after debuting a net of 10 stores in 2020. Dunkin’ Brands.
QSR 50

increase throughput by 30 percent, and Sippy, a POS-

integrated robot that automatically dispenses beverages
and seals cups.

21

Papa Johns
CEO Rob Lynch and Papa Johns have pieced together a
multi-year run that’s now materializing into something
long-term. And the best way to illustrate that is to exam-
ine where the brand was a few years ago. In 2019, Papa
Johns opened 79 North America locations and closed
128. The following calendar, it debuted 64 and shuttered
63. In 2021, Papa Johns opened 85 against 35 closures.
The growth path, in turn, has progressed from nega-
tive 49 to positive one to net unit expansion of 50 over a
three-year stretch. Looking ahead, it’s single-digit open-
ings to a guide of 300 in just 24 months.
Papa Johns was also the lone large-scale public pizza
brand to post positive same-store sales to start 2022.
Sherwood said the pipeline is “stronger than we’ve LITTLE CAESARS Its 1.9 percent gain lapped 26.2 percent from the prior
EXPECTS TO RAMP
had in a number of years,” and will soon skew toward UP DEVELOPMENT IN year. Continued top-line growth has resulted in a flurry
THE COMING YEAR.
new franchisees in the next two years. A high level of of franchise activity, Lynch said. Operators are signing
expansion is expected in 2022 and even more robust on for more stores and new, major groups are racing to
development is projected for 2023. get in. The brand outperformed the pizza industry for 10
Like most restaurants, Little Caesars has been consecutive quarters.
marred by inflation. At the start of this year, the chain’s It’s why, in May, the company raised guidance for
signature $5 Hot-N-Ready pizza was bumped to $5.55, the 2022 net expansion to 280–320 locations from 260–300.
brand’s first price increase in almost 25 years. The com-
pany described it as a “new and improved” pizza with 33
percent more pepperoni.

20

Jack in the Box

Jack in the Box made a major splash in the M&A market
in 2021 when it announced an agreement to acquire the
600-unit Del Taco. The $585 million deal was completed
in March. Jack hasn’t operated another brand since
2017, when it sold QDOBA to Apollo Global Management
Group for $305 million. The company said there aren’t
any plans to create a multi-brand platform like Yum! or
RBI, but it will remain opportunistic when it comes to Additionally, Papa Johns provided a fresh multi-year
potential acquisitions. CEO Darin Harris said together, target of 6–8 percent annual net unit growth worldwide
both brands will benefit from a stronger financial model, for fiscal 2023–2025. That equates to 1,400–1,800 net new
gain greater scale to invest in digital and technology, and Papa Johns by year-end 2025, “with vast development
better unit growth opportunities. whitespace still remaining,” Lynch said.
FRESH OFF BUYING
The chain’s organic growth is experiencing just as DEL TACO, JACK IN In Q1 2022, Papa Johns struck a deal with Founta-
THE BOX IS TURNING
much momentum. Since launching a franchise-led ITS SIGHTS TO inVest Partners to open more than 1,350 locations in
ORGANIC GROWTH.
expansion strategy in mid-2021, the burger brand has
LITTLE CAESARS, JACK IN THE BOX, PAPA JOHNS

China by 2040. It also announced the strategic refi-

sealed 50 agreements consisting of more than 200 res- nancing of its majority interest in a 90-restaurant joint
taurants—the most commitments in Jack’s 71-year venture, recording all related assets and liabilities as
history. held for sale as of quarter’s close, to existing franchi-
The company experienced wage inflation of 10.9 see Sun Holdings. The transactions, Papa Johns said,
percent in its second quarter, but Jack has an answer “provide significant operational scale to help accelerate
for the inflationary pressure. The chain started testing Sun’s current 100-unit development agreement.” That
Miso Robotics’ fry-cooking robot Flippy 2, which can original deal, revealed in late ❙ CONTINUED ON PAGE 17 ➺
QSR 50

IN UNITS FROM
TOTAL CHANGE
(THOUSANDS)
SYSTEMWIDE

TOTAL UNITS
QSR 50 RANK

FRANCHISE/
(MILLIONS)

COMPANY
/

2021 U.S.

PER UNIT
AVERAGE

LICENSE
SALES

SALES

UNITS

UNITS
RANK

2020
2021

2021

2021

2021
COMPANY

BURGER SEGEMENT

1 1 McDONALD’S $
45,960 $
3,420 12,775 663 13,438 -244
2 5 WENDY’S $
11,111 $
1,895 5,535 403 5,938 57

IN UNITS FROM

IN UNITS FROM
TOTAL CHANGE

TOTAL CHANGE
(THOUSANDS)

(THOUSANDS)
SYSTEMWIDE

SYSTEMWIDE
TOTAL UNITS

TOTAL UNITS
FRANCHISE/

FRANCHISE/
3 BURGER KING 10,033 $
1,470 7,054 51 7,105 24

(MILLIONS)

(MILLIONS)
7 $

COMPANY

COMPANY
2021 U.S.

2021 U.S.
PER UNIT

PER UNIT
AVERAGE

AVERAGE
LICENSE

LICENSE
SALES

SALES

SALES

SALES
UNITS

UNITS

UNITS

UNITS
4 11 SONIC DRIVE-IN $
5,835 $
1,643 3,232 320 3,552 26
RANK

RANK
2020

2020
2021

2021

2021

2021

2021

2021

2021

2021
COMPANY COMPANY
5 20 JACK IN THE BOX $
4,077 $
1,843 2,055 163 2,218 -23
1 McDONALD’S $
45,960 $
3,420 12,775 663 13,438 -244 26 WINGSTOP * $
2,278 $
1,592 1,498 36 1,534 175 6 22 WHATABURGER $
2,698 $
3,197 114 730 844 14
7 23 CULVER’S $
2,489 $
3,099 831 6 837 55
2 STARBUCKS * $
24,300 $
1,200 6,497 8,953 15,450 113 27 ZAXBY’S $
2,233 $
2,484 761 147 908 3 8 29 HARDEE’S * $
2,100 $
1,117 1,536 198 1,734 -32
9 30 FIVE GUYS $
2,093 $
3,172 911 479 1,390 8
3 CHICK-FIL-A* $
16,700 $
6,100 2,650 82 2,732 155 28 JERSEY MIKE’S $
2,203 $
1,145 2,087 13 2,100 246 10 31 CARL’S JR.* $
1,560 $
1,400 1,011 47 1,058 -21
11 33 IN-N-OUT BURGER * $
1,175 $
3,200 0 370 370 5
4 TACO BELL $
12,600 $
1,823 6,540 462 7,002 203 29 HARDEE’S * $
2,100 $
1,117 1,536 198 1,734 -32 12 39 CHECKERS/RALLY’S $
931 $
1,145 568 266 834 -13
13 45 SHAKE SHACK* $
775 $
3,679 25 218 243 38
5 WENDY’S 11,111
$ $
1,895 5,535 403 5,938 57 30 FIVE GUYS $
2,093 $
3,172 911 479 1,390 8 14 FREDDY’S FROZEN CUSTARD &
46 $
759 $
1,842 391 29 420 32
STEAKBURGER

31 CARL’S JR.* $
1,560 $
1,400 1,011 47 1,058 -21 15 50 WHITE CASTLE $
615 $
1,749 0 349 349 -6
6 DUNKIN’ $
10,416 $
1,127 9,244 0 9,244 161
SNACK SEGEMENT

7 BURGER KING $
10,033 $
1,470 7,054 51 7,105 24 32 BOJANGLES $
1,485 $
1,924 496 277 773 15
1 2 STARBUCKS * $
24,300 $
1,200 6,497 8,953 15,450 113
2 6 DUNKIN’ $
10,416 $
1,127 9,244 0 9,244 161
8 SUBWAY * $
9,350 $
438 21,147 0 21,147 -1,043 33
IN-N-OUT $
1,175 $
3,200 0 370 370 5"
BURGER * 3 16 DAIRY QUEEN $
4,494 $
1,036 4,337 2 4,339 -22
4 35 KRISPY KREME * $
996 $
4,000 51 307 358 6
9 DOMINO’S $
8,641 $
1,317 6,185 375 6,560 205
34
FIREHOUSE $
1,044 $
909 1,101 39 1,140 9 5 37 TROPICAL SMOOTHIE CAFÉ $
948 $
1,009 1,038 2 1,039 125
SUBS 6 47 TIM HORTONS $687 $1,200 637 0 637 4
10 CHIPOTLE $
7,547 $
2,641 0 2,966 2,966 198 7 48 BASKIN-ROBBINS $686 $296 2,317 0 2,317 102
35 KRISPY KREME * $
996 $
4,000 51 307 358 6
CHICKEN SEGEMENT
11 SONIC DRIVE-IN $
5,835 $
1,643 3,232 320 3,552 26
1 3 CHICK-FIL-A * $
16,700 $
6,100 2,650 82 2,732 155
36 EL POLLO LOCO $
973 $
2,000 292 189 481 1
2 14 KFC $
5,100 $
1,408 3,906 47 3,953 10
12 PANERA BREAD * $
5,650 $
2,700 1,130 950 2,080 -25
948 3 POPEYES LOUISIANA KITCHEN $
4,775 $
1,867 2,716 41 2,754 146
37
TROPICAL $ $
1,009 1,038 2 1,039 125 15

5,500 SMOOTHIE CAFÉ 4 24 RAISING CANE’S $

2,377 $
4,893 23 544 567 58
13 PIZZA HUT $ $
1,022 6,526 22 6,548 -13
5 26 WINGSTOP * $
2,278 $
1,592 1,498 36 1,534 175

5,100 38 DEL TACO $

931 $
1,551 306 294 600 4 6 27 ZAXBY’S $
2,233 $
2,484 761 147 908 3
14 KFC $ $
1,408 3,906 47 3,953 10
7 32 BOJANGLES $
1,485 $
1,924 496 277 773 15
39
CHECKERS/ $
931 $
1,145 568 266 834 -13 8 36 EL POLLO LOCO $
973 $
2,000 292 189 481 1
15 POPEYES $
4,775 $
1,867 2,716 41 2,754 146 RALLY’S
LOUISIANA 9 44 CHURCH’S CHICKEN $
776 $
870 731 161 892 -13
KITCHEN
40 MARCO’S PIZZA $
899 $
934 957 45 1,002 48 GLOBAL SEGEMENT

1 4 TACO BELL $
12,600 $
1,823 6,540 462 7,002 203
16 DAIRY QUEEN $
4,494 $
1,036 4,337 2 4,339 -22
41 McALISTER’S DELI $
869 $
1,866 472 33 505 24 2 10 CHIPOTLE $
7,547 $
2,641 0 2,966 2,966 198
3 18 PANDA EXPRESS $
4,452 $
2,173 147 2,187 2,334 150
17 ARBY’S $
4,462 $
1,309 2,293 1,116 3,409 40
42 QDOBA* $
835 $
1,006 406 333 739 -2 4 38 DEL TACO $
931 $
1,551 306 294 600 4
5 42 QDOBA * $
835 $
1,006 406 333 739 -2
18
PANDA $
4,452 $
2,173 147 2,187 2,334 150
EXPRESS 43 PAPA MURPHY’S $
809 $
643 1,213 27 1,240 -53 6 49 MOE’S $
661 $
1,073 658 1 659 -22

SANDWICH SEGEMENT
19 LITTLE $
4,185 $
1,000 3,601 580 4,181 -28 44 SHAKE SHACK * $
777 $
3,679 25 218 243 38
1 8 SUBWAY* $
9,350 $
438 21,147 0 21,147 -1,043
CAESARS *
776 2 PANERA BREAD * 5,650 $
2,700 1,130 950 2,080 -25
45 CHURCH’S 12 $
$ $
870 731 161 892 -13
CHICKEN 3 17 ARBY’S $
4,462 $
1,309 2,293 1,116 3,409 40
20
JACK IN $
4,077 $
1,843 2,055 163 2,218 -23
THE BOX 4 25 JIMMY JOHN’S $
2,301 $
866 2,616 41 2,657 48
46
FREDDY’S FROZEN $
759 $
1,842 391 29 420 32 5 28 JERSEY MIKE’S $
2,203 $
1,145 2,087 13 2,100 246
CUSTARD & 6 1,044 909 1,101 39 1,140 9
21 3,486 FIREHOUSE SUBS
$ 34 $ $
PAPA JOHNS $
1,147 2,564 600 3,164 30 STEAKBURGERS
7 41 McALISTER’S DELI $
869 $
1,866 472 33 505 24

22 WHATABURGER $
3,089 $
3,640 131 742 873 29 47 TIM HORTONS $
687 $
1,200 637 0 637 4 PIZZA SEGEMENT

1 9 DOMINO’S $
8,641 $
1,317 6,185 375 6,560 205
23 CULVER’S $
2,489 $
3,099 831 6 837 55 48 BASKIN-ROBBINS $
686 $
296 2,317 0 2,317 102 2 13 PIZZA HUT $
5,500 $
1,022 6,526 22 6,548 -13
3 19 LITTLE CAESARS * $
4,185 $
1,000 3,601 580 4,181 -28
24 RAISING CANE’S $
2,377 $
4,893 23 544 567 58 49 MOE’S $
661 $
1,073 658 1 659 -22 4 21 PAPA JOHNS $
3,486 $
1,147 2,564 600 3,164 30
5 40 MARCO’S PIZZA $
899 $
934 957 45 1,002 48
25 JIMMY JOHN’S $
2,301 $
866 2,616 41 2,657 48 50 WHITE CASTLE $
615 $
1,749 0 349 349 -6 6 43 PAPA MURPHY’S $
809 $
643 1,213 27 1,240 -53
* INCLUDES FIGURES ESTIMATED BY QSR * INCLUDES FIGURES ESTIMATED BY QSR

ABOUT THE QSR 50 /

The QSR 50 is an annual ranking of limited-service restaurant companies by U.S. system-wide sales. QSR magazine collected information directly from restaurant companies from March to May 2022, Disclosure Documents (fdd), transactional data, and statistics from other sources were amalgamated, reviewed, and analyzed to yield domestic sales, unit count, and average-unit volume. When
and also partnered with FoodserviceResults, a research and consulting firm specializing in consumer research, data analysis, and insights to the foodservice industry. FoodserviceResults and QSR necessary, estimates were made in order to more accurately report on restaurant industry leaders. All information reflects 2021 fiscal performance. Founded by industry veteran Darren Tristano,
requested confirmation of U.S. sales, units, and average-unit volume from all leading chain restaurant corporate headquarters. Filings from the Securities and Exchange Commission (sec), Franchise FoodserviceResults specializes in consumer research, data analysis, and insights to the foodservice industry.
QSR 50

September, represented the largest domestic develop- burger. He also referred to them as “business leaders
ment agreement in Papa Johns’ history, and with a group who run multimillion-dollar restaurants, take care of
that doesn’t wildly toss projections about. their teams, and serve as the face of Whataburger in
Sun Holdings, founded by Guillermo Perales in 1997, their communities.”
operates more than 1,000 locations in 12 states, includ- The San Antonio-based chain gave staff more than
ing Taco Bueno, Burger King, Arby’s, McAlister’s, IHOP, $90 million in bonuses during COVID (as of March) and
Popeyes, T-Mobile, GNC, and a number of airport restau- extreme weather events. In 2020, workers also received
rant locations. “Extra Mile” bonuses, emergency pay, and a doubling of
The idea Papa Johns has growth potential is some- their 401(k) matching.
thing Lynch touted since arriving from Arby’s in August A few weeks after the GM reveal, Whataburger
WHATABURGER SAYS
2019. As 2020 loomed, Papa Johns had about half as IT’S ON THE CUSP unveiled a free virtual leadership conference featuring
OF ITS LARGEST
many restaurants as Domino’s and Pizza Hut domesti- GROWTH PHASE IN NBA legend David Robinson. Called “Pivot You,” it was
OVER 70 YEARS.
cally, and roughly a third internationally. part of the chain’s larger year-long campaign to hire
As of December 2021, the chain operated in 50 coun- more than 50,000 employees as it grew across 14 mar-
ties and had 3,164 U.S. units. Domino’s boasted 6,560 and kets, including new stops in Kansas City, Nashville, and
Pizza Hut 6,548. Colorado Springs.
Much of Papa Johns’ surge ties to menu innovation. Broadly, Whataburger claimed it was entering “the
Lynch put the plan ahead of value when he took over largest growth phase in its 70-plus year history,” which
as CEO and introduced six new products in 2020 alone. has been building since May 2019, when it sold a major-
Lately, Epic Stuffed Crust (a pepperoni-filled version, ity interest to Chicago-based BDT Capital Partners (the
too) helped drive new transactions and repeat visits. But Dobson family, which founded the chain in 1950, main-
notably, it’s also shielded Papa Johns from some of the tained minority ownership).
inflationary challenges pressing competitors. Lynch’s  
decision to lean into premium positioning made tak- 23
ing price a shorter leap than value-driven brands, he
said. Customers were already paying more for a prod- Culver’s
uct rather than a discount. And the other kicker was Since its founding in 1984, there has been one thing
third-party delivery, which Papa Johns made the call missing from Culver’s 850-unit fleet: a food truck. That
to activate about three years ago. It spent close to nine changed in May as the legacy brand took to the road for
months building out integrated systems to connect its a 17-city tour featuring the first mobile Culver’s. Along-
POS system to aggregators’ ordering systems “so that side the multi-stop event, Culver’s launched a “Welcome
we could leverage their drivers and service capabilities,” to Delicious” campaign to showcase its Wisconsin roots
Lynch said. While that road hasn’t always been smooth, and commitment to family values. The debut ad, “From
it gave Papa Johns a headstart in what’s fast become a Wisconsin With Love,” featured Dairyland staples and
convoluted labor dynamic for delivery drivers. hospitality with scenes of farm fields, guests coming
The chain’s “PapaCall” initiative, where it brought AI together over made-to-order items, and employees greet-
CULVER’S
into its call center, aided execution and freed up labor RECENTLY ing customers. Co-founder Craig Culver narrated the
INTRODUCED ITS
hours in-store as well. FIRST FOOD TRUCK commercial and briefly scooped fresh frozen custard in
AS PART OF AN
  OUTREACH archival footage from 1984.
CAMPAIGN.
22 The aim for the brand, Culver explained, was “to

Whataburger
In its 71st year, Whataburger expanded by 29 loca-
tions and kept building for the future. The brand, which
employs more than 51,000 workers, hired Peggy Ruben-
zer as SVP and chief people officer in April. Rubenzer
WHATABURGER (2); WHATAWEDDING: MIRANDA GRUBBS, CULVER’S

previously held the same title at True Food Kitchen and

has also clocked time at Shake Shack, P.F. Chang’s, and
Southwest Airlines.
The employee proposition proved a recurring theme
throughout the calendar. In March, Whataburger
announced a plan to promote all of its GMs and push
their salaries to at least $100,000. The position changed
to “operating partner,” and came with a bonus of up to
150 percent of their target incentive. CEO Ed Nelson, who
was promoted to the position in August 2020, described
operating partners as the “heart and soul” of Whata-
QSR 50

take a bit of Wisconsin to the rest of the space that we months after March 2020, Raising Cane’s doubled down
do business in.” But also, to energize customers and on its “No Crew Left Behind” mentality by distributing $2
employees alike. And the campaign came at a surging million in bonuses to account for hours some employees
time in Culver’s history. In 2020, the brand’s same-store gave up so everyone could remain employed. Neither
sales climbed about 6 percent over 2019, as drive-thrus AJ Kumaran nor founder Todd Graves (they serve as co-
helped Culver’s weather COVID drops. The following CEOs) took a salary at the time.
year, comps rose roughly 19 percent. Then in August, the fast casual bolstered retention
In each of those years, Culver’s opened 50 locations. efforts by expanding its educational benefits, including
The chain’s systemwide U.S. sales were $1.73
billion at the end of 2019. That number lifted
to $1.986 billion in 2020 and $2.489 billion
this past year.
Going forward, Culver’s has plenty of rea-
son to be optimistic. In addition to its strong
performance across the past couple of cal-
endars, it added tech upgrades (namely,
mobile ordering) and continues to open
double drive-thru lanes, as well as retrofit
old ones to add a lane, in an effort to free up
capacity. Pre-virus, drive-thru mixed about
55 percent of sales for Culver’s. It rocketed
to 90 percent during the depths of 2020 and
is now settling “around 60 percent,” Cul-
ver said.
And as Culver’s builds off back-to-back
record runs, the chain will lean into its hos-
pitality and made-from-scratch DNA that’s
always defined it. “We want both,” Culver said of in- access to college-level courses, reimbursed class costs
store and drive-thru growth. “We want everything. We to complete a high school diploma, and up to $5,250 per
want it all.” year in tuition reimbursement.
  During later labor shortages, Raising Cane’s cor-
24 RAISING CANE’S porate staff—50 percent of them—entered restaurants
NEARLY $5M AUVs IN
across the country. In the fall, leaders were performing
Raising Cane’s
2021 TRAILED ONLY
CHICK-FIL-A.
day-to-day tasks and helping lift Raising Cane’s from
To kick off 2021, Raising Cane’s announced its 600th 40,000 to 53,000 employees within 48 days.
opening. The store hardly represented an end-point, The brand’s March 2022 campaign, one of the biggest
though—it was the start of the biggest growth year yet creatives in brand history, centered on crew apprecia-
for the chicken finger chain. Raising Cane’s grew by a tion.
net of 58 stores last year. This current calendar, it plans Raising Cane’s nearly $5 million AUV last year was
to tack on 100 stores across 10 new markets. Along the second only to Chick-fil-A among the QSR 50 brands.
way, Raising Cane’s said it would hire more than 15,000 And the brand is coming on quickly. It boasts a pipeline
people. Team building has been a crucial part of Rais- of more than 300 restaurants (most of which are free-
ing Cane’s methodical expansion strategy throughout standing drive-thru locations). And north of 80 percent
its recent surge. are company-owned, which Raising Cane’s expects to
Much of the success ties to a Restaurant Partner Pro- remain the primary growth vehicle.
gram that launched around the start of the pandemic,  
which helps store managers become operators of com- 25
pany-owned restaurants. Partners receive expertise in
marketing, training, facilities, recruiting, and opera- Jimmy John’s
tions, health and financial planning support, and more Inspire’s sandwich fast casual saw same-store sales
than $100,000 in annual compensation, including salary, jump 21.3 percent (11.8 percent on a two-year view) as it
bonuses, and performance-based incentives. Raising rode a wave of digital growth. The chain expanded by 48
Cane’s claims operators in the program have the chance stores a year after contracting by 82. Inspire’s integra-
to become millionaires in as quickly as 12 years. tion of Jimmy John’s, which it acquired in late 2019 in an
RAISING CANE’S (2)

Raising Cane’s has made headlines on this front equity-swap transaction, is becoming increasingly vis-
since the outset of COVID. The company refused to fur- ible of late from a front-facing standpoint. In February,
lough or lay off any of its 23,000 workers. A couple of Inspire cut the ribbon on its first Jimmy John’s-Dunkin’
QSR 50

co-brand. It also debuted the “Alliance Kitchen” in build a custom sandwich and submit it for a chance to
Atlanta, the first ghost kitchen owned and operated by become the first official “Metasandwich,” which would
a multi-brand company. join Jimmy John’s real-life menu.
Jimmy John’s then opened a drive-thru-only pro-
totype in Bartow, Florida. It included dual lanes and 26
windows, with one side dedicated to mobile orders (guests
also have the option to pick up at carryout lockers). Wingstop
The asset updates arrived after Jimmy John’s rolled
a new visual identity last year with agency ChangeUp.
The brand began the calendar by launching a national
Super Bowl ad, “Meet the King,” for the first time in brand
history. It focused on Jimmy John’s differentiators in
the sandwich category: speed and freshness, but with a
comical vibe. The comprehensive visual identity launch
included a contemporized logo, new in-store signage,
merchandise, and digital footprint. During COVID, Wingstop has experienced its best years
ChangeUp started by identifying the heart of the as a public company. In 2021, the fast casual’s U.S. same-
company’s identity. It looked at Jimmy John’s initials, store sales increased 8 percent year-over-year and
its medallion, and iconic super seal. How could it sim- 29.4 percent on a two-year basis. AUV rose to $1.6 mil-
plify and codify the existing 40-plus logo variations lion, digital beyond 60 percent, and the brand opened a
used since 1983? record-breaking 193 net new stores worldwide, including
The solution was a cohesive collection with custom- 171 domestically. The chain raised its 2022 target to more
crafted initials, wordmark, and medallion. The new than 220 net new restaurants and pushed its long-term
packaging was an amplified version of Jimmy John’s addressable market to 4,000 restaurants nationwide, up
black, white, and red brand colors. Messaging and pat- from 3,000.
terning was bold and playful. The illustrations quirky, While sales rose, the chain faced a volatile bone-in
as ChangeUp unified the brand’s hand-draw linework’s chicken wing market. In Q3, prices rose to an unprec-
COUNT JIMMY JOHN’S
imperfectness across the system of icons. The Flying AMONG THE CHAINS edented $3.22 per pound, an 84 percent increase year-
OPENING BOLD, NEW
Sandwich suddenly looked meatier. The Super Seal PROTOTYPES, over-year. But since then, matters have cooled, with
INCLUDING STORES
“sealier.” WITHOUT DINING chicken wing prices lowering to $1.64 per pound by
ROOMS.
With a new brand image at the ready, Jimmy John’s early May.
introduced its first franchise incentive program in Going forward, the fast casual will pull multiple
November intended to accelerate 2022 growth. Through levers to create more predictable food costs for operators
the program, all or most of the initial franchise fee was and take more control of its supply chain. Thus far, Wing-
waived for qualifying deals, in addition to royalty dis- stop has implemented price mitigation strategies with
counts for the first 36 months. its largest poultry suppliers and made efforts to use more
In May, Jimmy John’s also entered the Metaverse by parts of the bird, including the use of thighs with virtual
letting users navigate a virtual store where they could brand Thighstop, and the use of breasts with an experi-
mental chicken sandwich that comes in 11 flavors. The
next step is either coinvesting in, acquiring, or building
a poultry production facility.
Wingstop also experienced a major change in lead-
ership. Former CEO Charlie Morrison resigned in March
to become leader of Salad and Go, a drive-thru chain in
Arizona and Texas. He was replaced by Michael Skip-
worth, who previously served as president and COO, and
executive vice president and CFO before that. The indus-
try veteran played a key role in the chains IPO in 2015.
JIMMY JOHN’S / MARK A STEELE (3), WINGSTOP

27

Zaxby’s
Zaxby’s underwent a historic leadership change last
year. Zach McLeroy, who founded the chain with child-
hood friend Tony Towley in 1990, stepped down as CEO
and transitioned to chairman after leading the brand for
more than three decades. As a result, Bernard Acoca, the
QSR 50

September 2021, Cancro said roughly 1,200 stores were

in development.
In the meantime, Jersey Mike’s is leaning into the
future of off-premises. In May, the fast casual announced
a partnership with Flytrex, a company facilitating food
delivery via drone. Orders are placed using the Flytrex
app, which updates customers along the route, until the
drone lowers safely into their backyard.

29

Hardee’s
In May, Hardee’s parent CKE Restaurants announced a
$500 million project to transform restaurants over the
next four to six years, including more than 500 units
across 20 markets by the end of 2022. The changes will
focus on renovations, technology advancements, and
streamlined operations. When the announcement was
former leader of El Pollo Loco, became the second CEO in made, 95 percent of all restaurants had already commit-
ZAXBY’S HAS NEW
the company’s history. He came into Zaxby’s with more
LEADERSHIP AND ted to the transition.
GOALS TO SHAKE UP
than 20 years of experience as marketer and restaurant
THE CHICKEN Customers and employees should expect new sig-
CATEGORY.
executive. He helped El Pollo grow digital sales, stream- nage, brand statement elements, freshly installed
line operations, and launch a contemporary prototype. interior and exterior digital menuboards, to upgraded
But the chain wasn’t done building its C-suite. In lighting, bathrooms, and subway tiling. The reimaging
April, Zaxby’s announced the hiring of COO Sharlene
Smith, who previously served as vice president of oper-
ations for Papa Johns’ North America sector. A month
later, the fast casual promoted Michelle Morgan to its
first chief people officer.
Zaxby’s concluded 2021 with 908 U.S. stores, a net
gain of three. AUV rose to almost $2.5 million, up from
$2.2 million in 2020.

28
launched in Columbia, South Carolina, two years ago at
a restaurant that was being outperformed by the system.
Jersey Mike’s After changes were put in place, the store consistently
Jersey Mike’s crossed the 2,000-unit threshold in August beat system averages.
and went on to open a net of nearly 250 restaurants in
2021. CEO Pete Cancro believes an annual pace of 300 30
JERSEY MIKE’S IS
stores is within reach, which would put the sandwich
Five Guys
FAST-TRACKING ITS
WAY TO 3,000-PLUS
chain on pace to break 3,000 in the next three years. In LOCATIONS.
Five Guys had 1,390 restaurants at the end of 2021, a net
gain of eight restaurants. Systemwide sales rose from
$1.7 billion to nearly $2.1 billion, and AUV increased from
$2.6 million to $3.1 million.

31

Carl’s Jr.
Like sister brand Hardee’s, Carl’s Jr. is in the early stages
of a broad refresh centered on omnichannel integra-
ZAXBY’S, JERSEY MIKE’S, HARDEE’S

tion. In addition to the exterior revamps, CKE debuted

in March “My Rewards,” a program in which custom-
ers receive 10 stars for every dollar spent. Guests can
unlock rewards at the 150, 300, and 500-star thresholds.
The company spent the past two or so years rebuilding
its technology infrastructure overall—something that
QSR 50

accelerated in 2021. Effectively, chief brand officer Chad Costa said in July 80 percent of his time would revolve
Crawford said, CKE integrated and brought to life point of around domestic growth. But as the brand headed into
sale, with Olo and Punchh enabling the consumer side of the second half of 2022, the other 20 percent would
it. “I think the most important thing is to be able to have increase on the international front. “We will be crossing
a more direct communication and relationship with the 1,000 mark in the next three years approximately,” he
the guests, to have them access and appeal and inter- said. “We want to be a national brand. That’s what we’re
act with and build the relationship that they’ve already building toward, and the team we put in place, everyone
started, but deeper with both the Carl’s Jr. and Hardee’s we’ve hired—our dreams are big.”
brands,” Crawford said. CKE IS SPENDING
$500 MILLION TO
Bojangles is taking $1.9 million AUVs through
More recently, CKE teamed with Universal Pictures REVITALIZE CARL’S
JR. AND HARDEE’S,
one of quick-service’s fastest-growing segments in
for an activation around the release of Jurassic World ESPECIALLY AT THE
DRIVE-THRU.
chicken (chicken entrees at U.S. restaurants increased
Dominion. This included a new “Primal Menu” and the 4 percent in the year ending April 2021, according
transformation of two Carl’s Jr. and Hardee’s locations to The NPD Group). And doing so with a chain that’s
into “dinosaur bite magnets.” continued to stress operations, speed of service, prod-
uct quality, and other back-end
support pillars to fuel smart
development. Costa said the
first two years under new lead-
ership were spent working on
foundational fixes, while also
modernizing the brand. Year
3 was where pipeline building
took hold, especially after the
installation of the company’s
first franchise sales team. The
new group covered regions. In
the past, everyone was respon-
sible for the entire country.
The first big franchising deal
of 2021 came when Bojangles
signed a development deal with
longtime franchisee Jeff Rigsby
to open 45 stores in the next
32 seven years. A couple of months

Bojangles later, Bojangles announced a “40

and 40” deal with Chaac Foods to
open 40 new stores and acquire
It’s been nearly four years since Bojangles was sold for 40 corporate locations. In June, Bojangles signed fran-
$593.7 million to Durational Capital Management and chise agreements with Sajib Singha and Asish Baidya
The Jordan Company. Before, it spent roughly three of SAT Restaurant Group and Khalid Siddiqui of LASH
years as a publicly traded company and was work- Foods to open three stores each in the Dallas and Hous-
ing to reroute sales at the tail-end. At the time of the ton markets, respectively, as well as 15 company-run
deal, same-store sales declined 0.2 percent. Bojan- units. Less than seven months later, the brand said it had
gles’ turnaround began with a portfolio optimization to signed a total of five multi-unit agreements and planned
close underperforming units and refranchise others. to build 30 corporate-owned stores, to bring about 50 new
The growth arrow has flipped since. In 2019, the brand restaurants to the greater Austin, DFW, Houston, and San
AFTER A MULTI-YEAR
retracted by 10 locations. The next year, it expanded TRANSFORMATIONAL
Antonio markets in the coming years. In all, Bojangles
JOURNEY, BOJANGLES
by 12. And in 2021, Bojangles added a net of 15 stores. APPEARS POISED FOR
said there was potential to hit 100-plus locations in Texas
BIG-TIME EXPANSION.
But more vitally, the framework continues to be laid for over the next seven to 10 years.
larger targets. Today, despite its more than 770-unit foot- Across 2021, Bojangles signed development agree-
print, the brand primarily remains a Southeast, regional ments to open over 100 stores in key markets. In Q1 2022,
concept with strongholds in the Carolinas, Virginia, and the brand inked deals for 46 new venues, including Vir-
Georgia. Yet leadership wants to change that scope— ginia Beach; Northern New Jersey; Northeast Ohio;
CARL’S JR., BOJANGLES (2)

with a goal to open 100 restaurants per year and target Baltimore, Maryland; and Washington, D.C.
contiguous development in areas like Dallas, Houston, It’s been a busy stretch. Costa said he expects future
Orlando, Pennsylvania, New Jersey, and New York. Also, development to be split 50/50 between new and existing
to broaden reach overseas. Chief growth officer Jose franchisees. ❙ CONTINUED ON PAGE 24 ➺
QSR 50 THEME PERFORMANCE SCORES * ( TPS) QSR 50

SATISFACTION
GUEST
Why 2021 Was a Mixed Blessing

RANK
LOYALTY
COMPANY FOOD DEDICATION & REFERRAL

L E A D E R S : 3.89+ STARS (OUT OF FIVE STARS)

percentage of negative mentions for the same theme. A TPS score of
1 CHICK-FIL-A 5.65 2.37 1.40 1.0 indicates that guests mention that theme at the same rate posi-

for QSR 50 Brands

2 CULVER’S 6.47 3.41 2.09
tively and negatively. The higher the score, the better, as it indicates
3 RAISING CANE’S 5.71 2.22 1.94
a higher ratio of positive mentions to negative mentions. The table
/ BY ADAM LEFF 4 IN-N-OUT BURGER 5.88 6.75 2.60
below shows the TPS of key themes for the QSR 50 in 2021.
5 PAPA MURPHY’S 7.70 2.53 1.54
JANUARY 2021 JUNE 2021 DECEMBER 2021 CHANGE BY END
6 FREDDY’S FROZEN CUSTARD KEY THEMES TPS TPS TPS OF 2021
5.36 2.95 2.20
7 FIVE GUYS 5.16 1.87 1.48 Food 3.77 3.20 2.55 -32%
8 STARBUCKS NA NA NA
Demeanor 3.05 2.74 2.25 -26%
9 KRISPY KREME 6.50 3.00 0.75
Dedication 1.36 1.39 0.70 -49%
10 FIREHOUSE SUBS 5.50 1.57 1.37
11 McALISTER’S DELI 5.08 1.73 1.51
Timeliness 1.01 0.84 0.69 -32%
12 JERSEY MIKE’S 5.23 1.72 1.37 Order Accuracy 0.64 0.66 0.61 -4%
13 SHAKE SHACK 3.00 1.78 1.54 Price/Value 1.39 1.24 1.07 -23 %
14 DAIRY QUEEN 3.68 1.55 0.92 Loyalty/Referral 1.14 0.96 0.89 -22%
15 MARCO’S PIZZA 4.79 4.21 1.46
16 ARBY’S 3.77 1.70 1.06 Praise for Food and Staff Demeanor have the highest mention
17 WHATABURGER 2.46 1.25 0.73 rates in review feedback and, as seen in the table, also have the high-
S T R A D D L E R S : 3.61-3.88 STARS est TPS scores. This indicates they are key themes guests focus on
18 WHITE CASTLE 2.75 1.60 0.89 when determining their rating. The table shows that both declined
19 MOE’S 2.99 1.37 0.95 over time, with Food declining 32 percent by end of year and
20 SUBWAY 3.29 1.31 0.81 Demeanor declining 26 percent. This indicates guest satisfaction with
21 ZAXBY’S 2.80 0.91 0.86 Food quality and staff Demeanor deteriorated significantly over 2021.
22 QDOBA 2.98 1.39 1.09 Timeliness, another key theme for quick-service brands, had a
23 TROPICAL SMOOTHIE CAFÉ 2.68 1.11 0.90 similar decline as Food, although less frequently mentioned. Staff
24 PIZZA HUT 2.26 1.09 0.87 Dedication boasted the largest decline, occurring largely in the sec-
25 DEL TACO 2.66 1.06 0.87
ond half of the year, and appears to indicate restaurants are still
26 CARL’S JR 2.29 1.20 0.75
struggling to hire, train, and retain staff with the same efficiency as
27 PANERA BREAD 3.09 1.23 0.90
pre-COVID. Ironically, Order Accuracy—another highly important
28 SONIC DRIVE-IN
theme for the sector—was not as negatively recognized over time.
2.28 0.92 0.77
The decline in guest experience among the QSR 50 concepts
29 BASKIN-ROBBINS NA NA NA
resulted in declines in perception of Price/Value, ultimately challeng-
30 HARDEE’S 2.60 1.37 0.74
ing the all-important decision as to whether guests will remain loyal,
31 DUNKIN’ 1.91 1.18 0.63
return or refer others. We see respective declines for Price/Value and
32 BOJANGLES 2.83 1.04 0.76
Loyalty/Referral at 23 and 22 percent, respectively.
33 TIM HORTONS 1.80 1.24 0.69
So, what does this mean for the remainder of 2022 and beyond?

L
34 LITTLE CAESARS 2.50 0.69 0.70
et’s step away from the sales and into the consumer there was a similar increase in demand. Pent-up demand Guests will show loyalty to brands that delight them with a well-
35 CHECKERS/RALLY’S 2.62 0.83 0.70
response. What did this past year tell us? drove impressive sales comps, not only over 2020, but in some rounded and high-quality experience, no longer simply because they
Many quick-service restaurant brands benefited cases over 2019, as drive-thru and carryout became the go-to C H A S E R S : 3.60 AND BELOW are open and convenient. Quick-serves looking to understand why
from being well-positioned to support off-premises dining for COVID-conscious diners. However, the decline in satis- 36 EL POLLO LOCO 2.20 0.90 0.79 their comp sales in 2022 are down should explore what guests are say-
during COVID waves. Already serving a high percentage of faction—especially the greater fall for the top quick-service 37 JACK IN THE BOX 2.02 0.82 0.71 ing online and via internal feedback forms. Ensuring your restaurant
sales through drive-thrus, they were set up to do more of the chains in America—indicates fast food was generally not pre- 38 WENDY’S 2.10 0.80 0.68 meets all the tenants of your brand promise will be key to winning
same. Or were they? Looking at satisfaction ratings for the pared to serve diners with the same level of guest experience 39 TACO BELL 2.25 1.08 0.74 in 2022, as the landscape is ripe with opportunity to capture loyal
QSR 50 brands, it appears their guests did not always feel the as they were known for in the past ( labor shortages could be 40 PANDA EXPRESS 2.09 0.97 0.73 guests from competitors. Guests are starved for quality taste options
same. Guest satisfaction declined a quarter of a star from Jan- a culprit). Diners more frequently cited the quality of food 41 CHURCH’S CHICKEN 2.39 0.88 0.65 served by gracious staff, which generally presents an opportunity for
uary to December 2021. While the entire restaurant industry declined, as did staff demeanor. 42 JIMMY JOHN’S 3.64 0.90 0.77 emerging chains. Just look at Chick-fil-A—which sits atop our guest
also experienced a drop, it was less severe. So, what caused We can dig deeper into the feedback that makes up over- 43 WINGSTOP 2.05 1.02 0.91 satisfaction table ( left) —and see brands that deliver on what they are
the downward shift, what impact did it have on sales, and all guest satisfaction to see why guests were less satisfied 44 McDONALD’S 1.27 0.84 0.61 known for will succeed. q
what does this mean for the future? over time. Using Merchant Centric’s proprietary Artificial
ADOBE STOCK / BALANCEFORMCREATIVE

45 DOMINO’S 1.77 0.52 0.66

Intelligence, we count the number of positive and nega- 46 PAPA JOHNS 1.99 0.62 0.63
Adam Leff is the co-founder and Chief Strategy Officer for Merchant Centric, a leading reputation management
solution that caters to the restaurant, veterinary, and automotive industries.
The Why Behind the Movement tive mentions within review feedback on key themes such as 47 BURGER KING 1.43 0.84 0.56
It seems QSR 50 chains were perhaps not as prepared as may Food, Staff Demeanor, Staff Dedication, Timeliness, Ser- 48 POPEYES LOUISIANA KITCHEN 2.26 0.69 0.58 SPECIAL NOTE: All data and analytics presented in this article are based upon Merchant Centric’s findings and, like
all data sets, are inherently limited in scope and nature. Data presented herein may not be comprehensive and may
have been concluded, at least from the perspective of con- vice Accuracy, Price/Value, Loyalty & Referral and 100-plus 49 KFC 1.67 0.75 0.55 exclude certain brands or brand locations. Data is provided without guarantee as to its accuracy, completeness,
sumers response. Review velocity increased dramatically additional themes. We then use Theme Performance Scores 50 CHIPOTLE 1.51 0.73 0.57
or currency, and Merchant Centric expressly disclaims any and all liability resulting from reliance on information
or opinions included herein. Brands selected are for illustrative purposes only and data should not be relied on
from March through August of 2021. This likely indicates (tps), the ratio of positive mentions for a theme relative to the as reflective of or attributable to all brands within a segment or cuisine. Please note that certain brands included
*THEME PERFORMANCE SCORES (tps) is the ratio of positive mentions for a theme relative to the herein are clients of Merchant Centric.
percentage of negative mentions for the same theme in all reviews collected for the brand. A TPS score of
1.0 would indicate that guests mention that theme at the same rate positively and negatively. The higher
the score, the better, as it indicates a higher ratio of positive mentions to negative mentions.
QSR 50

33
past year, which signaled a quadruple of performance
over that stretch. For perspective, Firehouse posted $870
In-N-Out Burger million in 2020. The big kicker—more than 27 percent of
The 1948-founded classic has remained steady across 2021’s sales came through digital channels.
the COVID era, which is no great surprise given its
drive-thru base (History.com credits Harry Snyder’s
100-square foot store as the first iteration of the modern
setup, with an intercom and pickup window). In-N-
Out added 11 stores from 2019–2022 before tacking on
five this past year. The brand remains content to scale
regionally and feed one of the sector’s true cult follow-
ings. The brand made headlines in fall 2021 for refusing
to check the vaccine status of dine-in guests. In-N-Out
sent ABC7 News a statement in October saying, in part,
they “refuse to become the vaccination police for any
government.” A San Francisco location was ordered to
briefly shut down by the Department for Public Health.
It reopened the next day for takeout only.

If that’s not enough, however, RBI’s motivation crys-

talized in February when Firehouse reported its first
sales report as a public brand. Domestic same-store
sales were up 15.2 percent, year-over-year, in Q4, and 23.4
percent on a two-year stack. For all of 2021, U.S. comps
soared 21 percent (20.6 percent across two years). Also,
Firehouse’s AUVs of $900,000 were a record.
FIREHOUSE SUBS With RBI’s infrastructure and support in tow, Fire-
IS NOW PART OF
THE RESTAURANT house’s future now turns to unit growth. Company CEO
BRANDS INTERNA-
TIONAL FAMILY. Cil (long-time executive Don Fox is still helming Fire-
house’s operations) said in Q4 RBI was eager to shift
Firehouse’s expansion into “high gear in the coming
years,” similar to what it’s done with Popeyes. This is
especially true overseas. When the deal was struck, Fire-
house operated in just three countries and territories.
Burger King was in more than 120, Tim Hortons north of
10, and Popeyes over 30. “To really start to bust it out and
increase development, it takes a well-resourced partner
with not just a matter of capital resources, but expertise,
34 talent, and scale,” Fox said.

Firehouse Subs Furthermore, Firehouse added a new member to its

C-suite for the first time in 11 years in February. Mike
Without much debate, 2021 will go down as a pivotal Hancock, an RBI vet who spent nearly nine years with
point in Firehouse’s history. Founded in 1994 by broth- the company, including most recently as chief operat-
ers and former firefighters Chris and Robin Sorensen, ing officer at Tim Hortons, joined as Firehouse’s COO.
the chain was a privately held company since store one The move will help accelerate the brand’s North Amer-
ADOBE STOCK / WIRESTOCK, FIREHOUSE SUBS (3)

in Jacksonville, Florida, to the 1,200th. That changed ica development.

in November when Burger King parent RBI scooped up
Firehouse for $1 billion in an all-cash transaction. On 35
the surface, the deal was a seismic one since it gave the
Popeyes and Tim Hortons owner a growing concept in Krispy Kreme
America’s $30 billion quick-service sandwich category. Like Firehouse, Krispy Kreme headed to the public sec-
Firehouse stepped in having tripled its unit count since tor in 2021. The doughnut chain’s second stint on the
2010 and secured $1.1 billion in systemwide sales this stock market came on the heels of a five-year brand
QSR 50

In addition, 17 percent of retail sales in 2021 came

from e-commerce, an increase from less than 10 percent
before COVID. The long-term goal is to achieve more than
a 25 percent mix. Krispy Kreme earned $134 million in
e-commerce revenue in 2021, growth of 15 percent com-
pared to 2020.

36

El Pollo Loco
Under new CEO Larry Roberts, El Pollo Loco is mov-
ing forward with aggressive franchise growth in new
markets. But the executive noted in March the pace
of development isn’t quite where he’d like it to be. In
response to the underperformance, the fast casual
added a senior vice president of franchising and direc-
tor of franchise sales who is solely focused on recruiting
transformation. And it’s a story of accessibility and a KRISPY KREME IS
PUBLIC AGAIN, AND new operators. The brand also formulated a fresh fran-
“hub-and-spoke” model that’s connecting all of it. For TAKING AIM AT
EXPANDING POINTS chising website featuring print and video marketing
the year, net revenue grew 23.4 percent to $1.38 billion, OF ACCESS ACROSS
THE GLOBE. materials. 
while organic revenue lifted 12.5 percent to $1.24 billion.
El Pollo is widening its efforts to include larger, multi-
In Q4, adjusted EBITDA increased 14.4 percent to $47.7
concept franchisees, in addition to mid-scale operators.
million, fueled by a 290-basis-point improvement in U.S.
Also, senior management will be involved earlier in the
and Canada margins.
recruiting process, like attendance at various conven-
But again, logistics are what’s fueling optimism.
tions.
The hub-and-spike concept allows production facili-
In terms of menu innovation, the fast casual known
ties (hubs) to deliver fresh doughnuts daily to numerous for chicken meals turned to Shredded Beef Birria, an LTO
points of access (spokes), including retail shops, conve- that drove new company, franchise, and system sales
nience stores, food carts, and more. Previously, Krispy records three weeks in a row during March and April.
Kreme leveraged a wholesale business that distrib- Additionally, the Shredded Beef Birria Burrito was pro-
EL POLLO LOCO
uted older, discounted products. Since doughnuts are STRUCK IT BIG WITH
moted on National Burrito Day, resulting in a record sales
A BEEF BIRRIA LTO.
now fresher, the chain has more room to price, meaning day. The menu innovation worked so well that El Pollo is
higher profit, executives said. U.S. cities that have fully exploring the use of barrio in future LTOs. 
implemented the change from the legacy wholesale Roberts, who previously served as CFO, took over
business are seeing 300–400 basis points of benefit to the CEO position from Acoca, who is now the leader of
margins. And it’s only growing. Krispy Kreme finished Zaxby’s.
2021 with 10,427 points of access around the
world, a 25 percent increase, year-over-year.
The company expects to reach 50,000 in the
coming calendars through at least 10 per-
cent annual growth. That includes another
10,000 in the U.S. and 30,000 between interna-
tional markets and the market development
segment (stores in Japan and the franchise
business).
The growth will come primarily through
delivered fresh daily doors (i.e. grocery, con-
venience stores) that cost only $2,000–$10,000
per outlet and enable the company to drive
economies of scale from its 411 production
hubs globally.
Currently, Krispy Kreme operates in more
KRISPY KREME, EL POLLO LOCO (2)

than 30 countries, and going forward, it plans

to debut in at least three new countries each
year. In 2022, hubs will open in Switzerland
and Chile, and more entries will be announced
in the coming months.
QSR 50

37
oring and animations of the sun against contrasting
gray and white walls. The “Flex” showcases the pro-
Tropical Smoothie Cafe totype’s ability to fit on multiple pieces of real estate,
The better-for-you fast casual opened its 1,000th loca- from a 1,150-square-foot drive-thru-only design to a
tion systemwide in 2021—just one of many milestones it 2,300-square-foot building with a full dining room. Pre-
accomplished that year. Tropical Smoothie Cafe signed viously a Del Taco restaurant needed about 25,000 square
332 franchise agreements last year, the most in brand feet of land, but the Fresh Flex can be placed in space as
history. It also saw same-store sales rise 22 percent com- small as 13,000 square feet. 
pared to 2020 and 29.4 percent against 2019, pushing its The model was unveiled in January 2021, and pro-
positive comps streak to 10 years in a row.  vided a lift to franchise growth. The fast casual signed
TROPICAL SMOOTHIE
Digital sales mixed 76 percent, fueled by custom- CAFE’S SAME-STORE nine deals last year for 68 restaurants in 10 states. All of
SALES CLIMBED
izable online and mobile ordering. Also, Tropical MORE THAN 20 those will debut in 2022 and 2023. 
PERCENT LAST YEAR.
Smoothie’s Cajun Shrimp Wrap and Cajun Shrimp Salad In March, Jack in the Box completed its $585 mil-
became the most popular LTO in company history and lion acquisition of the taco chain. The move created a
the Mango Berry Cosmo Smoothie became the best-sell- multi-brand platform with more than 2,800 restaurants
ing LTO smoothie of all time.  in 25 states.
The accomplishments continued through the
first part of 2022. The first quarter was one of Tropical 39
Smoothie’s best-performing periods in company history.
The chain signed 56 franchise agreements, including Checkers/Rally’s 
the brand’s first airport location. More than 70 percent
of those deals were with current operators. 
Tropical Smoothie finished 2021 with roughly 1,040
units and an AUV of $948,000. The long-term goal is to
reach 1,500 outlets by 2024, with a $1.2 million AUV and
franchisee profitability well above 20 percent. 
Early in 2022, Bloomberg reported Tropical Smoothie
was considering going public. The media outlet said the
fast casual could be valued at at least $1 billion. 

38

Del Taco 
Del Taco is boosting growth through its new Fresh
Flex prototype, which features two drive-thrus—one of
them for online orders—and a pickup locker at the front
entrance. The drive-thru leverages digital menuboards, Checkers is making history in 2022. The classic fast-
which improve accuracy and help customers in new food chain partnered with Presto to become the first
DEL TACO HAS A NEW
markets better understand the brand.  OWNER, AND STORE restaurant to nationally roll out automated voice-order-
MODEL, TO OFFER
The name of the model has a specific purpose. The GROWTH-MINDED ing technology, doing so at roughly 250 company-run
OPERATORS.
“Fresh” portion is displayed through light green col- stores by the end of the year. The innovation, which
recognizes accents and colloquialisms, has 98 percent
order accuracy and higher—well beyond the original
goal of 95 percent.  
At the same time, Checkers is continuing to roll out
its Fit Kitchen, a new format removing a mile and a half
of unnecessary walking per hour collectively, replacing
TROPICAL SMOOTHIE CAFE (2), DEL TACO, CHECKERS/RALLY’S (2)

flattops with clamshell grills to boost quality and con-

sistency, and leveraging holding equipment that keeps
products hotter for longer, uses fry stations and grill
positions with better capacity, and removes final cook-
ing processes from most fried products. The new format
was installed at 80 company-run restaurants in 2021.
Last year, the chain sealed 90 new franchise com-
mitments, including 39 for existing franchisees and
51 for new operators. The plan is to open more than 60
restaurants in 2022. Expansion will be geared toward
QSR 50

California, Texas, Arizona, Massachusetts, Connecticut, 41

and North and South Carolina.
Checkers ended 2021 with 834 restaurants, a net loss McAlister’s 
of 13 stores. Of that total, approximately 570 units are McAlister’s, which saw $869 million in systemwide sales
operated by franchisees.  in 2021, believes it’s capable of reaching $1 billion by
2024. If the fast casual accomplishes this feat, it would
40 become the first restaurant under the Focus Brands

Marco’s Pizza  umbrella, which includes Auntie Anne’s, Carvel, Cin-

McALISTER’S IS
NOW OFFICIALLY A
MEMBER OF THE
500-UNIT CLUB.
nabon, Jamba, Moe’s Southwest Grill, and Schlotzsky’s
to do so. The brand crossed 500 domestic units last
year. The pivotal 500th store was opened by McAli-
ster’s largest franchisee, David Blackburn of Southern
Rock Restaurants. In October, the fast casual said it had
a pipeline of more than 300 stores. The Saxton Group, a
franchisee overseeing roughly 80 locations in the Mid-
west, signed a 32-unit deal. Sun Holdings, another major
operator, expects to debut 51 outlets in the next six years. 
To make ordering easier for guests, McAlister’s
launched tableside ordering in early 2021. The tech-
nology, active in more than 300 restaurants by October,
allows guests to skip the line and order at their seat via
the app.

42

QDOBA
The Mexican fast casual is firmly in growth mode—
a reality supported by its June announcement Jim
Sullivan was joining as chief development officer. Sul-
livan previously held the role at CKE and clocked more
than two decades in real estate, franchise develop-
ment, and site acquisition management. By February,
Marco’s Pizza is the sixth-largest pizza chain in the QDOBA announced a multi-unit deal to bring 30 loca-
country in terms of footprint, but the fast-food chain is tions to Florida’s North Dade, Broward, and Palm Beach
looking to change that in the coming years. More than Counties over the next decade. It marked the largest
200 restaurants are in development, and the goal is to franchise agreement in brand history. QDOBA has its
QDOBA RECENTLY
eclipse 1,500 by 2023 and 2,000 by 2026. In March, the STRUCK ITS LARGEST sights on 2,000 stores and inked 60 franchise commit-
FRANCHISE DEAL IN
company revealed a 46-unit agreement to grow in the BRAND HISTORY. ments in 2021. Sullivan said QDOBA plans to open more
Phoenix area over the next six years. Those units will
be opened by area representative and franchisee Rob-
ert Pina, who joined the Marco’s system 11 years ago. 
To further simplify the expansion process for fran-
chisees, the pizza chain announced in April that it
implemented enhancements to its financing, growth
incentives, real estate, design, and construction sup-
port systems. 
The brand earned $899 million in systemwide sales
in 2021, but this year, the chain is projected to surpass
$1 billion and open more than 150 restaurants alongside
multi-unit operators. 
From a consumer perspective, Marco’s is working
MARCO’S PIZZA (2), McALISTER’S, QDOBA

through a pilot of voice-to-text ordering, with hopes

of launching the technology systemwide by the end
of 2022. The speech-enabled application uses conver-
sational artificial intelligence (ai), which yielded 100
percent order accuracy in initial beta testing as well as
increased employee and customer satisfaction.
QSR 50

than 60 in 2022 before ramping up to 100–120 stores per that it’s locally owned and operated, so there are ele-
year. There’s plenty of franchise whitespace ahead (of ments in the store that specifically showcase the local
QDOBA’s roughly 750 stores, about 40 percent are cor- community, executives said. Victoria Tullett, senior vice
porate owned). president of development and general counsel, said
she was hopeful at least 500 stores would be completed
before 2023, with a larger goal to reach 1,000.

44

Shake Shack
The burger fast casual dealt with its share of COVID hur-
dles in 2021, including an Omicron-triggered stretch
that, plus weather, drove 87 full days of Shake Shack
closures and a high single-digit reduction in operating
hours. However, the brand’s trajectory keeps pointing
up. Its overall fiscal 2021 systemwide sales of $1.1 billion
marked the highest figure in company history. One of
the reasons Shake Shack was able to recapture sales so
quickly and counter yet another wave was the fact it’s
progressed well past the “pivot” era of its digital trans-
formation.
As of Q4’s close, the company had added 3.5 mil-
lion new app and web purchases since March 2020. In
the period, it grew its first-time web and app customer
base by nearly 10 percent quarter-over-year and by
more than 80 percent for the full year 2021. And Shake
Shack continues to lean into more personalized and
43 digital marketing, as well as key limited-time offers.
Come December, Shake Shack retained nearly 80
Papa Murphy’s percent of the digital business it generated in January,
even as in-store sales nearly doubled. Digital mix was
Over the summer, Papa Murphy’s lifted the lid on its PAPA MURPHY’S 42 percent of sales in Q4 and nearly 60 percent when
UNVEILED ITS FIRST
first new store design since 2014. It back-ended what’s LOGO UPDATE IN considering kiosks and the brand’s native digital chan-
MORE THAN A
been a four-year modernization project. In March of that DECADE. nels combined.
year, Papa Murphy’s fully rolled its online ordering part- This digital backbone is paving plenty of runway.
nership with Olo. Six months later, the chain launched Shake Shack opened 36 domestic company-owned units
a new mobile app that “seamlessly integrated” into in 2021 at an AUV of $3.9 million. The long-term aim
the brand’s POS and proved to be “a great facilitator of remains 450 domestic stores. Globally, Shake Shack had
driving convenience.” Next, Papa Murphy’s worked to 386 locations as of May.
strengthen the relationship with franchisees. In April But the headliner might just be the stores them-
2019, foodservice conglomerate MTY Food Group pur- selves. The class of 2022 features a large commitment
chased the brand for $190 million. The first year under
MTY was rocky (COVID), but the rebranding mission
never wavered. It took on a physical form in late June
PAPA MURPHY’S / KELLY CAMERON, SHAKE SHACK (2) FOOD IMAGE: EMILY HAWKES

with Papa Murphy’s first logo update in more than a

decade alongside the store update. The new primary
logo is Papa Murphy’s red, with alternate black and
SHAKE SHACK’S
white options. SUSTAINABILITY
EFFORTS ARE
Most vividly, the model itself leans into the compa- EVOLVING
ALONGSIDE ITS
ny’s take-and-bake identity and serves as an extension GROWTH GOALS.

of home kitchens. Called “Kitchen Delite,” it gives off a

lighter and fresh feel, features an open kitchen, a faux
white brick wall, bright coloring, and a layout that sim-
plifies online ordering pickup and third-party delivery.
Also, the menuboard uses dynamic digital photogra-
phy to better highlight Papa Murphy’s products. With
the new design, Papa Murphy’s wants to show guests
QSR 50

to new formats like drive-thru, with 25 percent

of the fleet boasting a “Shake Track” walk-up
or drive-up window. In December 2021, Shake
Shack opened its first two drive-thrus—in
Maple Grove, Minnesota, and Lee’s Summit,
Missouri. That number is expected to reach
double-digits before 2023 arrives. “Unlocking
this potential can have a tremendous impact
on our long-term addressable market, and
we’re focused on deepening our investments,
resources, and learning about this critical new
addition to the Shack family of experiences,”
CEO Randy Garutti said in February.

45

Church’s Chicken
Church’s was one of the industry’s M&A targets
in 2021. FFL Partners agreed to sell the chicken
chain to Quiznos parent High Bluff Capital Part- Jersey, Texas, Indiana, and Chicago, over the next sev-
ners last August for an undisclosed amount. It came in eral years.
with some momentum, too. At the end of June, the brand Freddy’s 2021 started with a March deal that saw the
reported comps were increasing 15 percent systemwide, nearly 20-year-old brand acquired by private equity firm
year-over-year, and average check was up more than 30 Thompson Street Capital Partners. CEO Chris Dull called
FREDDY’S YEAR
percent. The chain was also ahead of where it was in BEGAN WITH AN 2021, “one of the most transformative and noteworthy
EQUITY DEAL, AND
2019 when it surpassed a 10-year company record for FOLLOWED WITH years in our company’s history.” Franchisees reported
PLENTY OF GROWTH.
systemwide sales. The company said it expected to open AUV growth of 13.7 percent and began 2022 with plans to
nearly 100 restaurants worldwide in 2021, up from 79 new open 15 or so stores across the first 75 days of the calen-
openings last year. dar. Looking forward, it figures 40 total venues for 2022,
Church’s sales growth accelerated due to the launch with hopes to double its footprint within the next four
of long-planned advancements in digital marketing, years, bringing the total unit count to 800 by 2026. In Q1
order head, and delivery. Order ahead and takeout orders 2022, Freddy’s signed six new multi-unit agreements (for
increased 540 percent in 2020, along with a 77 percent 64 stores) and opened 11 locations.
lift in third-party delivery. A new website, channel strat- Earlier in April, Freddy’s also announced the open-

FREDDY’S FROZEN CUSTARD & STEAKBURGERS (2), TIMBITS: ADOBE STOCK / SOCKAGPHOTO, TIM HORTON’S EXTERIOR: ADOBE STOCK / REDFOXCA
egy, and mobile welcomer (location finder) were rolled ing of its first airport location in the Will Rogers World
out to help guests go from first impression to desired Airport in Oklahoma City.
action within three clicks.
More recently, Church’s tapped industry vet Frank 47
Costello as VP of U.S. franchise development. The former
TBC Corp exec plans to develop an aggressive strategy of Tim Hortons
new restaurant development, recruitment, and selection Out of Restaurant Brands International’s portfolio
of new U.S. franchisees, the company said. Additionally, (Burger King, Tim Hortons, Firehouse Subs, and Pop-
he will oversee the implementation of Church’s “Blaze” eyes), Tim Hortons continues to showcase the heftiest
image and reimage initiative. digital business, with the web/app channels mixing
TIM HORTONS’ more than 36 percent in the first quarter, and more than
DIGITAL GAINS ARE
46 PAVING THE WAY FOR 40 percent in March alone. 
U.S. EXPANSION.
The chain’s back-to-basics strategy has paid divi-
Freddy’s Frozen Custard dends and strengthened its positioning and market
& Steakburgers share in the flagship categories of breakfast foods and
Freddy’s posted another stellar run in 2021, notching coffee, CEO Cil said. Tim Hortons’ freshly cracked eggs
a 17.8 percent increase in systemwide sales, year-over- platform helped drive breakfast food market share to
year. It also opened 32 new restaurants, including debut its highest level in more than five years. In Q1, all prod-
units in New Jersey and Wisconsin. Meanwhile, Fred- uct segments and dayparts contributed to positive sales
dy’s signed 17 multi-unit deals with new and existing performance and increased throughout the quarter,
franchisees to add 102 locations to a stuffing pipeline. with lunch, foods, and baked goods standing out on the
This should carry the chain into fresh markets such as product side and morning and lunch excelling for the
the Dakotas alongside further development into New daypart side.
The Contenders /
From legacy chains to rising upstarts, here’s a look at 50 brands ready to break through in the coming years. All information in this chart, except for where * is indicated, was
48
vice division. Meanwhile Smith previously
QSR 50

submitted directly to QSR magazine. The list is ranked by total systemwide sales from the pool of submissions.
worked as COO of Taziki’s, overseeing in-
Baskin-Robbins restaurant technology, training, supply
chain and purchasing and store support

IN UNITS FROM

IN UNITS FROM
TOTAL CHANGE

TOTAL CHANGE
(THOUSANDS)

(THOUSANDS)
SYSTEMWIDE

SYSTEMWIDE
TOTAL UNITS

TOTAL UNITS
FRANCHISE/

FRANCHISE/
teams. 

(MILLIONS)

(MILLIONS)
COMPANY

COMPANY
2021 U.S.

2021 U.S.
PER UNIT

PER UNIT
AVERAGE

AVERAGE
LICENSE

LICENSE
SALES

SALES

SALES

SALES
UNITS

UNITS

UNITS

UNITS
The chain finished 2021 with 659 res-
RANK

RANK
2020

2020
2021

2021

2021

2021

2021

2021

2021

2021
COMPANY SEGMENT COMPANY SEGMENT
taurants, down 22 units from the year
1 SMOOTHIE KING SN A C K $
602 $
609 1,302 56 1,360 55 26 TERIYAKI MADNESS G L O B A L $
90 $
1,161 100 1 101 17 before. It earned $1.07 million in AUV and
$661 million in U.S. systemwide sales. 
2 HABIT BURGER B U R G E R $
600 $
2,030 31 276 307 29 27 ROY ROGERS B U R G E R $
82 $
1,813 25 17 42 -7
50
3 AUNTIE ANNE’S S N A C K $
576 $
637 1,126 12 1,138 -14 28 PIZZA GUYS P I Z Z A $
79 $
1,102 68 7 75 5 In the spring, the classic ice cream chain
announced a refreshed brand image, White Castle
4 CAPTAIN D’S S E A F O O D $
567 $
1,094 294 242 531 2 29 MOOYAH B U R G E R $
71 $
866 88 1 89 5
including an update to the logo, packaging, The legacy chain honored its 100th birth-
and employee uniforms. The movement day in May last year with the opening of
5 STEAK ‘N’ SHAKE B U R G E R $
539 $
1,764 337 199 536 -20 30 SALSARITA’S G L O B A L $
68 $
1,219 47 9 56 6
came with a new tagline that encourages its largest location—4,567 square feet—in
customers to “Seize the Yay.” To celebrate Orlando. It was the first time White Cas-
6 PORTILLO’S* S N A C K $
526 $
7,900 0 69 69 5 31 DOG HAUS S N A C K $
67 $
1,653 49 2 51 13
the rebrand, Baskin-Robbins launched tle has been in Florida since 1968. In 12
branded merchandise for the first time months since that debut, the restaurant
7 JAMBA S N A C K $
505 $
754 747 3 750 -17 32 GOLD STAR B U R G E R $
61 $
958 60 7 67 -5
in its 77-year-old history and developed
S A N D W I C H G L O B A L
three new ice cream flavors, including
8 SCHLOTZSK Y’S $
332 $
1,090 300 24 324 -9 33 HAWAIIAN BROS $
55 $
4,400 0 26 26 17
Non-Dairy Mint Chocochunk, Ube Coco-
B U R G E R G L O B A L nut Swirl, and Totally Unwrapped (peanut
9 KRYSTAL $
323 $
1,126 105 182 287 3 34 HONEYGROW $
55 $
2,300 0 25 25 1
butter and chocolate packed with fudge-
G L O B A L S N A C K covered pretzels. 
10 FAZOLI’S $
298 $
1,454 156 57 213 3 35 ROBEKS $
50 $
1,093 85 1 86 3
Baskin’s same-store sales grew 9.9 per-
11 PIZZA RANCH P I Z Z A $
279 $
1,312 207 6 213 2 36 PJ’S COFFEE OF S N A C K $
46 $
454 130 11 141 17 cent year-over-year and lifted 13.6 percent
NEW ORLEANS on a two-year basis. The chain opened a
12 SCOOTER’S COFFEE S N A C K $
263 $
801 379 21 400 92 net of 102 stores in 2021, pushing it to more
37 KOLACHE FACTORY S N A C K $
46 $
774 30 29 59 2 than 2,300 units in the U.S. 
13 PENN STATION S A N D W I C H $
258 $
820 311 1 312 2
38 JUICE IT UP! S N A C K $
43 $
575 78 1 79 0 49
C H I C K E N 255
14
Moe’s Southwest
$
CHICKEN SALAD $
1,293 150 55 205 29
CHICK 39 HAPPY JOE’S P I Z Z A $
38 $
985 36 9 45 1 became the top-performer among the
Grill brand’s more than 350 restaurants and sold
15 MOUNTAIN MIKE’S P I Z Z A $
254 $
1,083 246 0 246 18 40 RUSTY TACO G L O B A L $
35 $
988 37 0 37 6 5 million sliders. 
Moe’s spent the first half of 2022 improv-
ing its leadership team. In March, Tory In 2022, White Castle had even more
16 SMASHBURGER B U R G E R $
253 $
3,331 128 117 245 9 41 WING ZONE C H I C K E N $
34 $
1,001 34 0 34 4 reasons to celebrate. In late April, the com-
Bartlett was named chief brand officer
after leading Schlotzsky’s to a record pany announced The Original Slider and
17 CINNABON S N A C K $
224 $
637 938 1 939 2 42 SWIG S N A C K $
29 $
989 0 38 38 8 Cheese Slider surpassed $28 billion in
growth year in 2021. A month later, the
fast casual revealed the hiring of Annica sales. That includes 22 billion sliders sold
18 WETZEL’S S N A C K $
219 $
702 300 34 351 7 43 PICKLEMAN’S S A N D W I C H $
29 $
1,271 24 0 24 1 in restaurants and another 6 billion sold
Conrad as vice president of marketing and
Mike Smith as vice president of operations.  through the company’s retail division. 
19 DONATOS P I Z Z A $
211 $
1,249 117 52 169 1 44 KILLER BURGER B U R G E R $
17 $
1,400 4 12 16 3 Additionally, the brand rolled out its
Conrad joined Moe’s from FAT Brands,
where she served as CMO of the quick-ser- first menu innovation in years with the
20 NEWK’S S A N D W I C H $
208 $
2,056 87 18 105 5 45 WING SNOB C H I C K E N $
15 $
1,051 18 0 18 6 1921 Slider, which includes a 100 percent
beef patty topped with cheddar cheese,
21 BONCHON C H I C K E N $
173 $
1,594 111 4 115 8 46 SOBOL G L O B A L $
13 $
216 55 3 58 8 grilled caramelized onions, a slice of Roma

BASKIN-ROBBINS, MOE’S SOUTHWEST GRILL, WHITE CASTLE

tomato, lettuce, and pickles. The product is
22 WABA GRILL G L O B A L $
170 $
900 184 5 189 0 47 BAD ASS COFFEE S N A C K $
12 $
720 20 0 20 0 inspired by White Castle’s first slider when
OF HAWAII it opened more than 100 years ago.
23 THE HUMAN BEAN S N A C K $
109 $
916 116 13 129 16 More recently, White Castle began to
48 ASIAN BOX G L O B A L $
11 $
1,500 0 8 8 -2
lean back into its late-night prowess with
24 CAPRIOTTI’S S A N D W I C H $
108 $
933 155 13 169 55 a merchandise and packaging lineup. q
49 SAUCE ON THE SIDE G L O B A L $
9 $
1,053 6 3 9 1
25 GREAT HARVEST S A N D W I C H $
108 $
634 169 1 170 -3
BREAD COMPANY 50 MICI ITALIAN G L O B A L $
7 $
1,204 0 7 7 2 Danny Klein is Food News Media’s editorial director. Contact him at [email protected]. Ben Coley is Food News Media’s
content editor. He can be reached at [email protected].
* INCLUDES FIGURES ESTIMATED BY QSR