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Financing

Higher gas prices have a casualty

The Bottom Line: This week’s edition of the restaurant finance newsletter looks at the impact of rising gas prices, and why that’s behind the delayed 7-Eleven IPO.

Emerging Brands

Franchisee lawsuit describes Roll Em Up Taquitos as a Ponzi scheme

A group of current and former franchise operators allege fraud, saying the franchisor misrepresented the viability of the fast-casual business, leaving them stuck with hundreds of thousands in losses.

Chains like Dave’s Hot Chicken and Chipotle see major potential in drone delivery. The service still has a long way to go, but looser regulations could soon open the floodgates.

The Bottom Line: The bankruptcy filing by a big Carl’s Jr. operator is the latest in a quiet string of problems among major franchisees amid a brutal restaurant environment.

The Bottom Line: Noodles & Company and Jack in the Box have cited closures for their impact on same-store sales. Strategic closures can certainly help remaining locations. But they must come with other investments.

Behind the Menu: To differentiate its food and drink lineup in a competitive segment, this New England-based brunch concept is putting a renewed focus on small producers and scratch cooking.

One of Dave's Hot Chicken's first and largest franchisees is backing this growing by-the-slice Sicilian-style square pizza brand. Will Prince St. grow as fast?

The Bottom Line: The fast-food chicken-sandwich chain has now recorded two straight years of more moderate-than-usual sales. Is the brand maturing? Or is it something else?

The Bottom Line: The two chains have long been rivals, but it has been entirely one-sided in recent years. Here’s what it would take for the smaller chain to accomplish this lofty goal.

The Bottom Line: In this week’s edition of the restaurant finance newsletter, we look at the trend of restaurant chains upgrading their core menu items.

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