Communications firm ICR held its annual investor and media conference this week in Orlando. Dozens of restaurant companies both public and private presented at the event, giving attendees a preview of the year ahead. Here are six themes that emerged at the conference, plus a collection of newsy tidbits from various brands.
A more confident consumer?
There are signs that customers are starting to feel better financially, according to a number of executives.
At Olive Garden owner Darden, consumers earning between $50,000 and $100,000 a year are starting to visit the chain more frequently after pulling back over the past year or so, said Darden CEO Rick Cardenas.
Others noted that common indicators of economic health, such as employment rates, wage growth and household debt, are trending in the right direction.
“People have jobs, they’re making more money … and they’ve got their debt under control,” said Potbelly CEO Bob Wright. “Those are pretty important and significant indicators of stability.”
Still, others cautioned that consumers remain sensitive. Fat Brands Chairman Andy Wiederhorn said he believes that customers have hit their limit on price. That will make growth more challenging.
“I don’t expect to see an insane amount of growth on the same-store sales basis,” said Logan Powell, CEO of Puttshack, speaking generally about his outlook on the industry.
It will be another year of value
Value dominated the industry in 2024 as restaurants went after price-conscious customers. That is set to continue in 2025, but it won’t always mean lower prices.
At sports bar chain Twin Peaks, 29-degree beer, a large array of TVs, and scantily dressed waitresses are all part of the value proposition, said CEO Joe Hummel. And for brands such as Cracker Barrel and LongHorn Steakhouse, value is delivered in part through generous portions.
“When consumers find value, it’s not always about what you pay. It’s about what you get for what you pay,” said Cardenas.
Indeed, several brands said they’ve seen strong demand for more premium-priced items. Red Robin’s triple-decker Gold Medal Burger, which sells for about $20, has been surprisingly popular, said CMO Kevin Mayer.
Loyalty takes center stage
Just about every restaurant that presented laid out a plan to drive traffic this year. Loyalty programs were a common thread.
Papa Johns, Potbelly and Red Robin reported good results from their recently retooled programs. And some chains that don’t yet have programs are in the process of launching them.
Portillo’s, for instance, unveiled its first-ever loyalty program at the event, a digital-wallet-based system that will give customers perks the more they visit.
The next step for restaurants will be taking the data gathered from those programs and using it to create more personalized rewards and communications.
“It will take another gear of technology to be able to do that,” acknowledged Potbelly CEO Bob Wright. But, “the more you learn that you can do with this, the more you want to do with it.”
West Coast fires loomed
Several brands noted the wildfires that continued to burn across Los Angeles, thousands of miles away from the posh hotel in Orlando, where the conference was hosted.
El Pollo Loco, for example, was born in Los Angeles, though its headquarters are in Costa Mesa, California, to the south. CEO Liz Williams reported that all team members were safe, as of Wednesday, and the chain did not have any total destruction of restaurants, though some were impacted by power outages tied to the fires this week. The chain was also among those feeding first responders, with more than 700 meals donated to emergency crews.
Shake Shack also has about 23 units in the greater Los Angeles area, with five that had to close temporarily because of the fires, but none were destroyed. Shake Shack has also been a passionate supporter of first responders, with more than 2,000 meals delivered early in the week to fire stations, evacuation shelters, a firefighter base camp and a sheriff station. The chain also donated to World Central Kitchen, which is in Los Angeles feeding people this week, said Katie Fogertey, Shake Shack’s CFO.
There is no offseason
Sports bars are benefiting from an increasingly busy sporting calendar.
Even the slower months of July and August that are typically dominated by baseball now feature the fast-growing WNBA as well as a new FIFA soccer tournament, the Club World Cup, said Brooks Schaden, CEO of Tom’s Watch Bar. And more niche sports, such as bull riding and cricket, are growing.
“Those white spaces of empty seasons are shrinking and shrinking because people are watching more sports,” Schaden said. They’re also increasingly gambling on them, which adds extra appeal for sports-focused establishments.
Tom’s was one of a few bar and grill chains at ICR that highlighted an array of TVs that allow customers to view multiple sporting events at once.
Glad that’s over
Regardless of where one fell on the political spectrum, there was a sense of relief that the contentious presidential election is behind us.
The many months of political jockeying created a lot of uncertainty for consumers and businesses alike. “Now everybody knows where we’re headed,” said Kura Sushi CFO Jeff Uttz.
And some attendees were feeling optimistic about the new direction. They cited confidence in the Trump administration’s ability to tackle inflation, and noted that a more hands-off approach to M&A could fuel deal-making.
Odds and ends
P.F. Chang’s believes its four-unit fast-casual concept, Pagoda Asian Grill, could have up to 2,000 locations one day.
Cracker Barrel wants to grow the dinner daypart. Don’t sleep on the Hash Brown Casserole Shepherd’s Pie, said CEO Julie Masino.
Authentic Restaurant Brands, the owner of four regional concepts including Pollo Tropical and Primanti Bros., will announce a fifth acquisition very soon, executives said.
Portillo’s self-service kiosks generated a15% higher ticket and contributed a 1% increase to same-store sales, said CIO Keith Correia.
Man Vs. Fries, the virtual brand owned by Virtual Dining Concepts, is growing quickly and could be in a few thousand locations by the end of this year, said COO Adam Robin.
Fogo de Chao is testing catering and estimates it could account for 10% of the business someday, said CEO Barry McGowan.
The ONE Group has been seeing strong franchisee interest in the newly acquired Benihana, particularly from quick-service operators, said CEO Manny Hilario.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.