Welcome to Restaurant Business’ Week in Review for the week of June 2, 2025.
2024 was a tough year for restaurants. But it wasn’t quite so bad for fast-casual concepts, which outpaced other categories with 9% growth in 2024, according to Technomic. Segment leader Chipotle Mexican Grill rose to No. 7 among the Top 10 restaurant brands. Fast-casual chicken chains, including Dave’s Hot Chicken, saw double-digit sales growth, while fast-casual pizza continued to falter.
Dave's Hot Chicken was sold to Roark Capital in a deal valued at $1 billion. It caps a meteoric rise for the fast-casual chicken chain, which launched as a popup in a Los Angeles parking lot in 2017 and opened its first "real" restaurant a year later. The chain had 245 units and systemwide sales of nearly $617 million as of last year.
El Pollo Loco is in talks with private-equity firm CapitalSpring on a “potential extraordinary transaction” which could result in the fast-casual chicken chain’s sale. The firm has taken a 5.2% stake in the chain as an activist investor and has entered into a confidentiality agreement with El Pollo Loco. CapitalSpring is the owner of restaurant companies including Newk’s and Beef O’Brady’s.
Have you heard of zebra striping? It’s the practice of alternating alcoholic drinks with booze-free ones, and it’s apparently popular with Gen Z right now. Nearly half (48%) of those who drink alcohol are trying to drink less, but that number climbs to 68% for Gen Z (those born between 1997 and 2012), according to recent data. Operators can capitalize on the trend by adding more nonalcoholic drinks to their menus, offering zebra-striping promos across dayparts and creating flights of both boozy and booze-free drinks.
McDonald’s is ready to party like it’s 2016, announcing the return of its long-gone Snack Wrap. The item is made with the chain’s new McCrispy Strips. The wraps officially make their comeback on July 10. An online petition to bring back the Snack Wrap, which calls the item “f*cking delicious” and “easily the best thing” on McDonald’s menu, has nearly 19,000 verified signatures.
Sweetgreen says its high-tech Infinite Kitchens could mitigate the impact of a $30 minimum wage being proposed in New York. The salad chain said it also sees opportunity in California, where the fast-food minimum wage is $20 per hour.
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.