How McDonald’s Won Over Gen Z Consumers

Research firm dcdx recently released The Magnetic 100: Restaurants report, which took a look at the brands that Gen Z is talking about most. In order to make this list, a restaurant chain’s customers need to be doing more than spending money – they need to be truly engaged with the brand.

“Magnetism can be measured through how much and how often consumers talk about a brand online and this is all organic, so it’s not skewed by big marketing or influencer budgets,” dcdx director of strategy Mara Stolzenbach told Nation’s Restaurant News.

“Analyzing this type of user-generated content allows us to understand what’s resonating with customers and how they think about a brand.”

The report looked at 100 brands and rated them from “weak” to “magnetic” by analyzing their brand momentum, TikTok followers and segment. Metrics were then derived from popularity and consistency.

Here’s the top 10 most magnetic brands, per the report:

 1.  McDonald’s

    2.  Wingstop

    3.  Starbucks

    4.  Chipotle

    5.  Taco Bell

    6.  Crumbl Cookies

    7.  Raising Cane’s

    8.  KFC

    9.  Chick-fil-A

    10.Subway

Let’s take a closer look at the top five brands and how they made the list.

McDonald’s

Generating 1 billion engagements on its own, McDonald’s claims the top spot on the list as the most magnetic brand, with a score of 89.38. The chain’s popularity goes beyond its food and in fact, much of its engagement has nothing to do with food.

According to Nation’s Restaurant News, memes about drive-thru order mishaps, behind-the-scenes content and viral clarinet performances mimicking air fryers all contributed to it taking the number one spot.

Wingstop

Next on the list, with a score of 87.5, is a chicken-wing chain that has gained popularity among Gen Z through “Mukbang” videos – live-streams that feature a person eating a large amount of food. According to NRN, Mukbang content dominated themes driving conversations for many of the top brands.

Starbucks

After losing popularity last year, Starbucks is back near the top thanks to a return to its roots and limited-time offerings. The coffee chain scored an 87.13 on the magnetism list, with consumers sharing seasonal drink ordering tips and pictures of their personalized cup messages.

That small change of encouraging employees to write personal messages on cups with Sharpies paid off, under the leadership of new Starbucks CEO Brian Niccol.

Chipotle

All press is good press, as Chipotle found out. Criticism over Chipotle’s prices and portion sizes became its biggest content driver over the past year. Customers of the brand started sharing ways to maximize orders and get the best deal, which actually played a key role in the brand attaining a score of 86.84.

Taco Bell

Rounding out the top five on the report’s rankings was the time-tested Mexican chain. Over 40% of Taco Bell’s engagement features storyteller content, with customers sharing life experiences – like gender reveals – with Baja Blasts.

Of the restaurants in the report, the top five brands – along with the number six brand, Crumbl Cookies – drove more than half of the conversation in the restaurant category, with nearly 4 billion engagements, according to an article by Fast Company.

How to Win Over Gen Z Consumers

Restaurants must remain consistent to be magnetic and create a loyal customer base.

“For brands that want to increase their magnetism, restaurants have to overcome a higher threshold of consistent consumer affection,” dcdx CEO Andrew Roth told NRN.

“If consistent love is harder to achieve in the restaurant space, then establishing loyalty demands creating an experience for consumers that sticks with them long after their meal is over.” Food Institute Focus

The Secret Sauce Behind Dave’s Hot Chicken’s Meteoric Rise

Dave’s Hot Chicken is hot in every sense of the word.

The chain was recently named America’s Fastest Growing Restaurant Chain by Technomic and currently has more than 700 locations in the pipeline. Dave’s Hot Chicken also has over 200 million organic views on TikTok, has the highest Instagram followers per restaurant of any national fast-casual brand, and has seen sales increase 156% over the past year, according to a press release.

“Dave’s Hot Chicken has one of the greatest origin stories in the restaurant business, with the founders starting Dave’s as a parking lot pop-up restaurant in Hollywood with a portable fryer, and picnic tables from their backyards,” said Bill Phelps, Dave’s Hot Chicken’s CEO, in the release.

“The company’s nearly unheard-of growth rate is a result of the founders’ vision for this brand, the tremendous leadership team we’ve assembled, and the incredible commitment of some of the most experienced franchisees,” Phelps added.

An inspiring story and a popular product are a great start, but that will only take you so far. So, what exactly is this chicken chain doing that makes it so successful? The Food Institute took a closer look with help from industry insiders.

Why is Fried Chicken Still so Popular?

Dave’s Hot Chicken isn’t the only chicken chain that’s finding success. Recently, a number of chicken chains have been making waves when it comes to fast food, including Raising Cane’s and Super Chix. Why is that? According to R.J. Hottovy, Placer.ai’s head of analytical research, it’s the versatility of the protein and the fact that it can be prepared in a number of ways to suit individual preferences.

Dan Rowe, CEO of Fransmart, added that chicken is also one of the most popular proteins.

“Chicken is pervasive and a safe default for anyone trying a new brand,” Rowe told FI. “Hot chicken in particular – like Nashville hot chicken, etc. – is the flavor of the day with chicken, and Dave’s Hot Chicken owns the segment.

“They are the Five Guys of the spicy-chicken segment.”

What Sets Dave’s Hot Chicken Apart?

Savvy business moves have helped put Dave’s on top. Recently, The Wall Street Journal highlighted some of the ways the chain was able to accommodate a $2 an hour wage increase for its employees.

Dave’s didn’t just raise its prices, it found ways to be more efficient and cut back on overhead, such as dispensing sauce packets rather than filling plastic cups for to-go orders.

“Labor costs and availability have long been challenges in the quick-service restaurant industry, so the chain’s efforts to improve efficiency have been smart,” Hottovy said of Dave’s Hot Chicken.

“By implementing automatic dishwashers, grease-extracting machines, and outsourcing chicken marination to external vendors, Dave’s Hot Chicken reduces staffing needs while still enabling crew members to engage with customers.”

What can Other Chains Learn from Dave’s?

Hottovy said that, as operations become increasingly costly and complex, more operators will likely explore automated solutions and other efficiency measures, like those implemented by Dave’s Hot Chicken, to streamline processes and allow crew members to focus on other tasks. Food Institute Focus

Green Means Go: Maximizing Profits on St. Patrick’s Day

An old Irish proverb states that “hindsight is the best insight to foresight.” Restaurant and bar operators would be well advised, then, to lend an ear to industry veterans offering tips in advance of St. Patrick’s Day.

After all, March 17 offers the opportunity for big profits – assuming operators plan accordingly.

“St. Patrick’s Day is essentially Black Friday for bars and restaurants,” said Joe Hannon, GM, inventory and sales at Restaurant 365. “Staffing needs to be dialed in. Service must be seamless.

“This isn’t the day for new hires to learn on the fly. Crowds will arrive in waves,” Hannon told The Food Institute.

While St. Patrick’s Day shifts can be intense for employees, there also must be an element of fun. Otherwise, an establishment’s vibe won’t feel festive.

“From theme décor and table toppers promoting deals to uniforms or details like providing customers with green sunglasses or wigs … a little effort can go a long way,” said Zech Francis, SVP global marketing at BeatBox Beverages.

Mastering the Menu

The biggest mistake many venues make on St. Patrick’s Day is assuming a full house equals a profitable day. That’s a short-sighted approach.

“In reality, volume-driven days often lead to low-margin sales, kitchen bottlenecks, and staff burnout,” noted Kaveh Vahdat, president of RiseOpp. “Operators should shift focus from crowd size to check size. That means building high-margin, limited-time food offerings.”

To make March 17 as profitable as possible, bars and restaurants should consider creating a holiday menu highlighted by classic Irish dishes and seasonal drinks, Hannon noted.

“Take traditional Irish dishes and modernize them – think corned beef tacos, or shepherd’s pie sliders. These options are easy to share and could bring a new level of excitement.”

Promoting the Vibes of March

Industry insiders feel it’s imperative to lean into cost-effective marketing strategies this time of year to drive both awareness and sales.

Email marketing and social media campaigns should tease establishments’ special offerings by utilizing enticing visuals. The marketing campaigns should also offer exclusive deals and tap into local partnerships and influencers to expand reach.

The campaigns could even feature a QR code that links to a holiday menu. Additionally:

“Everybody loves freebies, so try handing out St. Patrick’s Day-themed items such as beer koozies at community events (ahead of time). Customize them with the date of your event and they’ll serve as gifts and branding tools,” said Shelley Grieshop, a member of the marketing team at Totally Promotional.

Preparing Employees

Quick, friendly service is always important during holiday business, but so is maintaining staff morale. As a result, experts like Hannon suggest that managers check in regularly with employees during St. Patrick’s Day shifts and encourage short breaks when possible.

In other words, keep employees’ energy levels high.

“Schedule staff in shorter shifts to maintain their energy and efficiency,” said Andrea Abbondanza, the CEO of SEO for Restaurants.

“It’s important to have 30 percent more staff on deck than a typical weekend to ensure smooth operations.”

6 Additional Tips for St. Patrick’s Day

Industry experts feel the following, often overlooked steps can help establishments make March 17 a success:

    -  Use data from past years to estimate demand

    -  Update recipe costs

    -  Offer LTO cocktails (like an Irish Coffee Martini)

    -  Play high-energy music to encourage interaction

    -  Schedule a manager, or floater, during peak hours

    -  Create an employee contest for upselling

With such high consumer demand on St. Patrick’s Day, “the goal isn’t just to survive the rush, but to create a seamless experience that brings customers back long after the holiday,” Hannon said. Food Institute Focus

Store News:
Flynn Group acquired 45 Pizza Hut units in Ala., Ga., and Tenn., bringing its total domestic count to 1,027 Pizza Huts. The franchisee operates nearly 20% of the chain’s U.S. portfolio, along with about 300 units in Australia under Flynn ANZ, reported Restaurant Dive (March 12). Full Story

Freddy's Frozen Custard & Steakburgers is awarding Name, Image and Likeness deals to 12 male and female college basketball players in Ala., Kansas, N.C., Tenn., and Iowa. The chain will share the athletes’ menu favorites on its website and social media channels. Full Story

Food delivery startup Wonder acquired media company Tastemade for about $90 million, according to people familiar with the matter. The deal is the latest step in the company’s quest to develop a mealtime “super app” encompassing takeout, delivery, meal kits, and now, a global advertising and content production brand, reported The Wall Street Journal (March 12). Full Story

QDOBA is continuing its franchise expansion, signing major agreements to open 33+ new units in key U.S. markets. In addition to growing its traditional franchise network, the chain is accelerating its non-traditional development, launching new locations in airports, universities, and military bases. Full Story

McDonald’s same-store sales flatlined after years of growth, prompting it to revamp its ranks to accelerate the deployment of new tech and menu items. Jill McDonald will oversee the chain’s operations, supply chain, franchising, design, development, delivery, and innovation lab as McDonald’s first chief restaurant experience officer, reported The Wall Street Journal (March 11). Full Story

Jollibee launched its first U.S. franchising program. Recognized as one of the world’s fastest-growing QSR chains, the brand has enjoyed 50 consecutive months of positive same-store sales growth that was largely driven by increased customer transactions. Full Story

Store News (continued):

Potbelly Corp. filled some of its menu gaps in Q4 by adding pulled pork protein and more sauce options, according to executives. The Chicago-based sandwich chain said the innovations helped boost its Q4 sales, reported NRN (March 7). Full Story

Firehouse Subs is partnering with Hot Ones, the series featuring celebrity interviews over hot wings, on a spicy challenge. For a limited time, the firefighter-founded sub chain is inviting guests across the U.S. to test their heat tolerance with 2 new subs: the Spicy Dill Hook & Ladder (HOT!) and the Zesty Garlic Hook & Ladder (mild). Full Story

Starbird signed 2 franchise development agreements to further its expansion into key U.S. markets. Led by established operators, the new agreements will bring a total of 10 additional locations to Chicago and Salt Lake City, with the first opening in late 2025. Full Story

Steak ‘n Shake has shuttered 200 units since its peak in 2018 when it had 626 locations. The chain posted pre-tax operating earnings that missed its parent company Biglari Holdings’ targets by 20% in 2024, but these challenges paved the way for a $50 million overhaul that’s “improved unit economics mightily,” reported QSR (March 3). Full Story 

Outback Steakhouse plans to slash its menu by nearly 20%. The move is part of the chain’s wholesale turnaround plan, which also includes slower unit development and a new marketing strategy, reported Restaurant Business (Feb. 26). Full Story

Papa Johns recently converted its loyalty program from a buy-so-many-pizzas-get-one-free offer to a points-based system. While the updates cost the chain money in the short term, they also increased engagement, with about half of members redeeming their points compared with just 21% a year ago, reported Restaurant Business (Feb. 28). Full Story

Del Taco franchisee Newport Ventures closed all 18 of its Colorado locations yesterday, leaving only one Del Taco open in the state, according to court documents. Newport Ventures filed for bankruptcy in Oct. after Del Taco terminated its franchise agreement, reported Restaurant Dive (Feb. 28). Full Story

Executives on the Move:

Starbucks CEO Brian Niccol has made major moves in his first 6 months on the job. The company has slimmed down menus, reduced discounts, and reserved bathrooms for paying customers, reported The Wall Street Journal (March 12). Full Story

Domino’s Pizza promoted Joseph Jordan to COO and president of its U.S. market. The pizza chain also promoted Weiking Ng to EVP, international and Ryan Mulally to EVP, general counsel and corporate secretary. Full Story

Caribou Coffee CEO John Butcher stepped down effective March 14, but did not give a reason for his departure. CFO Scott Kennedy has been named interim CEO. Full Story

Jack in the Box announced on Feb. 24 that CEO Darin Harris accepted a role outside of the industry but would serve as a consultant for the chain until March 14. Current CFO Lance Tucker was appointed as interim principal executive officer. Full Story

Sky-High Egg Prices Send Restaurants Scrambling

As the old adage goes, you can’t make an omelet without breaking some eggs. But when they’re sold at record-breaking prices, many restaurants can’t afford to buy eggs without also breaking the bank – or raising their menu prices.

According to the latest consumer price index, egg prices reached a record high in January, with a dozen Grade A eggs costing $4.95 on average in U.S. cities.

The bird flu outbreak is responsible for much of the spike, which has killed nearly 158 million birds since it began.

It gets especially hard to see the sunny side when you run a breakfast or brunch joint, where eggs are a menu staple – and the top-ordered item at Waffle House. The national breakfast chain reportedly serves 272 million of them annually and recently instituted a surcharge of $0.50 per egg to offset the spike.

“The dramatic increase in egg prices is a tough challenge for restaurant operators,” said Bo Davis, the CEO of MarginEdge, a restaurant-tech company with a network of 10,000-plus clients and a restaurant owner himself.

“Operators need to take more proactive measures for managing food costs, like tracking ingredient trends, identifying cost-effective substitutions, and refining menu offerings,” Davis told The Food Institute.

Restaurants Hatch a Plan

So, how are other restaurants weathering the storm?

“We’re lucky to have great suppliers,” David Barlam, the owner of Mass Ave Diner, told FI. Even still, the egg crisis has affected its bottom line, prompting the diner to impose a temporary egg surcharge as well.

“Most customers are aware of what’s going on and have been very understanding. Regardless, we’ve made it clear why we’ve had to do so,” said Barlam.

Mike Sebazco has taken a slightly different approach as the president of Famous Toastery, a chain with 11 locations across the Carolinas.

“We have to this point absorbed the impact of the price increase on eggs by mitigating it in other areas, such as labor and focused LTOs,” Sebazco said.

Davis agrees with this strategy, elaborating that “LTOs provide an opportunity to shift customer demand toward alternatives that maintain quality and appeal without the elevated price tag. Spotlighting dishes that rely on cost-effective ingredients can help balance overall food costs while keeping the menu fresh.”

Beans & Brews Coffeehouse, another smaller chain that serves egg sandwiches on its breakfast menu, has also managed to avoid increasing prices.

“Our strategic vendor partnerships have allowed us to keep Q1 pricing stable and avoid the need to increase prices for our operators or guests,” CEO Doug Willmarth said.

But although strategies like these have helped restaurants cope for now, the egg crisis is likely to persist for a while.

Walking on Eggshells

In early February, the USDA said it expects egg prices will increase by another 20% this year, and that prediction came before the federal agency “accidentally” fired several employees on its H5N1 avian flu response team recently – an issue it’s “working to swiftly rectify,” according to a USDA spokesperson.

In the meantime, the National Grocers Association has some recommendations for addressing the crisis, which it sent in a letter to USDA Secretary Brooke Rollins on February 18, including for the agency to “leverage all scientific resources available to mitigate the effects and spread of HPAI and protect U.S. poultry populations.”

And for restaurants specifically, Barlam offered the following advice:

“It’s important to have a direct supplier for produce! Middlemen are often inconsistent and can sometimes elevate prices during shortages, so it’s good to go to your city’s local food terminal and buy from the source.” Food Institute Focus