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Save the Date:
November 18-20 in San Antonio!
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Don't miss this year's premier chain distribution
event in San Antonio, Texas, when DMA convenes the top operator partners to
celebrate a great year. Conference attendees will be treated to top-tier Chain
industry insights from experts including Circana's David Portalatin. David will
headline a great lineup of presenters for a second year in a row to share his
views from Eating Patterns in America.
While being a guest at this conference has traditionally
been the exclusive territory of DMA's customers, again this year a very limited
number of seats will be made available to national chain operators interested
in learning more. Reach out to Charley for more information about this
opportunity or if you are interested in becoming an event sponsor.
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Put Asian-Style Appetizers on the Menu |
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70%* of
operators say demand for globally inspired food is increasing. Asian-Style
Appetizers like Egg Rolls and Dumplings from Schwan's Food Service help you
meet that demand and top off your top line with increased check rings. Ready
to get started?
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Roark Capital’s Aggressive Buyout Strategy May Not Be Working
What Roark Capital has done in the restaurant space is nothing short of incredible. The Atlanta-based private equity firm was founded in 2001; 24 years later, it has one of the largest restaurant portfolios in the world. Roark’s biggest deal was the $11.3 billion acquisition of Dunkin’ Brands in late 2020; three years later, the firm won a bidding war for Subway, in a deal worth just shy of $10 billion.
Roark’s overall system-wide sales in 2024 were $52.2 billion. McDonald’s – with a current market capitalization of $220 billion – generated $53.3 billion.
Roark now owns 10 brands with at least $1 billion in annual system-wide sales, among them Hardee’s and Carl’s Jr., Buffalo Wild Wings, Arby’s, Jimmy John’s, and Sonic. And Roark sees an 11th business joining that list: last month, it acquired Dave’s Hot Chicken. The reported valuation in the deal was about $1 billion; Dave’s CEO Bill Phelps told CNBC that the actual valuation was “pretty close” to that figure. According to another outlet, Dave’s expects to clear the $1 billion level this year.
Despite the impressive size of Roark’s asset base, the key question is whether this strategy has worked. Answering that question is not a simple matter, for several reasons. Private equity-owned companies don’t disclose financial data in the way that public companies do; even their limited partners (i.e., the investors who supply the capital to the funds that own these businesses) may have only a vague sense of how the businesses in their funds are performing.
The valuations of those businesses, meanwhile, are somewhat fuzzy. Without a daily trading market, valuations are largely based on calculations done by the firms themselves. Roark can’t make up valuations, certainly, but the quarterly fair value ‘marks’ required by accounting rules do have some room for interpretation. A fund’s marks might imply that the assets in the fund have doubled in value – but that doesn’t necessarily mean that the limited partners in the fund will receive 100% returns when the fund eventually cashes out.
Private Equity ChallengesAdding to the uncertainty, for Roark Capital’s seven funds, we have just a few data points which themselves are not necessarily conclusive. Yet even in the haze, there’s some evidence that Roark’s aggressiveness has not yet paid off.
Data from a working paper by a pair of Harvard professors last year, for instance, shows relatively mixed performance from Roark funds against rivals: Roark’s fourth fund in fact is among the worst performers of major funds that raised capital that year (2016).
A report from Washington State Investment Board after the first quarter of last year shows annualized returns net of fees of just 5.2% for that fund and 11%-plus for Roark’s third fund. Neither is particularly impressive given that institutions could have generated similar or better returns in a public index funds. (A report from neighboring Oregon’s pension fund at the same time does suggest the fifth fund had done better, returning about 15% a year. But, again, those returns are based on marks created by Roark itself – and given the amount of debt, even at 15% returns investors would have been much better off buying index funds.)
Meanwhile, a report from the Private Equity Stakeholder Project in 2021 criticized performance at several Roark franchisors. The PESP is not a neutral party – it’s running a campaign against private equity – and the report was released in 2021, when the coronavirus pandemic still hovered over the industry. With those caveats, data it compiled showed sales at Jimmy John’s that were shrinking on an absolute basis and underperforming against peers; expansion plans at other Roark chains, including Jim ‘n Nick’s Bar-B-Q, had not met expectations.
The data points we have don’t suggest that Roark’s returns have been all that impressive.
The same is true for the nature of the funds themselves. For instance, Roark hasn’t been able to raise higher amounts of capital: the fifth fund in 2018 raised $5 billion plus $1.5 billion in a so-called ‘sidecar’ (which is used to augment the initial investment if needed). Reports are that the seventh fund, seven years later, is targeting the same $5 billion level.
We also know that, at least in the restaurant portfolio, Roark hasn’t been able to execute the typical PE strategy. Very broadly, the idea is to buy a company with debt, improve its operations, raise profits – and then exit after a holding period, usually (and roughly) assumed to be about seven years. The exit can be via a sale (sometimes to another PE fund) or by an initial public offering.
Roark has used the IPO strategy with Canadian pet retailer Pet Valu and U.S. auto services provider Driven Brands. But in restaurants, Roark doesn’t seem to have had any success, despite reporting that it has tried to do so.
Roark Capital’s Restaurant Ambitions Face Reality CheckIn February of last year, Bloomberg reported that Roark was looking to IPO its Inspire Brands unit, which includes Dunkin’, Arby’s and Jimmy John’s. Such an IPO would make sense, allowing the 2018 fund to begin cashing out its stake to return capital to investors. There’s been no news since.
The same outlet reported back in 2018 that Roark was looking to take public its Focus Brands unit (now GoTo Foods), which owns Carvel, Auntie Anne’s and Cinnabon, among others. Those operations remain under Roark ownership as well.
In fact, in 2022, Roark reportedly launched a so-called “continuation fund”, used to keep PE assets under the umbrella for longer than expected, while cashing out some initial investors with money raised from new buyers. It’s possible Roark simply wanted to keep the businesses in-house; but given the lack of any IPOs in the restaurant space, it seems at least equally likely that the businesses are not strong enough yet to go public at the valuation Roark and its partners are looking for.
It bears repeating: it’s difficult to truly understand how successful Roark’s restaurant strategy has been to this point. There isn’t a lot of information available, and valuing these acquired businesses is not an exact science.
At the same time, there’s basically zero evidence that Roark’s massive entry into restaurants has been a huge success for its investors. The lack of IPOs, the flat-lined capital commitments, and the data points on limited partner returns all suggest that Roark’s performance has been average at best.
Given how competitive the restaurant space is and the valuations paid for some of these businesses, perhaps that’s not a huge surprise. It’s hard enough to make money with one restaurant concept; owning two dozen, apparently, is just as difficult. Food Institute Focus
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Korean Cuisine Takes Center Stage at NRA Show
CHICAGO — At the recent National Restaurant Association (NRA) Show, innovation wasn’t just a buzzword – it was on the menu. From reimagined Korean street food to clean frying oils and multi-layered drinks designed for TikTok virality, food and beverage companies showcased how they’re meeting shifting consumer preferences with bold new offerings.
Here were three standout trends from the show floor:
K-Food Goes Mainstream – with Creativity and FusionThe Korean wave in American foodservice continues to build momentum. Spoonfully! cited up to an 80% increase in usage of Korean sauces in U.S. foodservice over the past year (according to Circana data from September 2024). Several brands spotlighted their K-food innovations, offering craveability, versatility, and ease of preparation.
CJ Schwan’s (a subsidiary of CJ CheilJedang of South Korea) highlighted Korean and global flavors with the use of Bibigo Gochujang Hot & Sweet Sauce in Gochujang Fried Chicken Sliders as well in a Hot & Sweet Mustard Dipping Sauce to go with Philly Cheesesteak Egg Rolls at its booth. A standing room-only crowd gathered to watch CJ Schwan’s partner and celebrity chef Jet Tila demonstrate how to cook Chef Jet’s Bibimbap and Chef Jet’s Korean Hot Pot Ramen.
CJ CheilJedang had a second booth at the show, for its Seoulfully! brand. Seoulfully! is a line of premium Korean flavoring sauces developed for professional chefs to provide “significant time and labor savings so you can serve speed-scratch Korean fusions more simply.”
Wang Globalnet drew steady crowds with its Tornado Potatoes – spiraled fried potatoes on skewers, a Korean street food staple made for Instagram.
Ingredion demoed Crispy Tteokbokki Fries – crispy fries made from Korean rice cakes – and Korean Fried Chicken dusted with Snow Cheese, bringing together two cult-favorite flavors in a fun foodservice-friendly format.
Clean-Fried InnovationAs scrutiny of seed oils continues to rise and foodservice operators look to avocado oil and beef tallow as alternatives, Zero Acre Farms made a splash with its latest innovation: Noli Fruit Oil. The Noli Fruit Oil aims to check many boxes: it is seed oil-free, positioned as “The cleaner frying oil” with a 445 degrees smoke point, expeller-pressed from a unique, non-GMO hybrid palm fruit grown deforestation-free in Colombia; requires 95% less land than soybean oil, and provides a cleaner taste in fried food. Zero Acre’s flagship All-Purpose Oil made from sugarcane plants that undergo fermentation with more heart-healthy fats than olive oil and a high smoke point also made an appearance.
Multi-Textured Drinks Tap Gen Z Demand for PlayfulnessBeverage booths brought serious creativity, layering textures and flavors to deliver novelty and shareability: PepsiCo’s DRIPS station showcased customizable iced drinks with ingredients like strawberries and basil seeds, candy boba, coconut chips, flavor syrups, and whipped cream—resulting in layered, snackable beverages. The premium soda creations are currently offered at select Regal movie theater locations.
Keurig Dr Pepper showcased a Fiery Dill Pickle Lemonade made with salty dill pickle brine and Canada Dry Club Soda, tapping into flavor shock and TikTok curiosity with a balance of tang and fizz.
Coca-Cola unveiled a Sprite + Tea hybrid as a limited-time offering in regular and zero-sugar varieties and also in a refreshing frozen drink format. Sprite + Tea came out of an intern research project that was inspired by TikTok videos of consumers putting tea bags into Sprite. The result: an Arnold Palmer (the mix of iced tea and lemonade) updated for Gen Z.
NERDS’ co-branded ICEEs (from J&J Snack Foods Corp.) were topped with colorful NERDS candy pieces, offering crunchy-chewy contrast in a frozen drink format perfect for theaters, theme parks, and Gen Alpha consumers. Food Institute Focus
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Feeling Peachy: Summer Darling Leads Beverage Innovation
From 2024 flavor of the year to summertime menu hero, retailers and CPG companies continue to experiment with peach-inspired ingredients to innovate today’s offerings.
There’s little doubt – peaches are in, finding their way into beverages across myriad channels. In March, Red Bull launched its Summer Edition White Peach energy drink, while cafés such as Peet’s Coffee and chains including Hardee’s and Chick-Fil-A integrate the summer staple into their menus.
Over the past year, the fruit has become a more coveted indulgence, with social conversations about peaches increasing by 9.6%. Additionally, a peach component can now be found on 19.8% of domestic menus, according to a recent report from Tastewise.
Although it dominated a “share of discussion” last summer across social media, recipes, and menus, data from earlier this year suggests the positive slope will return this summer with abandon. Already, restaurants are investing in the offering’s cultural cache by playing into its experiential components.
“There’s something about the Peach Milkshake that really feels like the start of summer,” said Allison Duncan, Chick-fil-A’s director of menu and packaging, in a statement.
The chain brought back the seasonal Peach Milkshake on June 9 while also launching the Peach Frosted Lemonade. Duncan’s comment identifies that, for modern consumers, the summertime crop augurs the start of the season.
Hardee’s is also mixing peach with lemon in its Peach Lemonade offering, which rolled out alongside its take on the summertime Peach Milkshake.
Tapping into the cultural cache of nostalgic flavors and experiences, the combination of peach and lemon evokes summertime flavors reminiscent of hero offerings from legacy brands, such as Snapple’s Half n’ Half (half lemonade, half iced tea) or the iconic Arizona Arnold Palmer, but with a peach twist.
Snapple recently made its own explicit connection between peach and lemon with its Peach Iced Tea + Lemonade. Parent company Keurig Dr. Pepper also launched 7UP Tropical, which incorporates peach flavor notes, alongside the Snapple addition. Eric Gorli, president of U.S. refreshment beverages, cited “modern twists on familiar favorites” and “consumer-centric innovations” as the north star for the portfolio updates.
Shannon O’Shields, VP of marketing at Rubix Foods, told The Food Institute that younger audiences are seeking out novelty in their foodservice offerings.
“They gravitate toward nostalgia, but with a twist. They’re looking for that ‘I’ve had this before, but not like this!’ the marketing expert said.
Peach can offer a compelling counterpoint to legacy beverages, as its sweet flavor is independently associated with the summer while offering a bright flavor component to the standard beverage lineup.
Further challenging this playful element of peach flavor innovation, Peet’s Coffee is placing the fruit in its Sparkling Peach Matcha and Sparkling Peach Chill Brew coffee offerings, creating a combination of fruity coffee and fruity tea infusions. The drinks incorporate fruit juice into coffee or tea products, topped with club soda.
These innovations, as well as Peet’s On the Beach, which includes peach and pineapple juice mixed with black tea, represent a push from the company toward cocktail-inspired zero-proof solutions, according to Kristina Roach, senior director of omnichannel brand marketing for the chain.
Peet’s play suggests it is doubling down on younger audiences who are not only fond of its flavor but who also crave unique menu risks and tend to lead teetotaler or sober-curious lifestyles.
Consumers can look forward to a host of peach-enhanced beverages as they head into the summer. Food Institute Focus
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Store News: Subway-owner Roark Capital has
acquired the fast-growing Dave’s Hot Chicken chain for $1 billion.
Dave’s Hot Chicken currently operates 310 locations, but it has sold rights to
more than 1,000 franchise locations in North America and the Middle East,
reported Yahoo Finance. Full Story
Bojangles
is reportedly
exploring a sale amid a red-hot fried chicken market. The company could be
valued at over $1.5 billion, roughly triple the price of its 2019 sale,
according to sources, reported The Wall Street Journal. Full Story
Hardee’s franchisee Paradigm Investment
Group sued the restaurant over its termination attempt. While
Hardee’s has accused Paradigm of refusing to participate in its loyalty program
and adhere to specific operating hours, Paradigm claims the attempt was
unlawful because Hardee’s unilaterally amended its operating manual to force
franchisees to comply with fees and tech requirements not included in the
franchise agreement, reported Franchise Times. Full Story
Taco Bell
unveiled Mike’s
Hot Honey Diablo Sauce, a sweet and spicy dipping sauce for its chicken
nuggets. "Our sauces spark obsession… teaming up with Mike's Hot Honey,
which has a passionate following of its own, felt like the ultimate way to
build on our legacies of sauce innovation,” said global chief food innovation
officer Liz Matthews. Full Story
Meanwhile,
Taco Bell launched a Crispy Chicken Taco and Burrito on June 17. The new
offerings follow the debut of McDonald’s McCrispy Strips and Snack Wrap,
reflecting the intensifying competition in the chicken category, reported Nation’s
Restaurant News. Full Story
Shake
Shack has partnered
with PENN Entertainment to open 10 casino locations. “We continue to
explore flexible formats that allow us to expand the Shake Shack brand into new
regions of the U.S.,” said Michael Kark, president of global licensing,
reported Restaurant Dive. Full Story
Darden
Restaurants recently
closed 15 underperforming Bahama Breeze locations. The closures leave
the Caribbean casual-dining chain with about 30 locations, reported Restaurant
Business. Full Story
Chipotle
Mexican Grill is
setting its sights on international expansion. CEO Scott Boatwright
noted at a recent conference that the company plans to grow by 315 to 345
locations this year, and that future international growth will focus on London
and Germany, reported Nation’s Restaurant News. Full Story
Meanwhile, Chipotle
is launching a new Adobo Ranch made with sour cream, adobo peppers, and an herb
and spice blend, capitalizing on the surging popularity of ranch-style dips,
especially among Gen Z shoppers. Full Story
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Store
News (continued):
McDonald’s
will launch Snack
Wraps on July 10 after a nine-year hiatus. The new product launch will be the
second in as many quarters after not introducing a new permanent menu item
since 2021, reported Restaurant Business. Full Story
Meanwhile, McDonald’s
will begin closing its CosMc’s locations in late June.
The QSR giant plans to test several menu items from the beverage-focused
concept at “hundreds” of standard McDonald’s restaurants this year, reported Reuters.
Full Story
DoorDash has pulled the plug on its nearly
2-year-old AI voice-ordering business without providing a specific reason. “We
scale or wind down initiatives based on many factors including product-market
fit, customer demand, and other factors,” a DoorDash spokesperson said in a
statement, reported Restaurant Business. Full Story
Sandwich
chain Firehouse Subs revealed an initiative to expand its
footprint by 100 stores in Mexico over the next five years. “This expansion is
not only about bringing high-quality, bold, and delicious subs to the region,
but also about creating hundreds of jobs," said COO Braulio Lopez
in a statement. Full Story
Bubba’s
33, the 52-unit
sports-bar chain launched by Texas Roadhouse in 2014, saw sales leap
20.4% in 2024. The company is utilizing the Roadhouse playbook for burgers and
pizza, with ambitions to become a major player in casual dining, reported Restaurant
Business. Full Story
KFC is
bringing back its popular Fill Ups menu in partnership with F1 The Movie. Additionally, the company will
launch Mountain Dew Sweet Lightning Peaches & Cream Soda, its take on the
dirty soda trend, reported Nation’s Restaurant News. Full Story
Red
Lobster declared “a
new day” for the brand nearly one year after filing for Chapter 11 bankruptcy.
CEO Damola Adamolekun noted hush puppies would return to the menu and
that a new selection of dishes would be made available for under $20, reported Restaurant
Business. Full Story
Freddy’s
Frozen Custard & Steakburgers
plans to open its first Canadian restaurant June 3 in Winnipeg, Manitoba. The
opening will be through a master franchise and development agreement with four
franchise owners, reported Nation’s Restaurant News. Full Story
Peet’s
Coffee debuted
a new summer menu that features sparkling peach-infused coffees and mocktail
offerings. "Peet's beverage menu stays on-trend with the growing
zero-proof preferences of younger consumers," said Kristina Roach, senior
director of omnichannel brand marketing. Full Story
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Store
News (continued): Popeyes
Louisiana Kitchen launched
a new chicken wraps platform, the latest company to jump into the hot category.
The wraps were deployed in response to growing consumer demand for boneless,
portable chicken options, reported Nation’s Restaurant News. Full Story
Whataburger
debuted Bigger
Better Bundles, a selection of value-focused LTOs designed for larger
appetites. Guests can pair any full-sized Whatameal with one of three bundle
options: a $4 Kids Whatameal, a $5 Double Meat Jr. Whatameal, or $6 WhataWings.
Full Story
Zaxbys will extend its hours into the
late-night daypart under its Late Night Zax promotion. The restaurant chain
will offer a Zappetizer Trio available after 8 p.m. at participating locations,
reported Nation’s Restaurant News. Full Story
Krispy
Kreme sold its
remaining stake in Insomnia Cookies Holdings back to Insomnia Cookies
and existing shareholders. The aggregate cash proceeds of $75 million will help
the chain pay down its debt as part of a strategy focused on its “two biggest
opportunities: profitable U.S. expansion and capital-light international
franchise growth,” said CEO Josh Charlesworth, reported Restaurant
Dive. Full Story
Cracker
Barrel foresees a $5
million tariff cost in Q4. Executives noted that the chain’s retail store
component is negotiating with Chinese vendors and U.S. vendors who source from
China to help mitigate tariff impacts, reported Nation’s Restaurant News.
Full Story
Starbucks
is rolling out a staffing and service model that improves service times and
store sales at all 18,000 North American locations by the end of summer, according to CEO Brian Niccol.
The strategy includes in-store tech that efficiently sequences orders and
baristas solely responsible for drive-thru orders at applicable locations,
reported Reuters. Full Story
Five Guys
is reintroducing a
reformulation of its coffee milkshake mix-in for a limited time this summer.
The rich and bold flavor can be paired with any of the chain’s 10 signature
mix-ins, reported QSR. Full Story
Papa
Johns unveiled a
Croissant Pizza with a flaky texture. The item will debut in nine global
markets, starting with the United Arab Emirates, reported Yahoo. Full Story
Wingstop's incremental
investments in its Smart Kitchen over the past two years are paying off.
Available in 400 restaurants, the chain expects the innovation to be a central
component of its $3 million average unit volume goal, reported QSR. Full Story |
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Executives on the Move: Smoothie
King has promoted
current CFO Gavin Felder to president, the company said Thursday in an
email to Restaurant Dive. Felder has been with the chain since May 2024
and will maintain his responsibilities as CFO while managing day-to-day
business operations. Full Story
Jack in
the Box has named Dawn
Hooper as permanent CFO after serving as the interim principal financial
officer since October 2024, effective immediately. “With strong fundamentals
already in place, my focus will be on improving long-term financial
performance, streamlining our business model, and positioning the company for
sustainable growth in the years ahead,” said Hooper in a statement. Full Story
CKE
Restaurants Holdings named
Ewan Davenport as president of international markets, reported Nation’s
Restaurant News. Full Story
Starbucks
named Mike Grams as
COO, effectively immediately. Grams most recently served as the chain’s North
America chief coffeehouse officer, reported The Wall Street Journal. Full Story
BJ’s
Restaurants named Lyle
Tick as president and CEO, reported Nation’s Restaurant News. Full Story
Taco
John’s appointed Jackie
Secor as COO, who will leverage her 25 years of industry experience to
accelerate the brand’s growth, support franchisee success, and streamline
operations, reported Restaurant Dive. Full Story
Ascent
Hospitality Management, a franchisor of brands including Perkins American Food Co. and Huddle
House, has appointed Brian Wallunas as Chief Technology Officer, who
will lead the company's digital strategy, focusing on customer-centric tech
solutions that drive operational efficiency, elevate the guest experience, and
fuel growth. Full Story
CFO Chris
Monroe left Texas Roadhouse after two years in the role. No reason
was given for the exit, but CEO Jerry Morgan said, “We appreciate Chris’
nearly two years of service and wish him and his family the best as they
transition back to Texas,” reported Restaurant Business. Full Story
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Corporate
events are more than just gatherings—they're opportunities to create lasting
impact. When we weave philanthropy and volunteering into the event experience,
we not only give back to the community, but also strengthen team connections
and bring company values to life: How Corporate Events Can Be a Force
for Good | Creative Group
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Food Dye Update: Natural Dyes Approved, Industry Responds
Recetly, the U.S. Food and Drug Administration approved three natural dyes for use in food and beverage manufacturing following a move to phase out petroleum-based synthetic dyes in partnership with the Department of Health and Human Services.
At the time, many praised the joint initiative, observing that the government was taking crucial steps to enhance domestic health and wellness by aligning its approved additives more closely with those in European and Canadian markets. Skeptics, however, pointed out that the announcement did little to tackle the issue, as it only mentioned that they were collaborating with industry stakeholders to eliminate potentially harmful dyes.
Despite this, the administration has taken a firm stance on promoting healthier dyes, permitting the following natural additives for the F&B industry: - Galdieria extract blue, derived from red algae, has been approved for use in various non-alcoholic beverages and beverage bases, grains, and confectionery offerings.
- Butterfly pea flower extract, a blue color that can be used to achieve blue, purple, and green shades; already approved for use in various beverages, candies, yogurts, and dairy items, the use case has since expanded to cereals, crackers, and salty snacks.
- Calcium phosphate, a white color, has been approved for use in ready-to-eat chicken products, white candy melts, doughnut sugar, and sugar for coated candies.
Jamie K. Alan, associate professor of pharmacology and toxicology at Michigan State University, confirmed to The New York Times that these additives are accompanied by a “pretty good body of literature” that advocates for their safety.
The Legislative Landscape“It’s good news that the FDA has approved several natural colors,” Environmental Working Group SVP of government affairs Scott Faber told The Food Institute.
However, he added that the administration’s lack of official ruling or guidance has done little to convert CPGs and foodservice establishments to switch to healthier alternatives.
In one example, Faber explained that, although EWG is happy to see the approval of calcium phosphate as a whitener, the FDA still allows titanium dioxide as an approved additive, which the International Agency for Research on Cancer has classified as possibly carcinogenic. The additive in question was originally included in the watershed California Assembly Bill 418, which banned several dyes in the state, arguably jumpstarting the movement for state legislatures to criticize FDA safety assessments on chemical additives.
The final draft of the bill, however, did not include the whitening agent.
Following in California’s footsteps, West Virginia recently banned a suite of additives, begetting a movement of over thirty states that have since followed suit.
Currently, there are 65 active bills addressing food chemicals in the U.S. food supply, with an additional eight having already been adopted since the start of the year. According to EWG analysis, Titanium Dioxide is included in nearly 25 bills combating food dyes.
Faber said that work needs to be done on all fronts to remove unhealthy chemicals from the nation’s food supply.
“The states are making real progress, said Faber. “There is a belief that all change comes from Washington. These people are missing the work that state legislatures are doing to make the food system safer.”
Industry Reactions VaryBurger chain In-N-Out recently confirmed that it would phase out some of its synthetic food dyes, including Yellow 5 and Red 40, as well as artificial sweeteners, no doubt in response to the HHS push and the overarching Make America Healthy Again movement that accelerated it.
The chain told Good Morning America that it will also stop using preservative calcium propionate and corn-derived sweetener high-fructose corn syrup.
Confectionery manufacturers, on the other hand, are not as forthcoming with these modifications. Dum-Dums Lollipops owner Spangler Candy Company criticized the recent push to natural alternatives. In an interview with Bloomberg, it noted how consumers dissented when the brand swapped Red 40 with carmine, an additive that comes from cochineal insects.
“It’s likely that when we get to the end of 2026 that we will still have products that will still have these artificial colors,” Vashaw said. “One, there might not even be the supply for these natural colors, and two, we have to do what the consumers want, and it’s not clear to us that these consumers want these natural colors.”
He added that many of these natural alternatives can change the taste or texture of the confectionery item, posing adoption challenges for manufacturers.
Industry stakeholders, such as Consumer Brands Association president and CEO Melissa Hockstad, point to the fact that healthcare professionals have indicated ambivalence about the real harm many of these additives pose to American consumers.
“The ingredients used in America’s food supply have been rigorously studied following an objective science and risk-based evaluation process and have been demonstrated to be safe,” Hockstad said.
These responses signal headwinds for the FDA’s initiative to convince CPGs to consider the approved alternatives. Food Institute Focus
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March Sales Up 1.1% Despite Traffic Decline
Comparable
sales for the restaurant industry increased 1.1% year-over-year despite
comparable traffic dropping 1.5% during the month, according to Black
Box Intelligence.
The
increased sales growth represented the second month in a row of positive
figures since the beginning of the year, and only January had stronger
same-store sales growth with a rate of 2.5%.
However,
traffic showcased a significant acceleration at -1.5% compared to March’s
-2.2%. It was the best reporting for restaurant traffic since January. Full
Story
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