Now you can eat your Big Mac and wear it too thanks to McDonald’s new collaboration with Crocs.
The limited-edition line features a selection of three Crocs inspired by McDonald’s iconic characters Grimace, Birdie, and Hamburglar, in addition to a classic-style Croc in the fast-food company’s signature red and yellow colors.
Each pair of Crocs includes custom Jibbitz charms and retails for between $70 – $75 a pair, plus matching socks are available for purchase for $20, according to a press release. Customers can snag the clogs beginning on November 14 at Crocs retail locations, Crocs.com, and select wholesale partners while supplies last.
In honor of McDonald’s first-ever global shoe collaboration, the company plans to make an undisclosed donation to Ronald McDonald House Charities to help sick children and give families access to medical care.
Last month McDonald’s reported a 14% revenue boost in its third quarter, according to CNBC. Following strategic price increases, McDonald’s generated $6.69 billion in revenue.
The internet has radically transformed how we build and promote businesses: We have access to far more resources and far more potential than ever before.
So, why do so many entrepreneurs neglect these fruitful opportunities by forgoing marketing or delaying it as an unnecessary expenditure?
What do I mean, you “need” these strategies? After all, isn’t marketing optional? Isn’t it possible to build a business even without an online presence? Technically, yes, but you’ll be missing out on enormous potential by doing so.
All the strategies I qualify as “necessary” exhibit the following traits:
Expected. People expect you to have these things in place; if you don’t, they may think less of your company.
Accessible. None of these strategies is particularly hard or complicated; there may be a bit of a learning curve, but on some level, these are accessible strategies.
Affordable. You won’t have to spend much money on any of these strategies, making them easy to pick up even for tight-budget startups.
Valuable. These strategies all offer high potential returns. The cost to you if you neglect them will be significant.
Time-sensitive. The more time you invest in these strategies, the more powerful they become. The sooner you get involved, the bigger the payoff you can potentially get.
It’s the combination of these factors that makes your work in these areas necessary. Below, these are the strategies I deem “necessary”:
It also gives you more power to meet and network with others, form more partnerships, and lend a face to your otherwise faceless organization. And it’s free to do, from a monetary perspective, though you will need to invest a significant amount of time.
2. Content marketing
Content marketing takes a variety of forms and, depending on how you form your strategy, could accomplish a number of different goals. For example, you could use white papers, ebooks and other long-form content to attract downloads, signups and conversions, or you could use an on-site blog to attract more inbound traffic to your site.
You could even use content as a form of help and troubleshooting, or some combination of these applications. Content marketing is incredibly versatile and useful, and if it’s valuable, your customers will expect you to have at least some of it in place for them.
3. Search engine optimization (SEO)
SEO is the process of making your site more visible in search engines, so you get more traffic from people searching for the products or services you offer. Much of your organic search position ranking comes from the technical structure of your site and your ongoing content development strategy.
So, SEO is not much more of an investment if you’re already creating new content regularly—and it’s well worth that extra investment if for no other reason than to make sure your site is properly indexed.
4. Conversion optimization
Most of these strategies aim to get more people on your site, but what do those people do once they’re there? Conversion optimization helps you ensure you get more value out of each and every visitor by maximizing your rate of conversion.
Sometimes, this means including more conversion opportunities, and other times, improving the ones you already have.
Email marketing has astounding potential for ROI because it costs almost nothing to execute. Start collecting subscribers from your existing customer base, your social media followers and other new opportunities. From there, even a simple content newsletter can help you encourage repeat traffic to your site, facilitate more engagement with your brand and keep your brand top-of-mind with your audience.
Use a combination of strategies
As you may have noticed from these descriptions, there’s one other key advantage these strategies offer: They all work together.
While they can be pursued individually, each connects with and feeds into the others in some way. If you pursue them all, complementing your efforts across these multiple areas, you’ll see an even higher potential return.
Chick-fil-A is opening its 3,000th restaurant on Thursday in Dallas, Texas, and is celebrating by giving back.
“Marking the 3,000th milestone is a testament to our local Owner-Operators, Team Members and Guests and their continued support of the Company,” said Chick-fil-A CEO Andrew T. Cathy in a statement on the company’s website.
Cathy,45, has been with the company for 16 years and is the grandson of Chick-fil-A founder, S. Truett Cathy, who passed away nine years ago. He stepped into the role of CEO in November 2021, according to LinkedIn.
Chick-fil-A plans to celebrate the feat with a plaque at the store, a ribbon-cutting ceremony attended by Cathy, and $150,000 donations to Feeding America,a nonprofit with a nationwide network of food banks, and Junior Achievement, which helps support students with resources for learning.
“We are so thrilled to be celebrating together as we honor our founder, and my grandfather, S. Truett Cathy’s mission of remarkable customer service and demonstrating care to all,” Cathy added. “As we continue to expand, we still take pride in the fact that our restaurants are locally owned and operated businesses that invest in their people and their community, and Chick-fil-A RedBird is no exception.”
The new restaurant, located in theRedBird mall, is owned and operated by Consuela Jacobs, who had previously worked as a Chick-fil-A team member, according to the statement.
The new location is expected to bring in 110 full- and part-time jobs to the local area, per Fox Business.
Chick-fil-A has plans to expand to Asia and Europe by 2025, according to the company’s website.
The fast food chain’s revenue hit $6.4 billion in 2022, according to the Franchise Times, which is a 10.6% increase from its 2021 earnings of $5.8 billion.
DALLAS, November 3, 2023 (Newswire.com)
– Giving Americans another reason to count their blessings this time of year, Pizza Inn has added a unique new Thanksgiving-themed pizza, called “The Gobbler,” to its ever-popular and extensive array of buffet options. This limited-time item will be placed on all Pizza Inn buffets through Nov. 22.
The new specialty pizza begins with a foundation of Pizza Inn’s fresh, house-made pizza dough that is spread with a thin layer of homestyle gravy, instead of pizza sauce. “The Gobbler” is then layered with sliced turkey, onions and house-shredded mozzarella, followed by dollops of mashed potatoes and traditional stuffing. Finally, it’s baked, then topped with a light cranberry drizzle.
“Imagine having all the flavors of Thanksgiving in one bite, and you’ve got The Gobbler,” explained Brandon Solano, CEO of Pizza Inn’s parent company RAVE Restaurant Group. “We wanted to, literally, mix things up this holiday season by offering our buffet customers the flavors they crave before the holidays. Our franchisees are really excited to surprise their guests with an entree option they’re going to love. I mean, every bite is an explosion of taste and enjoying it at one of our buffets — while you’re surrounded by family, friends, and neighbors — makes it just that much better.”
The creative campaign for “The Gobbler” features a classic Norman Rockwell-style illustration depicting a gathered array of family members, accompanied by the phrase “A pizza as unique as your family.”
“At Pizza Inn, our employees give thanks every day for our guests — whether they’ve been coming to see us for decades or it’s their very first time — because they are what make our restaurants the fun, friendly, gathering places they’ve been for decades,” added Solano. “Offering them something that’s fun and delicious like ‘The Gobbler’ is just another way we can show our appreciation of their ongoing loyalty and unwavering support.”
For more than 60 years, Pizza Inn has been America’s Hometown Pizza Buffet, thanks to its fresh pizza dough, made at each restaurant every day, and a plentiful buffet loaded with more than 40 appetizer, entree, side, and dessert options designed to appeal to people with a variety of tastes and preferences. The hearty selection offers items ranging from salads, wings, and stromboli to specialty pizzas and desserts.
Since 1958, Pizza Inn’s popular pizza buffet and friendly service have solidified the brand as America’s hometown pizza place. Unlike your typical buffet, Pizza Inn built a reputation for using house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce. This, combined with its small-town vibe, are the hallmarks of its restaurants that feature signature pan pizzas, chocolate chip “pizzerts,” pasta dishes, salads and innovative creations that reflect today’s customer cravings. The brand continues to thrive with new menu innovations, including its popular NYXL pizza. Follow Pizza Inn on Instagram @pizzainn and to learn more about franchising opportunities, visit www.pizzainn.com/franchise.
DALLAS, November 2, 2023 (Newswire.com)
– RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the first quarter of fiscal 2024 ended September 24, 2023.
First Quarter Highlights:
Total revenue increased by $0.1 million to $3.1 million for the first quarter of fiscal 2024 compared to the same period of the prior year.
Adjusted EBITDA increased by $0.1 million to $0.6 million for the first quarter of fiscal 2024 compared to the same period of the prior year.
Pizza Inn domestic comparable store retail sales increased 6.8% in the first quarter of fiscal 2024 compared to the same period of the prior year.
Pie Five domestic comparable store retail sales increased 1.2% in the first quarter of fiscal 2024 compared to the same period of the prior year.
The Company recorded net income of $0.4 million for the first quarter of fiscal 2024 compared to net income of $0.3 million for the same period of the prior year.
Income before taxes increased by $0.1 million to $0.5 million for the first quarter of fiscal 2024 compared to the same period of the prior year.
On a fully diluted basis, net income increased by $0.01 to $0.03 per share for the first quarter of fiscal 2024 compared to the same period of the prior year.
Cash and cash equivalents were $5.9 million at September 24, 2023.
Pizza Inn domestic unit count finished at 111.
Pizza Inn international unit count finished at 22.
Pie Five domestic unit count finished at 26.
“We are pleased to record our 14th consecutive quarter of profitability with same store sales growth at both Pizza Inn and Pie Five along with a year-over-year reduction in G&A expenses in this challenging cost environment,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc.
“While maintaining the discipline of cost controls, we continue to invest in the future of our business,” Solano said. “The investments in our Pizza Inn retail image have begun to pay returns as we opened our first new image retail prototype in Asheboro, NC, in May and begin a new era of reimaging our tired buffet assets in the Pizza Inn system. Our development pipeline yielded no new buffets in Q1, however we opened two in October. Franchisees are excited about our new image and are in the process of building and reimaging stores.”
Solano continued, “Similarly, Pie Five is undergoing significant investment and changes. After rolling out the most significant menu transformation in the brand’s history, focusing on differentiated pizzas made for the individual and eliminating large pizzas, we are implementing a test to add Pizza Inn “ghost kitchens” to targeted Pie Five locations. This test will leverage Pizza Inn’s “latent brand equity” in areas without Pizza Inn coverage to drive volume and four-wall economics. We have signed a franchise agreement for a Pie Five in Kentucky to begin this test in the coming weeks.”
“Q1 saw a significant number of Pizza Inn non-buffet store closures including eight express stores and one PIE, which on average sold less than $800 per store, per week. Three fourths of these closures were non-financial terminations for failure to adhere to our franchise agreements and standards. All franchisees must maintain our standards and their responsibilities as outlined in our franchise agreements. While unpleasant, these terminations demonstrate our commitment to maintain high standards and we won’t apologize for having high standards.
“Q1 will be our last full quarter with the services of Mike Burns, our former EVP and Chief Operating Officer, who resigned recently to become CEO of another company. I can’t thank Mike enough for his leadership and service to our brands, franchisees, and employees. I will personally miss him and wish him the best.
“Mike leaves RAVE in significantly better shape than he found it nearly four years ago. Our major operational initiatives are complete or nearly complete including the Pie Five menu launch and ghost kitchen initiative, Pizza Inn point-of-sale system implementation, Pizza Inn National Advertising Fund franchise commitments, and updated operating standards, manuals, training, and recipes. With our strong operations and training team in place and franchisees operating at a high level, now is the time to invest in other areas of the business. To that end, we will not be replacing Mike and will instead invest in personnel in other areas of the business with greater need and prospective returns including franchise development to increase new unit sales, construction to drive Pizza Inn reimage and new store construction, and information technology as we continue to upgrade our consumer-facing point-of-sale and ecommerce platforms.”
Clint Fendley, Chief Financial Officer of RAVE Restaurant Group, Inc. further explained, “Our improved comparable sales and acute attention to our expense controls yielded year-on-year earnings growth.”
Fendley continued, “While our Q1 store count shows a year-on-year decline, our revenues increased due to our strengthening network of stores and strong comparable sales.”
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.
The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.
“EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.
Note Regarding Forward Looking Statements
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effectiveness of our cost cutting measures, the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.
About RAVE Restaurant Group, Inc.
Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn’s house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America’s favorite hometown pizza place. This, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five’s craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainn and @piefivepizza.
When McDonald’s changed the name of its crispy chicken sandwich earlier this year to the McCrispy, same-store sales rose 12.6% in Q1 — the first quarter the new sandwich was rolled out.
Now, after the company announced its Q3 2023 results, it has become clear that branding matters and that McCrispy is clucking good proof of it.
During an earnings call on Monday, McDonald’s executives revealed that the McCrispy sandwich is now a $1 billion global brand, taking on a life of its own and becoming an instant cult favorite with loyal customers.
“Our McCrispy chicken sandwich continues to be an important driver of chicken share growth, having first launched in markets like Canada and Germany and now a billion-dollar brand,” McDonald’s Chief Financial Officer Ian Borden said on the call. “Our food is at the heart of our customers’ relationship with the brand. This is why we’re taking a One McDonald’s Way approach to our menu, further fueling our chicken ambition by scaling core chicken equities.”
The chain rebranded its crispy chicken sandwich to the McCrispy in March 2023, explaining in a statement at the time that the sandwich earning its “Mc” is a true McDonald’s badge of honor” upon the name change.
Global same-store sales in McDonald’s increased 8.8% in Q3, while overall revenue was up 14% quarterly.
Price increases implemented in U.S.-based restaurants also paid off, as same-store sales increased 8.1%.
“By combining strong execution of our core menu offerings, with new flavor news and limited additional complexity, we continue to strengthen our chicken credibility with customers and maintain our market share leadership in the chicken category,” Borden said.
McDonald’s originally rolled out the crispy chicken sandwich in 2021, which consists of a “crispy chicken fillet made with all-white meat, crinkle-cut pickles” and is served on a buttered potato roll.
McDonald’s was close to flat year-over-year as of Tuesday afternoon at just under 3.8% down.
McDonald’s announced today that starting this Friday, they will offer customers a free carton of medium fries every Friday. In a promotion that they’re fittingly billing “Free Fries Friday,” the fast-food giant is offering the deal until 12/31/23.
But, of course, nothing in life is entirely free. Free Fries Friday comes with a caveat designed to get diners to use the McDonald’s app. In order to partake in these golden delicacies, customers must first make a $1 minimum purchase in the McDonald’s mobile app.
How it works
To claim your free McDonald’s fries, follow these steps:
Go to the deals tab in the McDonald’s app, select the Free Fries Friday deal, and tap the “Add Deal to Mobile Order” button—only one order per customer.
Make your payment using any major credit card. Your card will not be charged until you check-in. Add or remove a payment card using the Checkout and My Account screens.
Check-in at any participating McDonald’s to pick up your free Fries (with $1 minimum purchase). Get them delivered to you with curbside pickup, or grab a bag at your nearest McDonald’s Drive Thru.
Bullish on the app
McDonald’s is clearly McAnxious to get customers to continue using their app. They’re also offering 10 Free McNuggets with their first app order (again with a minimum payment of $1).
Retailers love mobile apps because they allow them to connect directly with customers, pushing messaging and offering deals. Also, research shows that conversion and average transaction value are higher on mobile apps than on their e-commerce sites.
Not that McDonald’s is having trouble getting customers to download their app. According to QSR Magazine, the McDonald’s mobile app was downloaded 127 million times worldwide in 2022, with 40 million new downloads in the U.S. That figure was 194 percent more than McD’s closest competitor, Starbucks.
Time will tell if Free Fries Fridays will catch on like Taco Tuesdays, Wing Wednesdays, or even Meatless Mondays. But McDonald’s hopes people “make it fry day with a friend.” After all, French Fries are consistently the best-selling item on the McDonald’s menu.
Opinions expressed by Entrepreneur contributors are their own.
After years marked by scandals, historic lows, and harrowing tales of their peers putting their life savings into Ethereum, many Millennial investors are looking for alternatives to crypto.
The question is, where do they go from here? Even if they’ve been burned by Bitcoin, Millennials still don’t see traditional investments as the solution. Wealthy Millennials in particular don’t believe it’s possible to achieve above average from stocks and index funds alone. Evidence suggests they’re increasingly considering an investment vehicle so stable and old-school it might actually make their parents proud — Millennials are getting into franchises.
Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.
Millennials discover franchising
It shouldn’t be surprising that the generation known for distrusting traditional financial systems would be interested in alternative asset ownership. Millennials watched their parents’ stock and bond investments tank during the financial crisis and dot-com crash. They may have learned the value of portfolio diversification and investing outside the public market then without fully realizing it.
Even still, the idea of a former crypto kid investing in a car wash or waste management business can seem a little unbelievable. But really, it’s just the latest development in the generational shift towards franchising.
In the U.S., the number of Millennials pursuing franchise investments grew from 18% in 2018 to 25% in 2021, even surpassing prospective Baby Boomer investors. The Canadian Franchising Association has also observed a surge in interest, reporting that Millennials accounted for 30% of prospective investors in 2018. In the U.K., the number of new franchise investors under 30 grew from 14% in 2011 to 27% in 2018.
There’s also no shortage of anecdotes to complete the story. Established chains, like the 100-year old A&W Restaurants, have launched training and scholarship programs to recruit Millennial investors. Millennial franchise owners and founders evangelize the long-term equity appreciation aspects of the model in effort to attract other young partners; examples include painting company Spray-Net, house detailing company Shack Shine, and numerous acai bowl restaurants. Celebrities have long invested in franchises, but Millennial celebrities Wiz Khalifa and MrBeast have innovated on the concept of franchising entirely by launching their virtual restaurant chains.
But is it ‘cooler’ than crypto?
I run FranShares, a platform for franchise investing. Of the 40,000+ investors on our waitlist, the single largest group are Millennials. 63% of them invested in crypto and 15% in NFTs before becoming interested in franchises. These aren’t trust fund kids: the majority have a net worth between $0-$99K. 72% said they’re drawn to franchise investing because they want passive income and regular payouts.
There will always be crypto purists, who will always skew young in age and investment experience. The Millennials making the 180-degree shift from crypto to franchises were likely never interested in crypto for the thrill of high-risk, potentially-high-rewards. They were looking for an alternative to stocks, bonds and mutual funds. Somewhere along the way, they may have learned that the crypto market can be manipulated just like the stock market — where a single post from an interested party like Elon Musk or Kim Kardiashian can cause the price of coins to spike and plummet.
Reaching for a more “traditional” alternative asset
Millennials interested in alternative assets beyond crypto have no shortage of investment options. Unpacking some of the reasons why they’re specifically drawn to franchises may help paint their investment attitudes in a new light.
First, tangible investments are trending up: people are warming to assets they can see and touch (like art, wine, and even Pokémon cards). Franchises take the benefits of real assets a step further. They tend to fall in need-based industries that perform well in all economic conditions. Millennials still licking the wounds of failed crypto investments find the recession-resiliency of franchises compelling.
When the stock or crypto market crashes, people still get their hair cut, wash their cars, buy gym memberships, and eat at quick-service restaurants. Crypto is based on scarcity. It can’t hedge against long-term inflation. Franchises can: when supply prices rise incrementally, units will raise their prices reflectively to maintain profitability over time.
Millennials distressed by crypto’s high volatility and lack of regulation likely appreciate that franchises can offer predictable cash flow and returns similar to venture capital investing. As a business model, they’re built on data and metrics from already-successful locations. As an investment model, the franchise industry’s disclosures are regulated by the FTC, and franchise share offerings may be subject to SEC regulation.
Since entering the workforce, Millennials have experienced a financial crisis, a slow job market, mountains of student debt and skyrocketing housing costs. Who can blame them for throwing caution to the wind with “stonks” and YOLO-style day trading?
Crypto may not have delivered the express ticket to long-term wealth many Millennials were looking for, but maybe the real treasure was the hard-won investment experience they gained along the way. The decision to transition their portfolios to a predictable, income-producing real asset like franchises — if not a sign of personal maturity — characterizes Millennials as a savvier and more prudent group of investors than they’ve been given credit for.
Opinions expressed by Entrepreneur contributors are their own.
When it comes to measuring potential, it often feels a lot like guessing. We use vague sayings like, “Go big or go home,” or “You can either be a big fish in a small pond or a small fish in a big pond.” It’s either big or small. Successful or not. Worth it or worthless.
How come we’re only measuring potential like it’s purely black or white?
For under-appreciated small giants with limited resources, this is too simplistic. If you have limited resources, time and energy, scaling takes thoughtful strategy — something that franchise restaurants have long learned the hard way.
Sometimes, when you’re having a bad day or going through a tough time, indulging in your favorite, greasy comfort food seems like the only thing that will offer any (albeit temporary) solace.
That’s why Domino’s Pizza is offering customers an “Emergency Pizza” program and giving away a free, medium-sized two-topping pizza as a “pick-me-up.”
“There’s a lot of uncertainty in the world right now and we know Domino’s customers could use a pick-me-up,” the company said in a release. “And there’s not much that can help brighten a bad day like pizza. Which makes free pizza even better. Or, as we like to say: when life gives you lemons, Domino’s gives you free pizza.”
In order to qualify,customers who place a Domino’s order online for delivery or for takeout will get a free pizza credit for use within a 30-day period. The deal will live in the Domino’s Rewards portal under the “My Deals and Rewards” section.
The deal will run from October 9 through February 11, 2024.
Domino’s is coming off of an interesting Q2 2023 where global retail sales grew by 5.8% quarterly, but revenue decreased 3.8% in Q2 from what it was at the same time last year, something the company attributed to lower order volumes among other supply chain factors.
The company hit record sales numbers in 2020 during the pandemic when Q3 2020 sales were up 24% from the same time period the year prior.
“We are executing our plan to restore delivery growth in the U.S.,” Domino’s CEO Russell Weiner said in a statement at the time. “Our efforts to improve service and staffing while driving value and innovation will continue to make a difference in driving order counts in this important part of our business.”
Earlier this summer, Domino’s announced that it would be partnering with Uber Eats to increase delivery volume and reach a wider array of customers. The program is launching in four pilot markets in the U.S. this fall and is expected to reach all markets nationwide by the end of this year.
Domino’s was up just over 15% in a one-year period as of Tuesday morning.
Opinions expressed by Entrepreneur contributors are their own.
The internet is a key factor in the growth and development of modern businesses, and restaurants are not immune to its effects. A strong internet connection for a restaurant fuels more than just the free public Wi-Fi service offered to customers. The challenges brought forth by 2020 proved that internet health is a vital component of a strong restaurant business.
In fact, the digital divide is becoming increasingly evident in the restaurant world, and those who utilize the internet and tech well will survive. While a strong internet connection is critical for many reasons, these ten are the most pressing.
Managing orders and inventory starts with a robust POS system. Fast internet allows restaurants to use cloud-based systems that provide real-time updates of both orders and shrinking inventory. Both wait staff and guests benefit from the ability to turn tables more quickly, lessening wait times and making the time from walking in the door to getting food on the table faster. Because of the reliance on online POS systems, many restaurants, like the fast-growing pizza chain Jet’s Pizza, now choose secondary internet connections to ensure their POS is always on.
2. Offer online ordering (and home delivery)
Restaurant guests are growing increasingly accustomed to having restaurant food at home. A healthy internet connection at your restaurant means easy online ordering for your customers. Slow connections contribute to abandoned orders and lost revenue. Robust internet connectivity also increases your ability to offer delivery service.
3. Streamline your payment processing
Whether you rely on a simple Square Reader system or a complex POS processor, your ability to take card payments is crucial to your success as a restaurant. According to the Pew Research Center, 41% of Americans make none of their weekly purchases using cash, and only 14% say they use cash for all of their payments. Cash is on the way out, and you need strong internet to take card payments and continue producing revenue for your customers.
4. Take real-time reservations
Modern restaurant guests appreciate the time savings of a reservation, and the internet allows you to take reservations without impacting your daily operations and taking up staff time. However, again, this requires a strong internet connection to track and access those reservations when the guest arrives at the restaurant, ensuring their table is ready for them.
5. Keep data safe and secure
Data is increasingly essential to the modern restaurant. Keeping that data secure and backed up requires a flawless internet connection. Without the internet, you cannot track sales receipts, guest preference information and data about inventory in real time.
When you have a reliable internet connection, you will be able to build an online presence more efficiently, and that’s critical to your restaurant marketing. Not only can you quickly upload photos and videos to your social media channels, but your guests can do so as well. The more engaging your online presence, the more effective your restaurant will be; a strong internet connection makes that happen.
7. Improve customer service through better communication
Customers choose to communicate with the modern restaurant through online chats, reviews and emails. If you have a weak internet connection, those messages will be delayed at best and lost at worst. Fast, friendly responses to customer communication are essential to the guest experience, requiring a fast internet connection.
8. Update digital menus in real-time
Digital menus are becoming increasingly popular. QR code menus allow guests to browse on their phones while their table is prepared, and they eliminate the need to keep paper menus sanitary between guests. They also allow you to update in real time if you run out of a popular dish. Over half of restaurant guests say they appreciate a QR code digital menu that is kept up-to-date. Again, this requires a good internet connection to use well.
9. Use Wi-Fi to improve guest ambiance
Do you want your guests (and staff) to be in a good mood while they are in your restaurant? Then, upload a soothing or fun playlist using your internet connection. Do you want to make your restaurant convenient for your guests? Free Wi-Fi in the building can also help. They can do research or play online games while they wait. Parents can even use the connection to keep antsy kids occupied and the noise level down in the restaurant. For these scenarios to play out, your internet connection needs to be healthy.
10. Improve overall operational efficiency
With all of the different moving parts of a busy restaurant, from scheduling to inventory management, you will need your tech to function properly. Again, this requires strong internet. Both the back-of-house team and the front-of-house team need the internet to do their jobs.
This list is just 10 of the many reasons why a strong internet connection is a vital component of a restaurant. In light of these facts, restaurant owners must prioritize a healthy internet connection — it’s the backbone of your success and not something you can afford to overlook.
A lawsuit against Wendy’s and McDonald’s, alleging that the companies had exaggerated the size of their burgers in advertisements, has been officially dismissed by a federal judge on Wednesday, The New York Times reported.
The plaintiff, Justin Chimienti of New York, had initiated the lawsuit in 2022, claiming that he purchased burgers at Wendy’s and McDonald’s locations, but they were significantly smaller than depicted in the ads, and he was “financially damaged as a result.”
Judge Hector Gonzalez of the U.S. District Court for the Eastern District of New York ruled that there was no evidence to suggest that the fast-food chains had served smaller burgers than what they advertised or that they had deceived their customers as the lawsuit contended.
In the 19-page ruling, the judge also expressed doubts about whether Chimienti had actually seen the specific ads for the fast food items which he had cited as examples in his complaint.
Chimienti argued that misleading advertising harmed customers by providing them with food of lower value than what was promised.
While the monetary damages Chimienti sought in the lawsuit are unspecified, he aimed to “fully compensate” individuals who felt “deceived” after purchasing an “overstated menu item.”
Chimienti’s complaint was one of several recent lawsuits targeting fast-food companies for alleged misrepresentation of their products in advertisements.
In August, a judge in the Southern District of Florida denied Burger King’s plea to dismiss a lawsuit originally filed in 2022, wherein plaintiffs are arguing that the chain engages in “unfair” and “deceptive” practices in relation to its Whopper size.
Similarly, an ongoing lawsuit against Taco Bell alleges that the company’s Crunchwraps and Mexican pizzas are advertised as containing “at least double” the filling they actually contain, seeking damages of at least $5 million.
Popeyes is now the nation’s No. 2 chicken chain, CNBC reported.
After a decade in the No. 2 spot, KFC has been dethroned by Popeyes and now holds the bronze medal. Chick-fil-A is stillNo. 1.
Popeyes, a chain owned by parent company Restaurant Brands International, went viral after launching its chicken sandwich in 2019, which set off the “chicken sandwich wars,” with customers lining up for hours at locations across the country. The trend prompted other fast-food chains such as Burger King, Wendy’s, and Sonicto add chicken sandwiches to their menus, causing occasional shortages of poultry.
KFC, which is owned by Yum Brands, has experienced a market share decline over the past year, dropping from 16.1% to 11.3%, according to Barclays research, per CNBC. However, despite its new No. 2 title, Popeyes also saw a decrease in its market share during the same period, dropping from 15% to 11.9%. Chick-fil-A, meanwhile, expanded its market share from 38.3% to 45.5%.
But it doesn’t look like Popeyes wants to say No. 2.
“Game on, Chick-fil-A,” Restaurant Brands International chair Patrick Doyle said at a conference in mid-September, when prompted about its new spot as No. 2 behind Chick-fil-A.
Last month, Popeyes said it was redesigning its kitchens with intuitive workstations and automatic batter makers, as well as improving operational efficiency after the initial frenzy around the chicken sandwich led to complaints about slow and inaccurate orders, Bloomberg reported.
When Sami Siddiqui, Popeye’s president for the U.S. and Canada asked franchisees about “what would be possible” when consistently serving hot and perfect food. Their response was straightforward: “Well, then we’d be Chick-fil-A,” per Bloomberg.
Following a very dramatic and fan-dreaded farewell tour, McDonald’s is bringing back one of its cultiest items yet.
This week, McDonald’s confirmed to TODAY that rumors (originally posted by fast-food insider “Snackolator” on Instagram) claiming the McRib would be coming back for a limited run this November were true.
The McRib has become one of McDonald’s most talked about sandwiches and last graced the burger chain’s menu in 2022.
“It turns out not everyone was ready to say goodbye to the McRib after last year’s Farewell Tour,” a McDonald’s spokesperson told the outlet. “While it won’t be available nationwide, some lucky fans may find their favorite elusive saucy sandwich at their local McDonald’s restaurants this November.”
Fans were absolutely thrilled to hear the news.
ABSOLUTELY GROUND EARTH SHAKING NEWS!
The McRib will be back in select places in November. No Mulan Schezwan sauce though.
McRib in November, got it. Don’t come near me with anything pumpkin spice this month but I admit I will endeavor to get my hands on one of those delicious food-like sandwiches!
Though a fan-favorite sandwich, the McRib has never been a permanent fixture on McDonalds menu, only running for a limited-time after initially debuting in 1981 in Kansas City, Missouri.
The formula for the McRib’s appearance seems to be tried and true for the chain – a surprise announcement that generates hype and buzz, a specified period for how long the sandwiches will be available, select locations and markets identified where the sandwich will be sold, and the sad farewell of the sandwich’s run coming to an end with no hard set date as to when it will return — if at all.
The famed McRib sandwich in a California McDonald’s restaurant (Getty Images)
“If consumers think there is a shortage of a product, or that it won’t be around for long, they will rush out to get it,” said Restaurant Business Online during last year’s McRib run.
McDonald’s scarcity marketing technique is simple — people tend to want what they can’t have, and for some people, that comes in the form of one barbecue sauce-covered boneless pork patty on a warm bun, topped with dill pickles and onions.
McDonald’s did not immediately respond to Entrepreneur‘s request for comment.
The chain was up just over 6.6% in a one-year period as of Wednesday afternoon.
Opinions expressed by Entrepreneur contributors are their own.
You certainly don’t have to look far in today’s world to find countless examples of poor leadership. You could begin with politics, but that would require its own separate column. And it’s not just poor leadership in this cottage industry, which will forever be an easy target. Everywhere you look in corporate America today are glaring examples of this growing problem, described by one Harvard-based researcher as “a crisis of trust in leadership.” Considering the sheer amount of tools and resources available to help leaders thrive, what is going on here?
As a self-described serial entrepreneur since the age of 13, I have a few thoughts and observations to share on what it takes to be an effective and respected CEO. Because when it comes to leadership, we are rapidly approaching the point at which we need a course correction.
Many of today’s CEOs are so consumed with bottom-line profitability that they’ve left themselves little-to-no time to work on themselves or improve their own leadership style. To do so effectively requires mentorship, coaching, and learning. One of my business coaches and mentors has been Vaughn Sigmon of Results Driven Leadership, who’s greatly helped me define my leadership style. As a CEO, he has helped me retain my passion for being different, standing out, and being a memorable leader. What I think many inadequate leaders of today lack is perspective. They’re so busy working in the business that they fail to work on the business. If you don’t see yourself as a particularly effective or respected CEO, it’s time to take a step back and reassess your perspective.
Many of today’s leaders still subscribe to the notion that ruling with an iron fist is the only way to be effective. Many of them still maintain the misguided belief that it’s better to be feared and respected than loved. If you happen to be one of them, I challenge you to conduct an anonymous online survey of your leadership style among your employees. You’re likely to have an eye-opening experience. Among the traits you should strive to make central to your own leadership style include authenticity, vulnerability, and perhaps most important of all – empathy. What many CEOs fail to realize is that nurturing these qualities doesn’t make you weak, it makes you relatable. When it comes to the employees you manage, its vital to seek similarities in your shared experiences. Only then can you begin to understand your employees’ perspective. Maya Angelou summed it up best by saying, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
I’ve long felt that I should always be reading a book. God forbid someone important asks me what I’ve been reading lately, and I stammer out. “Uh, Twitter?” With as much literature on the subject of leadership available these days, there’s really no excuse for failing to continue your education in becoming a more effective and respected CEO. Among my most recommended titles is “365 Days of Insight” to Develop the Leader Within You and Influence Those Around You,” by John C. Maxwell. I often recommend this book to others because it’s a great reminder that we should be leaders, and not bosses. Coaches, and not strict parents. Mentors, and not mean. I learned that to get far, I need a team. To grow fast, I need to have trust. Among the best quotes in this book, this one really sums it up: “The greatest obstacle to discovery is not ignorance. It is the illusion of knowledge.”
Do you want to improve as a leader?
I felt the need to title this concluding paragraph with an open-ended question. I’m certain that there are plenty of CEOs who don’t believe they really need to improve their leadership style. I would just like to know how they’re so sure of themselves. Improving your leadership style in an effort to be a more effective and respected CEO requires an honest assessment of yourself. Then and only then can you make a commitment to becoming a better leader. In the end, it really is OK to step out of your personal echo chamber and challenge yourself. But if you’re among those bosses who remain utterly convinced that your leadership style positively resonates with your employees, go ahead and send out that internal survey. When you get around to reviewing the anonymous answers, just don’t say I didn’t warn you.
D Magazine reports that residents of a neighborhood in Texas called Idiot’s Hill (yes, that’s really what it is called) have been on the receiving end of McDonald’s DoorDash deliveries that they did not order. And as nice as free food might seem, it is kind of freaking people out.
One recipient of the mystery Mickey Dee’s named Carly Swim told D Magazine that there have been over 20 deliveries in recent weeks, usually consisting of an entree, fries and a drink. “We’re all kind of laughing at each other,” Swim says of the strange predicament of finding food at your front door. “But I guess there’s a little part of you that’s hoping you’re not laughing at somebody getting scammed.”
It’s certainly weird — and not an isolated phenomenon. As the Los Angeles Times reported earlier this summer, from late February and March of this year, several homes in the Los Angeles neighborhood of Highland Park were hit with dozens of unordered Uber Eats deliveries.
Like the folks in Idiot’s Hill, the Angelenos quickly went from being confused to being amused to being concerned. “We one got three different orders within five minutes,” Highland Park resident William Neil told CBS.
So what’s going on here? No one knows for sure, but here are the theories:
This is part of a prank for a TV show.
Criminals are testing if stolen credit cards work.
The customer service phone number on the bags are part of a phishing scam.
A DoorDash spokeswoman told D Magazine that they were investigating the bogus orders in Idiot’s Hill. McDonald’s did not respond to a request for comment. Likewise, Entrepreneur reached out to Uber for comment on the Los Angeles deliveries and has not heard back.
We may never know the story behind these baffling bags of fries, and although we may never for sure who is behind the bogus orders, we have a strong hunch that the guy in the middle of the lineup below is somehow involved.
McDonald’s is increasing the royalty fee for new franchisees to buy and operate a restaurant, the company announced on Friday. It’s the first such increase for the brand in nearly 30 years.
Starting on January 1, the fees will rise from 4% to 5% in U.S. and Canada. However, the increase will not apply to existing franchisees running current operations, those purchasing franchised locations from other operators, rebuilt existing locations, or restaurants transferred within family members.
The higher rate will only apply to new franchisees, buyers of company-owned restaurants, relocated establishments, and other scenarios involving the franchisor.
“While we created the industry we now lead, we must continue to redefine what success looks like and position ourselves for long-term success to ensure the value of our brand remains as strong as ever,” Joe Erlinger, McDonald’s U.S. president, told franchisees in a message viewed by CNBC.
McDonald’s also added that the uptick in fees probably won’t affect a majority of its current market, given that the5% fee is standard in other countries, and the 4% fee was only used in North America.
“Because the royalty rate is currently at 5% in all owned markets, except for the U.S. and Canada, this royalty rate increase will not apply to a majority of the existing restaurant portfolio,” McDonald’s wrote in the announcement.
Franchise royalty fees are a percentage of monthly earnings that a franchisee pays to a franchisor. According to the International Franchise Professionals Group, the average royalty fee for a franchise typically ranges from 4% to 12% or more, depending on the type of franchise.
For food franchises, since they are high-volume businesses, franchisees typically pay lower royalty rates, making the 5% fairly standard for the industry.
As of 2021, there are over 13,400 McDonald’s locations in the U.S., 95% of which are operated by franchisees, according to Global Data.
DALLAS, September 21, 2023 (Newswire.com)
– RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the fourth quarter and fiscal year endedJune 25, 2023.
Fourth Quarter Highlights:
Total revenue increased by $0.2 million to $3.0 million for the fourth quarter of fiscal 2023 compared to the same period of the prior year.
Adjusted EBITDA decreased by $0.2 million to $1.0 million for the fourth quarter of fiscal 2023 compared to the same period of the prior year.
Pizza Inn domestic comparable store retail sales increased 9.0% in the fourth quarter of fiscal 2023 compared to the same period of the prior year.
Pie Five domestic comparable store retail sales decreased 0.6% in the fourth quarter of fiscal 2023 compared to the same period of the prior year.
The Company recorded net income of $0.6 million for the fourth quarter of fiscal 2023 compared to net income of $6.8 million for the same period of the prior year.
Income before taxes decreased by $0.3 million to $0.8 million for the fourth quarter of fiscal 2023 compared to the same period of the prior year.
On a fully diluted basis, net income decreased by $0.34 to $0.04 per share for the fourth quarter of fiscal 2023 compared to the same period of the prior year.
Cash and cash equivalents were $5.3 million on June 25, 2023.
Pizza Inn domestic unit count finished at 123.
Pizza Inn international unit count finished at 34.
Pie Five domestic unit count finished at 27.
Annual Highlights:
Total revenue increased by $1.2 million during fiscal 2023 to $11.9 million at June 25, 2023.
Adjusted EBITDA of $2.7 million for fiscal 2023 was a $0.1 million decrease from the prior year.
RAVE total domestic comparable store retail sales increased 10.3% for the year ended June 25, 2023 compared to the same period of the prior year.
Pizza Inn domestic comparable store retail sales increased 11.3% for the year ended June 25, 2023 compared to the same period of the prior year.
Pie Five domestic comparable store retail sales increased 5.4% for the year ended June 25, 2023 compared to the same period of the prior year.
Net income decreased by $6.4 million to $1.6 million in fiscal 2023 compared to net income of $8.0 million for fiscal 2022.
Income before taxes decreased by $0.2 million to $2.2 million in fiscal 2023 compared to $2.4 million in fiscal 2022.
On a fully diluted basis, the Company reported net income of $0.10 per share in fiscal 2023 compared to $0.45 per share in the prior year.
The Company used $5.0 million to repurchase shares of its common stock during fiscal 2023.
Both fiscal 2023 and fiscal 2022 contained 52 weeks.
Cash provided by operating activities increased by $1.2 million to $2.6 million in fiscal 2023 compared to $1.4 million in fiscal 2022.
Cash and cash equivalents decreased $2.4 million during fiscal 2023 to $5.3 million at June 25, 2023.
Said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc., “Our fiscal year shows significant same store sales growth at both Pizza Inn and Pie Five, double-digit total revenue growth, and an increase in earnings quality as we overlapped $0.7 million in prior year Employee Retention Credit (ERC) funding resulting in a modest $0.2 million dip in pre-tax income.”
“While maintaining the discipline of cost controls, we continue to invest in the future of our business,” Solano said. “The investments in our Pizza Inn retail image have begun to pay returns as we opened our first new image retail prototype in Asheboro, NC, in May and begin a new era of reimaging our tired buffet assets in the Pizza Inn system. Our development pipeline yielded four new buffets in Q4, resulting in net +5 Pizza Inn buffets for FY ’23, marking the second consecutive year of net buffet increases after 24 consecutive years without growth.”
Solano continued, “While the restaurant industry appears to have abandoned dine-in, we continue to lean into our differentiated strategy, focusing on the value and variety of Pizza Inn’s buffet while capturing delivery and carry-out. We know our customers are hungry for a connection and an ’experience‘ with their families. To deliver on customer expectations and increase our competitiveness, we announced a required buffet reimaging program at our July Pizza Inn franchise convention. We plan to reimage our tired buffet assets and bring our new retail image to 95% of our locations within the next three years.”
“Similarly, Pie Five is undergoing significant investment and changes. After rolling out the most significant menu transformation in the brand’s history, focusing on differentiated pizzas made for the individual, and eliminating large pizzas, we are implementing a test to add Pizza Inn “ghost kitchens” to targeted Pie Five locations. This test will leverage Pizza Inn’s “latent brand equity” in areas without Pizza Inn coverage to drive volume and four-wall economics. We expect to be in-field with this test in Q2.”
“Overall, we had a strong fiscal year ’23 and I’m grateful for our gritty franchisees and team members and their relentless commitment to excellence.”
Clint Fendley, Chief Financial Officer of RAVE Restaurant Group, Inc. further explained, “Fiscal 2023’s financial results highlight the Company’s continued efforts to invest in our brands while maintaining a healthy balance sheet and creating value for our shareholders. During fiscal 2023, domestic buffet count increased and comparable sales grew for both brands, resulting in revenue growth outpacing expenses. Cash provided by operating activities increased by $1.2 million and we repurchased shares of our common stock for a total of $5.0 million during fiscal 2023.”
“In fiscal 2022 we fully recognized our deferred tax asset of $5.7 million due to the long-term earnings and growth prospects for our company, impacting year-over-year fiscal 2023 net income comparisons.”
“As we reimage locations and expand our brand, we plan on maintaining cost controls and seeking out ways to maximize value for our shareholders. We look forward to continued execution of our differentiated strategy and investment in our brands during fiscal 2024.”
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.
The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.
“EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.
Note Regarding Forward Looking Statements
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effectiveness of our cost cutting measures, the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.
About RAVE Restaurant Group, Inc.
Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn’s house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America’s favorite hometown pizza place. This, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five’s craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainnofficial and @piefivepizza.
RAVE RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
June 25,
2023
June 26,
2022
June 25,
2023
June 26,
2022
REVENUES:
$
3,048
$
2,823
$
11,889
$
10,692
COSTS AND EXPENSES:
Cost of sales
–
–
–
1
General and administrative expenses
1,208
1,506
5,490
5,446
Franchise expenses
923
809
3,956
3,284
Impairment of long-lived assets and other lease charges
–
6
5
6
Bad debt expense
36
37
73
46
Interest expense
–
–
1
61
Depreciation and amortization expense
56
49
214
187
Total costs and expenses
2,223
2,407
9,739
9,031
OTHER INCOME:
Gain on forgiveness of PPP loan
–
–
–
–
Employee retention credit
–
704
–
704
Total other income
–
704
–
704
INCOME (LOSS) BEFORE TAXES
825
1,120
2,150
2,365
Income tax benefit
(190)
5,667
(537)
5,657
NET INCOME
635
6,787
1,613
8,022
INCOME PER SHARE OF COMMON STOCK – BASIC:
$
0.04
$
0.38
$
0.11
$
0.45
INCOME PER SHARE OF COMMON STOCK – DILUTED:
$
0.04
$
0.38
$
0.10
$
0.45
Weighted average common shares outstanding – basic
14,154
17,958
15,323
17,993
Weighted average common and potential dilutive common shares outstanding
14,742
17,958
15,911
17,993
RAVE RESTAURANT GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
June 25,
2023
June 26,
2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
5,328
$
7,723
Accounts receivable, less allowance for bad debts of $58 and $27, respectively
1,145
1,981
Notes receivable, current
105
172
Property held for sale
19
—
Deferred contract charges, current
33
36
Prepaid expenses and other current assets
204
146
Total current assets
6,834
10,058
LONG-TERM ASSETS
Property and equipment, net
258
365
Operating lease right of use asset, net
1,227
1,664
Intangible assets definite-lived, net
328
232
Notes receivable, net of current portion
28
201
Deferred tax asset, net
5,342
5,772
Deferred contract charges, net of current portion
220
224
Total assets
$
14,237
$
18,516
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable – trade
$
502
$
669
Accrued expenses
890
1,082
Other current liabilities
1
81
Operating lease liability, current
463
490
Short term loan
—
30
Deferred revenues, current
342
538
Total current liabilities
2,198
2,890
LONG-TERM LIABILITIES
Operating lease liability, net of current portion
958
1,421
Deferred revenues, net of current portion
690
793
Total liabilities
3,846
5,104
COMMITMENTS AND CONTINGENCIES (SEE NOTE K)
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,090,058 and 25,090,058 shares, respectively; outstanding 14,154,453 and 17,511,430 shares, respectively
251
251
Additional paid-in capital
37,729
37,384
Retained earnings
2,439
826
Treasury stock at cost
Shares in treasury: 10,935,605 and 7,578,628 respectively
(30,028)
(25,049)
Total shareholders’ equity
10,391
13,412
Total liabilities and shareholders’ equity
$
14,237
$
18,516
RAVE RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Fiscal Year Ended
June 25,
2023
June 26,
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
1,613
$
8,022
Adjustments to reconcile net income to cash provided by operating activities:
Impairment of long-lived assets and other lease charges
5
6
Stock-based compensation expense
345
169
Depreciation and amortization
141
140
Amortization of operating right of use assets
437
421
Amortization of intangible assets definite-lived
73
47
Amortization of debt issue costs
—
21
Allowance for bad debts
73
46
Deferred income tax
430
(5,772)
Changes in operating assets and liabilities:
Accounts receivable
763
(1,116)
Notes receivable
28
80
Deferred contract charges
7
(18)
Prepaid expenses and other
(58)
50
Accounts payable – trade
(167)
25
Accrued expenses
(272)
158
Other current liabilities
—
35
Operating lease liability
(490)
(465)
Deferred revenues
(299)
(465)
Cash provided by operating activities
$
2,629
$
1,384
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments received on notes receivable
212
500
Proceeds from sale of assets
7
—
Purchase of intangible assets definite-lived
(169)
(96)
Purchase of property and equipment
(65)
(66)
Cash (used in)/provided by investing activities
(15)
338
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock
(4,979)
(512)
Payment of convertible notes
—
(1,597)
Payments on short term loan
(30)
(220)
Cash used in financing activities
(5,009)
(2,329)
Net decrease in cash and cash equivalents
(2,395)
(607)
Cash and cash equivalents, beginning of period
7,723
8,330
Cash and cash equivalents, end of period
$
5,328
$
$ 7,723
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest
$
1
$
64
Income taxes (net of refunds)
$
87
$
31
RAVE RESTAURANT GROUP, INC.
ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Twelve Months Ended
June 25,
2023
June 26,
2022
June 25,
2023
June 26,
2022
Net income
$
635
$
6,787
$
1,613
$
8,022
Interest expense
–
–
1
61
Income taxes
190
(5,667)
537
(5,657)
Depreciation and amortization
56
49
214
187
EBITDA
$
881
$
1,169
$
2,365
$
2,613
Stock compensation expense
86
42
345
169
Severance
–
20
–
53
Pre-opening costs
–
–
–
–
Gain on sale of assets
–
–
–
–
Impairment of long-lived assets and other lease charges
McDonald’s is facing another alleged burn lawsuit, and the company is not exactly Lovin’ It.
Mable Childress, a woman in her 80s, filed a lawsuit with the San Francisco Superior Court last week alleging that she had suffered “severe burns” and “emotional distress” claiming that employees did not put the lid on her beverage properly when she was handed her order in the drive-thru.
“She was injured severely from McDonald’s negligence,” Childress’ lawyer, Dylan Hackett, told local outlet SFGATE in a statement. “She’s an elderly lady, and she was waiting for over an hour to speak to a manager, and a manager never spoke to her. They didn’t give her the time of day. … Nobody helped her whatsoever. She had to get to the hospital herself.”
Childress and her legal counsel maintain that still has pain in her “groin area” as a result of the incident and being “ignored” by staff.
She is currently seeking seven-figure retribution according to Hackett, though the exact monetary value was not disclosed.
McDonald’s did not immediately respond to Entrepreneur‘s request for comment, but the franchise owner of the location where Childress was allegedly burned, Peter Ou, said that his team is currently reviewing her accusations in a statement to TODAY.
“My restaurants have strict food safety protocols in place, including training crew to ensure lids on hot beverages are secure,” Ou told the outlet. “We take every customer complaint seriously — and when Ms. Childress reported her experience to us later that day, our employees and management team spoke to her within a few minutes and offered assistance. We’re reviewing this new legal claim in detail.”
“This momentous decision brings meaningful closure to an arduous and protracted legal process. Having previously established the defendants, Upchurch Foods Inc and McDonald’s USA LLC, as liable for their wrongful actions, this verdict reaffirms that they must now face the consequences and provide full justice,” the family’s legal team said in a statement at the time.
Similarly, in 1992, a woman named Stella Liebeck infamously won a $2.7 million suit against McDonald’s for burns she suffered after a hot coffee spilled in her lap.
Huntington Learning Center Offers Key Insights as an Advocate for the Continuation of Federally Funded Learning Programs Nationwide
ORADELL, N.J., September 14, 2023 (Newswire.com)
– Huntington Learning Center, the nation’s leading tutoring and test prep provider, seeks to deepen its commitment to giving every student the best education possible as the organization expands its Private-Public Partnerships nationwide. Amid discussions of discontinuing American Rescue Plan learning recovery programs, Huntington’s partnerships with school districts throughout the US validate the ongoing need to provide supplemental learning.
In the summer of 2020, before the American Rescue Plan was passed and $190B of federal funding was committed to combating COVID-19 learning loss, Huntington was already providing supplemental learning programs for students impacted by school closures. Huntington’s flagship summer programs aimed at combating COVID-19 learning issues resulted in an average grade level increase of 1.3 in reading and 2.1 in math for 30 students in just 48 hours of one-to-one instruction. The results established Huntington’s programming as the leading provider of supplemental learning for K-12 students. This led to the success Huntington is seeing today with their public-private partnerships with school districts across the country.
The 2022 NAEP Nation’s Report Card revealed “national average score declines in mathematics for fourth- and eighth-graders were the largest ever recorded in that subject.”
Today, Huntington students are improving their Reading and Math scores by 33% and 35% with only 50 hours of instruction. At this level, Huntington’s student results are shown to overcome COVID-19 learning loss as indicated in the National Assessment of Educational Progress (NAEP).
The Huntington case study results below support the ongoing success of their federally-backed, supplemental learning programs in school districts across the country.
A publicly-funded partnership with the Skokie, IL, school district in 2021 offered one-to-one, in-person, and small group instruction to a group of 30 students, grades 4-8, for 48 hours of tutoring in reading and math. Average reading improvement: 1.3-grade level increase. Average math improvement: 2.1-grade level increase.
A publicly-funded partnership with the Bronx, NY, Charter School for Excellence in 2022 conducted 42-63 hours of in-person, small group instruction in reading and math for 15 students in grades K-8, Average reading improvement: 0.6-grade level increase. Average math improvement: 1.1 grade level increase.
In Indiana, Huntington has received a “Grade A” in service delivery and a “Grade A-” in customer satisfaction from families and educators. The Ohio Department of Education scored Huntington at a 12, the highest attainable score for providers working with students as part of the American Rescue Plan.
The results from these outreach programs confirm the effort and energy Huntington is putting behind their dedicated Public Private Partnerships division as part of their 46th year of operation is the right move for students, families, and franchisees alike. Students continue to benefit from Huntington’s public-private partnerships in the following states, and the list is growing. Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Ohio, Maryland, Michigan, Minnesota, New Jersey, New York, Pennsylvania, Texas, Virginia, Tennessee, Washington, Colorado, New Mexico, Kansas, Mississippi, North Carolina and Delaware.
“Huntington has always served areas of the education sector that are most in need, as evidenced by our leading efforts over 20 years ago during ‘No Child Left Behind,’ which continues today as we provide academic services under the Every Student Succeeds Act (ESSA),” said Anne Huntington Sharma, President and Board Member of Huntington Learning Center.
“Pandemic school closures were unprecedented,” she continued, “and Huntington made sure to lean on this experience and immediately pivot our programming. We’ve been through recessions, testing, and grading changes. Throughout our 46 years, we have helped over a million students and families overcome those obstacles.
“Now is not the time to pull back on supplemental programming for students. The recent national report card proved that. An equally important skills gap families are witnessing is the social and emotional impact of disrupted classroom time. Huntington conducted a nationwide parent survey that revealed those soft skills are of significant concern for parents immediately following the onset of the pandemic. We know one-to-one and small group instruction serves to benefit growth in these areas as well, building their confidence and motivation to succeed.
“Our dedicated Private Public Partnerships division has opened even more opportunities to provide K-12 instructional services to public, charter, and non-public schools inclusive of private, religious, and military schools. We teach students with deeply remedial needs and special education needs, as well as general education. When students need us, Huntington is here to help,” Sharma concluded.
Huntington, which appointed Sharma as President in 2019 on the heels of her success spearheading the largest footprint expansion in company history, continues to focus on leading their legacy organization forward with innovative changes to their operations and a major digital transformation benefitting both families and franchise owners. The achievements have not gone unnoticed with Huntington earning awards from Entrepreneur, Franchise Business Review, FranServe, and the International Franchise Association in the past 12 months alone.
For more information on how Huntington is addressing unfinished learning nationwide and how your school can engage in their high dosage, publicly funded K-12 services, visit the Publicly Funded Partnerships site and contact publiclyfundedprograms@hlcmail.com
About Huntington Learning Center
Huntington Learning Center is the nation’s leading tutoring and test prep provider. We offer customized programs in person, online, and hybrid options. Our certified teachers provide individualized instruction in phonics, reading, writing, study skills, elementary and middle school math, Algebra through Calculus, Chemistry, and other sciences. It preps for the SAT and ACT, as well as state and standardized exams. Huntington’s programs develop the skills, confidence, and motivation to help students succeed and meet the needs of Common Core State Standards. Huntington is accredited by Middle States Association of Colleges and Schools. Founded in 1977, Huntington’s mission is to give every student the best education possible. Learn how Huntington can help at www.HuntingtonHelps.com; for franchising opportunities, visit www.HuntingtonFranchise.com.
