Industry Spotlight

 

Why trade, swipe fees are NRA’s political priorities for restaurants

The National Restaurant Association is urging the Trump administration to approve the U.S.-Mexico-Canada Trade Agreement and take a do-no-harm stance on tariffs.

Editor’s Note: This Q&A is part of a series of interviews with political figures in the restaurant industry about the issues facing brands, workers and operators in 2026. This is the second part of a two-part Q&A with the National Restaurant Association about its specific priorities.

Labor regulation — immigration reform, the preservation of the tip credit, fights against sectoral wage setting — tends to dominate the headlines in restaurant politics, but there are other pressing political issues for eateries, according to Sean Kennedy, chief advocacy officer for the National Restaurant Association.

As consumer price sensitivity and energy input costs both climb, the NRA is looking for ways to constrain costs and prevent restaurants from succumbing to low margins.

Tariffs, which drive up food costs, are one target, but so is the highly concentrated credit card processing industry. Other factors, like the Sysco-Restaurant Depot merger and third-party delivery, pose challenges for consumers, but may not require regulatory relief, Kennedy said.

Kennedy sat down with Restaurant Dive to discuss the NRA’s major political priorities in 2026. This piece, which focuses on regulatory matters that do not impact the workforce, is the second part of that two-part conversation.

Editor’s note: This Q&A has been edited for clarity and brevity.

RESTAURANT DIVE: Outside of labor issues, what are the biggest political issues facing restaurants right now, and what are the National Restaurant Association’s major priorities relating to those issues?

SEAN KENNEDY: The short-term priority is the U.S.-Mexico-Canada Agreement, which is up for reconsideration this July — USMCA is vital for the restaurant industry. We import an awful lot of produce and proteins from Canada and Mexico. These are items that we cannot produce at all in the United States, or we cannot produce at the right quantities, like tomatoes, avocados and coffee.

USMCA was negotiated by President Trump in his first term. We think it works very well. It allows for the free trade of goods between those three countries. It helps address the continued inflation that we see in food prices.

What we would like to see out of the administration is to “do no harm” and keep the free trade agreement in place, keep tariffs off the table, as it were, for trade between those countries, and keep our input costs down.

In the medium term: swipe fee reform.

I don’t know that swipe fee reform is going to receive a floor vote in the Senate. But operators are still reporting that swipe fees are the third-highest cost that they’re seeing, behind food and labor. Swipe fees have doubled over the past decade. They show no signs of going down.

U.S. consumers and U.S. small businesses pay the highest swipe fees of any country in the industrialized world. Why? Because in the U.S. there is a duopoly — Visa and Mastercard.

We are calling for common sense legislation that does not regulate credit card companies — we support open markets. The bill we support simply says banks with $10 billion in assets or more, have to offer a third payment network. It can’t just be Visa or Mastercard.

Our goal — and we share this with a number of other businesses — is that if you add that third network you’re going to start seeing Visa and Mastercard reduce their fees to stay competitive, and that provides benefits for consumers and restaurants alike.

Is the National Restaurant Association interested in more regulation of third-party delivery and other technological solutions that interpose between consumers and restaurants?

Third-party delivery wasn’t really a thing until the pandemic, where it became a necessity. What we saw then was a nascent industry that went through growing pains, you had restaurants that didn’t want to sell items online for third-party delivery, and you had some unscrupulous third-party delivery companies that would just scan a copy of the menu, post it on their website and say, “we will order it and we will deliver this dish to you.”

We engaged third-party platforms on basic principles like if a restaurant wants to not be in the third-party space, that should be their right, and if they say, “we do not want a company to buy our product and mark it up and ship it to someone’s house,” restaurants should be allowed to do that.

Fast forward to 2026, there are definitely pressure points for what the relationship is like between third-party platform providers and restaurants. You have drivers coming in before a dish is ready and clogging up the area. So how do we improve communication? And how do those delivery drivers know to stay in their car or moped. That’s low-hanging fruit.

Mid-hanging fruit would be as customer data comes in, how is it organized? Is there anything that prevents someone from every week ordering from the same restaurant and then saying “I ordered salsa, the salsa didn’t come in, I want a refund.”

Some of the larger pressure points are how refunds are given. What should the trigger be for a refund? Should a restaurant be allowed to try to fix a problem if a customer has a concern, or is it automatic that they have to give a full refund?

Third-party delivery is not going anywhere. The younger generations were raised with it, they’re going to continue using it, and they’re going to be the prime customers five years and 10 years from now. So we know it’s not going anywhere.

We are seeing a maturation of the major providers like DoorDash and Uber Eats and Grubhub under Wonder.

The issues that we were dealing with five years ago we were able to address without regulation. Let’s see which ones we can do before we start looking at regulation.

So it’s not yet the time to pursue regulation?

Correct. But that’s not to say that there aren’t genuine concerns among operators about what the future is for third-party delivery.

The Credit Card Competition Act would require major banks to offer a third payment processing option. Is that the ideal outcome? How has the political landscape regarding the possible passage of that bill changed in the last year?

Progress is measured in feet, not yards, on that issue. We are always going to be heavily outspent by the banks. The banks have no shortage of outrage and fear mongering and money that they can throw at the problem.

We have seen continued interest from the left wing of the Democratic Party and the right wing of the Republican Party agreeing that the status quo is unsustainable. Probably the biggest part of that would be Donald Trump himself endorsing the CCCA earlier this year.

What we are equally excited about is how much progress has been made at the state level on legislation that would ban swipe fees for small businesses that collect sales tax. If you buy a meal in Washington, D.C., or in Maryland or Virginia, you pay a sales tax. That’s money that I, as the restaurant owner, collect as sales tax and immediately remit to the local government. The fact that I have to pay the banks for the privilege of being a tax collector for the state is rich.

A very common sense solution should be that restaurants and small businesses do not have to pay swipe fees on money that’s going to the state that doesn’t go into their bank account.

Similarly, if you want to give a server a gratuity for a great service, restaurants are serving as a pass through. You saw legislation that passed in Illinois. It was immediately challenged by the banks; a district court ruled in favor of the Illinois legislature, and said they did have the statutory authority to pass legislation on this. It was not preempted by the federal government. It was appealed to a circuit court within minutes by the large banks. The Restaurant Law Center, which is part of the National Restaurant Association, filed an amicus brief in support of the lower court decision. But what we’re excited about on this is it shows that the bank’s grip on legislatures isn’t infinite.

You’re seeing legislation move in Delaware, Colorado, Pennsylvania and Rhode Island. This shows that it’s not a complete lock. The National Restaurant Association is sending our policy leads to testify in those states. What I’m hoping is that the passage of that brings people to take a closer look at why the U.S. has the highest swipe fees in the industrialized world.

And what are some of the smaller ideas from policymakers that you’re excited about or dreading?

Let’s ensure that privacy legislation is still written in a way that allows us to have apps that remember what your favorite dishes are, that remember how frequently you’ve come to our restaurant, and that we can offer you a discount as a loyal diner in the future.

We still have tariffs right now on European spirits and wine. That 3.8% profit margin for restaurants that serve alcohol, that is an absolute lifeline. They are not making money on the salads.They’re not making money on the dessert. They are making money on wine and spirits. When we still see tariffs on European wine and spirits that has an immediate impact on the bottom line.

How does the National Restaurant Association feel about the impending Sysco merger and other forms of consolidation within the supply chain? Does this pose a problem for restaurants?

I don’t know if it poses a problem. We know restaurants need a steady supply chain and steady access to quality produce and proteins.

Restaurant Depot seems to be more able to fill a niche for folks. We don’t see many people that are relying solely on Restaurant Depot. It seems more like it’s a quick stop in between. If Sysco’s acquisition of Restaurant Depot means that Restaurant Depot has access to Sysco’s supply chain that could result in expansion of Restaurant Depots into more communities.

We don’t have alarm bells that are ringing with our membership.

There are a couple of firms that own a huge percentage of the restaurant industry, even relative to a few years ago. Does this pose a competitive problem for small operators when individual firms or investment groups control tens of thousands of restaurant units?

It absolutely raises challenges, and it raises challenges on access to capital. It raises challenges on access to supply chains. But at the end of the day, you still see restaurant customers looking for that innovation, that diversity, and they want to see the new restaurants that come out.

So you think about James Beard Awards and Michelin stars, or just an innovative pizza place that opens in a neighborhood, there is still that opportunity to make that investment and move in. That tension that you raise on the growth of private equity or special purpose acquisition companies (SPACs) or larger brands, is why we still need to continue to have a policy environment and an economic environment where a chef can say that she’s gonna give it all she’s got. She’s gonna quit her day job and try doing this permanently.

We need to have that business environment, and that policy environment, where she can make that investment, and there’s a darn good chance that if she’s got the right business model, the right menu in the right neighborhood, that she can create an enduring, lasting restaurant

And that depends on things like loosening up the labor market or reducing swipe fees?

Exactly. But again we represent everybody, so we are very mindful of that, and we hear from our smaller members about the challenges that they face and that’s why, again, it’s finding those basic core issues, that say I can compete. I’ve got a better product than the larger guys, and we’re rooting for all of them.

What does a pro restaurant outcome look like for the 2026 elections? And how is the NRA moving toward that?

One of the biggest misnomers is it needs to be this candidate or this party or this platform that prevails after the elections. What I’ve learned during my 30 years working on the Hill or in the private sector is not to rely on any one member or any one political party to advance the restaurant industry.

There are members of Congress that we are diametrically opposed to on some of our priorities, and they are some of our biggest champions on others, and vice versa.

We’ve seen that there are policy priorities that Republicans aren’t pushing. We have ones that Democrats necessarily aren’t pushing. What we want is to see an agenda from both parties that reflects the importance of small business, the importance of creating a lasting workforce that every business on Main Street can tap into, and to have a regulatory and tax model that keeps government afloat, but also recognizes the unique challenges that some businesses like ours face.

The Trump administration’s policies have been inconsistent ranging from recognizable business Republicanism to erratic tariffs. Does this administration pose a unique challenge for trade associations that are looking to obtain specific policy outcomes?

It is not challenging; it has required a revamp of how you approach advocacy. What you saw during the George W. Bush, Bill Clinton, Joe Biden and Barack Obama administrations was a bottom-up approach.

What you have seen from the Trump administration is there’s a lot of unique top-down initiation of ideas and policy directives. Like the rest of the world, we hit reload on our social media pages frequently to see what the latest is.

We have very good connections with members of Congress and the executive branch, and it’s no different than a Trump administration. We are constantly not taking anything for granted. Yeah, we are constantly reminding Capitol Hill and the administration that we’re the nation’s second largest private sector employer, that we have the lowest profit margin of any business on Main Street, and that any idle idea — good, bad or indifferent — can have an outsized impact on us.

If President Trump, or the administration offers an idea, we can very quickly vet it with our membership and put forward a rapid response that says, “This is a great idea” or “We are neutral,” or “This is something we really want to engage with you on.”

Source https://www.restaurantdive.com/news/national-restaurant-association-tariffs-swipe-fees-delivery-tech/821552/

 

What To Do When Private Equity Buys Your Restaurant Franchise

It’s a time for due diligence and reflection, not panic.

Private equity’s appetite for franchises has surged over the past two years. Roark Capital bought Subway for nearly $10 billion and a majority stake in Dave’s Hot Chicken for nearly $1 billion. During the same period, Blackstone purchased Jersey Mike’s, and KKR acquired Nothing Bundt Cakes.

It’s not just restaurants, of course. Main Post Partners recently bought senior care franchise HomeWell. Overall, the trend shows no signs of slowing: Goldman Sachs cited a 40 percent industrywide jump in deal volume heading into 2026.

This might be good news for PE firms looking to maximize their return on capital, but what does it mean for franchisees? How should they approach a change of ownership?

They shouldn’t get overly excited—or anxious—until they’ve done their homework. Fortunately, there’s a great resource right at their fingertips. Reviewing the Franchise Disclosure Document (FDD) of other brands the PE firm owns will show how they operate, and what might be in the cards for newer franchisees.

Start with item 2 of the FDD, which discloses who runs the company, the officers, directors, and key executives. After a PE acquisition, this section might reveal significant leadership turnover. That tells you that the PE firm likes to install their own people at the top to call the shots.

That isn’t a bad thing in and of itself, but the new leadership team, particularly if they have an eye on growth and top-line revenue, might deviate from prior leadership by mandating new, higher marketing spend or technology investments. Alternatively, they might require franchisees to switch to higher-markup vendors. Any one of these moves can impact the franchisee’s bottom line.

As the next step in their due diligence, franchisees should dig into item 3 in the FDD, which discloses any material lawsuits, arbitrations, or government actions involving the franchisor or its officers and directors in the past 10 years.

A spike in litigation after a PE acquisition is a major red flag for the franchisees, though it’s important to know it may be seen as a positive by shareholders. Compare the volume and type of litigation from the years before the acquisition to the years after. A brand that jumps from two lawsuits pre-PE to 15 afterward is likely signaling a clear shift in the franchisor/franchisee relationship.

From there, franchisees should turn a careful eye towards the financials outlined in item 19 of the FDD. Look at the pre-PE ownership numbers versus post-PE ownership. Are average unit volumes going up, flat, or down? If the franchisor reports cost data, are margins stable?

That last point is important. Fees are covered in items 5 and 6 of the FDD, and together with item #19, they can help uncover any hidden financial headwinds that the franchisee might plan for. One example could show that revenues are going up at a franchise after a PE firm has purchased it, but profitability is going down because costs are now higher.

Alongside this document review, franchisees should speak directly with operators of other franchises who lived through the P/E transition. Every FDD is required to include contact information for all current franchisees in item 20. Aim to speak with 5-10 franchisees who were in the system before the PE acquisition and are still operating. These are the people who can tell you what changed for them and their business.

It’s also worth checking in with the Franchise Advisory Council (if there is one—some newer or smaller franchises may not) to get their feedback on the new corporate leaders and initiatives implemented.

With all this research in hand, franchisees should then do some financial scenario planning based on what they’ve learned.

Scenario 1: Everything stays the same—no new fees, flat sales. This is the exception.

Scenario 2: Sales are up significantly due to P/E investments in technology and marketing, with minimal increase in fees. This could create the perfect opportunity to improve site profitability and create excess cash available for growth.

Scenario 3: Sales are flat, or maybe go up a bit, but franchisees have new operational requirements, causing an increase to the labor line. This could create an increase in gross revenue with a corresponding increase in cost of services. Consider how this changes the picture?

Scenario 4: What if fees rise 2 percent and sales potentially decline? Can your P&L statement survive it? Do you, as a franchisee, want to try to survive it?

Running these scenarios gives franchisees clear gut checks on whether staying in the system under new ownership is viable or worth the effort.

A private equity acquisition should not be considered a death sentence for franchisees, but it isn’t a guaranteed golden ticket either. Never forget that the firms that buy a franchisor are laser-focused on their own returns.

The franchisees who come out ahead will be the ones who match that discipline with their own due diligence and reflection. Following a process similar to what was done during the original purchase decision is key. Do that work, and you’ll stay in control of your destiny, no matter who the owner is.

Cody Teets is a principal at The Transition Strategists and has 25 years of experience with McDonald’s working with franchisees.

Source https://www.qsrmagazine.com/story/what-to-do-when-private-equity-buys-your-restaurant-franchise/

 

Starbucks says its turnaround is ahead of schedule, but has a long way to go

The coffee shop giant, making the rounds of investor conferences this week, says it has plenty of capacity to build sales, especially in the afternoons.

Starbucks’ comeback under CEO Brian Niccol is running ahead of schedule, at least according to company executives.

But that doesn’t mean it’s finished.

Niccol, along with Starbucks CFO Cathy Smith, made the rounds of investor conferences this week, arguing that there remains plenty of customers out there to be had for the coffee shop giant.

“There’s still a lot of opportunity for us to grow transactions from where we are today,” Niccol said at the Bernstein Conference on Tuesday. “The reality is, we’re not all the way back to where our transactions were just in 2023, and we’re definitely not back to where we were in 2018 or 2019. So we have capacity to service more demand.”

Indeed, the typical Starbucks location finished the company’s 2025 fiscal year, which ended in September, with 15% fewer customers than it had in 2018, according to an analysis of company filings. The chain’s weakness in 2024 and 2025 erased much of its post-pandemic recovery.

Starbucks’ average-unit volumes, however, are up 31% over that period. Restaurant menu prices over that time are up over 40%. The company has largely generated sales growth through price hikes and by getting customers to buy food or add cold foam, syrups or flavorings to their beverages.

The chain’s average-unit volumes remain below where they were in 2023. So, while the company’s U.S. same-store sales rose 7.1% last quarter and its transactions were up 4.3%, it still has some way to go for a true recovery.

The market today, however, is vastly different from the one that existed back in 2018. 7 Brew, the fast-growing, drive-thru beverage chain, had just opened its first location the year before. Dutch Bros was largely a Pacific Northwest phenomenon with just over 300 locations.

Niccol, however, believes Starbucks has plenty of opportunity to capture more customers. “I believe there is demand out there, both in the morning and the afternoon,” he said.

Driving that increase will be a continuation of much of the chain’s actions to date: Improve speed in the coffee shops, get its different ordering channels in better shape, make those shops more inviting for in-restaurant customers and innovate more on the menu.

Company executives said that the brand changed too much of what made the brand special coming out of the pandemic. “We just drifted away from why people originally fell in love with Starbucks,” Niccol said. “You saw this drift in marketing, this drift in tech, this drift in operations and probably the most visible place where you saw the drift was in the experience when you walk in the stores.”

“We were understaffed and had hardened the restaurants,” he added. “In a lot of cases, we were building soulless experiences.”

Executives believe the afternoon remains the daypart with the most potential, with Niccol noting that “we’ve really just gotten started” on that time.

Seating on its own could help build sales in the afternoons. Starbucks historically has focused on the in-store experience, calling its shops a “third place” even though the bulk of its customers and revenue come from customers who take their drinks with them. But that experience is traditionally more important in the afternoons.

The chain under Niccol has made it a point to return seats to its shops, even in small shops without much lobby space, while baristas write on cups and customers can now get free refills on coffee.

Innovation is another area of focus that executives believe will build sales in the afternoons. The company’s matcha and Refresher platforms have already helped build sales, but Niccol believes the company can squeeze more juice from that lemon.

Starbucks has reduced the time it takes to develop new ingredients for beverages. For instance, he said, it would take 18 months to create a raspberry syrup. That’s now down to eight and the company wants that down to four to speed new products.

It is also adding to its Refresher program, including the option to boost the drinks with energy. The platform, which Starbucks created more than 15 years ago, has become a multi-billion-dollar seller for the brand. And now a bunch of other restaurant chains have introduced their own Refresher platforms.

“Usually, when you create great innovation on big platforms, big things continue to happen, and so that is our mantra,” Niccol said. “We are going to continue to innovate on these iconic platforms that we have.”

Source https://www.restaurantbusinessonline.com/financing/starbucks-says-its-turnaround-ahead-schedule-has-long-way-go

 

Panera parent JAB brings new leadership to consumer portfolio

The Luxembourg-based investment firm has named two co-heads of business development and portfolio management in New York and London.

The Europe-based parent to Panera Brands, Pret A Manger and more has new leadership.

Luxembourg-based JAB on Thursday announced a refresh of its boards and leadership team across its consumer portfolio companies.

David Serre and Emiliano Román have joined JAB as managing directors and co-heads of business development and portfolio management for consumer holdings.

Serre will serve as managing director, JAB Consumer, in London. He served previously at LVMH, where he spent six years with the Moët Hennessy executive committee. Before that, he held roles with Nestle in Switzerland, and served as head of strategy at Carlsberg in Copenhagen.

Román, meanwhile, is managing director, JAB Consumer, in New York.

He was previously with Rockefeller Capital Management, where he served as managing director and head of consumer and retail. Before that, he was managing director at Morgan Stanley, where he worked for nearly a decade, advising consumer and retail clients globally. Román is currently an independent director and audit committee chair on the Bagel Brands and Caribou Coffee, which are part of Panera Brands.

“We are delighted to welcome David and Emiliano to JAB,” said José Cil, JAB’s senior partner and global head of consumer, in a statement. “Their deep knowledge across the global consumer sector, combined with the collaborative mindset they bring, will strengthen our investment team and help our portfolio companies pursue their next phase of growth.”

JAB is also an anchor shareholder of Krispy Kreme, and a significant shareholder of Keurig Dr Pepper Inc. The Panera Brands division includes Panera Bread, Caribou Coffee, and Einstein Bros. Bagels. In addition to Pret A Manger, JAB also owns Espresso House, which is the largest branded coffee shop chain in Scandanavia.

Other consumer products under JAB fall in animal care services, pet insurance and beauty product categories.

Source https://www.nrn.com/restaurant-executives/panera-parent-jab-brings-new-leadership-to-consumer-portfolio

 

KFC plans to test a new prototype called Open House

The restaurant will open later this summer in McKinney, Texas, and will include table service and a drive-thru.

KFC U.S. likes what it sees from its spinoff concept Saucy so much that it continues to expand the fledgling brand into new markets, including outside of Florida for the first time since its debut in late 2024.

In fact, David Gibbs, now-retired CEO of parent company Yum Brands, said last year that the chicken tenders-and-sauce-focused Saucy will be one of the catalysts for KFC’s turnaround.

A year or so into that turnaround, it seems as though KFC now has plenty of other catalysts as well. During a recent interview, KFC U.S. President Catherine Tan-Gillespie said the chain is planning to test a new modern prototype called Open House later this summer in the Dallas suburb of McKinney, near Yum’s Plano headquarters.

“We’re taking the idea that we can do all the things with our system, but how do we jolt the system and jump forward a decade?” she said. “What would the reinvention of KFC look like if the (founder) Colonel (Sanders) was here today? How do we take all of his legacy, his DNA, to a next generation concept?”

Details about Open House are minimal at this point, but we know the menu will include both new items and signature items “packaged in a new way.” It will also feature a different experience than a traditional KFC, including table service, a drive-thru, and takeout. The goal is for Open House to inform how future KFC restaurants are built and how existing ones evolve over time.

“We’re looking at channel maximization. There will be digitalization but also a ton of customer experience because hospitality was key when the brand was born,” Tan-Gillespie said. “It’s the idea of serving hot chicken in a warm and welcoming environment with a bold new restaurant design. It’s the reinvention of product, promotion, and place.”

Product, promotion, and place are three out of the four Ps (along with pricing) serving as a roadmap for Tan-Gillespie’s comeback plan, put into place shortly after she was named to her position in April 2025. That plan has started to gain some traction, including three consecutive quarters of same-store sales growth following seven quarters of declines.

Tan-Gillespie said one of the objectives of Open House is to understand what happens if the company “holistically changes all four Ps in one restaurant.”

The initial concept will be company-owned, but she said a KFC franchisee has also agreed to develop one as well. More information is expected soon.

In the meantime, KFC also continues to experiment with new menu concepts, and Tan-Gillespie said there are at least 100 such innovations currently in some phase of consumer testing, most of which were introduced at the company’s global Marketing Planning Meeting, held in early May.

“We’re excited to see some of those happen in the next six to 12 months,” she said.

For now, we know KFC is pushing more aggressively into beverages, including dirty soda. We will also likely see some innovations from the company’s Kwench beverage platform that has expanded in a handful of global markets. In a recent statement, a company spokesperson said, “We are evaluating when Kwench will show up in the U.S.”

Yum’s current CEO Chris Turner also recently told analysts that KFC will offer “expanded flavors through sauces,” leveraging learnings from Saucy.

All this work is facilitated by KFC’s new “Global Innovation Hub,” launched in September. Turner described the hub as a “centralized database of historical products, tested ideas, and Collider concepts that will meaningfully shorten the development cycle.” Collider is a consulting firm Yum acquired over 10 years ago that provides “culture-based consumer insights.”

One thing we shouldn’t hold our breath for is the expansion of KFC China’s KPRO concept into the U.S. KPRO features a high-protein, lower-calorie menu with meals that are low in sugar and salt to cater to Chinese consumer preferences. It recently reached 300 locations in the market and is on track to reach 600 by year’s end.

In an email, a spokesperson from KFC Global wrote, “There are no current plans to expand the KPRO concept beyond China.”

That said, this industry knows better than to never say “never.” The KFC China team attended the annual Marketing Planning Meeting to share local best practices and exchange ideas with other markets.

Editor’s note: The original version of this story indicated that Open House was a spinoff concept from KFC. Rather, it is a new restaurant prototype with modernized features that differ from a traditional KFC restaurant.

Source https://www.restaurantbusinessonline.com/operations/kfc-plans-test-new-prototype-called-open-house

 

Cracker Barrel says recovery from logo fallout is ahead of schedule

Traffic is still down, but moving in the right direction, prompting the company to raise its revenue guidance for the fiscal year.

Customers are returning to Cracker Barrel faster than the company was expecting after last fall’s new-logo debacle sparked severe traffic declines.

Same-store restaurant sales in the quarter ended May 1 fell 2.6% year over year, a big improvement over the 7.1% decline in the previous quarter. Traffic was down 6.7%, compared to negative 10% in the prior quarter, and the underlying trend is pointing up, executives said.

The family-dining chain was so encouraged by the performance that it upgraded its outlook for its fiscal year, which runs through July. It’s now expecting total revenue of $3.27 billion to $3.3 billion, up from $3.24 billion to $3.27 billion previously.

That’s despite a tough comparison for this current quarter. Same-store sales rose 5.4% at the chain last summer, before consumers lashed out over a modernized logo and remodel plan that have since been scrapped.

“Again, the underlying trend is improving, and at this point we are over a month into the quarter,” CFO Craig Pommells said of the rosier estimate.

Related:Restaurant hiring is picking up

The better-than-expected results buoyed Cracker Barrel’s stock, which was up nearly 28% on Wednesday morning.

The company credited better operations and a steady drumbeat of menu additions for helping it to win back existing customers who may have strayed from the brand over the past year.

It has been focused on improving the consistency of its food and experience and said customer scores are reflecting that, including its Google star rating (up 4% year over year), food taste and service (5%) and temperature (7%).

Customers are also responding to Cracker Barrel’s strategy of bringing old favorites back to the menu, such as Sugar Cured and Country Ham dinners in the spring. For summer, popular Campfire Meals are returning, this time with a morning option, the Campfire Breakfast Skillet.

The chain believes it also has an advantage on value at a time when consumers are continuing to feel pressure from inflation. The average Cracker Barrel customer spends $15.85 for their meal, compared to $27 in casual dining and $19 in family dining, said CEO Julie Masino.

It has made some moves to both maintain that value and get customers to spend a little more, adding bundled duos and trios as well as the option to add more sides or breakfast proteins for an additional fee.

Lebanon, Tenn.-based Cracker Barrel did acknowledge that high gas prices could be a potential headwind going into the summer, and noted that it has seen softer demand from lower-income consumers. That helped inform a new marketing campaign, the Fuel Your Summer Road Trip Sweepstakes, which will give loyalty members a chance to win a $500 Cracker Barrel gift card and a $500 gas gift card with the purchase of an entree. Cracker Barrel will pick 25 winners each week from May 19 to July 26, with $250,000 in total prizes awarded.

“I think it really speaks to what people are feeling out there right now in terms of groceries and food are more expensive and gas is more expensive,” Masino said. “In a Cracker Barrel, we want people to still be able to enjoy their summer and know we’re an affordable option for them.”

The company has made strides on the bottom line as well. It significantly increased its expectations for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year, to $120 million to $125 million, from $80 million to $100 million — a 30% difference.

Executives largely credited efforts to boost check size as well as better operations that have cut down on food waste and labor costs.

“[Employees] are very focused on taking care of the guests, but also making sure that they’re doing things properly,” Masino said. “That’s improving waste, that’s improving the scheduling. All of those things are coming together really, really nicely.”

Cracker Barrel’s gift shops are also showing momentum. Retail same-store sales fell 1.8% in the quarter, marking the first time in over four years that Cracker Barrel’s shops outperformed its restaurants on same-store sales. Retail accounted for about 17% of the chain’s revenue in the quarter.

Masino said SKU rationalization, a new markdown strategy, and better merchandising, such as lower sight lines and wider aisles, are helping to bolster the retail business. Collectible salt and pepper shakers are selling well after taking off on social media, and a new selection of fidget and sensory toys have been popular with kids. Patriotic “American Heritage” items tied to America’s 250th birthday are also flying off the shelves.

Cracker Barrel benefited from some tariff relief following the Supreme Court ruling that deemed many of the Trump administration’s tariffs to be illegal. The chain filed a claim for $17 million in tariff refunds and received $5 million this quarter, which it expects to reinvest this fiscal year. It could see further reimbursements but has not factored that into its forecast for the year.

Total revenue for the quarter was $797.4 million, a 2.9% decline vs. last year. Net income was $42.8 million compared to $12.6 million a year ago, benefiting from a $47.4 million settlement agreement related to interchange fees.

The company finished the quarter with 657 Cracker Barrel locations and 52 Maple Street Biscuit Co. stores.

Source https://www.nrn.com/restaurant-finance/cracker-barrel-says-recovery-from-logo-fallout-is-ahead-of-schedule

 

How Authentic Restaurant Brands Revived Pollo Tropical’s Momentum

The fast casual has experienced 40 straight months of traffic growth and posting a nearly $4 million AUV.

Pollo Tropical CEO Dirk Montgomery describes the chain as an “icon” in the state of Florida.

Of the chain’s roughly 150 locations, about 80 percent are in the Sunshine State, and that’s a footprint and reputation built over nearly 40 years.

Today, it’s producing some of the strongest operating metrics in quick service.

The chain has generated 40 consecutive months of positive traffic growth since January 2023, excluding the impact of hurricanes that temporarily disrupted operations in October 2024. Through April 2026, same-store sales are up 15 percent on a two-year basis and traffic has increased 13.2 percent. Annual unit volumes have climbed to $3.85 million, while the business is generating an EBITDA run rate exceeding $100 million.

Pollo Tropical hasn’t opened a new unit in five years, but it plans to break that drought in 2027 with growth both inside and outside Florida.

These results didn’t happen out of thin air. Pollo Tropical required work.

Much of that happened under Authentic Restaurant Brands, which acquired the fast casual in 2023. Pollo Tropical was previously operated by publicly traded Fiesta Restaurant Group, which also oversaw Taco Cabana. Although the chain entered the restaurant group with a cult following, operations weren’t aligned. Admittedly, the company became too complex.

“The first thing that we saw is the brand was truly loved in the regions it served,” says ARB CEO Alex Macedo. “So all kinds of brand research that we did suggest that this was a loved brand. Now that doesn’t mean the ops scores and the guests were happy with the brand. They were actually pretty pissed.”

ARB received a concept that had been neglecting speed and customer service, offering an overly saturated menu, and not being managed correctly. Still, leadership saw the potential. Macedo says Pollo Tropical isn’t too different from Chipotle, but it has the added convenience of a drive-thru and is priced “way below” the Mexican giant. In fact, the chain is running at 1.8 percent pricing right now.

“Chipotle over the last 20 years has really taught the country how to eat chicken, rice, and beans—effectively what we serve. So we’re like, wow, this could be a huge business case because what we serve now is really contemporary,” Macedo says. “It’s high protein, it’s grilled, it’s not fried. Rice and beans are something that now people eat on a regular basis and we have the ability to do it through the drive-thru 30 percent cheaper than the competitor.”

Plus, Pollo Tropical doesn’t rely on beef, which has seen significant inflation—an advantage the company has over the likes of big players like McDonald’s and Burger King. And there is more whitespace. The fast casual has 122 units in Florida while Chipotle, KFC, and McDonald’s have hundreds. Given Pollo Tropical’s economics, including over 30 percent four-wall margins, Macedo believes it could double its footprint in Florida without venturing out of state. He also thinks it’s capable of going national too.

How did Pollo Tropical arrive at this inflection point?

Montgomery says the chain went back to its roots by focusing on four key areas, beginning with fixing the menu. Pollo Tropical ran over 50 LTOs in 2022, making life difficult for operations teams. In response, the chain shifted to longer promotional windows and eliminated a number of menu items and instead chose to elevate the core grilled chicken products that are marinated for 24 hours and provided fresh to the consumer. These items are what “made this brand a great brand since its inception,” according to Montgomery.

The TropiChop Bowl, which has been featured at $7.99 for two consecutive years, along with family meals and platters, represents roughly 70 percent of the business.

“What we found from refocusing on these core items in value and messaging them in our commercials was that we significantly increased and layered on the unit velocity of each of those items as we promoted them in a rotational way,” Montgomery says.

Another area of improvement was operations, specifically guest satisfaction and speed of service. For example, the chain simplified its menu boards. Beforehand, Pollo Tropical showcased highly customized offerings that required guests to go through each ingredient. Now, the menu is divided up numerically, meaning guests can order a No. 1 or No. 2 and so on, similar to other QSRs. This also allowed employees to process orders quickly because they immediately know what to put in each meal choice. This switch was combined with the implementation of workers taking orders outside in the drive-thru.

These efforts cut speed of service from five minutes to under three. Guest satisfaction has proportionately increased.

“Those are virtuous cycles because they go together,” Montgomery says. “Guests that get in and out of the drive-through quickly are happier guests.”

Pollo Tropical also reinvested in the late-night daypart, an area it pulled back on during COVID. Now the company is open until midnight systemwide.

The third major difference was optimized marketing through analytics—a strength of ARB. In addition to putting more weight behind core menu items and their value proposition, Pollo Tropical shifted its media mix toward platforms its customers mostly used, which are traditional TV and radio. Because of this change, TropiChop Bowl sales are up 10 percent year-over-year. Family meals (whole chicken beans, rice, and rolls for $21.99) and platters (half chicken platter for $10.29 offered in Q1) have seen a significant sales boost as well.

Pollo Tropical’s fourth transformation pillar is people and culture. The chain improved GM development and provided a career path mechanism for hourly employees. Last year, the fast casual had over 100 internal promotions of hourly workers into management.

“I think overall, we got back to the roots of the brand after we were acquired by ARB,” Montgomery says. “I think our thesis when I became the CEO, our strategy was very much aligned with ARBs in that we had a number of opportunities that would quickly turn around the business.”

The strategy isn’t over yet either. Soon, Pollo Tropical will begin testing self-order kiosks, hoping to see improved efficiency and notable increases in average check. Additionally, the fast casual wants to leverage its protein-heavy menu, especially given the surging popularity of the macronutrient. The chain found that an overwhelming majority of its customers are interested in getting more protein in their diets. Pollo Tropical has seven menu items with over 60 grams of protein, but awareness is still relatively low. So similar to the core value messaging, the company believes it has a big opportunity to communicate these nutritional facts more aggressively.

More double drive-thru restaurants are coming too. Most existing stores don’t have enough real estate to fit a second lane. However, all new restaurants will.

“We try to focus on things that we know are going to make a big impact without making the life of our team members more difficult. In fact, making their lives easier,” Macedo says. “Our turnover decreased dramatically when we started our strategy. With people having more tenure, scores are at an all-time high, so things just start to get into a virtuous cycle that’s very positive for us.”

In terms of becoming a national brand, Macedo and Montgomery didn’t turn away the idea of Pollo Tropical entering franchising.

“I think we’re very excited about the future. I think we have a lot of runway in our organic growth formula,” Montgomery says. “Very durable traffic drivers for existing units and even more opportunity with new units.”

Source https://www.qsrmagazine.com/story/how-authentic-restaurant-brands-revived-pollo-tropicals-momentum/

 

First Watch appoints CFO

Ashlee Weisser, who has worked at First Watch since 2023, takes over for the retiring Mel Hope.

Name: Ashlee Weisser

New title: Chief financial officer, First Watch

Previous title: Senior vice president, financial planning and analysis, First Watch

Ashlee Weisser was promoted to CFO on June 8, succeeding Mel Hope, who is retiring. Hope will shift to an advisory role, according to a press release.

Weisser originally joined First Watch in 2023 and has more than 15 years of experience with financial strategy. She has previously worked with other restaurant brands, including as CFO of Maple Street Biscuit Company. She has also worked at Bloomin’ Brands, Red Robin and Darden in various financial roles with increased responsibility.

“[Weisser] has strengthened our financial foundation, advanced key growth initiatives and built a high-performing team to support our continued growth and evolution,” Chris Tomasso, CEO and president of First Watch, said in a statement. “This promotion reflects both her track record and her leadership, and we’re confident she will continue to play a critical role in driving our long-term success and shareholder value.”

The promotion follows a restructuring at First Watch’s operations leadership, which included terminating COO Dan Jones. The chain’s operations team now reports to Tomasso.

First Watch continues to be among the strongest-performing casual chains, with consistent unit count growth and positive same-store sales increases during the last five quarters. The company expects to open between 59 and 63 net new restaurants this year, according to an earnings release. The chain has over 640 restaurants.

Correction: A previous version of this article incorrectly described Ashlee Weisser’s past role Darden. She worked as a marketing and financial analyst at Darden.

Source https://www.restaurantdive.com/news/first-watch-appoints-ashlee-weisser-cfo/822331/

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Foodservice Equipment

 

TurboChef, CookTek Make New Hire Abroad

The individual, based in Bogotá, Colombia, brings extensive culinary and foodservice industry experience to the role with the Middleby brands

TurboChef Technologies and CookTek have appointed Juan David Higuera as business development manager and corporate chef to support the brands’ growth initiatives across LATAM, Mexico and the Caribbean.

Higuera will work to drive strategic growth within chain accounts, the general market and distributor channels throughout the region. Working closely with in-country distributors and Middleby’s worldwide offices, Higuera will focus on expanding market presence, strengthening customer relationships and identifying new opportunities for TurboChef and CookTek solutions.

“We are thrilled to welcome Juan David to the TurboChef and CookTek team,” says Leslie Bañados, the brands’ SVP of global sales and marketing. “His industry expertise, technical knowledge, and passion for helping customers succeed make him an outstanding addition to our international sales organization. We are excited about the opportunities he will create for our distributors, customers, and brands across Latin America, Mexico and the Caribbean.”

Source https://www.fermag.com/articles/turbochef-cooktek-latam-mexico-caribbean-new-hire/

 

AIM National Adds Service, Names Director

Joe Carter will lead the company’s expansion into hot-side equipment installation.

AIM National, a national commercial foodservice installation company, has formally expanded its service capabilities to include hot-side equipment installation. The company has named Joe Carter as director of category management to lead the expansion.

Carter has spent nearly 20 years in commercial foodservice and has deep experience with cooking equipment, design-build projects and project coordination. He’ll oversee the company’s full hot-side installation practice, covering ranges, fryers, ovens, steamers, conveyor ovens and chef line buildouts.

Part of Zink Corp., AIM National also offers refrigeration and warewashing installations.

Source https://www.fermag.com/articles/aim-national-adds-services-names-director/

 

Why McDonald’s is removing self-serve soda fountains nationwide

For decades, the self-serve soda fountain occupied a familiar place inside American fast-food restaurants. It represented convenience, customization and one of the small freedoms attached to dining out cheaply and quickly. McDonald’s decision to gradually remove self-serve beverage stations from restaurants nationwide marks the end of a feature many customers barely noticed until it started disappearing.

The company plans to phase out the stations by 2032 as restaurants undergo remodels and modernization upgrades. On the surface, the change appears operationally minor. In practice, it reflects a much larger shift underway across the quick-service restaurant industry, where dining rooms matter less, digital ordering matters more and operational efficiency increasingly shapes every square foot of a restaurant.

The decision also reveals how major restaurant chains are rethinking customer behavior after the pandemic accelerated long-term changes already underway.

McDonald’s is redesigning restaurants around digital convenience
The modern McDonald’s restaurant no longer revolves around the dining room. Increasingly, it revolves around the drive-thru lane, mobile pickup shelves and delivery dispatch stations.

Over the past several years, fast-food operators have invested heavily in app ordering, loyalty programs and kitchen automation. Those investments accelerated during the pandemic, when drive-thru and delivery volumes surged while dine-in traffic collapsed. Even after restrictions lifted, many customer habits remained unchanged.

For McDonald’s, that has altered the economics of restaurant design.

Self-serve beverage stations once reduced labor demands by allowing customers to fill and refill their own drinks. Today, the equation is different. Restaurants handling higher volumes of mobile and delivery orders require tighter operational consistency across channels. A beverage station accessible only to dine-in customers creates a separate process that does not align neatly with app-based fulfillment.

Preparing drinks behind the counter allows restaurants to standardize portion sizes, improve inventory control and simplify cleaning procedures. Franchise operators also gain more control over maintenance and sanitation standards, both of which became larger concerns after 2020.

The change aligns with broader industry trends. Quick-service restaurants increasingly prioritize throughput, especially during peak periods. Kitchen layouts are being redesigned to support dual drive-thru lanes, dedicated pickup areas and automated workflows that reduce friction between ordering and fulfillment.

In that environment, customer-facing amenities once considered essential are becoming negotiable.

The dining room itself has steadily shrunk in importance. Many newly remodeled fast-food locations feature smaller seating areas, more self-service kiosks and layouts optimized for off-premise consumption. Some urban formats now operate almost entirely around pickup and delivery demand.

McDonald’s is not abandoning dine-in customers entirely. Instead, it is recalibrating the role physical restaurants play within a digital operating model.

The soda fountain became collateral damage in fast food’s efficiency race
The disappearance of self-serve beverage stations carries symbolic weight because the feature represented a particular era of fast food.

For decades, unlimited refills helped reinforce the perception of value that chains like McDonald’s cultivated aggressively during the expansion of American fast-food culture. Customers associated self-service with convenience and abundance. The soda fountain became part of the dining-room ritual itself.

Yet operational priorities inside restaurants have changed sharply.

Chains now face sustained labor pressure, rising food costs and growing demand volatility throughout the day. Franchise operators are under pressure to maximize throughput while limiting operational complexity. Small adjustments that improve consistency or reduce maintenance increasingly matter at scale.

A self-serve beverage station introduces several operational variables. Machines require frequent cleaning and monitoring. Customers create unpredictable beverage usage patterns. Dining rooms need more maintenance attention. Ice spills, sticky counters and supply replenishment all require labor hours.

Individually, those costs appear manageable. Across thousands of restaurants, they become meaningful.

The pandemic also accelerated sensitivity around shared public surfaces. Although customer concern over communal beverage stations has eased, many restaurant operators adopted stricter sanitation standards that remain in place today.

McDonald’s appears to view behind-the-counter beverage service as more compatible with its long-term operating strategy.

There is also a subtle shift in customer expectations. Younger consumers increasingly prioritize speed and convenience over prolonged dine-in experiences. Mobile ordering compresses the customer interaction into a shorter transactional process. Customers enter restaurants expecting efficiency rather than lingering hospitality.

That behavioral change affects restaurant design decisions in ways consumers may not immediately recognize.

Fast-food chains historically competed around visible abundance: larger dining rooms, refill stations and expansive menus. Increasingly, they compete around invisible operational systems that optimize fulfillment speed and digital engagement.

The soda fountain simply became less strategically important than the systems replacing it.

Beverage innovation is becoming more important than beverage access
While McDonald’s removes self-serve beverage stations, it is simultaneously placing greater emphasis on beverages as a growth category.

That distinction matters.Drinks remain one of the highest-margin categories in quick-service restaurants. Industrywide, chains are investing aggressively in specialty beverages, flavored refreshers and customizable drink platforms aimed at younger consumers.

McDonald’s has recently expanded beverage experimentation in response to growing competition from chains built around drinks rather than food. Starbucks helped establish beverages as a premium category years ago. More recently, chains such as Dutch Bros and Swig have demonstrated how customized sodas and energy drinks can drive significant traffic growth.

The rise of “dirty sodas,” flavored soft drinks mixed with syrups, creams and fruit flavors, reflects how beverage consumption itself is changing. Consumers increasingly view drinks as experiential purchases rather than simple meal accompaniments.

McDonald’s appears to recognize that trend.

The company’s beverage strategy now focuses less on unlimited refill access and more on product differentiation. From a business perspective, that approach offers stronger margin opportunities and more direct control over product presentation.

It also fits neatly into app-based marketing ecosystems. Customized beverages integrate naturally with loyalty programs, limited-time offers and targeted promotions. A digitally connected beverage strategy generates more measurable customer data than a traditional self-serve fountain ever could.

This reflects a broader transition occurring throughout fast food. Restaurant chains are evolving from standardized mass-service models into data-driven retail systems built around customer retention and operational optimization.

That transition changes how restaurants allocate labor, design physical layouts and prioritize menu development.

The removal of self-serve beverage stations may seem minor compared with larger industry disruptions involving automation or artificial intelligence. Yet the decision illustrates how incremental operational changes often reveal deeper structural shifts.

Fast food increasingly revolves around efficiency, predictability and digitally managed customer relationships. Physical dining spaces now support that ecosystem rather than define it.

For customers, the disappearance of the soda fountain may feel nostalgic. For operators, it represents another step toward a restaurant model built for a different kind of consumer behavior altogether.

Source https://foodchainmagazine.com/why-mcdonalds-is-removing-self-serve-soda-fountains-nationwide/

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Tabletop & FOH

 

How Statement Art Builds Brand Identity

Large-scale matador artworks at Beast & Butterflies Downtown restaurant bring the restaurant’s Spanish-inspired concept to life. The dramatic designs echo that heritage and spirit as well as create a stronger connection between what guests see, feel, and taste, explained Krista Birnbaum, Senior Art Curator at Eaton Fine Art, which curated the art collection for the restaurant located within the reimagninged M Social Hotel New York Downtown in the Financial District working with interior design firm Mazzarini & Co.

Diners are looking for places that feel special and memorable and statement art helps restaurants stand out while giving guests something to connect with, in addition to the food and beverage menu, she noted.

“People want more than a meal when they go out. They want an experience they’ll remember. A thoughtfully curated art collection helps create that feeling the moment a guest walks in. It sets the tone, creates energy, and gives the restaurant personality without distracting from the chef’s creativity. Art helps create that emotional connection. It adds personality, sparks conversation, and helps transport people into the concept.”

Express the Concept through Art
For the Beast & Butterflies project, the design team had a clear vision from the start, which helped create a smooth and thoughtful collaboration, Birnbaum said.

“The best partnerships are collaborative from day one. We see ourselves as part of the creative team. Our collaboration is to understand the concept and then express it visually through art. That means learning about the cuisine, the neighborhood, the atmosphere they want to create, and what makes the brand unique. Once we understand that story, we can curate art and accessories that feel natural and authentic to the space.”

While every project is a little different, it usually starts with listening and spending time understanding the operator’s vision, the design direction, the target guest they want to attract, and the feeling they want people to have in the restaurant, she said. The next step is curating a collection that support the story.

“Large-scale art can be incredibly exciting, but it has to be handled carefully. It needs to fit the room, work with the lighting, and enhance the guest experience rather than overpower it. Restaurants are active spaces, so you also have to think about traffic flow, durability, acoustics, and sightlines. When done right, large-scale art becomes a moment guests remember.”

Strong Design Tells a Story
The strongest restaurant design tells one complete story, Birnbaum said. If the menu is inspired by a certain culture or culinary tradition, the art collection can reinforce that.

“We want guests to feel like they stepped into somewhere special. The ideal experience is that everything feels connected: the design, the art, the food, and the mood. If someone leaves saying, ‘That place had such great food and energy,’ or ‘I can’t stop thinking about my meal and that space,’ then we’ve fulfilled our creative collaboration.”

Restaurant projects tend to be more immediate and sensory than other hospitality space, Birnbaum added.

“Guests are taking everything in at once; that includes the lighting, the sound, the food, and the design. So the art has to work beautifully in that moment and contribute to the atmosphere right away.”

Art and Food Speak the Same Language
Birnbaum advises operators interested in integrating art into their space to consider art as part of the overall concept, not something added at the end.

“Be clear about your story. What do you want guests to feel? What makes your restaurant unique? Once you know that, the right art choices become much easier. Also, don’t be afraid to be bold. Guests remember places that feel original, warm, and full of personality.”

Restaurant staff should be trained to tell guests about the art selections in a natural and simple manner. Something as easy as sharing that a piece was chosen to reflect Spanish culture or that the art ties into the neighborhood story can create a deeper connection for guests, she noted.

“The restaurant staff doesn’t need a long script. Just a few genuine talking points can go a long way. As we’ve noticed in curating art collections for hotels and resorts, guests love learning the ‘why’ behind a place.”

A curated art collection can complement many settings, but it especially resonates in lifestyle hotels, chef-driven concepts, destination dining spots, rooftop venues, and urban markets where competition is strong, Birnbaum said.

“In cities like New York, Las Vegas, or Miami, guests have endless choices. Strong design and a thoughtful art collection can be what makes someone choose your restaurant and also come back. When the art and food speak the same language, the whole experience feels much richer.”

Source https://modernrestaurantmanagement.com/how-statement-art-builds-brand-identity/

 

Restaurants Need to Look as Good as They Taste

The most memorable dining experiences cannot be defined by a single element. While quality food and service remain paramount, growing competition in the food and beverage industry and diners’ preference for visually compelling restaurants have introduced an emphasis on how the entire experience unfolds from the moment guests arrive to the moment they leave. This understanding of the current landscape helped drive the designs for Ramsay’s Kitchen at Harrah’s Valley River and the Gordon Ramsay Food Market at Harrah’s Cherokee Casino Resort, where a series of connected experiential moments creates a continuous guest journey rather than a singular focal point.

Experience as the New Competitive Edge
Today, restaurants face competition from one another in addition to the convenience of staying home, where delivery services provide an easy alternative. Guests are more intentional about where they spend their time and attention, prioritizing atmosphere, narrative, and immersion over function alone. To draw guests out of their homes, restaurants need to provide a distinct experience and atmosphere that cannot be replicated elsewhere.

Designing experiential dining environments comes with challenges that require creative solutions, as project teams are tasked with shaping perception and movement within existing architectural conditions. In the case of Ramsay’s Kitchen, the 12th-floor location and single elevator entrance create a vertically constrained arrival sequence with limited opportunities for gradual transitions. In response, the exhibition kitchen and main dining areas are strategically placed within view of the elevator arrival, with the layout opening toward framed mountain vistas to orient guests and build anticipation.

The arrival experience, once incidental, is now deliberately choreographed to set the tone. That narrative continues throughout the restaurant, expressed through spatial cues such as thresholds, material transitions, and subtle shifts in scale and lighting. Together, these elements intuitively guide movement and help guests understand how to engage with the space while reinforcing a sense of place and identity.

Immersive Dining Through Visibility
A key component of experience-driven design is visibility into the culinary process. Open kitchens, in particular, dissolve the traditional boundary between guest and chef, transforming food preparation into an integral part of the experience. Rather than concealing the work behind the scenes, they bring it forward, making it visible, dynamic, and engaging.

When thoughtfully integrated, the kitchen becomes a visual anchor, an active and ever-changing focal point that grounds the space without overwhelming it. Carefully composed sightlines allow guests to engage with the rhythm of service, reinforcing a sense of energy and immediacy. This transparency adds a layer of authenticity, inviting diners to connect with the craft in real time. Observing the coordination, timing, and precision behind each dish strengthens the relationship between execution and experience, making the kitchen and dining room feel like inseparable parts of the same moment.

Atmosphere as the Framework for Experience
As visibility increases, the atmosphere takes on an even greater role. It acts as the connective tissue that brings together materiality, sound, lighting, and activity into a cohesive environment. A well-designed atmosphere shifts seamlessly between moments of energy and calm, creating a rhythm that supports the overall dining experience.

The arrival sequence, in particular, should do more than welcome. It should transport. Guests should feel a clear departure from the ordinary the moment they cross the threshold. This sense of transition anchors the experience before a single dish is served and sets expectations for what is to come.

At Ramsay’s Kitchen at Harrah’s Cherokee Valley River, that sense of anticipation is built through a carefully choreographed entry. Accessible only via elevator, the journey culminates in a dramatic reveal. Doors open into a vestibule layered with bold finishes and oversized brand graphics. This intentional pause point invites guests to engage, orient themselves, and capture the moment, extending the experience into the digital realm. The design evokes the feeling of box seats at a theater, formal, immersive, and exclusive, setting the stage for what follows.

These threshold moments are critical. They establish tone, signal exclusivity, and create an emotional shift from exterior to interior. When executed well, the entrance becomes an immersive prelude to the dining experience rather than a simple point of access.

A successful restaurant also incorporates a distinct moment of surprise and delight, a wow factor that feels intentional and rooted in the brand narrative. At Gordon Ramsay Food Market, this takes the form of a large-scale installation, a 15-by-30-foot composition of vividly colored plates arranged into a Union Jack. More than decoration, it serves as a visual anchor and a natural gathering point, drawing guests in and encouraging interaction.

Ramsay’s Kitchen

At Ramsay’s Kitchen, the impact is more spatial and experiential. The rooftop setting is leveraged through carefully framed views, with each window bay treated as an intimate stage. Vibrant drapery introduces rhythm and contrast, while seating is oriented to maximize sweeping views of the Nantahala Forest and surrounding mountains. The result is a series of curated vantage points that feel both expansive and personal, reinforcing a strong connection to place.

The rooftop terrace extends this experience even further. Lounge seating, integrated shading systems, and a thoughtfully developed cocktail program encourage guests to linger, layering the experience beyond the dining room and reinforcing a sense of destination.

Designing for Memory and Shareability
This attention to composition extends beyond the physical space into how the experience is remembered and shared. In an era shaped by social media and digital storytelling, restaurants must perform both in person and on screen. Moments are no longer fleeting. They are captured, curated, and shared widely.

Design decisions are increasingly evaluated for how they translate visually, how moments are framed, and how they resonate beyond the immediate experience. Key touchpoints must hold their impact even when removed from the full sensory environment, shaping how the experience is recalled through imagery and memory.

Ultimately, what defines today’s most compelling dining environments is not a single design gesture, but the way multiple layers work in concert. From visibility into the kitchen to the structuring of atmosphere, and from arrival sequences to moments of surprise, each element contributes to a cohesive system where execution, perception, and environment are deeply intertwined. It is within this interplay that restaurant design moves beyond backdrop and becomes an essential part of the experience itself.

Megan Lamontagne, NCIDQ
Linkedin Website
Megan Lamontagne, NCIDQ, is an Interior Designer and Associate at JCJ Architecture, where she serves as a trusted resource to clients and project teams alike. With more than 12 years of experience, she brings a thoughtful balance of creativity, technical expertise, and strategic problem-solving to every project. Her deep understanding of materials, durability, and operational functionality allows her to create environments that are both visually compelling and highly functional, delivering design solutions that elevate the overall guest experience.

Source https://modernrestaurantmanagement.com/restaurants-need-to-look-as-good-as-they-taste/

 

How to Be Remembered, Repeated, and Recommended

Because a majority of potential guests encounter a restaurant online before ever walking in the door, having a clear digital footprint is critical for restaurant success, explained Vanessa Errecarte, personal branding expert at UC Davis Graduate School of Management.

“If you don’t shape your digital presence, something else will. That might be outdated reviews, random photos, or AI-generated summaries pulling incomplete information. No presence doesn’t mean neutral, it means invisible or misrepresented.”

Without a clear digital footprint, a restaurant loses control of its own story, becomes interchangeable, and must rely on chance discovery, the author of Valuable & Visible: Redefining Personal Branding by Leading With Impact Over Image, noted.

Tell Your Own Story
“Most restaurants think they need a dramatic origin story. They don’t. The best stories are already there, they’re just too close to notice.”

To find a restaurant’s unique story, she said, start with your customer: What do they struggle with? What do they want to feel when they dine with you? Then look at your experience: What do you care about that others overlook?

The strongest brands are built by being known for something specific that helps the customer.

For example, a restaurant that quietly prioritizes accommodating dietary needs can tell that story through “how we make ordering easier for you.” Maybe there is even an employee who has a family that struggles with allergies and that story can be layered with that post. A chef who values simplicity can show it by explaining why fewer ingredients often create better dishes. Then she can show you how to try it at home because it might make cooking great meals less intimidating and twice as delicious, Errecarte suggested.

People often think a restaurant’s brand is the logo, the menu, or the aesthetic, but that’s not the whole story, she said, it’s what people remember and repeat when you’re not in the room.

“The strongest brands are built by being known for something specific that helps the customer.”

For example, a chef who posts short videos explaining why certain ingredients are used, and what to order if you like or dislike them or an owner who regularly shares “what I’d order tonight and why,” helping guests feel more confident walking in.

“Personal brands and restaurant brands work best when they reinforce each other. The person becomes the voice of the thinking, and the restaurant becomes the place where that thinking comes to life. And personal profiles are always prioritized by the algorithms on social platforms, so if you have a team of people who are encouraged to build strong personal brands, you’re at an even greater advantage.”

Personal Brands Don’t Promote, They Help
Many people resist personal branding because the biggest misconception is that it’s self-promotion, Errecarte said.

“It feels performative and unnecessary, and done that way, it is. But the best personal brands don’t promote, they help. That help gains consumer trust, which causes a chain of what I call the three Rs: being remembered, repeated, and recommended.”

Another misconception is that personal branding is about posting constantly or building a following. In reality, most restaurants aren’t invisible, they’re just not memorable because they don’t help enough to gain trust, so the chain of the three Rs is never activated, she added.

For example,posting food photos without context such as “Our new dish is here!” gives people nothing to remember and everyone does it. Instead, posting a quick explanation such as “This is our most ordered dish, but here’s what regulars get instead” or “here’s how regulars modify it to be extra spicy” gives people something to act on, try, experience good outcomes, gain trust, and naturally activate the three Rs, Errecarte suggested.

“Personal branding isn’t about being louder. It’s about being clearer and more useful. You don’t need to share everything. Share consistently in how you explain your menu, guide decisions, and interact with guests. Helpfulness will always lead to trust and the three Rs.”

If self-promotion feels uncomfortable, that’s actually a good sign, Errecarte said, because it means you care about being genuine.

The best alternative is to shift from promoting yourself to teaching your customer. Instead of “Come try our brunch,” share “If you’re choosing between sweet and savory, here’s how to decide based on your mood” Instead of “New cocktail launch,” explain “Why this cocktail tastes smoother than it looks, and who it’s perfect for” or “three ways to make this at home, depending on your budget.”

“This approach gives immediate value and builds trust at the same time.The best marketing doesn’t feel like marketing. It feels like someone helping you make a better choice. It’s trust and the three Rs.”

Use AI as a Competitive Tool
The biggest misstep people make with personal branding is blending in while trying to stand out, and in the age of AI, it’s not just a misstep, it actually flattens you, Errecarte said.

“Competence and commonness is categorized at scale because large language models are not grouping patterns rather than trying to reward the highest volume of keywords. That means that gambling with the same content over and over because you think you’re getting rewarded y keywords is only giving you more chances to train the new LLM algorithm to categorize you.”

For example a reel showing a plated dish with music might look great, but it’s interchangeable with hundreds of others. In the age of AI, that signals you have nothing new to offer consumers, she said.

“A post that says ‘If you like spicy food, skip our most popular dish and order this instead’ immediately stands out. LLMs aren’t used to seeing restaurants tell consumers not to order something. All of a sudden, you’re given your own line in search data and you’re stopping social scrolls when you think counterintuitively.”

The fix isn’t to post more, it’s to say something novel, counterintuitive, or surprising, Errecarte offered. Ask: What do we see or do differently than other restaurants? Then package it into easily consumable statements like this:

“Everybody thinks _____. It’s really _____.”

“We’re all wrong about _____. _____ is really how.”

AI is a powerful tool, but it should support your thinking, not replace it, Errecarte said.

“The risk is content that sounds polished but generic. And generic content is exactly what gets ignored. AI’s job is to give you the most common content that it categorizes because it thinks those are the right answers. But online, common leads to information being grouped together and invisible.”

The best way to use AI is to organize and speed up what you already know Among her suggestions:

Use AI to turn a chef’s real explanation of a dish into multiple captions or short posts

Use AI to draft variations of a message, then refine it with your actual voice and experience

Better yet, use AI to question the question. Ask it about the points of views you are missing. Ask it for twenty. Can you imagine all of the ideas you’ll get to insert into the templates I shared above?

“AI is either the smartest tool to help you beat its algorithm or the quickest way to be compressed. It all depends on how you approach it. If you rely on AI to generate the answer instead of work with it to generate new ideas, then you’ll sound like everyone else. Authenticity doesn’t come from the tool, it comes from your ability to think differently.”

Most restaurants are competing for attention, the ones that stand out compete for understanding, said Errecarte. People rarely stop for information they already know, she said, adding that they stop for ideas that change how they think or what they choose.

“You don’t stand out by posting more. You stand out by making people pause. That usually happens when you say something slightly unexpected or clearly helpful. For example, ‘Everyone orders this dish. Here’s why we don’t recommend it for first-time visitors’ or ‘If you only come here once, this is the one thing we’d want you to try, and why.’”

Source https://modernrestaurantmanagement.com/how-to-be-remembered-repeated-and-recommended/

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Food & Beverage

 

Lavazza launches single-serve coffee pods without packaging

Tablì brings a first-to-market product to the U.S. and is a key point of the Italian company’s growth strategy in North America.

Lavazza is launching a single-serve coffee product in the U.S. without individual wrapping or coating.
Tablì is a single-serve coffee tab without packaging that creates what Lavazza calls “cafe-quality espresso with no setup, grinding or measuring required.” The coffee capsules and the device that brews them were initially launched in Italy.
With the introduction of Tablì to the U.S., Lavazza is expanding its presence in the coffee capsules segment, which is dominated by Keurig and Nestlé ’s Nespresso. But in an effort to differentiate itself, Lavazza is embracing a package-free option.

Dive Insight:
Lavazza’s investment marks its biggest investment in the U.S. and kicks off the coffee maker’s efforts to grow its presence in the market, the company said in a statement.

The size of the global coffee pods market was estimated at $40.49 billion in 2024, according to Grandview Research. It is projected to reach $58.19 billion in 2030, a compound annual growth rate of 6.1%.

Lavazza’s pod-free device and coffee capsules tap into growing interest in single-serve beverage solutions, as well as the desire for cafe-like experiences at home by cash-strapped consumers.

The tabs also offer an alternative to traditional coffee pods that could appeal to environmentally conscious consumers. Competitors in single-serve coffee have created reusable coffee filter cups to eliminate waste, but Lavazza’s option is unique in that it doesn’t require an add-on to a machine or any packaging.

The device and pods are the result of five years of research and development and more than 15 patents, the company said.

The tabs will be available in five blends: Super Crema, espresso, double espresso, lungo and decaf. The official U.S. launch will begin in August, with the products debuting on Amazon later this year.

“Tablì eliminates the trade-off between quality and convenience entirely – it’s a true multisensory experience: coffee you can smell, feel, and see before it ever brews,” Daniele Foti, vice president of marketing for Lavazza in North America, said in a statement. “Tablì is more than a product innovation – it’s how we establish Lavazza as a brand that genuinely matters to American coffee drinkers.”

Privately held Lavazza Group had revenue of 3.9 billion euros, or about $4.5 billion, in 2025, a 15.7% year-over-year increase. The company has a presence in more than 140 countries.

Source https://www.fooddive.com/news/lavazza-coffee-pods-no-packaging-tabli/822359/

 

Beverages dominate in Circana’s 2025 Pacesetters

CHICAGO — Taste, health and convenience continue to be major growth drivers for new products, according to the 2025 New Product Pacesetters report from the market research firm Circana.

The report, produced annually by Circana, underscored consumers’ rising interest in balanced, healthy offerings and elevated products.

“The biggest risk in CPG today isn’t a failed launch — it’s failing to launch at all,” said Sally Lyons Wyatt, executive vice president and global adviser for Circana. “Innovation isn’t just a strategic priority — it’s the growth engine. The brands breaking through are the ones meeting consumers where they are: balancing health with enjoyment, fusing brand equities through smart collaborations, and showing up in digital spaces where discovery now begins. The playbook has fundamentally changed, and the companies that recognize that are the ones on our Pacesetters list.”

Kendal Nutricare Ltd. earned the top spot among the food and beverage pacesetters for its Kendamil organic infant formula. The company brought the product from the UK market to the US market for the first time in 2025, generating $303 million in sales.

“(Kendamil’s formula) had less than 1% trial in year one, but with three quarters of those consumers coming back and purchasing, reflecting not only the frequency of feeding a new baby, but importantly, a formula that works and doesn’t cause digestive upset,” said Lisa Maas, vice president of innovation at Circana, in a webinar.

Beverages accounted for the majority of the top 10 pacesetters, with carbonated, sports and energy drinks generating the largest dollar contribution. The beverage cohort was led by energizing offerings, with the No. 2-ranked Bloom sparkling energy drinks and the No. 3-ranked Red Bull pink edition garnering $268.6 million and $201.9 million in sales, respectively.

Carbonated beverages occupied the No. 4 and No. 6 slots in the report, with $92.2 million in sales from Keurig Dr Pepper’s Canada Dry fruit splash cherry ginger ale and $87.2 million in sales from the Coca-Cola Co.’s Sprite chill variety. Other beverages in the top 10 include: Oikos pro yogurt drinks and shots at No. 5 with $91.6 million in sales; Talking Rain Beverage Co.’s Sparkling Ice Starburst at No. 7 with $83.7 million in sales; and the Coca-Cola Co.’s Topo Chico Sabores at No. 8 with $75.6 million in sales.

“2025 Pacesetters marked a clear return to beverages, whether that was delivering on new flavors or refreshment experiences,” Maas said.

Rounding out the list were the ninth-ranked Fruit Riot frozen fruit pieces from Beyond Better Foods LLC ($74.2 million in sales) and tenth-ranked King’s Hawaiian soft pretzel bites ($73.4 million in sales).

“This year’s Pacesetters class proves that winning innovation is about more than a great product — it’s about creating moments consumers want to experience, share, and come back to,” Maas said. “From Fruit Riot turning frozen fruit into a cultural candy moment to Red Bull pink edition bringing three million new households into the franchise, the most successful launches of 2025 engaged consumers on an emotional and sensory level.”

Source https://www.foodbusinessnews.net/articles/30478-beverages-dominate-in-circanas-2025-pacesetters

 

Plant-based milks face their next test at the coffee counter

Plant-based milk brands once competed on supermarket shelf presence, sustainability claims and nutritional comparisons with dairy. Increasingly, however, the decisive test happens behind the espresso machine.

Coffee culture has evolved into one of the most influential product development drivers in the alternative dairy sector. For brands hoping to secure long-term growth, performance in hot beverages is no longer a niche requirement aimed solely at cafés. It is becoming central to consumer perception, repeat purchasing and premium positioning.

The challenge is highly technical. Plant proteins react unpredictably under heat and acidity, making it difficult to create products that foam consistently, resist splitting and complement coffee flavour profiles. Consumers may tolerate slight imperfections in cereal bowls or smoothies, but coffee drinkers tend to be unforgiving. A poor café experience can damage a brand quickly.

This shift reflects wider changes in consumer habits. Coffee consumption continues to expand globally, particularly among younger urban consumers who increasingly view café culture as part of their daily routine. At the same time, plant-based adoption has matured beyond early sustainability-driven consumers. Shoppers now expect alternative milks to perform as well as dairy across every application.

That expectation is forcing manufacturers to rethink formulations, ingredient sourcing and product positioning.

The result is a new generation of coffee-specific plant-based milks designed around texture stability, foamability and flavour neutrality. Barista editions have moved from specialist café products into mainstream retail channels, often carrying higher margins than standard alternatives.

For producers, coffee compatibility is no longer simply an additional feature. It is becoming a commercial necessity.

Why baristas have become key gatekeepers
The importance of café adoption extends beyond direct sales volumes. Coffee shops increasingly operate as trial environments where consumers form opinions about plant-based brands before purchasing them for home use.

A positive café experience can drive retail demand. Equally, a curdled cappuccino or weak foam structure can undermine confidence instantly.

Baristas therefore hold unusual influence within the plant-based beverage ecosystem. Their preferences often shape which products achieve visibility and credibility in competitive urban markets.

This has led brands to invest heavily in barista partnerships, café training and formulation adjustments aimed specifically at professional coffee preparation. Texture, steam tolerance and latte art performance now carry significant marketing value.

Oat milk’s rise over the past decade illustrates the importance of this dynamic. While sustainability messaging played a major role in consumer awareness, oat milk’s compatibility with coffee helped accelerate mainstream adoption. Compared with almond or coconut alternatives, oat formulations generally provided a creamier texture and more stable foaming characteristics, making them attractive to cafés seeking reliable dairy alternatives.

That success has intensified competition among ingredient suppliers and beverage manufacturers. Companies are now exploring combinations of oats, peas, fava beans and other protein systems to improve functionality while maintaining clean labels.

The challenge is balancing technical performance with consumer expectations around ingredients. Many shoppers remain wary of stabilisers, gums and highly processed formulations, despite the fact that such ingredients often improve performance in coffee applications.

This tension between functionality and label simplicity is becoming one of the defining formulation challenges in the category.

Manufacturers are also under pressure to improve nutritional value. Traditional almond and oat products have occasionally faced criticism for relatively low protein content compared with dairy milk. New formulations increasingly aim to deliver café-ready performance while strengthening protein credentials.

The coffee occasion, once viewed as a secondary use case, has effectively become a proving ground for broader product quality.

The economics behind the barista boom
The commercial opportunity surrounding coffee-focused plant-based products is substantial.

Premium barista editions typically command higher pricing than standard refrigerated alternatives. Consumers appear willing to pay more for products associated with café-quality experiences, particularly in urban markets where specialty coffee consumption remains strong.

For retailers, this creates an attractive premium segment within a category that has faced growing competitive pressure and slowing growth rates in some regions.

After years of rapid expansion, parts of the plant-based milk market have entered a more mature phase. Inflationary pressures and increased scrutiny around ultra-processed foods have also complicated category momentum. In this environment, coffee-specific positioning offers brands a clearer route to differentiation.

Foodservice channels remain especially important. Large coffee chains continue expanding dairy-free offerings as consumer demand rises for lactose-free, vegan and flexitarian options. Plant-based milks are increasingly treated as standard menu components rather than specialist add-ons.

Some café operators have also removed surcharges for dairy-free alternatives, reflecting changing customer expectations and competitive dynamics. That shift may further normalise plant-based milk consumption in coffee applications.

At the same time, ingredient innovation is accelerating. Suppliers are developing enzyme technologies, protein blends and emulsification systems aimed at improving heat stability and mouthfeel while reducing ingredient complexity.

Sustainability considerations remain influential as well. Water usage, carbon emissions and agricultural resilience continue shaping investment and procurement decisions across the beverage sector. Oats have benefited from relatively favourable sustainability perceptions, though concerns around monoculture farming and processing impacts are beginning to receive greater attention.

Brands therefore face pressure on multiple fronts. Products must satisfy baristas, consumers, retailers and sustainability targets simultaneously.

That complexity is reshaping research and development priorities across the industry.

What comes next for plant-based coffee culture
The next phase of plant-based milk competition is likely to focus less on basic substitution and more on specialised performance.

Manufacturers increasingly recognise that consumers are not simply searching for non-dairy alternatives. They want products tailored to specific usage occasions, whether that involves protein shakes, cooking applications or flat whites.

Coffee sits at the centre of that evolution because it combines sensory expectations with emotional purchasing behaviour. Consumers often associate coffee routines with comfort, identity and daily rituals. Any product used within that ritual faces exceptionally high standards.

This may encourage further segmentation within the market. Products designed for espresso drinks, cold brew beverages or ready-to-drink coffee applications could become more common. Functional ingredients, including added protein or adaptogens, may also gain traction within café-oriented beverages.

Meanwhile, dairy producers are unlikely to concede ground easily. Traditional milk continues to hold advantages in flavour familiarity, protein functionality and cost efficiency. Hybrid dairy and plant-based blends could emerge as another area of experimentation.

Regional differences will also shape category development. European consumers may prioritise sustainability and texture, while North American markets could place greater emphasis on protein content and wellness positioning. Asian markets may continue driving innovation around soy and other established plant proteins.

What remains clear is that coffee has become one of the most influential competitive arenas in alternative dairy.

For plant-based brands, success increasingly depends not only on what happens in supermarket refrigerators, but on whether consumers enjoy the first sip of their morning latte.

As the category matures, the companies capable of combining functionality, nutrition and café-quality performance are likely to define the next chapter of plant-based beverage innovation.

Source https://foodchainmagazine.com/plant-based-milks-face-their-next-test-at-the-coffee-counter/

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HVAC & Plumbing

 

HVAC Manufacturers Respond to Growing Data Center Backlash

Community protests have delayed $156 billion in data center investments

By 2030, data centers could require $6.7 trillion in global infrastructure investment, according to McKinsey & Company. For the HVAC industry, capturing part of that growth means navigating increasing public resistance to data centers over concerns tied to energy use, water consumption, utility costs, and noise.
It’s a delicate balance, and one that major manufacturers are navigating by encouraging transparency, education, and developing new equipment at an accelerated pace.

“The most important thing that the industry and our communities hear is that we’re listening, we’re innovating at a pace that’s far more rapid than we ever have in the past,” said Aaron Lewis, chief commercial officer, global data center solutions at Johnson Controls. “We intend to always provide the most sustainable solutions and be the voice of our communities to our customers.”

Data Center Backlash
Deloitte forecasts AI data center power demand to rise 30-fold, from 4 gigawatts in 2024 to 123 GW by 2035. Inevitably, that means more communities will protest them, citing concerns about water consumption, noise, utility costs, and property values.
According to Data Center Watch, 48 data center projects were delayed or blocked due to local opposition in 2025, totaling over $156 billion in potential investments. This occurred across 42 states and accelerated in the back half of 2025.

Much of the resistance comes from residents and activist groups. In Prince William, Virginia, a $24.7 billion project was delayed due to widespread opposition.

“Data center growth is happening in a more visible environment today, with understandable questions around energy use, water, and overall impact,” said Matt Orcutt, vice president, strategy and systems product management, commercial HVAC Americas, Trane. “At Trane, we see that as a reason to lead with even greater clarity around sustainability and performance.”

A proposal announced by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez aims to put a moratorium on the construction of AI data centers. The temporary ban, the legislators say, would give the federal government time to create safeguards for AI.
State and local governments are also acting. In Michigan, a bipartisan group of lawmakers proposed a halt to the construction of all data centers through April 1, 2027.
“There’s greater scrutiny during permitting and within local communities, so owners are increasingly looking for solutions that are not only capable, but also efficient and measurable,” said Greg Jeffers, vice president, data center solutions at Daikin Applied Americas.

Manufacturers Respond
HVAC manufacturers are responding to backlash by focusing on project-specific solutions that meet efficiency goals. They’re also pushing for education at the local level so communities are better informed.
“While public scrutiny is part of the broader context, the emphasis on efficiency is largely driven by operational and economic realities, and that’s what we are seeing shape decision-making on the ground,” said Jeffers.
Here are a few ways HVAC has addressed the most common problems levied against data centers:

Water Usage
Many newer data centers are reducing water use with closed-loop systems, where water is recycled through heating loops. Newer facilities are shifting toward radiators or dry coolers over cooling towers.
“As AI workloads intensify and rack densities rise, cooling strategies are evolving with them. Liquid cooling is one example of how the industry is adapting to higher-density environments and changing thermal demands,” Orcutt said.

Utility Costs
HVAC manufacturers are helping optimize the power usage effectiveness of data centers. Previously, OEMs provided standard commercial equipment for data centers. Today, equipment is purpose-built for data centers to better match temperature requirements.
“We just made an acquisition of a company called Alloy … that’s going to help us be far more efficient … retrieving the heat from the servers and from the chips … or discharging the heat from the chiller,” said Lewis.
Jeffers said there is growing interest in approaches that make better use of energy. This includes opportunities for waste heat reuse as more data centers investigate producing their own power. This could assuage concerns over energy consumption.
“In practice, those opportunities tend to be highly site-specific and depend on having the right infrastructure and end-use demand in place,” he said.

Noise Levels
Manufacturers are emphasizing quieter cooling technologies, including magnetic-bearing chillers and variable-speed fan systems designed to reduce noise pollution.
“We’re looking much more clearly at the sound, not just at full load in the middle of the day, but when people are at their houses, when they’re in their backyards … in the mornings before school, in the evenings when they get home,” said Lewis. “Generally, those are your off periods.”
Overall, Orcutt said it’s about providing transparency around performance. That includes closed-loop system architecture, products, and AI-enabled controls.
“As a technology partner, we take a systems-level approach from co-design through deployment and optimization, helping customers align performance needs with long-term operational and sustainability goals,” he said.

Evolving Technology
Despite these developments, backlash continues to grow. It comes down to the limited public understanding of rapidly developing cooling technology. Lewis said that in his 30 years as an engineer in the industry, he has never seen new innovations released at the pace they are now.
“Two things I think we need to do is, we need to do a better job of communicating all around, top to bottom, all the great things that have been done … but also we need to promote some of the positive attributes,” Lewis said.
Jeffers agreed, saying due to that speed, flexibility is becoming paramount to ensure cooling technology doesn’t become outdated or incapable of scaling.
“The projects that will hold up best over time are those designed with adaptability in mind, as cooling technologies and density requirements continue to evolve,” Jeffers said.
Orcutt said thanks to advancements in HVAC technology, Trane doesn’t view sustainability and growth as competing priorities. Instead, the future depends on solving for both.
“More broadly, these shifts reinforce the value of systems-level thinking — not just about individual pieces of equipment, but about how efficiency, resilience, scalability, serviceability and long-term performance come together,” Orcutt said.
The Air-Conditioning, Heating, Refrigeration Institute is also developing North America’s first Environmental Product Declaration Program for the HVACR and water heating industry. The AHRI Certified EPD Program, known as ACE, calls for standardized lifecycle data to enable more accurate measurements and the reduction of environmental impacts.

What Should Contractors Do?
Contractors working on these projects can help address backlash as well. Manufacturers are recommending the same approach they’re taking: be as transparent as possible.
“For contractors, data centers and AI factories represent a meaningful opportunity to apply system expertise across installation, service and long-term support,” Orcutt said. “As these projects become more complex, there is growing value in capabilities that extend beyond execution alone — including integration, maintainability, scalability, and long-term performance.”
Jeffers said Daikin Applied Americas said that as systems become more complex, cross-functional alignment becomes essential for contractors.
“Design and engineering firms must evaluate new cooling technologies constantly to make sure they can be successfully deployed. This happens by making the right thermal architecture decisions upfront,” said Jeffers.
A positive attribute to tout is the job opportunities data centers create, both for HVAC and communities. Lewis said data centers themselves don’t employ many people, but all the infrastructure required to service them can support hundreds and thousands of local jobs.
“The best way to really understand how we can impact the communities, what’s most important around saving water or electricity? That information is going to come from the contractors that are on the ground on these sites,” Lewis said.

Source https://www.achrnews.com/articles/166310-hvac-manufacturers-respond-to-growing-data-center-backlash

 

Showcasing HVAC Excellence on a National Stage

As the HVAC industry continues to navigate an ongoing skilled labor shortage, efforts to attract, develop and celebrate top talent have become increasingly important. One event helping to shine a spotlight on the profession is the ServiceTitan National HVAC Championship powered by Trane, which brings together some of the industry’s most talented technicians and apprentices to compete on a national stage.

Now entering its fifth year, the championship has evolved into more than a skills competition. It serves as a platform for showcasing technical excellence, promoting career opportunities in the trades and inspiring the next generation of HVAC professionals. By highlighting both emerging and experienced technicians, the event reinforces the value of hands-on expertise while helping raise awareness of the rewarding career paths available throughout the industry.

Supply House Times spoke with Paige Burns, marketing leader, residential HVAC at Trane to discuss the company’s continued support of the championship, how the competition has grown over the years, and the role events like this play in strengthening the HVAC workforce pipeline.

What does Trane’s continued sponsorship of the ServiceTitan National HVAC Championship powered by Trane mean for the company and its commitment to the skilled trades?

Trane’s continued sponsorship underscores our long-term commitment to elevating the skilled trades. Supporting the ServiceTitan National HVAC Championship powered by Trane allows us to celebrate the professionalism, expertise, and essential contributions of technicians across the country. It also reinforces our belief that the future of our industry relies on investing in the people who keep it moving.

How has the competition evolved over the past five years, and what can participants expect in 2026?

Over the past five years, the competition has grown significantly in scale, visibility, and technical rigor. We’ve introduced more advanced challenges, such as a semifinal that includes diagnosing Trane equipment, to reflect current field possibilities. In 2026, participants can expect even more immersive, hands-on competition environments, expanded media coverage, and a finals experience in Chicago that raises the bar once again.

What skills and knowledge areas are tested throughout the competition stages?

The competition evaluates a broad range of skills: system diagnostics, electrical troubleshooting, installation techniques, refrigeration fundamentals, airflow measurement, brazing technique, safety practices, and real-world customer problem-solving. It also tests foundational industry knowledge through the digital qualifying rounds, ensuring competitors demonstrate both technical expertise and a strong understanding of HVAC principles. [AS1.1]Each test of skills is designed to reflect what technicians encounter in the field, ensuring the challenges are authentic and tied to industry experiences.

Why is it important to spotlight both apprentices and experienced technicians in events like this?

Highlighting both apprentices and experienced technicians is essential because it showcases the full talent pipeline. Apprentices represent the future of the trade, bringing fresh perspectives and enthusiasm. Experienced technicians demonstrate mastery and set a benchmark for excellence. Featuring both groups emphasizes that the HVAC profession offers growth, stability, and lifelong learning. We’ve seen apprentices come back in later years as professional competitors, reinforcing the real, tangible career growth and advancement opportunities within the trades.

How does the championship help address ongoing workforce challenges in the HVAC industry?

The championship helps address workforce challenges by increasing visibility of HVAC as a high-skill, high-demand, yet achievable career path. By celebrating technical excellence and offering a national platform, we help inspire more people to consider HVAC as a viable and respected profession.

What impact have past winners, like Craig Childress and Braden Reeser, had on the industry and the competition’s visibility?

Past winners like Craig Childress and Braden Reeser have had a meaningful impact. Their success stories showcase what’s possible in the trade and help elevate the competition’s prestige. Many past champions have become ambassadors for the industry, participating in local outreach, mentoring upcoming technicians, and helping bring greater visibility to the trades through their continued involvement and successes.

What role do events like this play in attracting new talent to HVAC careers?

These events give prospective technicians, especially young people or career changers, a chance to see HVAC as dynamic, competitive, and filled with opportunities for advancement. When people see technicians celebrated on a national stage, it reshapes perceptions of the industry and brings refreshed excitement.

What opportunities do participants gain beyond the prize money?

Technicians gain far more than just prize money; they gain national exposure and industry recognition. Competing allows technicians to showcase their skills to brands, employers, and peers across the industry. It’s also a great opportunity to network and connect with other technicians who are at the top of their field, share best practices, and learn from one another.

What are you most excited about for the 2026 finals in Chicago?

What excites me most about 2026 is the finals in Chicago. If you’ve never attended, it’s an incredible experience to watch the best of the best compete and see their talent on full display. The event is not only an exciting showcase of skill and determination, but also a celebration of the hard work, discipline, and commitment that brought each competitor to that stage.

Source https://www.supplyht.com/articles/107238-showcasing-hvac-excellence-on-a-national-stage

 

Rheem® Expands Renaissance® Commercial Heat Pump Line with High-Efficiency 3–10 Ton Units Designed for Easier Installation and Service

New Renaissance® Commercial packaged heat pumps combine improved efficiency, simplified setup and an advanced unitary controller that meet evolving building demands

Rheem®, a leader in the HVACR and water heating industry, announced the expansion of its Renaissance® Commercial Classic Plus® Packaged Heat Pump line, introducing 3- to 10-ton units (RHPCYC & RHPDYC) developed to improve efficiency, streamline installation, and enhance serviceability for contractors while adding value for building owners.

Available now, the new units feature up to three stages of cooling and two stages of heat pump heating, delivering high-efficiency operation to meet the evolving needs of today’s businesses. The models are engineered to balance installability, serviceability, and reliability to drive comfort and a strong return on investment from day one. Performance highlights include 3- to 5-ton capacities delivering up to 11 EER2, 16.1 SEER2, and 7.2 HSPF2, while 6.5- to 10-ton models achieve up to 12 EER, 17.6 IEER, and up to 3.6 COP at 47 degrees F and 2.5 COP at 17 degrees F.

Standard field-convertible airflow, with industry-standard footprints and connections, enables flexible configurations across a wide range of commercial applications, from new construction to replacement projects.

“Today’s contractors and building owners need packaged heat pump systems that deliver strong results without adding complexity,” said Rosa Leal, director, commercial product strategy and customer experience, U.S. Air, Rheem North America, “This expansion of our Rheem Renaissance line of high efficiency heat pumps, developed over more than two years, is designed to do exactly that – by combining higher efficiency, flexible installation, and advanced controls to simplify setup, operation, and ongoing service.”

Key features include:

Industry-standard footprints and connections: Enables straightforward replacement without requiring curb adapters, reducing time on-site and overall project cost.
Enhanced performance: Up to three stages of cooling using scroll compressors, a direct drive variable speed blower, and MicroChannel coils provide powerful, high-efficiency performance.
Advanced controls and connectivity: The factory-installed advanced unitary controller comes pre-configured with control sequences to streamline commissioning. It is compatible with universal 24V control and BACnet®, MS/TP, and IP-native, enabling seamless integration with third-party, cloud-based building automation systems (BAS). Built-in alarms, fault detection, and diagnostics are available through the HMI display.
Serviceability-focused design: Contractor-friendly features like the PlusOne® ServiceSmart™ package, including the Qwik-slide blower, Qwik-clean drain pan, and the Qwik-change flex-fix filter rack, support faster, easier maintenance.
Manufactured in Rheeem’s state-of-the art Fort Smith, Arkansas factory, the new units reinforce Rheem’s continued investment in high-efficiency commercial solutions that help businesses meet or exceed evolving federal and local building energy efficiency standards, such as California’s Title 24 (2025), while simplifying setup and long-term maintenance.

For more information on the Renaissance line extension of higher efficiency products and how it can benefit commercial spaces, visit www.RheemCommercial.com.

About Rheem®:

For over 100 years, Rheem has stood as a trusted partner for residential and commercial innovations. From its humble beginnings in 1925, Rheem has grown into a leading global manufacturer of heating, cooling, water heating, and commercial refrigeration solutions, committed to sustainability, and enriching lives through innovative design, technology, and enduring quality.
To learn more, visit www.rheem.com.

Source https://hvacinsider.com/rheem-expands-renaissance-commercial-heat-pump-line-with-high-efficiency-3-10-ton-units-designed-for-easier-installation-and-service/

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Controls Engineering & IoT

 

Fortifi Subsidiary Opens Production Facility in Spain

The company manufactures robotic systems for meat production and other food processes.

Fortifi subsidiary Frontmatec AiRA on Thursday opened a new production and R&D facility in Northeast Spain, company officials announced.

Screenshot 2026 06 11 104850
Frontmatec AiRA’s new facility.
The suburban Houston developer of food processing automation systems said that the Frontmatec AiRA campus in Cardona would bolster its production capacity and innovation capabilities. Frontmatec AiRA, founded as robotics company AiRA in 2001, is the Frontmatec group’s primary production hub for southern Europe and makes robotic systems for meat production and other food systems.

The facility, company officials said in a statement, “reaffirms Frontmatec AiRA’s commitment to Cardona and the Catalonia region, as well as to leadership in robotic solutions for the food processing industry.”

Source https://www.foodmanufacturing.com/facility/news/22968747/fortifi-subsidiary-opens-production-facility-in-spain

 

3 real-world examples of modeling and simulation for food safety

Consumer confidence in food safety reached a record low in 2024 due to food recalls and increased reporting on toxic ingredients, according to the International Food Information Council (Ref. 1), making it more important than ever for companies in the food and beverage industry to guarantee the safety of their products. Modeling and simulation allow companies to optimize their food testing, sterilizing, heating and packaging processes, all while minimizing waste. Keep reading to see three compelling industry examples.

1. Food sterilization assessment
Through sterilization, effective heat penetration destroys harmful bacteria in consumers’ food. BE CAE & TEST, an engineering consulting firm in Italy, developed a custom simulation app using the Application Builder in the COMSOL Multiphysics® software that assesses the effectiveness of heat penetration inside canned food during sterilization to evaluate bacterial lethality. Their app helps food engineers to conduct canned food safety analyses using accurate physics-based models — without having to learn how to use simulation software.

By entering relevant data in the custom input fields, food engineers can use the app to calculate temperature changes over time during transient analysis. This allows them to determine how heat penetration affects bacterial lethality in various canned goods. Bolstered by this information, they can then optimize food sterilization processes and reduce the risk of harmful bacteria entering our food.

2. Optimizing pasta drying conditions
The pasta drying process involves a series of time- and energy-consuming trials aimed at identifying the optimal way to produce a consistent and high-quality product. The world’s largest pasta producer, Barilla, collaborated with the University of Calabria in Italy to develop a model to predict temperature, moisture distribution and structural changes during the drying process. Their model is used for optimizing drying processes to ensure product quality and minimize energy use.

The model predicts the temperature and moisture distribution during the drying process in turbulent air conditions. To represent a “tortiglione” piece of pasta, the team used a 2D geometry in their simulations. Overall, the team’s simulation predictions yielded a mean relative error of less than 9% when compared to the real-world results of the drying process.

3. Analyzing liquid food package degradation
Packaging for liquid food must safely preserve its contents without degrading. A team at Tetra Pak, the world’s leading food processing and packaging solutions company, modeled package material to optimize this. By simulating the material’s response during induction heating, they learned how different attributes affect the material behavior of the packaging. Specifically, they used multiphysics couplings to determine how the drying of the paperboard was affected by the internal gas pressure and the varying dryness level across the packaging. Their simulations showed that a higher initial moisture ratio and a lower density resulted in less degradation due to moisture, which showed good agreement with their experimental data.

Multiphysics modeling supports food safety
Here we saw three examples of how engineers from the food and beverage industry use multiphysics modeling and simulation apps to analyze and optimize products and processes related to food safety. Of course, this list only scratches the surface of what you can model in this area. For more inspiration, check out our Food and Beverage industry page.

Reference
Consumer confidence in food safety hit a record low in 2024. (2024, September 19). International Food Information Council. https://ific.org/media-information/press-releases/food-safety/.

This article is an abridged version of the COMSOL Blog post “5 Real-World Examples of Modeling and Simulation for Food Safety”. For more information, please refer to the blog post here.

Source https://www.fooddive.com/spons/3-real-world-examples-of-modeling-and-simulation-for-food-safety/821916/

 

Mitsubishi Electric Automation Wins Gold in Control Engineering’s 2026 Product of the Year Awards for FR D800 VFD

Next-generation VFD is recognized for simplifying commissioning while improving efficiency, reliability, and sustainability across industrial applications.

Mitsubishi Electric Automation, Inc. (Mitsubishi Electric Automation) announced that its FR-D800 Variable Frequency Drive (VFD) has been named the Gold winner in the Drives, Motion & Motor Control category in Control Engineering’s 2026 Product of the Year awards program. The honor reflects the FR-D800’s ability to address real-world challenges in industrial automation, including reducing setup time, lowering energy consumption, and improving system reliability.

FR-D800
Introduced to the Americas in July 2025, the FR-D800 is a next-generation compact drive designed for fast setup and dependable performance. Simplified wiring, USB parameterization without main power, and built-in networking streamline installation and commissioning. FR-D800 also delivers precise control for both induction and permanent magnet motors, improving process consistency while reducing energy use and operating costs. An eco-conscious design lowers power consumption and CO₂ emissions, while advanced diagnostics and predictive maintenance help minimize unplanned downtime.

“The FR-D800 was built to remove common barriers our customers face with drive implementation, whether it’s reducing commissioning time, improving energy efficiency, or gaining better visibility into system health,” said Tom Henfling, Product Manager for VFDs at Mitsubishi Electric Automation, Inc. “This recognition validates our focus on delivering practical, user-driven innovation that makes a measurable difference on the plant floor.”

The Control Engineering Product of the Year program is judged in part by industry professionals, including engineers and system integrators, making the award reflective of the solutions that resonate most with users in the field.

With its balance of performance, simplicity, and sustainability, the FR-D800 is well-suited for a broad range of applications, including fans, pumps, conveyors, and general industrial systems.

Source https://hvacinsider.com/mitsubishi-electric-automation-wins-gold-in-control-engineerings-2026-product-of-the-year-awards-for-fr-d800-vfd/

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Jan/San & Disposables

 

The State of the Industry: Inside the Forces Reshaping Cleaning and Facility Solutions

A state-of-the-industry talk rarely puts two people from opposite ends of the same building on the same stage. That was the whole idea behind the session led by Mike Fitts, 4M Building Solutions’ chief commercial officer, and Dan Smolensky, SIOR, founder and principal of Chicagoland-based TMG Real Estate Advisors, at the Altus Summit on Tuesday, June 9, at ISSA headquarters.

Fitts, who joined 4M Building Solutions about a decade ago, sees the market through the eyes of a commercial cleaning provider. Smolensky, who founded TMG Real Estate Advisors roughly 15 years ago and has spent about 30 years in commercial real estate, sees it through the eyes of the tenants and buyers who occupy the space that gets cleaned. They ran the room like a town hall, traded perspectives on purpose, and used the natural tension between service provider and client to get at something useful.

Labor is the whole story
Fitts opened with the numbers, and they tell a hard story. The janitorial market is roughly $112 billion and growing at about 2.7% per year. The trouble is that the number of firms competing for that work is growing faster, around 4.2%, so more players keep chasing the same dollars. With roughly 1.23 million janitorial businesses in the market and a barrier to entry low enough to clear with a bucket, a mop, and a few rags, the pressure is not letting up.

Labor is where it all lands. Wages and benefits make up the overwhelming share of a cleaning company’s cost, somewhere in the range of 80% to 90%, Fitts said, and cleaner wages are climbing about 4.3% a year. The fully loaded cost of a single full-time cleaner now runs north of $35,000. Turnover only sharpens the knife. The industry churns at one of the highest rates of any major sector, and every replacement carries real, often hidden, costs in lost productivity and retraining. The net result, Fitts said, is that margins have compressed to razor-thin, and for some operators, they have slipped into the red.

When the math stops working
Then came the part Fitts warned his supplier partners would not love. Costs are spiking almost everywhere. The producer price index for non-residential cleaning is up about 9.7% year over year, one of the fastest jumps in years. Roughly 72% of facility managers say they are cutting facility costs, and cleaning is a top target. Meanwhile, 22 states are raising their minimum wage this year, with an average increase near 8.7%. Tariffs have pushed equipment costs anywhere from 3% to 26%, supplies are up around 20%, and healthcare benefit costs are forecast to rise about 6.7%.

Stack it all up and the problem is obvious. A provider asks for a 9.7% increase to cover rising costs, then watches labor, benefits, and supplies climb past it, leaving a gap of nearly 10% that no one has filled. The gap, Fitts said, is the margin.

Fear in the workforce
The conversation turned to immigration, and the mood in the room shifted with it. Much of the entry-level cleaning workforce is made up of immigrants, roughly 31% of cleaning workers by the figures Fitts cited, with far higher concentrations in some markets. His read is that the bigger problem right now is fear rather than direct disruption. Assuming a company is meeting every federal and state requirement, from E-Verify to background checks, the damage tends to show up as workers who are simply afraid to come in. Operators in the room described workforces that run as high as 70% immigrant, with real service delays in markets where enforcement actions have people staying home. Layer in delays to work authorizations, and the labor math only gets tighter. The thread underneath all of it, Fitts said, is simple: clients just want people to reliably show up.

Industrial booms, rents follow
Smolensky took the room into the buildings themselves, starting with the side that has been on fire. COVID split commercial real estate into two extremes, and industrial was the winner. In Chicago, with about 1.4 billion square feet of industrial space, vacancy historically ran near 7% and then dropped below 3% during the boom. Scarcity did what scarcity does, and industrial rents jumped 40% to 70%. Smolensky pointed to a current deal where a tenant’s base rent is moving from $6.50 to about $9.15 a square foot, a 46% increase that left the client’s CFO stunned. In submarkets like Bolingbrook, space that once leased for $3.50 to $4.50 now goes for $8 to $9, roughly double. Reshoring is feeding it, with manufacturing now about 20% of new leases, and AI and data centers are adding fuel. Through mid-2025, the market absorbed about 424 million square feet of industrial space, up roughly 14% year over year.

The office reckoning
Office is the mirror image. Downtown Chicago holds around 450 million square feet of office space, and by Smolensky’s count something like 10 buildings sit completely empty. Vacancy that was a healthy 12% to 13% a decade ago now runs near 27%, roughly one in four buildings effectively dark. The money is chasing quality. Newer, trophy buildings, with Fulton Market in Chicago among the standouts, are pulling tenants, while older Class B and C buildings are sliding, some down more than 20%. Nationally, office vacancy sits around 18.6%, the first decline since 2019 after years of climbing, with positive net absorption of nearly 30 million square feet. Even so, Smolensky called it a tale of two markets, with Class A holding while the rest struggles.

The behavior behind the numbers is the real signal. Tenants are signing shorter terms and avoiding big commitments because they do not yet know what their own headcount will look like. Return to office peaks midweek, with Tuesday attendance around 66% and trophy buildings near 95%, and more than half of large employers now require some return, a handful demanding all five days. Space per employee has fallen to roughly 100 to 150 square feet from about 250 before the pandemic, and hoteling has gone mainstream. Smolensky estimated that close to 287 million square feet of office is permanently gone, and argued that office needs the same right-sizing retail went through, including the teardowns and conversions that have barely begun.

Where the growth is
Not everything is contracting. Healthcare stands out, growing about 7.5%, nearly three times the broader market, which is why so many providers are eyeing it. Fitts also flagged a risk hiding inside many books of business: while the average building service contractor serves roughly 191 accounts, a single corporate campus can represent 20% to 50% of monthly revenue. When that tenant downsizes, the cleaning scope shrinks with it. The bigger wave may still be ahead, too. By Fitts’s figures, close to half of the large pre-COVID leases have not yet rolled over, with many 10-year deals coming due in the next two to four years.

Robots, AI, and the rollup
Technology is reshaping both sides of the table. Smolensky noted that law firms and other office tenants are leaning hard on AI tools, including platforms like Claude, ChatGPT, and Grok, to draft and pressure-test their work, which trims support headcount and the space that goes with it. On the cleaning side, roughly 67 million square feet is now being cleaned by robots, a figure growing about 22% a year, with at least one operator running more than 70 robots across 50-plus sites. Consolidation is moving just as fast. Smolensky pointed to about 152 facility-services M&A deals in the past four months alone, with private equity rolling up smaller firms that trade at four to six times EBITDA while national platforms command closer to 12.

Partner, not transaction
For all the data, both speakers kept circling back to one idea: the relationship has to be a partnership, not a transaction. Fitts deliberately cast Smolensky as the enemy early on to surface the tension operators feel with the client side, then flipped it, invoking Sun Tzu’s idea of knowing your counterpart so well that you actually understand them. Smolensky made the case with stories. In one, a tenant preparing to move out faced a $25,000 cleanup bill for a warehouse restroom that, by the look and smell of it, had never been properly cleaned, an avoidable expense the right custodial plan would have erased. In another, he saved a client a five-figure HVAC charge simply by reading the lease and working the landlord relationship. The lesson he drew was the same one Fitts kept pressing: exit clauses, building condition, and employee experience are all places a provider can prove value beyond price.

Adapt or get left behind
The close was a challenge more than a summary. The fundamentals matter more than ever: showing up, solving problems, and building real relationships. What is changing is how quickly the ground moves and how many tools now exist to keep up. Smolensky relayed a line he had heard recently and clearly believed, that AI will not replace real estate brokers, but brokers who use AI will replace those who do not. The same goes for cleaning. Point an AI tool at a prospect’s website, ask it to surface a couple of problems a day, and the machine will hand back more than most teams could find on their own. Businesses are not static, Fitts reminded the room. The companies that keep adapting will be the ones still standing when the next correction comes.

Source https://www.issa.com/articles/the-state-of-the-industry-inside-the-forces-reshaping-cleaning-and-facility-solutions/

 

Cascades Fluff® Excellence wins Best New Product award in Canada

The product was recognized in the Paper category at the 33rd Canadian Grand Prix New Product Awards, organized by the Retail Council of Canada

Cascades announced that its Fluff® Excellence product was named Best New Product in the Paper category during the 33rd edition of the Canadian Grand Prix New Product Awards, held on June 3 and organized by the Retail Council of Canada.

The recognition places Fluff® Excellence among Canada’s most outstanding manufactured products and highlights the company’s efforts to develop solutions aligned with customer and consumer expectations.

According to the company, the award reflects the expertise, discipline, and commitment of the teams involved in developing and improving its products, as well as its focus on innovation and quality.

The awards program is considered one of the most important recognition initiatives in the Canadian retail sector, honoring products that stand out for their performance, value proposition, and consumer impact.

With this achievement, Cascades reinforces its position in the market and highlights the work of its teams in driving the development of innovative and competitive products.

Source https://tissueonlinenorthamerica.com/cascades-fluff-excellence-wins-best-new-product-award-in-canada/

 

Autonomous Robots Boost Senior Living Facility Floor Care

Direct Supply expands its strategic partnership with SoftBank Robotics America to help commercial cleaning executives scale smarter operations through autonomous floor care programs.

“Robotics in senior living can’t be about technology for technology’s sake. It has to solve real problems for operators, staff, and residents,” says Justin Smith, Senior Manager of Innovation, Direct Supply. “Together, we’re pairing proven robotics with the support, training, and operational understanding needed to help communities adopt automation in a way that delivers measurable value today and creates a stronger foundation for the future of care.”

Since SoftBank Robotics America became an official Direct Supply partner in March 2025, the collaboration has become a model for senior living and long-term care facilities seeking practical ways to strengthen operations amid labor pressure, rising variable costs, and growing expectations for operational consistency. Nearly 100 communities now employ over 100 autonomous floor care robots each day. As a result, productivity, cleaning consistency, and resident experiences have improved.

For instance, the implementation of a robotics program at Sabra Health Care REIT has enhanced operations. The program helped staff shift time away from manual floor care tasks and toward higher-value resident services, increasing cleanliness perception by 87 percent and creating new value across communities.

“This partnership is about delivering outcomes, not deploying robots,” notes Mark Stoll, Senior Vice President of Revenue and Commercial Growth, SoftBank Robotics America. “We’re helping communities achieve consistent, measurable performance—reallocating labor, improving the quality of clean, and creating predictable operations at scale.”

Source https://www.cleanlink.com/news/article/Autonomous-Robots-Boost-Senior-Living-Facility-Floor-Care–32804

 

Kimberly-Clark begins demolition of warehouse damaged by fire in Ontario, California

The measure is part of the recovery process for the logistics center that was consumed by a fire in April and stored products from some of the company’s leading brands

Kimberly-Clark, one of the world’s leading manufacturers of tissue, personal care and hygiene products, has begun demolition work at a warehouse damaged by a major fire in Ontario, California.

The project is part of the site’s recovery process following the blaze that destroyed a significant portion of the logistics facility located on Merrill Avenue. Over the coming weeks, specialized crews will remove the building’s exterior concrete structures before proceeding with debris removal and site cleanup activities.

The approximately 1.2-million-square-foot facility stored products from several of Kimberly-Clark’s well-known brands, including Kleenex, Cottonelle, Scott, Huggies and Kotex. According to local authorities, the large volume of paper products inside the warehouse contributed to the rapid spread of the fire.

The City of Ontario stated that the start of demolition marks an important milestone in the recovery of the affected area. Officials added that the work is being carried out in coordination between the property owner and local authorities to ensure safe and efficient site management.

Following the fire, nearby residents raised concerns about lingering smoke and potential air-quality impacts around the site. The beginning of demolition activities is expected to support stabilization and rehabilitation efforts at the location.

Investigations into the cause of the fire remain ongoing. Authorities have filed charges against an individual associated with a third-party distribution company for alleged involvement in the incident.

With the launch of this new phase, Kimberly-Clark continues advancing recovery efforts at one of its logistics facilities in California while work progresses to restore the affected area.

Source https://tissueonlinenorthamerica.com/kimberly-clark-begins-demolition-of-warehouse-damaged-by-fire-in-ontario-california/