Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Retail Brew

Maeve Allsup

retailbrew.com

SAN ANTONIO, TEXAS - DECEMBER 11, 2018:  A McDonald's fast food restaura...

California’s attempt to slow down fast food bargaining to include workers and franchisers faces stark opposition from the industry. 

A new bill could change California’s fast food landscape

Katishi Maake

The salad chain is also gearing up to roll out a full loyalty program. 

Sweetgreen wants to challenge (and reward) its customers with a new loyalty offering

The chain is restructuring how it recruits and retains franchisees.  

How McDonald’s plans to diversify its franchisee pool 

Friends taking pictures of food on the table with smartphones during brunch in restaurant

Andrew Adam Newman

At a campaign event where tables were festooned with groceries last August, then-candidate President Trump 

 if elected, he would “immediately bring prices down, starting on Day 1.” But almost 150 days into his second term, menu prices are up over last year, according to new data from Toast.

It will come as no surprise that avian flu-related increases in egg prices have driven up the price of omelets, with the median price on restaurant menus for April is $14.71, up 5.4% YoY. But the price of coffee you wash down those eggs with is up too, with the median price of a nothing-fancy regular cup up 5.1% YoY in May, to $3.50.

Moving beyond breakfast (one hopes), the median price for a beer was up 2.7% YoY in May, to $6.44.

Other menu item YoY median price increases in May, per Toast:

Results are based on transactions from the ~140,000 restaurant locations on Toast’s digital technology platform.

Toast also analyzed tipping rates, which for full-service restaurants rose a wee bit, from 19.3% in Q4 to 2024 to 19.4% after being flat for the previous three quarters.

While tipping is not as high as the pandemic plateau of 19.9%, Toast noted we’re in the ballpark of pre-pandemic levels, which ranged from 19.5% to 19.7% over 2018 and 2019.

President Trump’s budget megabill that passed in the House proposes exempting those tips from federal taxes, but in the Senate, the no-tax-on-tips is getting some 

Trump promised to reduce food costs on Day 1, but menu prices are up, per Toast data.

It’s not just egg dishes that are up, per Toast.

Trump promised to reduce food costs on Day 1, but menu prices are up

Amazon Haul, the e-commerce giant’s low-cost offering that it launched in November to take on Temu and Shein, is a long way from becoming as ubiquitous as its flagship site, with a recent survey finding that more than 3 out of 4 shoppers (76%) had 

 Have you made a purchase at Amazon Haul? 

 revealed privacy concerns that some consumers have about restaurant apps, and we asked if you’d refrained from either downloading or using restaurant apps out of privacy concerns. It turns out that most of you (61.7%) have either not downloaded or not used restaurant apps out of privacy concerns, while 38.3% were not restrained by those privacy concerns.

In a photo illustration, somone uses chopsticks to eat noodles that are pictured on a smartphone. 

Many avoid restaurant apps over privacy concerns

Plus, have you shopped at Amazon Haul?

Hot Topic: Many avoid downloading or using restaurant apps over privacy concerns

 by CreditCards.com found that 1 in 5 Americans are buying more products than usual as a result of President Trump’s proposed tariffs—their rationale being that the items could become more expensive if the tariffs go through.

 Have you made a recent purchase sooner than you would have otherwise because of President Trump’s proposed tariffs? 

, we told you that Starbucks is requiring baristas to write customers’ names and notes like “You’re amazing!” on cups to appeal more to customers, so we asked if you thought the new practice really would improve the customer experience at Starbucks. No, it won’t, responded 67.5% of you, while 27% thought the notes would improve the customer experience, and 5.5% didn’t know or weren’t sure.

A Starbucks barista serves a coffee that has "Hello Again!" written on the paper cup. 

Most think writing on cups won’t help Starbucks customer experience

Plus, are you making pre-tariff purchases?

Hot Topic: Most think writing on cups won’t help Starbucks customer experience

TGI Fridays and Red Lobster have both declared 

Do you think TGI Fridays or Red Lobster is more likely to still be in business a year from now? 

, we told you about how Australian surfwear brand Rip Curl is 

 for every wave that its loyalty club members catch. It’s an example of brands increasingly awarding points for behaviors besides purchases, what some call “emotional loyalty” as opposed to transaction-based “rational loyalty.”

We asked whether you thought it was a good strategy for brands to award loyalty points for actions besides purchases, and the vast majority of you did, with 78.8% of you responding it was a good strategy, 18.2% of you responding it was not a good strategy, and 3% of you responding that you didn’t know or weren’t sure.

Cashier at a supermarket holding a loyalty card.

Nearly 80% favor offering loyalty points for actions besides purchases

Plus, is TGI Fridays or Red Lobster more likely to emerge from bankruptcy?

Hot Topic: Nearly 80% favor offering loyalty points for actions besides purchases

When it comes to representing them positively in advertising, LGBTQ+ respondents surveyed rank quick service and fast-casual restaurants last. So says recent data from LGBTQ+ streaming platform Revry and Nielsen.

Respondents were asked to choose what category among seven did the best job at representing them in advertising, and only 2% chose quick service and fast-casual restaurants. That’s far behind the top three choices: beauty and skincare (29%), retail (27%), and healthcare and pharmaceuticals (24%). Nearest to fast-food brands at the bottom of the list were automotive (4%) and grocery and household brands (6%).

The online survey of 1,000 LGBTQ+ viewers from Revry’s audience was conducted by Nielsen in May.

 over a collaboration with trans influencer Dylan Mulvaney, some retail brands have been 

 enthusiastic about their diversity, equity, and inclusion (DE&I) efforts.

 on X in June that it would “stop sponsoring nonbusiness activities like pride festivals.” Target also was, yes, 

 for its Pride Month displays in 2023 and subsequently curtailed the displays for the last 

But while some brands may be supporting LGBTQ+ less enthusiastically, gay consumers would like them to do just the opposite. Asked how important it was for fast-food brands to “participate in and support LGBTQ+ events and causes,” more than 60% said it was somewhat or very important.

“This emphasizes the need for QSR brands to not only advertise inclusively but also visibly engage with the LGBTQ+ community,” the report stated.

A graphic illustration of a megaphone with the colors of the Pride flag emanating from it.

Fast food brands score worst among LGBTQ+ consumers for representation in ads, per Revry survey.

Only 2% of gay respondents say fast food and fast casual are the best at representing them. 

Fast food brands score worst among LGBTQ+ consumers for representation in ads

Shrinkflation, the practice of brands reducing the size of products, often imperceptibly, and charging the same price or more, has irked many. President Joe Biden 

 governments have pursued anti-shrinkflation legislation.

As for consumers, when they notice shrinkflation, 68% said it causes them to 

, according to a Clarify Capital survey in May as reported by Chain Store Age.

Now Domino’s Pizza is trying to take advantage of all those shrinkflation bad vibes with a promotion it’s calling Moreflation. From September 9 to September 29, consumers who order two or more medium two-topping pizzas can bump up one of the pizzas to a large for the same price.

“The largest pizza company in the world is taking a stand against shrinkflation by giving customers more food for the same price,” the company 

The Domino’s promotion turns out to be an example of another 

 inflation-related portmanteau—spaving, whereby consumers are encouraged to spend more to save more. Examples: Spending another $7 to get free shipping or buying one item at full price to get the second at half price.

Edgar Dworsky, the consumer advocate whose Consumer World chronicles 

, told Retail Brew that the Moreflation promotion was a “short-term gimmick,” not a shrinkflation antidote.

“If they were really serious about it, they’d be saying, ‘We’re now adding 20% more cheese to our pizzas, or 10% more pepperoni,’” Dworsky said. “That would show someone is serious about giving consumers more for their money.”

While Domino’s may be a shrinkflation avenger today, it was a practitioner as recently as 2022, when it 

 the number of wings in its $7.99 carryout offer from 10 to eight.

Asked about that instance in 2022, and whether the chain was vowing not to shrinkflate in the future, Domino’s PR Manager Danielle Bulger responded with a comment over email that made no promises against future shrinkflation by the pizza chain.

“Unprecedented inflation hit many businesses in 2022, and unfortunately, Domino’s was not exempt from the impact,” Bulger said. “But Domino’s has long been committed to providing renowned value to our customers whenever and wherever we can.”

An ad from Domino's highlighting its Moreflation promotion, which allows customers who order two medium pizzas to bump one up to a large for free. 

Domino’s counters shrinkflation with Moreflation promotion

The brand said it’s “taking a stand against” the practice, but shrinkflated a menu item in 2022.

A law that takes effect in New York City in October requires any food service business with 15 or more locations to post a warning label on menu items with 50 grams or more of 

 of sugar, one thing that will be flagged—don’t blame the messenger—is a venti Pumpkin Spice Latte at Starbucks.

Do you agree with New York’s new law that requires warnings on high-added-sugar menu items? 

 promo discount codes in the first six months of this year than in the same period of 2023, per promo codes platform SimplyCodes. So we asked about your coupon code usage, and 38.6% of you responded that you were using them more than a year ago, while 59.1% are using them with the same frequency. None of you reported using coupon codes with less frequency than a year ago, and 2.3% of you didn’t know or weren't sure.

Molten lava cake with a scoop of vanilla ice cream with chocolate sauce.

QSR