Financials
Huddle House woos multi-unit operators with franchising discounts
Huddle House introduces new franchise incentives, offering 0% royalties for the first year and reduced multi-unit agreement fees to franchisees committed to developing three or more stores. This move aims to reverse the trend of net store closures, but the brand has seen declining average sales per store in recent years, with three net store closures in fiscal 2024.
It’s official: Yum has sold Pizza Hut for $1.5B
Yum! Brands announced the completion of the sale of Pizza Hut assets outside China for $1.5 billion to LongRange Capital; last month, Pizza Hut's China business was sold to Yum China for $1.2 billion. The transaction includes an earn-out of up to $75 million, and Yum!'s CEO stated this move will focus on core business.
Gen Z is boosting restaurant traffic
Data from the Bank of America Institute indicates that restaurant traffic grew 1.1% year-over-year in July, with spending up 3.3%, driven mainly by lower-income groups and Gen Z. Despite macroeconomic uncertainties, slowing menu inflation and wage growth have boosted the purchasing power of younger consumers.
By the numbers: Inside Dutch Bros’ growth strategy
Dutch Bros continues its strong public-market performance with an 8.3% same-store sales gain in Q2 2026, marking its 13th consecutive quarter of growth. The coffee chain's strategy hinges on a deep pipeline of internal operators, strategic site selection, second-generation conversions, and a robust loyalty-driven digital business. Key figures: 525 operator candidates, 48 new shops in Q2, up to 65 planned acquisitions, and 73% loyalty transaction share.
Smoothie King sales soar after flatbread launch
Smoothie King's July same-store sales rose 9%, the highest monthly gain this year, following the June debut of Chicken Flatbreads. The chain also noted a 64% system sales jump from 2020 to 2025 and steady unit growth, with over 1,250 locations.
How Dine’s dual-brands can stave off closures
Dine Brands International is countering restaurant closures through an innovative dual-brand approach, combining Applebee's and IHOP under one roof. With 45 co-branded units in the U.S. and 12 under construction, the company reports significant sales lifts, including doubled revenue at a Los Angeles location. CEO John Peyton highlights the strategy's repeatability and franchisee interest, alongside a remodel program that yields average sales increases of 5%.
Why a major Moe’s operator filed for bankruptcy
Quality Fresca, a franchisee of Moe's Southwest Grill with 38 stores, filed for Chapter 11 bankruptcy protection last week. The company aggressively expanded to 67 stores before the pandemic in 2020, but subsequently fell into negative EBITDA due to declining customer traffic, unreduced rents, rising costs, and intensified competition in 2025. The bankruptcy plan aims to close unprofitable stores, streamline the lease portfolio, and achieve sustainable operations on a smaller scale.