From Nation's Restaurant News · · 1m 30s
Starbucks, Chipotle, and Wendy’s
Starbucks ends Chipotle talks; Wendy’s franchisee fights termination.
In brief
Starbucks ends Chipotle talks; Wendy’s franchisee fights termination. Starbucks abandoned plans to buy Chipotle after Financial Times reported it, while Wendy’s franchisee Meritage Hospitality Group disputes its termination and store closures. Originally reported by Nation's Restaurant News.
Starbucks ends Chipotle acquisition talks
Starbucks stated it is not buying Chipotle after Financial Times reported it was exploring an acquisition.
“Starbucks said in a statement on Monday morning that it is not buying the burrito chain”
Chipotle's sales and traffic challenges
Chipotle faced negative sales and traffic for a year before Jason Kidd became its COO.
“Jason Kidd has been in the chief operating officer role at Chipotle just over a year now”
Wendy’s franchisee disputes termination
Meritage Hospitality Group, which operated 314 locations when it filed for bankruptcy, is fighting Wendy’s termination and store closures.
“Meritage, which operated 314 locations when it declared Chapter 11”
Meritage pushes back on termination process
Meritage claims Wendy’s termination wasn’t proper because it wasn’t delivered by mail and lenders weren’t notified.
“Meritage is also pushing back on Wendy’s pre-bankruptcy termination, saying in a filing that the termination wasn’t proper because it wasn’t delivered by mail and because lenders haven’t been notified”
Wendy’s wants different store closures
Wendy’s wanted Meritage to close different locations than the 41 it plans to shut.
“Wendy’s wanted the company to close some different locations, which the franchisee balked over”
Chipotle's COO focuses on guest experience
Jason Kidd prioritized guest obsession and speed, accuracy, friendliness, and cleanliness at Chipotle.
“One of his first directives was making sure employees were guest obsessed and delivering on the basics like speed, accuracy, friendliness, and cleanliness”
Chipotle accelerates equipment rollout
Chipotle sped up high efficiency equipment to reduce cooking time and improve consistency.
“It also accelerated the roll out of its high efficiency equipment package, which reduces cooking time and delivers more consistency”
Meritage seeks to close 41 locations
Meritage, which filed for bankruptcy, plans to close 41 locations as part of its Chapter 11 process.
“Meritage is in the process of closing 41 locations”
Wendy’s franchisee balks at closures
Meritage refused to close locations Wendy’s wanted to shut, citing poor finances.
“the franchisee balked over, citing the locations’ poor finances”
Chipotle’s employee empowerment
Chipotle boosted its apprentice program to ensure employees were in the right spots at the right times.
“The company bolstered its apprentice program to make sure employees were in the right spots in the right restaurants and at the right times”
The big picture
Starbucks abandoned plans to buy Chipotle after Financial Times reported it, while Wendy’s franchisee Meritage Hospitality Group disputes its termination and store closures.
