News Briefs

A rapidly growing quick-service chicken franchise is using a modern twist on the mystery shopper concept.

Dave's Hot Chicken is partnering with tech-enabled mystery shopping and customer experience improvement firm Reality Based Group (RBG) in an effort to refine its customer service, operational efficiency, and brand consistency while achieving higher customer review ratings on third-party platforms such as Google and Yelp.

In the program, mystery shoppers from RBG record their experiences in Dave’s Hot Chicken stores, including interactions with staff, producing videos that franchisees can then review to help determine how they can improve their stores’ customer experience.

"Providing video mystery shoppers to our franchise owners and operators allows them to see how their restaurants are performing from the guest's point of view so they can reward great performance and correct and improve opportunity areas." said Jim Bitticks, president of Dave's Hot Chicken. "Our franchisees love the video shops and we've already seen an improvement in our guest metrics."

Since partnering with RBG, Dave's Hot Chicken says it has increased its Google review ratings to the highest in the industry.

"This partnership is all about elevating the customer experience as Dave's continues their incredible growth," said Josh Stern, CEO of Reality Based Group. "We're here to support their amazing culture and ensure they have the most accurate data possible to deliver the brand promise. We couldn't be more excited to be on this rocket ship that is Dave's."

Based in Los Angeles, Dave’s Hot Chicken has sold the rights to more than 1,000 franchise locations in the United States, Middle East, U.K., Ireland, and Canada and will open 70-plus locations this year.

Costco Wholesale Corp. started the new year with a bang as its sales showed no signs of losing momentum.

The membership warehouse club giant reported that its net sales rose 9.2% in January (ended Feb. 2), to $19.51 billion from $17.87 billion last year. 

Total comparable sales rose 7.5% in January, with a 9.2% increase in the United States, and a 5.7% increase in Canada. Comp sales in other international markets inched up 1.1%. 

E-commerce comp sales rose 13.6% in January, and are up 16.6% for the 22 weeks ended Feb.2.

Excluding the impacts from changes in gasoline prices and foreign exchange, total comparable sales rose 9.8% in January, with a 9.2% increase in the U.S., and a 12.3% increase in Canada. Comp sales in other international markets increased 10%. E-commerce comps rose 15.2%.

Costco will release its second quarter earnings on March 6.

Costco currently operates 897 warehouses, including 617 in the U.S. and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

Del Taco is expanding its presence in the Midwest by entering a new state.

The quick-serve Mexican chain has signed a 10-unit development agreement with a new franchise group in the Indianapolis metropolitan area, which will mark its first stores in the Hoosier State. Target markets include Bloomington, Bedford, Columbus, Greenwood, Plainfield and Avon.

“We are thrilled to welcome this dynamic group of entrepreneurs to the Del Taco family,” said Van Ingram, vice president franchise development. “Their passion for the brand and business acumen are exactly what we look for when bringing on a new franchisee. We are confident that they will be successful in bringing the fresh ingredients and bold flavors of Del Taco to the Indianapolis community.”

Founded in 1964, Del Taco operates nearly 600 restaurants across 17 states. It is owned by Jack in the Box Inc., which has continued to expand its presence of Jack in the Box restaurants in the Midwest and beyond.

[READ MORE: Jack in the Box to bring five locations to Detroit market]

“We were drawn to Del Taco due to its strong market position as a top emerging fast-food brand and its flexible location requirements, which make it an ideal fit for the Indiana market,” said Cole Sinclair, one of Del Taco's new franchisees. “Additionally, its proven business model and potential for multi-unit development present a solid opportunity for long-term growth. We believe the brand's strong recognition, compelling differentiation, and loyal customer base will significantly enhance our chances of success. As an iconic fast-food restaurant chain, we are confident that Del Taco will perform exceptionally well in southern and central Indiana.”

As it continues to rapidly grow its store footprint, Freddy’s Frozen Custard & Steakburgers has added to its C-suite.

Erin Walter has been promoted to chief marketing officer of the quick-serve chain. Walter will oversee all aspects of the company’s marketing initiatives, working closely with the executive team to drive brand awareness, guest engagement and overall business growth.

Walter has more than 20 years of experience in the restaurant franchising industry. In 2021, she was appointed VP of brand marketing at Freddy's. Prior to joining the chain, she held several roles at Global Franchise Group over a span of 13 years, including most recently as director of marketing for Round Table Pizza.

[READ MORE: Freddy's adds 15 stores to pipeline; to enter new East Coast state]

"Erin's talent and dedication have greatly benefited our team. Her strategic vision and creativity have been crucial to our success, and I am confident she'll excel as CMO," said Chris Dull, Freddy's president & CEO. "Her exceptional ability to inspire and collaborate, combined with her deep understanding of our brand, will be instrumental in taking Freddy's to new heights. Erin's commitment to excellence and her forward-thinking approach make her the perfect fit for this role, and I am excited to see the positive impact she will continue to make."

Founded in 2002 and based in Wichita, Kans., Freddy’s operates over 550 locations across 36 states nationwide.

A shopping platform that offers cash back and rewards is launching a new advertising offering that leverages AI to enhance campaigns.

Rakuten is rolling out Programmatic Loyalty, an advertising solution that leverages AI and its first-party data to deliver campaigns with a guaranteed return on ad spend (ROAS). 

Utilizing Programmatic Loyalty, brands and retailers can build and execute campaigns on the Rakuten platform in three steps, designed and optimized using automation, data and personalization strategies:

1. Define campaign gross merchandizing value (GMV) based on budget and guaranteed ROAS.
2. Consistent fixed commission rates are provided throughout each month-long campaign.
3. Advertisers can leverage data and AI to dynamically adjust personalized incentives and placements to drive higher GMV, such as flexing cash back rates, targeting different audiences and purchasing media inventory.

"Programmatic Loyalty is revolutionizing the way in which retailers approach their affiliate investments," says Julie Van Ullen, chief revenue officer at Rakuten Rewards. "We trust our technology, data and in-house expertise enough to take a bold stance and deliver a goal-based solution for retailers. That's something no other rewards platform can offer."

According to Rakuten, participating brands have seen substantial year-over-year increases in shoppers, trips and average order value (AOV).

[READ MORE: Rakuten to launch membership program for designer shoppers]

An extreme-value closeout retailer is getting ready to close all of its 92 locations.

Nashville-based Bargain Hunt is holding going-out-of-business sales at its stores across 10 states. The sale is being managed by Hilco Consumer – Retail in a joint venture with Gordon Brothers.  

Essex Technology Group, which operates as Bargain Hunt, filed for Chapter 11 bankruptcy on Monday, Feb. 3, reported Bloomberg, and listed assets of $10 million to $ 50 million and liabilities of between $50 million and $100 million in its petition.

Stores are set to close by the end of February 2025. Shoppers can save up to 40% off the lowest ticketed prices storewide, including apparel & shoes, toys, lawn & garden supplies, pet products, home decor and more. Store fixtures and equipment are also up for sale.

"Stores are stocked, and new merchandise continues to arrive at deeply discounted prices," said Ian Fredericks, CEO of Hilco Consumer – Retail. "We recommend shopping immediately for the best selection as this sale won't last long.”

[READ MORE: Big Lots leases available for sale nationwide]

Founded in 2004, Bargain Hunt operates stores in Tennessee, Ohio, Indiana, Kentucky, North Carolina, South Carolina , Georgia, Alabama, Mississippi and Arkansas.