In this Weekly Wrap, we’re looking at the value of the breakfast menu, Cracker Barrel’s allegedly “discriminatory” employment practices, app-less rewards programs, and more.
Breakfast Menu Innovation
The Headline: “Breakfast menus strive to balance innovation and indulgence with value”
The Source: Restaurant Business Online
What You Need to Know:
“Breakfast can definitely stretch dining dollars further, plus it’s a fun time to go out,” said Chrissy McKinney, VP of marketing for Eggs Up Grill based in Spartanburg, South Carolina. The 97-unit breakfast-and-lunch chain tries to balance brunchy, indulgent items with “no frills affordability,” and new this year are breakfast pancake packages starting at $9.99. “We want to show our guests how we feel their pain,” McKinney added.
But Eggs Up Grill promotes value in ways other than price. Those with smaller appetites can order from the Bites and Delights section, choosing a blueberry muffin and eggs, for example, or oatmeal and fruit. And for those with hearty appetites, big portions are the rule. Average check is $14.
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“When we introduced the flips, we showcased one at a value-driven price point and then let the consumer trade up from there,” said Rodriguez. “But value isn’t only about the money. The items are scratch-made and made to order, and the ingredients are high quality. So a consumer may be paying 10 bucks for this, but it's worth the $10.”
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The beverage side of the breakfast menu is getting a lot more attention, as consumers seek the same fancy coffee drinks, trendy teas and fruity refreshers with their breakfast as they can buy at Dutch Bros, Starbucks, HTeaO and the like. Premium hot and iced coffees and teas are a given; breakfast-focused brands have to go beyond that.
Our Take:
Over the past few months, we've seen a significant increase in breakfast traffic. People still want to dine out, and checks tend to be lower than dinner with quicker turnaround times. It only makes sense that operators are putting breakfast at the forefront. We talk about the value proposition constantly, but here's the caveat: quality needs to follow. More consumers are looking for higher-quality ingredients and preparations but don’t want to pay for them.
Beverages offer the biggest upside. For QSR, it's far better to sell a $5 or $6 specialty drink than a $3 soda or drip coffee. Elevating the beverage game provides a great opportunity to raise that early-day check average, which is typically on the lower side.
DEI Backlash
The Headline: “Cracker Barrel targeted by Trump-aligned legal group over alleged DEI policies”
The Source: Nation’s Restaurant News
What You Need to Know:
America First Legal — a conservative legal entity led by President Donald Trump’s senior adviser, Stephen Miller — issued a statement calling for federal and state government investigation into Cracker Barrel Old Country Store.
The nonprofit legal group alleges that the company’s “unlawful and discriminatory employment practices” run afoul of Trump’s January executive order banning public and private sector diversity, equity, and inclusion policies and programs.
Like many companies in the wake of the backlash against diversity policies, which either dismantled their DEI divisions or rebranded them, Cracker Barrel renamed its Diversity and Inclusion website to Culture and Inclusion in 2024, but America First Legal claims the company still has the same policies in place.
For example, in Cracker Barrel’s Environmental, Social, and Governance report last year, the company tracked workplace demographics like race and gender. Cracker Barrel also maintains business resource groups categorized race and gender, which America First Legal claims is “illegal discrimination” by a different name.
Our Take:
This makes my blood boil. For an administration that touts itself as business-first, it sure seems like a lot of its policies are actually anti-business. This is just another example. If the administration doesn’t like your policies, they’ll just attack your business.
If a business wants to engage in DEI policies, that’s their prerogative. It’s not reverse racism or discrimination; it’s about inclusion. More often than not, well-thought-out DEI policies are a financial boon for businesses.
The same can’t be said for reversing DEI — just ask Target.
It’s confounding that certain things, like health and safety regulations, are being pulled back, and that will have consequences in the coming years. Yet companies that just want to have a diverse and inclusive staff are being targeted — not because their products or services are unsafe, but because some in the government think they’re “woke.”
There are dangerous precedents being set by this administration when it comes to businesses — or, should I say, the government meddling in businesses that don’t agree with their views. It’s fine to have different views, but neither side should be punished for them. If the consumer decides they don’t want to support a business, that’s their prerogative — not the government’s.
Rewards Without Apps
The Headline: “App-less rewards programs could be the next big trend in digital loyalty”
The Source: Nation’s Restaurant News
What You Need to Know:
Loyalty programs are having a full-circle moment. Before the digital age, they were mostly punch card-style analog programs. Then, came email signup lists, and for a while it seemed like every other fast-casual and quick-service brand was developing an app where customers could peruse and order from the menu, collect points, and cash in for rewards all in one place. Just in the past year alone, Scooter’s Coffee, Walk-On’s, Jack in the Box, White Castle, and Cava have introduced or revamped their loyalty apps.
Now it looks like the trend might be swinging back in the other direction. Recently, Chicago-based Portillo’s and Denver-based Birdcall launched rewards programs that don’t require customers to download an app for people to join. Instead, Portillo’s Perks comes integrated in customers’ digital wallets. At Birdcall, the loyalty program is embedded with the brand’s proprietary point-of-sale system, Poncho, and can be accessed across every order channel.
They’re not the only ones: 7 Brew Drive Thru Coffee — the fastest growing foodservice chain in 2024 by sales percentage — has always had an app-free loyalty program since the brand went national in 2021. Cheesecake Factory’s Cheesecake Rewards went national in 2023, can be accessed via the brand’s website and does not have an accompanying app.
The modern app-less loyalty program is still a budding trend. According to Informa Engage’s June 2025 Market Leader Report, more than one-quarter of surveyed operators with a loyalty program said they would be interested in app-less loyalty. This is just about the same level of interest subscription or membership models, though it does not drive as much interest yet as AI-driven personalized, which 38% of operators expressed interest in.
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“This tech-forward approach eliminates common loyalty program friction, like forgotten logins or app fatigue, while making it easier for guests to stay engaged,” Portillo’s added. “The result is a smarter, more streamlined experience that keeps Portillo’s top of mind with every visit.”
Our Take:
As someone who is personally experiencing “app fatigue,” I definitely applaud this direction. I was at a juice place the other day (which I won’t name), and the manager suggested I get the app and rewards program. So, I did — and it sucks.
It’s not easy to log points. Supposedly, you can get points either by pre-ordering on the app or at the kiosk, but I haven’t figured out how to get points at the kiosk. The app ordering isn’t super intuitive either, making it just easier to order at the kiosk with a person.
The most convenient rewards systems are built into the POS when you order. Your information is there, it’s quick and easy, and I don’t have to deal with a janky app or, god forbid, forget my password. If I forget it, I’m not going to bother with the app — I don’t want to spend time resetting it, especially when I just want my food as quickly as possible. In turn, we’ve created what is supposed to be an incentive for guests to frequent the business more into at best a neutral experience, and at worst a negative one.
Dunkin’ Tip Lawsuit
The Headline: “Worker says Dunkin’ franchisee retaliated after she researched tip law”
The Source: Restaurant Dive
What You Need to Know:
A former crew member at Simone’s Inc., a Dunkin’ franchisee located in Connecticut, alleged she was terminated following an inquiry into whether her employer was properly following compensation law, according to court documents (Kaminska v. Simone’s Inc.).
According to the lawsuit, the Dunkin’ location made a practice of pooling tips and then distributing them at the end of each month. “However, they were not informed of the method or basis by which their individual shares were determined,” the complaint said.
The worker, who began her role in early May, used a search to look into the legality of withholding tips for a month before disbursement and showed the results — which determined the process was illegal — to her supervisor.
“That’s AI. That’s not real. This article is not for Dunkin’ Donuts,” the supervisor allegedly said in response.
It was not clear from court documents whether the worker used AI or another search function.
The worker was fired an hour later purportedly because she had “gotten some complaints from customers,” although she was, earlier in the day, approved to begin working more hours, the complaint alleged.
Our Take:
There are very few absolutes in the hospitality industry in the United States, but there is one: don’t f*ck with tips or tip distribution methods without checking with a hospitality HR or legal expert first.
That does not mean tip structure cannot be changed, it just needs to be done in the proper manner, with the proper documentation, and proper approval.
We’ve seen flat out wage/tip theft occur from owners (at the macro and micro level) and I’ve also seen many an operator make a change, not document it properly, and then get sued and lose. Don’t risk it. Spend the money to have someone ensure it is done properly.