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In this issue: zesty tech M&A news, a testy consumer, and the silver lining found in Parmesan-Stuffed Crust Pizza.

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3 Numbers

$3.6 billion

Amount of a buyout proposal submitted by DoorDash for the British meal delivery company Deliveroo. The Deliveroo board is expected to recommend DoorDash’s proposal, “subject to other terms,” and analysts at Citi said this week that they don’t expect the takeover to face major regulatory hurdles as the two companies currently have no geographical overlap. Acquiring Deliveroo would give DoorDash entry into the UK, France, Italy, Belgium, Ireland, Singapore, and Qatar markets.

9%

Q1 same-store-sales growth reported by Taco Bell, its largest increase in two years. In Yum’s earnings call this week, credit was partly given to a slew of LTOs and menu additions, including Crispy Chicken Nuggets, Milk Bar Churros, and Crunchwrap Sliders.

700

Restaurant chains currently served by Olo, which — according to a Bloomberg report this week — may be sold after receiving interest from potential buyers. With its large customer base, Olo could be a strategic acquisition for a large end-to-end tech provider.

What’s Happening

Earnings calls can rarely be described as a good-times party, but the vibes this week were … not especially great.

The US economy shrank in the first quarter of 2025, the first GDP decline in three years. (This is definitely not an economics newsletter, but it’s worth noting that the GDP data was clouded a bit by a rush of import purchases made by businesses and consumers prior to April’s tariff announcements.)

This week, CEOs from industry bellwether companies like McDonald’s and Domino’s expressed concerns about the state of the consumer. A couple of choice quotes, via Nation’s Restaurant News:

• McDonald’s CEO Chris Kempczinski: “Low- and middle-income consumers in particular are being weighed down by the cumulative impact of inflation, and heightened anxiety about the economic outlook.”

• Domino’s CEO Russell Weiner: “Consumer disposable income is down, and their confidence levels are also down to 2022 levels. In general, there's a headwind on the total business.”

Perhaps not surprisingly, uncertainty and deflated consumer confidence are showing up in Q1 sales numbers across the largest brands in the industry:

• McDonald’s US same-store sales dropped 3.6%, its biggest decrease since the early days of the pandemic in 2020.

• The country’s second-largest chain by revenue, Starbucks, reported a 2% drop in same-store sales.

• And America’s largest pizza chain — Domino’s — reported a 0.5% decline, offset a bit by “arguably the biggest new menu item” in the company’s history — March’s introduction of the Parmesan Stuffed Crust Pizza.

Which, believe it or not, does point towards a bright spot in what’s shaping up to be yet another tough macro environment. Taco Bell and Domino’s have shown that menu innovation — and a buzzy product — can help give chains a fighting chance.

As Jonathan Maze at Restaurant Business wrote, “The pizza was launched late in the quarter, not early enough to have much of an impact on first-quarter numbers. But it proves again that consumers today can be motivated by a fun new product, even if they’re spending much of their time cutting back on dining.”

The Headlines

A few LTOs and new product offerings that caught my eye this week:

• Culver’s is now offering Skittles-mixed concretes.

• Dutch Bros launched a series of matcha lattes.

• KFC is bringing back Chicken & Waffles.

• McDonald’s is testing a CosMc’s-inspired beverage line in some of its existing restaurants later this year.

• And Chili’s partnered with Saved by the Bell’s Tiffani (Amber) Thiessen to promote the 90s-themed ‘Radical ‘Rita.’ (Two important sidenotes there: Chili’s just posted another sizable same-store-sales increase, and I recently had the privilege of watching a young man order the Tiffani Thiessen margarita at an 11:30 a.m. work lunch. Dudes rock.)

Name That Chain!

You’ve got three guesses to name this week’s mystery chain:

• This chain is considered the first franchised pizza concept — as well as one of the first concepts to pair food with arcade games.

• Today, its largest market is the Philippines, with more than double the number of its American locations.

• Think: Nervous hands.

Find the answer at the bottom of the email…

#Content Recs

• Pickles are having a moment. But have we reached Peak Pickle?

• Loved this story of a guy playing business on Hard Mode: how a 35-year-old left the U.S. for India 13 years ago to build… a $23M Southern California-style burrito business.

• Is Panda Express the most under-the-radar growth story in quick-service?

• Wine concepts: Crushing it.

‘Member When?!

This month marks the 8-year anniversary of one of the more unusual LTOs to ever hit a national QSR chain: Popeyes’ Sweet & Crunchy Tenders.

From a Delish piece at the time:

I will admit that I missed them in the halcyon days of 2017. They recently resurfaced in a Reddit remembrance that featured a surprising number of positive comments about the similarly sweet-and-savory Chicken Waffle Tenders.

Were they ahead of their time? Ripe for a comeback? Or too bold to ever try again? Let me know.

Thanks for reading! We’ll be back next week with more Industry Bites.

Andy

NAME THAT CHAIN ANSWER: Shakey’s Pizza