Hello!

Today we’re covering…

• The two burger giants taking opposite sides of voice AI

• Starbucks trimming its store count again

• Cracker Barrel’s gradual comeback

Read on…

3 Numbers

-2.1%

Same-store sales drop for Cracker Barrel last quarter — an improvement from the dark winter days of the logo slump, when quarterly comps dropped 7.1%. Wall Street smells a comeback brewing; at Friday’s market close, the stock was up almost 93% year-to-date.

250

Underperforming locations that Starbucks is closing. This marks the second biggish store markdown under Brian Niccol’s leadership — last September Starbucks closed 627 stores in North America and Europe — but it’s still a relative drop in the bucket for the company, which currently owns and operates over 11,000 North American stores.

95%

C-store operators who call foodservice a strategic priority, according to a Technomic survey that was unveiled at the FSTEC conference last week. Another fun stat to keep restaurateurs up at night: 68% of consumers believe c-stores can match restaurants on providing fresh, quality food. (*Extremely Steve Ballmer voice* Hospitality, hospitality, hospitality, hospitality, hospitality, hospitality…)

The Big Story

Burger King is pushing back on the idea that drive-thru AI is inevitable (or at least that it’s imminent). Via Restaurant Business:

BK is not completely killing the test — it will remain in 50 to 70 locations — but customers will be given a quick way to reach a human during their orders.

Meanwhile, McDonald’s is planning a broader rollout of Archy, its voice AI, via Restaurant Dive:

Archy is live in 10 U.S. restaurants and has started in Australia. McDonald’s didn’t give too many details on when it will arrive in more stores, but it’s an integral part of a broader $8.5 billion modernization plan — so odds are, you’ll be talking to it sooner rather than later.

It’s rare to see direct rivals stake the exact opposite position on the same question… in the same week.

Burger King seems to be meeting its customers closer to where they currently are — at the FSTEC conference, Technomic presented data showing that drive-thru voice AI remains broadly unpopular; only 23% of consumers find it appealing. It ranked last of the six ordering methods they tested.

But McDonald’s could be skating to where the puck is going. If voice AI polls badly because respondents held earlier, clunkier versions in their mind’s eye, McDonald’s may be betting it can overcome doubters with today’s better tech (and its own ubiquity).

Technomic didn’t survey me, but if they did, I wouldn’t really know how to answer. I’ve had some actually helpful AI customer service “conversations.” I’ve had others that are so bad they left me repeating “speak with a representative, speak with a representative” like a deranged Howard Hughes.

For now, I tend to think the Burger King approach makes the most sense. Give people a fast toggle to a human, but keep testing the technology. Because at some point in the not-so-distant future, its benefits will be undeniable.

Elsewhere In the Headlines

• An update on last week’s big story: Wendy’s says it terminated Meritage Hospitality Group’s franchise agreement the day before Meritage filed for bankruptcy. Meritage’s attorneys are expected to dispute Wendy’s move, which would allow the company to transfer the Meritage stores to itself or other franchisees.

• Yard House is Darden’s third billion-dollar brand, joining its sister concepts Olive Garden and LongHorn Steakhouse in the Tres Commas club. While Yard House has steadily grown for years, the World Cup was a boon — it hit 10% same-store sales growth in Darden’s fiscal first quarter.

• Fascinating look at how Golden Corral makes money in 2026 on a $16 all-you-can-eat buffet.

• America’s busiest restaurant is… Aga’s in Houston, an Indian and Pakistani restaurant in a random strip center that processes the most Uber Eats orders in the entire country.

• Have you also been confronted by deeply unsettling AI food photos on a menu board? Join millions of fellow sufferers.

• The goal of KFC’s new Open House concept: test new menu items, run new processes, and focus on “AUV maxxing.”

• Actually aggressive Carl’s Jr. marketing campaign: the first 100 people to record themselves throwing a BK crown in a trash can get a free burger.

• Your unhinged letter-writing campaign worked: Taco Bell promoted Nacho Fries to its permanent menu.

Name That Chain!

You’ve got three clues to name this issue’s chain:

• It began as two rival burger chains born a year apart in the 1980s with a similar idea — two drive-thru lanes, no dining room, and a limited menu.

• The concepts merged in 1999. The parent company today is headquartered in Tampa and runs restaurants in 28 states and D.C.

• Which sign you see today depends on which side of the Ohio River you happen to live on. (But its famous fries are served at all locations.)

Find the answer at the bottom of the email…

Power Moves

Here are some notable recent C-suite moves:

• Former Starbucks CFO Rachel Ruggeri joined the Jack in the Box board.

• Dave Shula is back as president of Shula's Restaurant Group, after a stint coaching receivers at Dartmouth.

Thanks for reading! I’ll see you again next week.

NAME THAT CHAIN ANSWER: Checkers & Rally’s