Daily Newsletter

09 August 2023

Daily Newsletter

09 August 2023

FAT Brands concludes cookies rollout across its burger restaurants

The rollout is a strategic optimisation that uses FAT Brands’ company-owned manufacturing facility.

Umesh Ellichipuram August 09 2023

Multi-brand restaurant operator FAT Brands has rolled out cookies at its Fatburger, Johnny Rockets and Elevation Burger restaurants across the US.

The rollout of the cookies is a strategic optimisation, which makes use of FAT Brands’ company-owned manufacturing facility.

These manufacturing units produce cookie dough and pretzel mix for the company’s sister portfolio brands such as Great American Cookies and Pretzelmaker.

Elevation Burger is said to have completed the cookie rollout in April this year.

FAT Brands fast casual division marketing vice-president Taylor Fischer said:  “For both Fatburger and Johnny Rockets, we see these additions as a way to further build and enhance our dessert programs.

“Playing into synergies is at the core of FAT Brands’ DNA. We are thrilled to be able to tap into our cookie dough facility to provide more delicious offerings for our fans.”

Recently, FAT Brands posted a net loss of $7.1m for the second quarter of 2023, compared to a net loss of $8.2m a year ago.

The company’s adjusted net income for the latest quarter was $3m compared to an adjusted net loss of $3.1m in the same period a year ago.

Its total revenues in the three-month period were $106.8m, an increase of 4% compared to $102.8m in the same quarter a year ago.

The restaurant operator stated that the growth was due to a 5% increase in royalties, a 4.6% growth in company-owned restaurant revenues and a 13% rise in revenues from its manufacturing facility.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.

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