National

Dunkin’ is taking the latest shot in the ongoing fast-food breakfast wars by getting into the taco business.

Why it matters: Breakfast is big business for fast-food and quick-service restaurants with brands including McDonald's, Wendy’s, Starbucks and Taco Bell seeing growth in morning sales as more people return to pre-pandemic routines.

Morning restaurant traffic has fully recovered from pandemic declines, according to research firm The NPD Group.

Visits increased 13% year-over-year in January and are up 3% compared to three years ago, per NPD data.

Driving the news: Dunkin' announced the nationwide launch of its first-ever breakfast tacos this week — and they are available to order all day. The tacos were tested at select locations in Arizona, Maine and New Hampshire.

The tacos — served with and without bacon — are a temporary addition and expected to be on the menu for spring and summer, the company told Axios.

The tacos include a flour tortilla, scrambled eggs, melted sharp white cheddar cheese, fire-roasted corn and lime crema with the choice of adding crumbled bacon.

Prices can vary by location, but the tacos cost $2.59 without bacon and $2.99 with bacon, Dunkin’ said. 

Between the lines: Dunkin’ has offered an item similar to tacos — its Wake-Up Wraps — for years. The wraps were first introduced in 2009.

Flashback: In the early days of COVID, restaurants took a hit during breakfast and some cut their offerings or temporarily stopped serving breakfast like Taco Bell did.

McDonald's cut its all-day breakfast and has not brought it back.

Wendy’s launched breakfast nationwide in March 2020.  

Meanwhile, McDonald’s and Krispy Kreme have teamed up to test selling doughnuts at select Kentucky restaurants.

A small-scale test started in October for nine McDonald’s in Louisville, Kentucky.

The test expanded Tuesday and doughnuts are now available at approximately 160 locations across Louisville, Lexington and the surrounding area.

Subway's Footlong Pass is back as more restaurants test subscriptions

Fun foods proliferate as Americans snack more than ever

Foot Locker closing 400 stores by 2026 as part of "Lace Up" plan

Dunkin' heats up breakfast wars with new tacos

Dunkin’ is getting into the taco business with the launch of its first-ever breakfast tacos.

Two breakfast tacos, one closed and one open

Breakfast tacos are now available at Dunkin' restaurants nationwide. Photo: Courtesy of Dunkin'

Dunkin' Donuts

Retail

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The results of Axios’ informal survey of COVID changes at stores and restaurants are in.

Driving the news: Of all the changes, readers told us they despised the move to QR menus the most, with many writing in all caps for emphasis. 

“I HATE QR code menus. Savoring the menu is an important (part) of the dining experience. I have given up two favorite places because their menu was such. False efficiency." —  Linda D., Lake Forest, Illinois

“Hate QR — if I’m out, I want to get OFF of my phone," — Sally K., Oakland, California

“Covid is over for those who are vaccinated and boosted, and science shows anyway that you're unlikely to get it from just handling a menu.” —Jeffrey C., Los Angeles, California

“I HATE QR code menus. You can't see the whole thing at once, and I've missed entire sections by not scrolling to them. I have no problem with whatever germs are on paper menus.” —Jan B., Evanston, Illinois

Meanwhile, many readers told us they are eating out less since the pandemic opting for takeout and more home cooking. Some said they like to eat outdoors more, another trend brought on by the pandemic as cities across the country relaxed outdoor dining rules.

“We have not eaten inside or outside a restaurant in over 3 years, but now will go pick food up inside a restaurant, always masked.” —Linda M., San Francisco, California

“I am ordering more food delivery and take out than I did before. However, it isn’t that much cheaper so I’d rather go out with friends and have in person experience if given the choice.” —Steve G., Seattle, Washington

“I have always loved eating outdoors, so I love the huge increase in options for outdoor eating.” —Tsippi S., Chicago, Illinois

Many readers said they continue to shop online more often using pickup or delivery options. Some said they used the services more in the early days of the pandemic.

“I now buy groceries 100% online. Love grocery delivery and working remotely!” —Adele F., Denver, Colorado

“Buy much more online, often from Amazon because of wide range of options and convenience.” —Bev L., Minneapolis, Minnesota

“I rarely go inside of a store. We use Walmart pickup for food and order online (at) particular stores.” —Beverly S., Panama City, Florida

"Shop online more but another plus is I don't have to fight horrible traffic in the Atlanta metro area. Also, the selection is poor in retail box stores.” —George W., Stone Mountain, Georgia

“We use online ordering much more. Use of drive through lines depends upon how long they are.” —Deb C., Charlottesville, Virginia

Infections from eye drops linked to 3 deaths, CDC says

QR code menus top list of COVID changes people hate

Readers told us they despised the move to QR menus with many writing in all caps for emphasis.

QR code for menus on display, next to bottle of hand sanitizer 

QR codes became more popular for restaurants at the start of the pandemic. Photo: Noam Galai/Getty Images

Online shopping

Federal health officials are continuing to investigate a multi-state outbreak of drug-resistant infections linked to eye drops.

Driving the news: At least 3 people have died and 68 people from 16 states were diagnosed with a rare strain of Pseudomonas aeruginosa in connection with the outbreak, according to the Centers for Disease Control and Prevention.

 There have been eight reports of vision loss, the CDC said in its update this week citing data as of March 14.

There have been four cases involving surgical removal of an eyeball, the CDC said.

The 16 states with reported cases are California, Colorado, Connecticut, Florida, Illinois, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, South Dakota, Texas, Utah, Washington and Wisconsin.

There have been eye drop recalls linked to the outbreak including Global Pharma Healthcare's voluntary recall of lots of its Artificial Tears Lubricant Eye Drops, distributed by EzriCare, LLC- and Delsam Pharma for potential microbial contamination. It also recalled a lot of artificial eye ointment.

EzriCare Artificial Tears, an over-the-counter product, was also the “only common artificial tears product" identified across four healthcare facility clusters, which account for 37 of the 68 cases, the CDC said.

Since February, the FDA has been warning consumers and health care practitioners not to purchase and to immediately stop using EzriCare Artificial Tears or Delsam Pharma’s Artificial Tears due to potential bacterial contamination. The recalled ointment has not been linked to infections but shouldn't be used, the FDA notes.

Meanwhile, other recent eye drop recalls have not been linked to the outbreak.

Select lots of Purely Soothing 15% MSM Drops and Brimonidine Tartrate Ophthalmic Solution did not list any illnesses or injuries from the products but "using contaminated artificial tears increases risk of eye infections that could result in blindness or death," the FDA said.

Teva Pharmaceuticals has recalled nearly 716,000 bottles of Clear Eyes eye drops for failed impurity testing, according to The Miami Herald. which cited an FDA enforcement report.

Yes, but: Most patients reported using artificial tears. Patients “reported over 10 different brands of artificial tears and some patients used multiple brands.”

The CDC said patients who have used “EzriCare or Delsam Pharma’s artificial tears and who have signs or symptoms of an eye infection should seek medical care immediately.” Symptoms, the CDC noted, include:

Yellow, green, or clear discharge from the eye

A feeling of something in your eye (foreign body sensation)

The CDC is continuing to investigate a multi-state outbreak of Pseudomonas aeruginosa.

Eye drops have been linked to Pseudomonas aeruginosa infections. Photo: White Fox/AGF/Universal Images Group via Getty Images

Product recalls

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

More restaurants, including big chains and small mom-and-pop shops, are using subscription programs to build loyalty and drive sales. 

Driving the news: Consumers are increasingly willing to buy multiple subscription services and often underestimate how much they are spending (and sometimes forget they signed up in the first place) which could help boost restaurants' bottom line. 

The latest: Subway is bringing back a limited run of its “Footlong Pass” subscription, a move that could bring in $3.75 million if all 250,000 passes are sold.

Panera launched a coffee subscription program in February 2020, which rebranded to the "Ultimate Sip Club" last April to include soda and lemonade. It’s now available for $11.99 per month or $119.99 yearly with annual subscribers also getting free delivery.

Last year, Taco Bell sold a Taco Lover's Pass where for $10 a month subscribers could get a taco a day for 30 days.

P.F. Chang’s updated its loyalty program to add a paid membership option that gets you unlimited free delivery and more rewards points for $6.99 a month.

Some restaurants are experimenting with memberships where diners prepay for their visits, the AP reports.

Americans spend on average $219 a month on different kinds of subscriptions, which is $133 more than they estimated spending, a survey by C+R Research found.

What's next: Rick Camac, executive director of industry relations at the Institute of Culinary Education, told the AP that he expects many more restaurants will offer subscriptions in the coming years, noting regular monthly income can help restaurants manage their cash flow. 

However, some subscription experiments haven't worked out the way companies intended. On The Border Mexican Grill & Cantina's Queso Club offered free cheese dip for a year for $1 ended after a year, per AP, because the company wasn't making enough to cover costs. 

The big picture: The sandwich chain’s $15 subscription offers 50% off a footlong sub each day in April when ordered on Subway's app or website with daily digital codes. The pass is not available in Iowa. 

The passes went on sale at 8 am ET Tuesday on a special website and will be sold through 7:59 am ET Saturday, March 25, while supplies last.

You have to be a new or existing member of the chain’s MyWay Rewards program to purchase the pass.

The pass is only valid in April 2023 at participating locations nationwide.

Between the lines: Subway says if a member used the pass every day in April they’d save an average of $150 or about $5 a day.

You would need to use the pass at least three times to break even.

By the numbers: Subway prices vary by location and by sandwich, meaning the potential pass savings also vary, but in some cases, subs will cost less than $5.

Flashback: In August, Subway sold 10,000 passes for the subscription program, which could be used in September. They sold out in less than six hours.

How COVID permanently changed shopping and restaurants

More restaurants, including Subway and Panera, are using subscription programs to build loyalty and drive sales.

Subway is selling 250,000 Footlong Pass subscriptions that can be used in April 2023. Photo: Brandon Bell/Getty Images

Food

Foot Locker is taking steps to close 400 low-performing stores by 2026 and 125 of its Champs Sports locations this year, officials announced Monday.

Driving the news: The company unveiled the closures during its Investor Day and officials said they plan to focus on higher-performing locations as part of its “Lace Up” plan.

The closing stores are in 200 C/D malls and 200 lower-performing A/B malls, said Tony Aversa, senior vice president of store development.

"These 400 stores represent nearly 10% of our total sales," Aversa said.

Yes, but: The company also plans to open hundreds of new concept stores, increasing those locations from around 120 to 400-plus stores by 2026, Aversa said. 

Meanwhile, Foot Locker CEO and president Mary Dillon said the company is "revitalizing" its partnership with Nike, which includes a "shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture."

In recent years, Nike had reduced the number of traditional retailers and websites it allowed to sell its products and shifted more to a direct-to-consumer strategy.

“We've reestablished joint planning, as well as data and insight sharing so that we can better serve customers and the fruits of our renewed commitment to one another will begin to show up and holiday this year,” said Dillon, who joined the company in September.

Chris Santaella, Foot Locker’s chief merchandising officer, said Monday that the company plans to feature more LeBron James and Kevin Durant retro Nike shoes for the holiday season.

WeightWatchers embracing weight-loss drugs and closing more locations

The company also plans to open new hundreds of new concept stores.

Foot Locker is closing hundreds of stores in the next few years. Photo: Scott Olson/Getty Images

Shopping

Shifts in technology and media are changing the way we play, watch and understand sports. Business models are adapting and social change is forcing those in charge of teams and leagues to reconsider decades-old practices.

Sports

Three years after the start of the coronavirus pandemic, how, where and when American consumers shop and eat has transformed.

The big picture: People have come to love some changes, like curbside pickup and more takeout options, and have mixed feelings on others, like shorter store hours and QR codes replacing real menus in restaurants.

Some major COVID changes like social distancing measures and retailer mask mandates were short-term and are unlikely to be reinstated.

“The overarching way that shopping has changed since the pandemic is that people got more comfortable with a digitized experience with online shopping,” NerdWallet personal finance expert Kimberly Palmer told Axios.

Online shopping growth in curbside pickup, delivery

Curbside pickup went from being a convenient perk to a public health necessity overnight but is now a permanent feature at most large stores.

Almost every retailer shifted toward e-commerce including offering buy-online-pickup-in-store options as a “safer” way to limit exposure when shoppers were looking to make fewer trips into stores.

Instacart and Shipt both added staff to help keep up with demand. Walmart and Target also added staff for curbside pickup and expanded offerings.

The Walmart+ membership program — with unlimited free delivery from stores for orders $35 or more — launched in September 2020.

“Curbside is a trend that will not disappear, simply because a lot of consumers love the convenience and simplicity,” GlobalData managing director Neil Saunders told Axios, adding it also saves retailers money by not having to ship items.

In some cases, it costs more to use on-demand services but Palmer said many shoppers are willing to pay for the convenience.

The online growth has also lessened the effects of shorter store hours, Palmer said. “I think there's a solid case to be made that consumers actually overall have more hours that they can shop because of the upgraded online shopping experience,” she said.

What’s next: Stores are doubling down by opening stores with more drive-thru lanes and are starting to allow consumers to make returns curbside.

Target said it is rolling out the ability to make returns through its Drive Up service this spring and expects to reach all stores by the end of the summer.

Stores are encouraging customers to use their apps for loyalty programs and discounts as more retailers have stopped having printed sales circulars since COVID.

COVID accelerated the death of the physical coupon, which has been replaced by more QR codes and digital coupons.

Three years ago this week, stores started cutting hours or temporarily closing their doors.

Walmart stopped keeping stores open 24 hours on March 15, 2020, when hours were reduced and they were reduced a second time days later.

Most Walmart stores nationwide are now open 6 am to 11 pm daily and the world’s largest retailer confirmed to Axios that it has “not announced plans to change our store hours and return to 24-hour operations.”

“COVID was used as an excuse to cut store hours and I think it is unlikely that all retailers will return to 24/7 trading,” Saunders said. “The fact is that during unsociable hours the traffic at stores is extremely low and, in most cases, it is hardly worth the cost of opening.”

Retailers quickly added senior hours, which at many stores lasted the first year of the pandemic. Costco ended its special hours in April 2022.

Since the great toilet paper shortage of 2020 and the run on hand sanitizer, shortages of necessities and food have persisted. Retailers have often resorted to purchasing limits.

Supply chain struggles and labor shortages have intensified shortages along with winter storms and COVID variants.

High demand and panic buying, especially during lockdowns early in the pandemic, were also why shortages have continued.

Many of the shortages have been regional or short-term including recent egg shortages amid the ongoing bird flu.

In February 2022, a massive baby formula recall by Abbott Nutrition led to nationwide shortages and many retailers still have purchasing limits in place.

The COVID temporary store closings spurred some permanent closures and retail bankruptcies.

Some retailers like JCPenney were saved after shuttering low-performing locations and being purchased in bankruptcy while others like Pier 1 and Stein Mart shuttered all locations.

A rise in shoplifting since the pandemic also has led retailers to close locations.

Yes, but: Retail bankruptcies and closures were happening before the pandemic including at Bed Bath & Beyond and Macy’s, which are holding liquidation sales for some locations.

“The pandemic really accelerated existing trends in business failures rather than creating new ones,” Saunders said. “So sectors like department stores, which were already under pressure have seen a lot of closures and a loss of market share.”

COVID-19 changed the traditional holiday shopping season, pushing Black Friday-like sales earlier to spread out crowds and demand and moving more deals online.

Since 2020, the nation's largest retailers, including Best Buy, Walmart and Target, have kept stores closed on Thanksgiving, a break from a decade of holding Black Friday sales on the holiday.

By the numbers: Online holiday shopping grew at a slower pace in 2022 than past years but it continued to break records with $11.3 billion spent online for Cyber Monday 2022, 5.8% more than 2021 according to Adobe Analytics.

Black Friday also drove a record $9.12 billion in online sales, Adobe found.

Menus disappeared, more takeout options offered

COVID forced restaurants to make changes fast too, with many closing their dining rooms during lockdowns for several months.

Mobile and online ordering became more popular and restaurant apps have continued to drive loyalty and sales.

Many restaurants replaced physical menus with QR codes because menus are considered “high-touch” points. The controversial move meant consumers had to open menus on their phones.

Some restaurants added “pay at the table” tableside tablets and fast-food restaurants added more self-service kiosks.

A 2022 survey by Technomic of 1,000 consumers found 88% preferred paper menus to digital QR codes and 66% agreed or strongly agreed that they didn’t like QR codes, CNN reported.

The pandemic has transformed how we shop and eat. What changes do you like and which do you hate? Let us know here. (Some responses may be featured in future Axios newsletters and on Axios.com.)

How, when and where we eat and shop is different than three years ago.

Illustration of a shopping bag with the words thank you and a smiley face  outlined with arrows in a symbol for "change"

COVID-19

Retail sales drop in February after consumer spending surge

There was also a surprising drop in wholesale prices, which may suggest easing inflation pressures.

Photo: Gabby Jones/Bloomberg via Getty Images

Consumers

Stock market

Prices continued to rise at a quick pace last month: the Consumer Price Index rose 0.4% in February, slowing only slightly from the prior month, the government said on Tuesday.

Why it matters: Inflation has dropped from last year's peak, though there are still signs that underlying price pressures continue to run strong — a development that reflects the challenging task ahead for the Federal Reserve.

Fed officials were watching this data release closely, along with other government data, looking for confirmation of whether or not economic activity continued to heat up last month in a way that might force them to raise interest rates more aggressively at its upcoming policy meeting.

But that decision might be complicated by the collapse of Silicon Valley Bank and Signature Bank, which forced the Fed to step in with emergency measures to backstop the banking system.

By the numbers: In the 12 months through February, the overall Consumer Price Index rose 6%, compared to 6.4% in January.

Excluding food and energy costs, which can be volatile from month-to-month, the index rose 0.5% last month — quicker than the 0.4% increase in January. Over the year ending in February, this core index increased 5.5%, compared to 5.6% the prior month.

Details: Food, energy, and furniture were among the categories that saw prices rise, while used car and trucks saw prices decline outright over the month.

The shelter index, which includes rental costs, continued to rise swiftly last month: 0.8%, compared to January's 0.7% rise.

The category is weighted heavily in the index — for months, it has put upward pressure on the overall and core index. Private-sector data shows shelter costs have decreased, but that hasn't made it to the official CPI data yet.

Where it stands: The Fed is also closely watching a specific measure of inflation, a core reading of the services sector that excludes shelter.

Officials say that's where inflation might be stickiest because that sector includes businesses most likely to pass along higher labor costs to consumers.

Editor's note: This is a developing story. Please check back for updates.

Consumer prices continued to rise quickly in February

Fed officials were watching this data release closely.

Inflation

Jobs

Period product taxes by state

Data: Alliance for Period Supplies; Note: Includes legislation that went into effect in January 2023; Map: Madison Dong/Axios Visuals Editors note: This chart has been updated to correct the tax status of Washington, D.C.

Twenty-three states and Washington D.C. have banned taxes on menstrual items and 12 states are considering legislation for so-called “period tax” exemptions this year.

The big picture: As the world celebrates International Women’s Day, progress in efforts towards gender equity still lags when it comes to how much money women spend on everyday items.

Only two states — New York and California — have made it illegal to have gender-based pricing, also known as the “pink tax,” which is the practice of charging different (often higher) prices for goods or services marketed to women than for men.

But headway in eliminating the so-called “period” or “tampon tax” on menstrual products has been an exception to the lack progress with the gender pay gap.

By the numbers: The average cost of menstrual products is about $20 per cycle and adds up to about $18,000 over the average woman’s lifetime, the National Organization for Women estimated in 2021.

One in four people in the U.S. who menstruate can’t afford period products, according to the nonprofit Alliance for Period Supplies.

Tampon prices rose in the first half of 2022 by nearly 10% and pads by more than 8%, a NielsenIQ report found.

Efforts to abolish the period or tampon tax

2023 has been a busy year for new legislation and conversations about menstrual products, said Ameer Abdulraman, national campaign manager for Period., a global nonprofit.

“We’re really seeing an increase in recognition on this issue when in the past people didn’t even know this was a problem,” he said.

“Since the fall of Roe, there’s been a lot more conversations around the tampon tax issue in conservative states,” Abdulraman told Axios. “We’ve never seen anything like this.”

According to the Alliance for Period Supplies legislation tracker, 108 bills related to menstrual health have been filed with many related to making period products more accessible or equitable.

“The tampon tax is very much a middle-class issue where access to menstrual products is essential for everyone,” Abdulraman said. “You need to be able to afford menstrual products to have to worry about the tampon tax.”

States with proposed legislation related to the period tax this year include Arizona, Georgia, Hawaii, Indiana, Kansas, Kentucky, Mississippi, North Dakota, South Carolina, South Dakota, Texas and West Virginia.

U.S. Rep. Grace Meng (D-N.Y.), who has introduced several bills to Congress in the last few years including the Menstrual Equity for All Act, told Axios that she has “long argued that access to menstrual products is a health care right and a human right.”

“It’s not a choice to use menstrual products, and tampon taxes disproportionately penalizes 50% of our country that needs period products,” Meng said in a statement.

Meng said she is “championing a whole of government approach to ending period poverty” with the Menstrual Equity for All Act, which she plans to reintroduce this session. “I strongly believe ending the tampon tax is a crucial part of that approach.”

CVS Health started paying the tax on period products purchased in-store and online in 12 states in October and has cut prices nationwide on store brand period products.

Some states have laws prohibiting any organization from covering the tax on any product, CVS told Axios.

The company said it has been working with national nonprofits and “working to help eliminate the tax nationwide.”

Momentum builds to ban "period taxes"

Women pay extra “taxes” on items despite making less money.

All Retail stories