by Bob Gershberg, CEO/Managing Partner, Wray Executive Search
We in the hospitality industry are driven to delight our guests. We roll out the red carpet for the fellow buying his morning cup of coffee. We do somersaults to serve up a San Pellegrino, no ice with lemon to the classy lady at the bar. And heaven knows, we will bring service to unparalleled levels when the jovial four top orders that second bottle of Caymus. How is it then, we so often neglect to treat the executive candidate who has shown great interest in joining our team in similar fashion?
In a tight talent market, candidates have more options and are more likely to be selective about their job search. Creating a strong employer brand that communicates your company's values, mission, and culture can help attract top talent and differentiate your company from competitors.
Offer competitive compensation and benefits: In a tight talent market, candidates have more bargaining power, so offering a competitive compensation and benefits package is crucial to attract and retain top talent. Research industry standards and adjust your offers accordingly. Also, consider offering flexible work arrangements and other perks that are important to executives, such as equity or profit-sharing.
by Kevin Stockslager, EVP & Partner, Wray Executive Search
The restaurant industry has undergone significant changes in the past few years and continues to evolve in 2023. As consumers increasingly prioritize convenience and a personalized dining experience, restaurant owners must keep up with the latest trends to remain competitive. Here are some of the most notable trends in the restaurant industry for 2023.
Delivery and Takeout Services: With the rise of food delivery apps, customers are demanding greater convenience in the way they order and receive their food. In response, many restaurants have invested in online ordering and delivery systems that allow customers to place orders directly from their mobile devices. As a result, more and more restaurants are offering takeout and delivery services to meet this demand.
Technology-Driven Dining: In 2023, technology continues to play a significant role in the restaurant industry. From self-service ordering kiosks to automated ordering and payment systems, restaurants are utilizing technology to improve the dining experience for customers and streamline operations. In addition, virtual and augmented reality experiences are starting to gain popularity in the industry, allowing customers to preview dishes before ordering.
by John A. Gordon, Principal and Founder, Pacific Management Consulting Group
Q4 Earnings to date…
We are in the middle of the Q4 earnings cycle and have had Darden, McDonald’s, YUM, Chili’s, Starbuck’s and Chipotle so far. The bulk of the casual diners and more QSRs and a few fast casuals will be this week and next.
As usual, one must work to see if the macro sector trends and results are brand specific. The one surprise to date is Chipotle SSS was weaker but still positive, with both negative mix and traffic. This is “a turn” as we analysts call it and CMG management said they didn’t see price resistance and that value scores were still very high. More on this later. Food and labor costs are still inflationary and restaurants (especially casual diners, per the BLS) are taking substantial price increases. McDonald’s store margins will be lower and Chipotle is under the gun to get store margins up to 27%.
"No executive has ever suffered because his subordinates were strong and effective."
-- Peter Drucker
Check out the National Restaurant Association's latest report on industry job growth
January represented the 25th consecutive month of job growth, bringing restaurants within 166,000 jobs of their pre-pandemic peak.
Like many other sectors in the economy, the restaurant industry expanded payrolls at a healthy pace in January. Eating and drinking places* added a net 98,600 jobs in January on a seasonally-adjusted basis, according to preliminary data from the Bureau of Labor Statistics (BLS).
Check out the Nation's Restaurant News article on inflation
Menu prices in January were up 0.6%, compared to a 0.4% increase in December, as the overall CPI lingered at 6.4% from its 9.1% peak in June.
We may be hitting a ceiling on menu inflation. Maybe. January’s Consumer Price Index report was released Tuesday morning, showing that menu prices were up 0.6% in January.
