Viewpoint

Mastering the Art of Listening

by Bob Gershberg, CEO & Managing Partner, Wray Executive Search

Great leaders possess a variety of skills and qualities that drive their success. Among these, one of the most critical is the ability to listen. While many of us may lean toward being verbose, mastering the art of listening is essential. Listening effectively to stakeholders, adapting to change, and engaging actively in conversations pave the way for success. This skill can mean the difference between fostering empowered, growing teams and allowing stagnation. Truly great leaders excel at listening, employing active listening techniques to promote team growth and individual empowerment.

Effective leadership hinges on trust and listening plays a foundational role in building it. Exceptional leaders recognize that understanding their teams, employees, and customers is key to leading a successful organization. Active listening requires being fully present and appreciating diverse perspectives, enabling genuine growth. Leaders who listen foster open communication, creating an environment of trust and respect. By actively engaging in conversations and reflecting with clarity, leaders demonstrate they value their team’s input.

Restaurants: Hoping for a Better 2025

by John Gordon, Principal and Founder, Pacific Management Consulting Group

As observed at the outstanding Restaurant Finance and Development Conference (RFDC2024) last week, the question de jour was of course, what does 2025 look like. Without question, the restaurant lending community, which was present in force, was cautiously optimistic. Many felt that the concluded election, a now cumulative year 75 basis points decline in the Fed Funds Rate, the building impact of some weaker restaurant locations being closed via bankruptcies, more positive signs from lenders, and improved October sales via Census Department’s Advance Food Service Sales tracker is setting the stage for an improved 2025.

The upcoming ICR Conference will tell you more. Here, 25-30 public restaurant brands are present, along with 10-15 up-and-coming brands. I will attend as usual and will report more about brand outlook for 2025.

We as an industry want it and need a better 2025. We have continued backwash from the 2020 Pandemic. We lost a full year of normalized sales in most casual dining brands, raging double impact food and labor cost inflation, especially in 2022-2023. The industry, both in the US and international markets finally had our cumulative price increases catch up with us. We now have a negative reaction worldwide. And now, to no surprise, we have experienced a dramatic US price war, especially centered in the QSR sector. This was led by McDonald’s, which talked about sales softness for three quarters, and then finally rolled out a $5 “Mead Dea” which improved the US traffic trend, but did not generate material positive SSSs and profitability.

"Eat at a local restaurant tonight. Get the cream sauce. Have a cold pint at 4 o’clock in a mostly empty bar. Go somewhere you’ve never been. Listen to someone you think may have nothing in common with you.

Order the steak rare. Eat an oyster. Have a negroni. Have two. Be open to a world where you may not understand or agree with the person next to you, but have a drink with them anyways.

Eat slowly. Tip your server. Check in on your friends. Check in on yourself. Enjoy the ride."

Anthony Bourdain

Utilizing AI to Mitigate Food Costs

by Ray Kelley, SVP & Partner, Wray Executive Search

Talking with clients we consistently hear about three consistent pain points:

• Food Cost
• Labor Cost
• Real Estate Cost

Let’s look at how AI can potentially alleviate some of the pressure.

by Ray Kelley, SVP & Partner, Wray Executive Search

How AI Can Help Mitigate Food Cost Challenges

Inventory Management and Waste Reduction

Food waste is one of the most significant contributors to high food costs, accounting for approximately 6-14% of food purchased. By integrating AI-driven inventory management systems, decision makers can drastically reduce waste and improve inventory efficiency. AI systems, such as predictive analytics, allow restaurants to analyze historical sales data, track real-time usage, and predict future demand with remarkable accuracy.

• Predictive Analytics for Inventory Control: AI-powered inventory management tools can forecast food usage based on historical data, seasonal trends, and special events. By accurately predicting demand, these tools can help minimize over-ordering, leading to reduced waste and fewer spoilage issues.

Check out the October 2024 Restaurant Industry Summary from Compass Restaurant Research & Consulting

Read the latest on restaurant industry sales from the National Restaurant Association

Total restaurant industry sales

Restaurant sales rose for the 7th consecutive month in October.

Consumer spending in restaurants continued to trend higher in October, alleviating concerns that the soft patch during the first half of the year signaled an end to the industry’s current growth cycle. 

Eating and drinking places* registered total sales of $97.3 billion on a seasonally adjusted basis in October, according to preliminary data from the U.S. Census Bureau. That was up 0.7% from September’s upward revised sales volume of $96.6 billion.