Bidding Adieu: Goodbye and Au Revoir
On a brisk Wednesday this week, the Head of Brands, Michael Schatzberg, found himself in picturesque Southport, CT reminiscing with an old college acquaintance who has established himself as one of the leading industry experts in restaurant investing. Their conversation unfolded over a few refreshing pints at the historic Shoe pub, generously hosted by the friend, Dino.
Throughout their shared history in the hospitality industry, Schatzberg and his companion found themselves reflecting on the age-old sentiment, "I didn't choose the hospitality industry, it chose me." This words of wisdom is famously attributed to John Meadow, the CEO of Branded's latest portfolio addition, LDV Hospitality. Their stimulating discussion was a precursor to an upcoming podcast interview, which is set to cover a wealth of insights from the industry's influential figures.
In the upcoming podcast, Schatzberg delves deeper into the fascinating journeys that underline professional success in the hospitality sector, and their profound connection to destiny. John Meadow, a cornerstone figure in the industry, embodies the unique essence of a hospitality professional, as the industry chosen him rather than him choosing it.
However, the saying transcends the specific confines of hospitality and encompasses every career wherein individuals stumble upon their true calling, providing them with a sense of self-fulfillment. If one is fortunate enough to find such a career, congratulations—you are indeed lucky!
Amidst the camaraderie of The Shoe, Schatzberg and his college friend transitioned the conversation to the transformations greatly impacting their industry. In particular, they discussed the substantial changes in the nature and frequency of the business lunch, which traditionally plays a significant role in restaurants' daily operations. The pandemic and the growing trend of remote work have inflicted a profound impact on the lunch business, forcing restaurants to adapt and transform in order to remain competitive.
Schatzberg recounts the lucrative lunch business enjoyed by Duke's Original Roadhouse, a Branded company, until the erosion caused by the financial recession in 2008. The lunch hours, once critical for revenue generation, have been dwindling steadily since then. Though the pandemic can be blamed for the recent decline in the lunch business, it is just one of many factors contributing to the shift in dining trends. Workers now seem to prefer spending their disposable income during hours not committed to work, which has undeniably affected restaurants, particularly those that rely heavily on the lunch business.
The future of the lunch business hangs upon the balance as office occupancy rates begin to rebound and in-office work regains traction. While the government and private sector have voiced their concern and even considered forcing employees back to the office, it remains to be seen if such a strategy will prove effective in revitalizing the lunch business. Industries across the board have been impacted by the shift to remote work, and restaurants are no exception. To survive, operators must be agile and adaptive, partnering with other businesses in their communities and leveraging technology to provide innovative dining experiences tailored to their guests' preferences.
To seize the opportunities presented by the new landscape, Schatzberg encourages operators to be proactive and fostering creative thinking. The ultimate goal is to surprise and delight guests through unique experiences offered both in-store and off-premises. Restaurants must also collaborate with neighboring businesses to help bring employees back to the office and encourage a more engaging work environment.
Although the lunch hour has considerably compressed, convenience and frictionless dining experiences will be more important than ever in attracting guests. Embracing technology and adapting to evolving dining trends remains crucial for restaurants to remain relevant and successful in this rapidly changing environment.
- Michael Schatzberg and his college acquaintance, a leading industry expert in restaurant investing, discussed the impact of dynamic pricing and food safety regulations on the food service industry during their conversation at the historic Shoe pub.
- Schatzberg's podcast interview will delve into the investing landscape for food-and-drink businesses and the role of lifestyle choices in the hospitality sector's evolution.
- In their industry analysis, Schatzberg and his friend highlighted the importance of finance and innovative marketing strategies for portfolio companies to overcome challenges in the hospitality industry.
- Given the changes in the hospitality industry, Schatzberg suggests that operators should focus on developing partnerships with other businesses and capturing market share through food-and-drink offerings unique to their brand.
- As the traditional lunch business continues to evolve, Schatzberg emphasizes the need for businesses to leverage technology, adapt to changing consumer preferences, and offer convenience and frictionless dining experiences to remain competitive in the food service sector.
