by Kevin Stockslager, EVP & Partner, Wray Executive Search
With the Restaurant Leadership Conference kicking off next week, a review of the agenda can tell a brief tale of the key topics industry leaders are considering in 2024. Our team looks forward to attending this year and getting more insight into the challenges and opportunities facing the restaurant industry moving forward.
The evolution of the full service dining segment has been a much discussed topic over the years and look no further than the first session of the conference (after the ever-popular golf tournament of course) to continue the dialogue.
by John Gordon, Principal and Founder, Pacific Management Consulting Group
Negative consumer and earnings conditions in January-February: Sorry to say, but February chain SSS results were the weakest since 2021, same month per Black Box. That was bad enough. The factors: all the usual problems at this time of year, including bad weather, negative traffic, and secular weakness at virtually all casual dining and fine dining operators. And a few factors: average check rate declines. The industry has [mostly] slowed up price increases, so much so that ticket increases are not covering traffic declines as before. However, our pricing, lower as it may be, in March was 4.5%[1] versus 1.0% food at home. [2] So we are still in a poor position versus grocery stores. The February Black Box index was -.6% SSS and -2.3% traffic. [January SSS was -4.5%]
Fast casual and QSR brands were marginally positive while, casual dining and fine dining were quite negative. Even casual dining powerhouse Darden had marginally negative SSS in all reporting groups except LongHorn last quarter.
"The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails."
—John Maxwell
Exploring the Complexities of the Minimum Wage Debate
by Ray Kelley, SVP & Partner, Wray Executive Search
Raising the minimum wage elicits several thoughts, ideas and solutions from various stakeholders, including policymakers, business owners, and workers. While proponents argue that increasing the minimum wage can alleviate poverty and stimulate economic growth, opponents raise concerns about its potential impact on labor costs, pricing, and profitability. In this article, we delve into the pros and cons of raising the minimum wage, examining its multifaceted implications for businesses, employees, and the economy at large.
The Pros of Raising the Minimum Wage
Poverty Alleviation: Advocates for raising the minimum wage argue that it can lift millions of low-wage workers out of poverty, providing them with a livable income to support themselves and their families.
How does Shaq's Big Chicken Soar Above the Competition?
Inside the Phenomenon of Big Chicken with Sam Stanovich, SVP Franchise Leadership
by Rebecca Patt, SVP & Partner, Wray Executive Search
Ever wondered how a fast-casual joint, born out of the mind of NBA legend Shaquille O’Neal, could soar above the competition? Meet Sam Stanovich, the powerhouse steering development and alliances, one of the masterminds behind Big Chicken's meteoric rise. Hatched from the glitz of Vegas in 2018 and growing to over twenty booming locations nationwide, Big Chicken has become a force to reckon with, boasting a whopping 370 more in the pipeline.
Big Chicken isn't just a restaurant; it’s where celebrity-backed charisma and a carnival of bold flavors collide, from finger-lickin' fried chicken options to tantalizing shakes.
Get ready for an exclusive peek into the heart of Big Chicken, where Sam shares the behind-the-scenes magic that propels Big Chicken into a league of its own.
How did you get involved with Shaq’s Big Chicken?
In 2021, Josh Halperin, our CEO, called me up. He and I have had a 10-year relationship, dating back to when he was the head of sales for Anheuser Busch, and I was head of industry relations for the National Restaurant Association. He said, hey, I'm looking at this opportunity. Could I review my pitch deck with you? Could you help me refine it?
"The taste of defeat has a richness of experience all its own. To me, every day is a struggle to stay in touch with life's subtleties. No one grows without failing.” -
Bill Bradley (former U.S. Senator and pro basketball player)
Learning from mistakes and failure—both our own and that of others—is vital to success. Most of us know this. But it’s harder to do than we might think.
Acknowledging our failures can make us feel bad, especially if—in the past—we were chastised or humiliated when we fell short. We may have become more concerned with saving face or covering up our mistakes. Our culture of success, too, discourages failure. Almost 50 years ago William Zinsser, teacher, author and NY Times columnist, wrote, "The right to fail is one of the few freedoms not granted by our Bill of Rights.” This is at least as true now as it was then.
It takes good leadership and good work environments—and often personal resilience and a thick skin—for us to accept failure and examine what went wrong and why—and to use this knowledge to improve. It’s vital to do this because otherwise we’re prone to making the same mistakes repeatedly. To state the obvious, you can’t learn from mistakes that aren’t recognized or reported.
Read the latest on restaurant industry employment from the National Restaurant Association
Restaurant employment resumed its upward trajectory
Restaurants will continue adding jobs in 2024, albeit at a much slower pace compared to recent years.
Restaurants expanded payrolls at a moderate pace in March, according to preliminary data from the Bureau of Labor Statistics (BLS).
Eating and drinking places* added a net 28,300 jobs in March on a seasonally-adjusted basis. That followed a downward-revised increase of 28,500 jobs in February.
The February and March gains came on the heels of a 3-month period of below-trend job growth in the industry. Overall between November 2023 and January 2024, eating and drinking place employment declined by nearly 15,000.
