Viewpoint

Great Leaders Drive Change but Changing Leaders is not Easy

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

Leaders who create dramatic changes in organizations have an almost legendary status in our culture and industry and for good reason. The ability to drive change is a key leadership skill. In fact, most leaders will be called on to initiate or oversee large-scale change during their tenures. Brian Niccol did so at Chipotle brilliantly. Laxman Narasimhan at Starbucks, not so much! When Brian Niccol took over as CEO of Chipotle Mexican Grill in 2018, he revitalized the brand after it had suffered from several food safety incidents. Under his leadership, Chipotle saw significant growth through digital transformation, menu innovation, and operational improvements. (Shout out to Scott Boatwright, interim CEO, for being the exceptional strategic operations leader at his side during his entire tenure) This change in leadership was pivotal in restoring consumer trust and boosting the brand’s market position.

Great leaders are able to foresee industry trends, inspire their teams, and implement strategies that lead to substantial change, proving that they are indeed the drivers of meaningful transformation. Their ability to lead through change, manage resistance, and navigate uncertainty is what sets them apart and ensures their organizations thrive in a competitive landscape.

Executive Chat

Featuring Troy Hooper, CEO of Pepper Lunch

by Rebecca Patt, SVP & Partner, Wray Executive Search

Troy Hooper is the CEO of Pepper Lunch, a Tokyo-based fast-casual franchisor with over 500 locations across 15 countries. He’s leading a significant U.S. franchising push for a concept focused on delivering a delicious experience and excellent value atop its patented, 500-degree iron plates. Pepper Lunch serves up sizzling hot plates with an array of mouth-watering, customizable menu options.

What has been the most remarkable part of your journey so far as Pepper Lunch CEO?

The phenomenal opportunity to work and travel to Japan and Singapore multiple times, experiencing the incredible hospitality that those cultures offer. The food is fantastic, but getting to know how these cultures operate, both in business and consumer behavior, outside of a tourist perspective, has been eye-opening. I experience it daily and nightly due to the time difference. Tonight, for example, I’ll be on a call for about three hours into the late evening.

Restaurants: Context Really Matters

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

The restaurant industry, always dynamic, has gotten even more dynamic. A foggy logic seen in the past has now given way to an element of mania in it. The industry survived the Pandemic, but we are still rocking in its aftermath. Tension has spiked in the last 50 to 80 days; no wonder that most stocks are down. But of course, restaurants are always investable, there are things to do no matter the cycle, to get well positioned for the next.

There are so many meaningful issues and contrasts now, that we have to step back and ponder the overall situation. Context really matters in the analysis: the natural reaction of human principals to recite conclusions that support their position, and what is good for them personally. As such, opinions, management systems, data, and courses of action need special review. Not endless cycles of analysis as we are in an ever-changing consumer, but our systems need to be better grounded.

"The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday's logic."

— Peter Drucker

Leveraging AI for Increased Profitability

by Ray Kelley, SVP & Partner, Wray Executive Search

Staying ahead requires more than just exceptional cuisine and stellar service. As margins tighten and customer expectations evolve, restaurant executives are turning to AI to optimize operations, enhance customer experiences, and ultimately, increase profitability. Below are some specific AI initiatives that have proven successful, as well as some actionable steps for implementing similar strategies within your own organization.

AI-Powered Inventory Management

Case Study: Domino’s AI-Powered Supply Chain

Domino’s has integrated AI into its supply chain management to predict inventory needs more accurately. By analyzing historical sales data and incorporating machine learning algorithms, Domino’s can forecast demand for specific ingredients at each location. This minimizes waste, reduces stockouts, and optimizes supply chain efficiency.

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

Read the latest on restaurant industry consumer outlook from the National Restaurant Association

Resilient consumers, who largely shrugged off rising interest rates to fuel the post-pandemic economy, may be starting to lose some momentum.

A healthy labor market, coupled with excess savings that households accumulated during the pandemic, allowed consumers to continue spending at a robust pace last year. Now that those savings are largely depleted, the resiliency of households is being tested in 2024. 

The first half of 2024 saw moderating growth in both employment and wages, which are two key catalysts for household spending. Despite some recent signs of weakness, a continuation of the labor market expansion would make it likely that consumers will bend but not break during the second half of the year.