The Main Course

The restaurant industry, having weathered the storm of a global pandemic, staffing shortages, and inflation, finds itself at an interesting juncture. While showing signs of resilience, with 2023 projected to be the most typical year for the sector since 2019 and sales forecast to reach an astounding $997 billion, the industry continues to grapple with a host of challenges that have fundamentally reshaped it. 

Menu price inflation remains high, consumer spending habits have altered significantly, and the new normal has seen operators innovating, integrating technology, and seeking ways to embed their restaurants into their communities more deeply. 

The road ahead may be narrow and fraught with uncertainties, but it is also paved with opportunities. On the frontline of navigating this landscape are Hudson Riehle, Senior VP of the Research and Knowledge Group for the National Restaurant Association, and Bill Fuesz, Product Marketing Principal Manager for Sage, who together offered valuable insights on the current state and future of this dynamic industry in the newest episode of “The Main Course.”

The restaurant industry, having weathered the storm of a global pandemic, staffing shortages, and inflation, finds itself at an interesting juncture. While showing signs of resilience, with 2023 projected to be the most typical year for the sector since 2019 and sales forecast to reach an astounding $997 billion, the industry continues to grapple with a host of challenges that have fundamentally reshaped it. 

Menu price inflation remains high, consumer spending habits have altered significantly, and the new normal has seen operators innovating, integrating technology, and seeking ways to embed their restaurants into their communities more deeply. 

The road ahead may be narrow and fraught with uncertainties, but it is also paved with opportunities. On the frontline of navigating this landscape are Hudson Riehle, Senior VP of the Research and Knowledge Group for the National Restaurant Association, and Bill Fuesz, Product Marketing Principal Manager for Sage, who together offered valuable insights on the current state and future of this dynamic industry in the newest episode of “The Main Course.”

Restaurant expansion in 2023? While that may sound hard to believe, the restaurant industry has seen a 4.9% increase in sales in 2023. While increased prices due to inflation may be driving some of those increases, indicators show now is the best time since the pandemic’s beginning to consider a restaurant expansion. But what does it take to expand a restaurant chain successfully, and how does a brand maintain its unique identity?

On the latest episode of The Main Course, hosted by Barbara Castiglia of Modern Restaurant Management, Alexis Blair, CEO of Fig & Olive, shares insights into her restaurant's expansion journey. Their conversation covers the challenges and triumphs of taking a brand global, maintaining the essence of the brand while adapting to new markets, and the impact of the pandemic on the restaurant industry.

Castiglia and Blair’s discussion includes:

• The concept and experience of Fig & Olive, which is more than just great food and cocktails; it’s a lifestyle inspired by the French Riviera

• The process of adapting the menu to fit cultural differences in new markets, such as Qatar

• The lessons learned from the pandemic and how it has reshaped the restaurant industry

“We are a team of problem solvers, and we really emphasize being strategic at all times,” Blair said. “And as we face some of these different things, it’s always taken this head-on approach. If it’s the supply chain issues, what can we do, what can we get, how do we work with our vendors, and stay on top of this reengineering? We’re still ensuring we’re providing that ingredient-driven cuisine that will speak to the DNA of Fig & Olive.”

Alexis Blair, a former professional ballet dancer, found her passion in the restaurant industry. She worked her way up through various roles in the industry, including operational and finance roles, before becoming the CEO of Fig & Olive in 2019. Her journey and insights offer a unique perspective on the restaurant industry and the expansion process.

There is no industry that is immune to surprises and shocks. However, the restaurant industry has been facing its own unique blend of challenges recently, forcing owners to question the adequacy of their restaurant insurance coverage. For many, insurance is perceived as a necessary yet complicated evil, something begrudgingly purchased and then promptly forgotten, only remembered when a crisis strikes. According to the National Restaurant Association, the restaurant industry's estimated sales for 2023 is $997 billion, but how many of those hard-earned dollars are at risk due to inadequate insurance coverage?

So, what are the key insurance issues restaurant owners must understand to protect their investment? And how can they navigate the insurance landscape efficiently and effectively?

For an episode of "The Main Course” host Barbara Castiglia invited John Cassetta, Sales Manager at CoverWallet — a commercial business insurance company, to provide insights and clarity on the critical topic of insurance for restaurant owners.

In this thought-provoking episode, Castiglia and Cassetta explored:

• The crucial elements of a Business Owner Policy (BOP) that every restaurant owner must understand.
• The impact of the pandemic on restaurant insurance and how restaurants have had to adapt their coverage to changing operations.
• The often-overlooked importance of understanding lease contracts and the division of responsibilities between landlords and restaurant owners.

John Cassetta is the Sales Manager at CoverWallet. He went to The University of Texas at Austin, and has over 20 years of experience in the insurance industry, with a specific focus on small businesses. In his role at CoverWallet, he leads the digital insurance platform, which is designed to simplify the process of buying and managing business insurance.

As trends shift and evolve in the food industry, a notable new phenomenon has taken center stage: beverage only concepts. Over the past few years, we have witnessed an explosion in the number of businesses that focus solely on drinks, offering everything from coffee to milkshakes and now, iced tea. This intriguing move away from traditional food-focused establishments showcases a fresh approach to satisfying consumer demand. According to a study by Grand View Research, the global ready-to-drink (RTD) tea and coffee market is expected to reach 167.88 billion by 2030, showing the potential for beverage-only concepts to dominate the industry.

The core question being explored in this conversation is: How and why did the rise of beverage only concepts come about, and what makes them so attractive to consumers?

In this episode of "The Main Course," host Barbara Castiglia chats with Justin Howe, the CEO of HTeaO, a Texas-based company that focuses on iced tea. They delved into the origins, evolution, and success of beverage only concepts, and particularly, the journey of HTeaO.

On the episode, Castiglia and Howe further talked about:

• The birth and evolution of HTeaO from a restaurant family's experiment to a trend-setting concept in the industry.
• The unique challenges and rewards of a beverage-only business model, focusing on iced tea.
• Understanding the consumer response and preferences that drive the success of HTeaO and similar concepts.

Justin Howe is the President and CEO of HTeaO. Coming from a restaurant family, Howe’s unique insights into the industry have been key to the success of his iced tea concept. His diverse entrepreneurial background, which includes experience in the construction and aircraft management industries, has enabled him to create a fresh and successful concept in a competitive industry.

The world was forever changed by the COVID-19 pandemic, and the customer experience industry, especially in the restaurant sector, has faced unprecedented challenges and transformation. The role of technology has been amplified, not only as a survival tool during a time of social distancing and lockdowns, but also as a driving force for long-term, meaningful change in how businesses interact with their customers.

According to a survey by McKinsey, 75 percent of consumers tried different stores, websites, or brands during the pandemic, and many of these consumers expect to integrate the new brands and stores into their post-pandemic lives. The stakes are high as businesses grapple with the question: How do we evolve the customer experience to meet these new realities and expectations?

In a recent episode of ‘The Main Course,’ host Barbara Castiglia, who is also the Executive Editor of Modern Restaurant Management, delves into this critical question with Johnny Tellez, VP of International Operations and Training at Focus Brands International. The conversation centered around how the customer experience has changed during the pandemic, the role technology has played in these changes, and how restaurants are adapting their use of technology to enhance customer experience.

Some important points of Castiglia and Tellez’s conversation included:

• The impact of the pandemic on international restaurant operations and how it required businesses to pivot rapidly, introducing new processes, and procedures.
• The creation and implementation of the Customer Experience Center of Excellence, which provides international franchisees with support in their local time zones and languages.
• The shift from traditional in-person visits to completely virtual audits of franchise locations, increasing the number of annual visits and fostering improved operational standards.

Johnny Tellez is the VP of International Operations and Training at Focus Brands International, and has an impressive background in overseeing operations and training needs across more than 60 countries and for five brands. Tellez provides valuable insights into the challenges and opportunities presented by the pandemic. He discusses how his team developed creative solutions to maintain operations and deliver top-notch customer experience during these turbulent times.