213. Challenges Facing the Restaurant Industry on the Brink of Economic Pressures
Jun 29, 2022 ·
36m 19s
Is the restaurant industry facing a major collapse under economic pressure? Why the mass exodus of significant CEO's within the last year, with Darden, Red Robin, Denny’s, Brinker, and Starbucks...
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Is the restaurant industry facing a major collapse under economic pressure?
Why the mass exodus of significant CEO's within the last year, with Darden, Red Robin, Denny’s, Brinker, and Starbucks all stating their CEOs were retiring after guiding their companies through the pandemic for over the past two years. Wingstop and Red Lobster’s CEOs left for positions at other companies, adding to the turnover list.
The previously recorded high of CEO departures was in 2019 – also the last time U.S. economists saw a potential recession on the horizon. Amid high inflation and rising recession concerns, company leadership may be preparing for difficult times after a few years of staggering change.
Many companies not worried about layoffs may need to begin adjustments on compensation as inflation looms. In the past economic downturns of 2008, companies did not take inflation into consideration for compensation budgets since it was considered transitory. Now all of this may change with a new normal expectation of a 4-6% annual inflation base. The likelihood of Chair Power continuing a hard press on slowing inflation through Q4 2022 could place the country and the world in a new economic condition never seen before in the entire history of the restaurant business.
We get a chance to chat with Patrick Renna the President of Burgerfi to reveal key pressures that brands are facing as they prepare to enter a very uncertain market. We dive in deep on strategy talking about technology, HR, menu management, and the future of growth plans.
show less
Why the mass exodus of significant CEO's within the last year, with Darden, Red Robin, Denny’s, Brinker, and Starbucks all stating their CEOs were retiring after guiding their companies through the pandemic for over the past two years. Wingstop and Red Lobster’s CEOs left for positions at other companies, adding to the turnover list.
The previously recorded high of CEO departures was in 2019 – also the last time U.S. economists saw a potential recession on the horizon. Amid high inflation and rising recession concerns, company leadership may be preparing for difficult times after a few years of staggering change.
Many companies not worried about layoffs may need to begin adjustments on compensation as inflation looms. In the past economic downturns of 2008, companies did not take inflation into consideration for compensation budgets since it was considered transitory. Now all of this may change with a new normal expectation of a 4-6% annual inflation base. The likelihood of Chair Power continuing a hard press on slowing inflation through Q4 2022 could place the country and the world in a new economic condition never seen before in the entire history of the restaurant business.
We get a chance to chat with Patrick Renna the President of Burgerfi to reveal key pressures that brands are facing as they prepare to enter a very uncertain market. We dive in deep on strategy talking about technology, HR, menu management, and the future of growth plans.
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