3. Global Recession and Foodservice 3
Operators are squeezed
Consumer Pressure
•Consumer spends less
• Reduced frequency
• Less spent per check
• More demanding consumers
Operational Pressure
• Increased raw material cost
• Financial pressure (cash, credit, rent)
• Inconsistent supply chain
4. Global Recession and Foodservice 4
What operator needs to do
Manage costs
• Staff optimization
• Delay investments
• Reduce portion size
• Shorter opening hours
• Buy smarter
• Cook differently
• Monitor waste
• Remember: cash is king (profit vs profitability)
5. Global Recession and Foodservice 5
What operator needs to do
Attract guests
• More menu variety
• Re-engineer menus and wine lists to maintain margins
and attract guest
• Affordable chef’s specials
• Promotions and discounts
• ½ portion, mini desserts, tapas
• Train waiters to sell more items (desserts, beverages)
Today’s world is very different to the world I grew up in – a very different world indeed.
You will be graduating into a VUCA world.
Even over the past year, the world has become even more volatile and uncertain:
With riots and occupy wall streets
More youth unemployment, all well before major cuts are fully implemented
The Libor scandal in the Financial Market