Speaker call With Jonathon Maze
We will be hosting a call with Jonathan Maze, Editor-in-Chief of Restaurant Business, on 04/19 @ 2 PM. Mr. Maze sits on the front line of everything restaurant and has some of the best contacts across the industry. We look to catch up on his current take on the restaurant industry! We will address these and other topics on the call: We will look to discuss some of the many challenges the industry faces right now and the opportunity from technology to make the business more profitable.
- Consumers have a “recessionary mindset” how will that impact sales?
- Menu price inflation rose 6.9% in March to a 40-year high. How will this playout for the balance of 2022?
- Sales look to be hitting a wall in 2H22; how will operators respond?
- The supply chain is a problem. More than a third of restaurants dropped at least one supplier due to performance issues over the past two years, according to Technomic. How else can operators respond without hurting sales?
- The labor problem isn’t going away. But the increased pay is what keeps employees around. Non-management turnover at quick-service restaurants is 170%, according to Aon. The cost of replacing a worker is about $5,900. Pay remains the top priority for employees, as there is a strong correlation between the two.”
- Takeout sales require focus how will that look 1-year from now?
- Ghost kitchens are here to stay, but is it good news?
- Recent years have brought more technology into this business than ever before. Technology can be an answer to many of the challenges operators face and maybe the most significant opportunity of the post-pandemic era—the opportunity to bring restaurants to the same technological level as other industries such as hotels or retail.
IF YOU HAVE ANY QUESTIONS OR TOPICS YOU LIKE ADDRESSED, PLEASE EMAIL
Restaurants/Consumables Pro Subscribers CLICK HERE for event details (includes video and materials link)
GOPUFF New Hire
DASH is a SHORT
Business Insider is running a story that DASH is slowing headcount growth to 10-15%. As DASH continues to pursue growth in other verticals (instant delivery), what does that mean for growth in the core restaurant delivery business? Growth is undoubtedly slowing for DASH, and many companies in the Instant delivery space are restructuring and cutting costs. As part of its restructuring, GoPuff has announced the appointment of Maria Renz as the SVP of North America. Renz previously led consumer finance and wealth management at SoFi and held VP roles at Amazon, including VP of Delivery Experience from 2017 to 2020. She also spent nearly two years as a technical advisor to Jeff Bezos.
USFD Proxy Fight
Sachem Head is likely to lose this proxy fight. The best case the activist has for taking control of the company is that margins should be closer to SYY and the best way to get there is drastic cost-cutting? USFD is a SHORT
USFD said it has "constructively engaged" with activist shareholder Sachem Head to avoid a proxy contest at its coming annual shareholder meeting but has been unable to reach an agreement. Sachem Head in February nominated seven candidates for election to the board and said it believes a "new culture of accountability is required at US Foods." US Foods said in a letter to its shareholders that it is confident its plan is creating shareholder value. Its board has been "refreshed" with new directors, added in late March, who have "relevant skills and experiences" and are suited to lead the company through its strategy. The company "has constructively engaged with Sachem Head to avoid a proxy contest, but the erratic nature of Sachem Head's demands has impeded a settlement!" The letter went on to point out how narrow-minded their thinking is. "We believe that Sachem Head's single-minded operational focus on cost reduction will reduce, rather than increase, shareholder value in the long-term. Sachem Head's proposals are single-mindedly focused on cost reduction. In our industry, one of the biggest drivers of EBITDA and ROIC growth is winning new customers in our target segments, which is why we have built a plan that balances delivering top-line growth by offering customers reliable service and differentiated solutions while also remaining intensely focused on cost management and margin expansion."
The shareholder meeting is scheduled for May 18.
