No doubt you’ve heard about Shake Shack’s successful IPO and its $1.7 billion valuation. The burger stand that started in New York’s Madison Square Park and now has locations in places like Moscow, Istanbul, and Dubai has had a very big year.
Selling food for profit dates back to the evolution of human society itself: from outside eateries in ancient Rome and China to the evolution of fine dining in France to the mushrooming of the fast-food industry, drive thru, and takeaway inns in the last decade. Restaurants have changed along with the demands of the consumers. The blurring cultural and demographic boundaries—enabled through globalization and technological advancements—have brought together the culinary varieties of the world.
While the fast-casual category continues to be the fastest-growing industry sector, the road in 2015 will be bumpy. We will see constant change and challenges around every corner. For industry leaders, there are issues that will keep even the most seasoned executive awake at night.
Here is my top 10 list of biggest challenges the fast-casual industry will face in the months ahead.
McDonald's posted sharper-than-expected November sales declines. Global sales were reported down 2.2 percent. In the U.S. sales fell more than twice that: 4.6 percent, the lowest sales month for McDonald’s in over a decade, and almost four times worse than analysts had projected. Those wacky analysts! Wherever were they getting their research?
In acknowledging the modern reality of the franchise business model in California and in the U.S., the California Supreme Court earlier this year recognized and reaffirmed the contractual benefits received by both parties to a franchise relationship while further defining the limits of liability for employment claims brought by store employees who seek to name the franchisor as a defendant.
As companies strive to hire the best managerial talent, hiring departments have a number of strategies at their disposal, which can save time in the process. Consider these seven strategies next time you review potential recruits for a management position:
An effort by Richard Griffin, the General Counsel (GC) of the National Labor Relations Board (NLRB), to raise wages and otherwise benefit franchise employees may have an unexpected and undesirable consequence: a threat to franchising as a business model. Although Griffin’s desire to benefit employees is laudable, he has chosen the wrong way of going about it.
When I heard of Maya Angelou’s passing this summer a twinge of sadness struck me, but then I remembered one of the remarkable things that she said: “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
The simple brilliance of that statement is lost to so many people, especially those of us who are in the service business. What ever happened to making your customers—your guests—feel genuinely great about their experience with you?