At this year’s National Restaurant Association Show, some of the industry’s leading executives stopped by FSR and QSR magazine’s booth to chat about the landscape—what they’re seeing, hearing, and what might be next. We asked everybody the same three questions: One on tariffs and consumer sentiment; their thoughts on value; and lastly, to separate myth from reality with restaurant technology. In the days and weeks to come, we’ll share their answers.
Next up, Cheba Hut SVP of operations Brian Witte. And keep the conversation going at this year’s QSR Evolution Conference. Registration is now open.
Other interviews:
Sunny Street president Mike Stasko
Give us your take on the state of the consumer, tariffs, and other craziness going on right now.
Restaurant consumers right now are looking for what the best value they can find is. Whether that’s products or service, I think it’s something every concept has to consider as we strive for automation and efficiency. How do you do that without hallowing out the core of the experience that is true to what your brand is?
Obviously, with tariffs playing a big part of the economic pressure we’re all trying to manage, of course we’re concerned. But maybe less so than others because we’ve built great partnerships. Sysco is our broadliner. We feel like we have a great relationship where we’re getting the best deals we can possibly get. We’re constantly revisiting those deals and making sure we’re on the same page.
And on the equipment note, it’s probably the biggest concern as we look to build out more restaurants. But the heart and soul of our restaurant, our cold tables, cold lines, and toasters, and TurboChef, we have great partners and build our products in America, and it insulates us from a lot of the pressure.
On that topic, a quick aside, have you considered buying any of this in advance?
It definitely is part of the development strategy. Again, that team, we work with Avanti [Restaurant Solutions] as well, which keeps us in a good position. We’re having honest conversations about what that looks like. I spoke to our Avanti rep right before this. We feel like we’re in good position. We don’t have a ton of equipment in holding, but we have the right amount to facilitate a few openings without having to worry about immediate backfill. We think, ultimately, we’re in the best position we can be.
It’s all hypothetical until it’s not. The best part about the restaurant industry is it’s comfort for people at the end of the day, right? Many people will trade out a lot of things. But that sandwich you get at your favorite restaurant may be the best part of your day, or week. And I think people are reluctant to trade that because creature comforts matter. At the end of the day, a sandwich is a much more reasonable purchase than some of the things you can trade up. I can buy a lot of sandwiches instead of a car.
What’s your definition of value at Cheba Hut these days?
For us in particular, we really prioritize the human element of it. We’re all about being a gathering place. We want people to come and hang out and be that local spot. So average checks and ticket counts are great, but we want people to feel comfortable and welcomed. Especially now. And for our value, a big part of it is that interaction piece at our register. As a lot of companies are working to automate out some of that core process, we’re looking at all of the options on the table. But we do believe, especially with pricing pressures, human interaction means more than ever. There’s an intangible value you don’t get ordering from a screen or a first-party channel versus the experience somebody can give you during service. That’s something Cheba Hut has always thrived on. We’re the underdog. But you know when you come in it’s going to be unique and tailored to you as an individual.
Some of your locations have alcohol, too, right?
We only have approximately five stores that are beer and wine. Full bar is part of our DNA. The drinking habits of Gen Z in particular are interesting and we’re keeping an eye on it. People say they don’t drink [alcohol]. But, again, when you go through turbulence, people go back to those creature comforts. If you can gather and have a beer with your friends or have a great cocktail, that’s a memory. People’s best core memories involve great people, great food, and great drinks.
Tech trends, what’s myth, what’s reality?
I hit on this a little bit. I think it’s using technology to replace people on the people-facing part of the business. I think it’s important, it’s impactful at different degrees for every restaurant. But again, as prices go up, if you’re not changing the product, how else could you provide value? It’s service. It’s true hospitality. So I think the idea that consumers want a fully automated experience—I don’t personally find that to be true. We just really have to understand who our first-party customer is at every concept out there. You can’t trade convenience for quality at the end of the day.
There are some [customers] that are willing to. But by and large, if we rush too fast to replace every part of that, we lose the soul of what we’re trying to do in hospitality.
As for what’s reality, when we look at the tech side, I’m really intrigued by what we’re doing in first-party and loyalty as an industry. I’m a huge fan of loyalty programs myself. My favorite brands I go to, you have to include me in. I feel like I’m part of something bigger than myself. It’s not necessarily new, but I think the ways we’re targeting customers as an industry are exciting. Reskinning your app monthly or for the holidays—you feel like you’re part of something that other people don’t know.
I think an app and loyalty program is an interesting way for you to have a brand voice. It can be supplemental to something like a kiosk. You can ultimately get the same result—whether its first party or kiosk. But it’s another avenue where you can feel like it’s curated to your needs. We don’t have kiosks. I’m open to the idea. But again, it would have to be the right fit. If we’re going to talk about the interaction, not the transaction, as being a core part of who we are, the kiosk feels transactional. That doesn’t mean we can’t build a partnership that meets out needs.
