by Bob Gershberg, CEO/Managing Partner Wray Executive Search
In our current work environment, burdened by the Great Resignation and the need to adapt to ‘hybrid” work force, focus on employee engagement is paramount in overcoming our human capital challenges. Understanding why employees are leaving, what is attracting them and how best to retain and develop them will be requisite in creating a successful post pandemic organization.
A recent McKinsey study queried employers as to why their people had quit, they cited compensation, work–life balance, and poor physical and emotional health. These issues did matter to employees—just not as much as employers thought they did. By contrast, the top three factors employees cited as reasons for quitting were that they didn’t feel valued by their organizations (54 percent) or their managers (52 percent) or because they didn’t feel a sense of belonging at work (51 percent). Executives who don’t make their people feel valued can drive them from companies, with or without a new job in hand. Now, more than ever, we need leaders who motivate and inspire their teams and lead with passion and empathy.
by John A. Gordon, Principal and Founder, Pacific Management Consulting Group
Triple inflation currently
As an industry, we were hoping to be on the other side of the Pandemic mess by now, but its effects continue in several ways that we are too familiar with: sales variability, supply chain inflation affecting, food, paper, equipment, and building elements; and the labor availability/people effect, ultimately caused by the Pandemic in the first place. As a result, the industry has triple inflation now: COGS, labor, and CAPEX all at the same time. And we have to learn and reorient to changing consumer behavior, and honestly, reeducate our guests, too to what we can do for them to meet their needs.
Added to this mix unfortunately is the current threat of a major land war in mid-Asia which could kick off at any moment as of writing this week. Most of Europe[2] and Central Asia are franchised, but disruptions like this will affect global US franchisors and local national franchisees. This gets us back to my comment last month: what chain restaurant operator would have been planning for a Central Asian War in late 2021? Of course, none. Planning post-Pandemic has to have a faster cycle time, risk-based module included as part of the function.
"The growth and development of people is the highest calling of leadership"
—Harvey Firestone
Check out the 2022 State of the Restaurant Industry Report from the National Restaurant Association
"The restaurant and foodservice industry has adapted and is carrying on with absolute resilience, so we're optimistic about the path toward recovery in the coming year," said Marvin Irby, Interim President & CEO of the National Restaurant Association. "We still have work to do to ensure that those operators struggling the most can survive. The Association will continue to champion the necessary government support needed at the federal and local levels to help keep these businesses — cornerstones of our communities — on a path to better days."
Under the leadership of CEO Don Fox, Firehouse Subs has grown to over 1200 restaurants in 46 states, Puerto Rico, and Canada, and in the biggest restaurant deal of 2021, Restaurant Brands International acquired the Jacksonville-based franchisor brand for $1b cash. Don continues on as CEO, and he’s ready to lead the next era for Firehouse Subs:
What is your next big goal for Firehouse Subs now that you've been acquired by RBI?
The opportunity for international expansion is great. That's new terrain for our team. We also have a lot of development opportunities here in the United States. We are coming off a tremendously successful year of 2021. There’s a lot of momentum with our brand, and we are really looking forward to our existing franchisees in particular stepping up their development and growing our footprint even more. It's all about growth.
Yum! Brands Reports Fourth-Quarter Results; Industry Record Full-Year 3,057 Net-New Units; Fourth-Quarter System Sales Growth of 9% with Over $6 Billion in Digital Sales; Full-Year System Sales Growth of 13% and Record Digital Sales of $22 Billion
