Pressure on the top line. Pressure on the bottom line. Staffing challenges. Brexit. The volatility that’s hit the restaurant sector in recent times isn’t changing any time soon. But what does it mean to create value in today’s climate? Has the concept of value creation radically changed?
According to MCA Insight, in order to keep profit levels steady branded restaurants must achieve like-for-like sales growth of 2.5% to 3% in the next few years, while the latest market growth monitor from CGA and Alix Partners, shows that the number of chain-run restaurants has fallen for the first time in nine years. However the MCA Eating Out Market Report from 2018 forecast a £5bn growth for the sector over the next three years, commenting that there is still ‘a clear opportunity for operators to maximise’.
In this context, investors and founders are recognising the need for greater differentiation as they grow their brands, and the Stone & River team want to look more closely at how this is impacting their approach to value creation.
Through a series of interviews with industry specialists and Stone & River comment over the coming weeks, we will explore what the industry sees as the most important components of Value Creation, across areas such as People, Brand, Customer and Operations. Whether it be the importance of differentiation to stand out from the crowd, the need to be purpose driven, how to maintain efficiency and consistency without losing a sense of fun, the balance between a Functional and Emotional customer experience, and how to maintain a healthy culture whilst you grow, these are all topics we will focus on as part of the project.
If you’d like to be involved in these conversations we’d love to hear from you. Please do get in touch at [email protected]
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