The Restaurant Finance & Development Conference is the annual opportunity to learn about everything that’s happening in the restaurant industry related to business and capital. The Fransmart team recently attended the event held in Las Vegas and sat down to share their key takeaways.
Dan Rowe, CEO
The rising cost of capital. For several years securing money was easy for experienced restaurant operators, but that has changed. The cost of capital has doubled, making it even more important for franchisees to focus on brands that allow conversions. Additionally, margins have never been more important. On the surface this might seem to be bad news, but too much access to cheap debt made it easy for people to purchase chains so vendors and landlords kept prices high. Now they’re going to feel the pinch and valuations will decline. I don’t think there’s been a better time in the last five years to make great deals.
Shannon Keller, CMO
The introduction of dynamic pricing in the restaurant industry. We’ve seen this in hospitality for years-how room rates change based on occupancy, how airline ticket prices fluctuate with supply and demand, and how your Uber ride can surge in price. While a few restaurants are using this model, it seemed that most operators are letting a few early adapters feel out consumer’s tolerance with this pricing strategy before jumping in.
Brands that invest in tech are thriving, but as much as customers are embracing technology and automation, there needs to be a balance. There still needs to be a human element in hospitality.
Nate Amacher, Vice-President Sales
Operations are more important than ever. The big pains of the last year…staffing, supply chain, inflation allowed high level operators the opportunity to shine and grow. People are looking for brands that have simplified operations and established supply chains, which is what the Fransmart portfolio is full of.
Lynnea Rogers, Marketing Manager
Brands are using catering as a marketing tool. Sales are strong and it’s an easy way to get your brand in front of many people who might not have heard of you before.
Learn more about Fransmart’s portfolio of leading restaurant brands
