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From 1 CEO to another: 9 industry topics you can't ignore

Nick Vojnovic, president of Little Greek Fresh Grill/Little Greek Franchise Development, predicts the industry's most important topics and trends.

Nick Vojnovic, president of Little Greek Fresh Grill/Little Greek Franchise Development

June 16, 2016

By Nick Vojnovic, president of Little Greek Fresh Grill/Little Greek Franchise Development

Through my many years in the restaurant business, I've learned the only thing constant in the foodservice industry is change. Opportunities and challenges will always be a fast moving target, and the fast casual industry must defend its points of differentiation to stay competitive. To do that, we must stay ahead of consumer and industry trends and events. Below are a few of the most important topics that could change the way you do business. 

1. Serving and hiring millennials

Any operator who is ignoring millennials is setting the operation up for failure. An outreach to millennials is not only a continuing trend but also a solid reality, and one that's here to stay.  While I'm a baby boomer, my two kids are millennials. I've gained much insight on this generation through them and their interests and found out that we must cater to millennials and hire them.

The Census Bureau estimates there are now 75.4 million millennials in the U.S. (half a million more than baby boomers). Representing about 24 percent of the adult population and an estimated $1.3 trillion in buying power, this market wants things done its way. Millennials are loyal to companies that they believe to be socially responsible. They want relevant information, which they primarily receive through social media. Fast casual companies should target promotions and offers to fit this profile. To earn customer loyalty, we must talk to them on their terms.

Millennials are also an important part of our staffing pool. Company culture is the key to millennial loyalty and employee retention. Millennials want to work for companies they respect and believe in. Companies supporting and giving to socially responsible causes is important to this demographic.  

2. Staffing. The labor market continues to tighten. Where in the world will we find the crew to staff our stores? Is it a salary increase to $50,000? We want to reward staff, but how do we do it and still meet the bottom line and our sales goals? Deporting hard working immigrants will not make things any easier. The crystal ball shows that automation is coming our way.

4. Political headwinds. Will it be Donald Trump vs. Hilary Clinton? Who knows at this point. The short-term future of the business climate is also a "who knows," Any important legislation will be at a minimum. Watch what the National Restaurant Association, our industry's trade association, is doing to support us.

5. Minimum wage increases.This could easily turn our business model upside-down.  An issue we must all be following. If this occurs, how can you cut back on expenses without cutbacks on food costs, food quality and customer satisfaction? We should look into our internal resources and be prepared on how it will be handled.  

6. Real estate availability. As usual, we will all chase the same cities and sites. One CEO at a recent Restaurant Leadership Conference predicted many retailers are struggling, which will open up more space for fast-casual restaurants in attractive locations.

7. The popularity and Importance of social media will continue to grow.Traditional media is losing strength. More than ever, people are getting their information through social media outlets, such as Facebook, Twitter, Instagram and Pinterest.  Many potential customers follow outlets like Yelp to check restaurant reviews for making dining choices. Beyond millennials, baby boomers have embraced it, too. 

8. Competition from convenience/grocery stores. The retailers have figured out that "restaurant meal replacement" prepared meals are lucrative and profitable.  They are continuing to up the game by offering higher quality offerings. Competition is coming at us from all directions.

9. Be conservative. Caution is the word.  An anemic recovery, higher construction, and rent will make being conservative the key to long-term success. 

Of course, this is only a short list, and you must always be on the lookout for other industry game changers, however.The future looks bright for the fast casual industry. It is the one segment that has experienced growth, but the only way sustain that growth is to keep an eye on forecasts and trends. It will help all of us thrive. Good luck.