It was hosted by Robert Willock, director of the Economist Corporate Network Dubai and former group editor of The Publican’s Morning Advertiser and M&C Report.
The interactive event gave a fascinating insight into the contract catering market in the UK, thanks to Catherine Roe, chief executive of Elior UK, in the QSR market in the US, thanks to Barry Westrum, chief marketing officer of Taco John’s, Los Angeles and a look at the challenges of running a hospitality business in an economy that is reliant on tourism and oil trade from Naim Maadad, founder and chief executive of Gates Hospitality in Dubai.
After each gave an overview of how their businesses have been impacted and the pivots they’ve made over the last four months, these were a few of the key themes covered:
In the wake of the announcement of the UK’s ‘Eat Out to Help Out’ scheme, Willock asked the panelists if discounting has and will continue to play a role. (47% of attendees at the event thought that discounting could be used effectively as a carefully targeted part of the marketing mix.)
Westrum confirmed that discounting has been used but at Taco John’s, it’s been very targeted and about offering value where the demand is. Prior to COVID-19, the core offer was single serve meals, but the demand has shifted to larger group sizes such as family bundles, fuelled by the closure of the casual dining market.
In Dubai, Maadad has steered clear of discounting in a bid to protect the premium nature of the brands in the Gates Hospitality portfolio. Instead, he’s focused on added value and maintaining engagement with customers throughout the pandemic.
At Elior UK, which spans several different marketplaces, discounting and offers play a role in some channels, but the priority is creating safe and inviting environments that feel hospitable and not clinical. The workplace is, of course, a key focus and while ‘grab-and-go’ is a priority, Roe highlighted the opportunity to extend the workplace model to provide workers with food to take away, to the home.
All panelists agreed that the pandemic has accelerated the integration of digital. Westrum shared the statistic that online ordering has tripled during this period at Taco John’s and they’ve had to get ‘really good at digital marketing overnight’.
At Gates Hospitality in Dubai, Maadad explained how they’ve fast-forwarded their approach to data and made it a priority to own their own, so they can engage directly with customers. This has enabled them to maintain a strong presence and remain a valued part of the community throughout the pandemic.
Likewise, at Elior, digital transformation is an even bigger part of the plan now, particularly in relation to pre-ordering, which enables less dwell time for the consumer.
The question was posed: Is hospitality now different? According to our panelists, the answer is no. Roe pointed out that generally people miss what they don’t have and it’s a question of being patient.
On the other side of the pond, the fun and excitement of eating out will never be replaced by cooking at home, according to Westrum. He firmly believes it will return, across the board, as people look for great experiences.
Maadad’s view is that dining out is part of living. He believes that as soon as a vaccine is introduced, we’ll see people going back to their old routines.
In terms of what’s next, the words ‘agile’, ‘innovation’ and ‘partnership’ are more important than they ever have been before in our industry, said the panel.
Their recipe for navigating a way forward: a measured approach, listening to customer demand, great communication and a ‘dose of patience’.