Gregg Majewski, CEO of Craveworthy Brands, an innovative restaurant platform company, shares insights on scaling in a competitive market. He discusses how his company achieved explosive growth, reaching 200 locations and $200 million in sales within just 18 months. Majewski emphasizes the importance of brand differentiation and effective support for franchisees. He also tackles the challenges of integrating technology while preserving personal service in dining, and outlines Craveworthy's ambitious plan to develop 500 more restaurants and aim for a billion-dollar valuation.
Gregg Majewski emphasizes that applying a startup growth mindset allows Craveworthy Brands to rapidly scale and thrive in the competitive restaurant sector.
The podcast highlights the balance between technology and human interaction in dining, focusing on the need for hospitality training for younger employees.
Deep dives
Technology's Impact on Restaurant Hospitality
The conversation begins with a critique of the role of technology in dining experiences, focusing on an influential restaurant critic's opinion that technology has made restaurants less hospitable. The critic argues that the integration of technology, like digital ordering and kiosks, has contributed to a faceless atmosphere in restaurants. Respondents counter that technology has become essential for property management and addressing operational realities, such as staffing shortages. They believe that while the critic's concerns hold some validity, they overlook how technology can actually enhance service if used correctly.
Evolution of Restaurant Operations
The discussion shifts to the evolution of restaurant operations in the face of changing consumer expectations and technological advancements. A representative from a rapidly growing restaurant company discusses their approach to acquiring and integrating new brands, aiming for consistency in operations while allowing for brand uniqueness. They emphasize the importance of food quality and value engineering to cope with rising costs, advocating for a menu design that caters to contemporary consumer demands without sacrificing quality. The idea is to find a balance between cutting-edge technology and maintaining a human touch in operations, ultimately creating an effective and hospitable dining environment.
Delivering Value Amidst Rising Costs
A significant point raised in the conversation addresses the challenges faced by restaurants due to inflation and increased operational costs. Industry experts suggest that many restaurants have resorted to haphazard price increases rather than addressing the underlying issues through value engineering and efficient pricing strategies. Some operators have successfully introduced value menu options that lower check averages while simultaneously increasing customer traffic, indicating a demand for more accessible dining experiences. The notion is that by strategically pricing their offerings, restaurants can enhance customer satisfaction and maintain profitability, despite the increasing costs of ingredients and labor.
The Future of Restaurant Workforce Dynamics
As the conversation comes to a close, the focus turns to the future of workforce dynamics within the restaurant industry. Industry leaders express concerns about the current workforce's interpersonal skills, particularly among younger employees who often lack traditional social skills due to heavy reliance on digital communication. They highlight the importance of training solutions that cultivate hospitality skills among new hires, allowing them to effectively engage with customers. This emphasis on interpersonal communication becomes increasingly vital as restaurants aim to restore the human connection that is essential for creating a memorable dining experience.
What happens when you apply a startup-esque growth mindset, scale, and principles to restaurants? For Gregg Majewski, CEO of Craveworthy Brands, it means near immediate results. Majewski describes Craveworthy as a “restaurant platform company,” not a restaurant group, that gives brands tools and systems to scale, fast. It scaled from zero to 200 restaurants, and zero to $200 million in systemwide sales in roughly 18 months. And it’s on a buying spree, recently acquiring Hot Chicken Takeover, taim Mediterranean Kitchen, and Sigri Indian BBQ. Craveworthy has 500 restaurants in development and an ambitious goal of becoming a billion-dollar company in the first five years. In this episode, Majewski explains how this approach could change how large restaurant brands thrive.
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