‘We’re part of the social fabric’

Carol Campbell, a relative newcomer to hospitality as managing director of managed estate at the Stonegate Group since early 2024, has already witnessed the special place that hospitality has in people’s hearts. “The pub is such a big part of the communities we operate in—it’s part of the social fabric.” Consumers eat and drink out to be happy, said Caravanfounder and CEO Laura Harper-Hinton. “People want to have fun—that’s why we all come into the industry in the first place.”

‘It’s a people business’

Leaders agreed that motivating and upskilling people makes a huge difference to sales, productivity and margins. “Ultimately we’re a people business,” said Carol Campbell. “The fundamental thing is how to give people the right skills.” Technology can help to bring down costs through better scheduling and workflows, added Alasdair Murdoch, CEO of Burger King UK—but rolling it out isn’t always easy. “It [tech] does work, but you need to take the team with you, especially those most resistant to change. Showing people the benefits and getting them to pull for it is the key battle.” 

‘Every 10% reduction in staff turnover adds half a point to the margins’

Keeping people happy reduces the drain of recruitment. Roy Ellis, CEO at Mission Mars, said the business had made a big effort to improve retention by investing in training, pay levels, bonus schemes, career pathways, working culture and more—and it’s paying off. “We reckon roughly every 10% reduction in turnover adds about half a point to margins. We use that to invest back in our people, so we don’t benefit directly as shareholders—but we do get above-average like-for-like sales growth.”

‘It’s how you use data that matters’

Hospitality is awash with data, but the numbers alone aren’t enough. “It’s how you use it and the decisions it helps you make that’s the most valuable thing,” said Laura Harper-Hinton. “Data helps you get curious about things… but you have to listen to the teams around you as well, because the truth is often in the sites,” added Carol Campbell.

‘AI is the future’

Artificial Intelligence was a big theme of the Leaders Summit. Burger King is using it for tasks like predicting what customers will buy, with more work to come… “I see this as the future. In two or three years I imagine all our drive-throughs will be driven by AI,” said Alasdair Murdoch. Roy Ellis of Mission Mars said AI is particularly good at interpreting guest feedback. “It’s a slog to analyse all that data on a site-for-site basis for the real messages and what we need to fix… AI can help us sort the wheat from the chaff.” Carol Campbell added: “Rather than sweating over the data we’re trying to use AI to get more incisive and decisive about it.” 

‘You can’t run a business through spreadsheets’

Data gets you a long way, but it’s the everyday interactions that make hospitality special. “We’ve focused over the last couple of years on making sure we’re commercially successful… now we’re changing that conversation so we don’t run the business through the spreadsheet,” said Laura Harper-Hinton. “We’re going back to basics… delivering hospitality at a site level and being much more present.”

‘We have to get beyond price’

The eating-out market has polarised this year—between those seeking value and those with plenty of cash to spend. But there’s a real risk of a race to the bottom. “We have to get beyond price,” said Alasdair Murdoch. “Ask what are you going to stand for, and what are you good at… Don’t just chase someone else—that’s death.”

‘Sustainability is a must-do… and it saves you money’

Recent research from Nutritics and CGA by NIQ has stressed the importance of sustainability to consumers and teams alike. Caravan has shown the way with B-Corp certification and Laura Harper-Hinton said: “It’s been massive for the business and team retention.” But companies need to invest in it—which isn’t easy when budgets are tight. “Baking in things like sustainability becomes hard when you get a Budget like that…. That said, it’s been a hugely important part of Caravan from day one and it’s no less of a priority now.” The good news is that spending on sustainability soon pays for itself. “It’s a must-do… our teams demand it,” said Roy Ellis. “It tends to mean less wastage so it costs you less… Almost everything we do on sustainability saves us money as well.”

‘We have to be optimistic’

After all the challenges of 2024, leaders shared a feeling that tide may soon turn. “I’m very optimistic—I do think consumers will come out and spend more next year,”said Alasdair Murdoch, whose Burger King brand has bullish plans to open around 30 new sites. And as Laura Harper-Hinton concluded: “Optimism isn’t optional—it’s essential. Even if the government is doom and gloom we have to be optimistic and bring the joy.”

Peach 20/20 thanks its headline partners on the 2024 Leaders Summit: Access, CGA by NIQ, Diageo, Fourth, Nutritics, Sona and Zonal; premium partners Chapman Ventilation, Crunchtime, Toast and Uber Eats; event partners Airship, Bird & Bird, Brakes, Cardlytics, Coca-Cola Europacific Partners, Feed it Back, Freeths, Gusborne, Harri, Kitch, Lucky Saint, Mapal and The National Restaurant, Pub & Bar Show and Toggle; and charity and association partners Be Inclusive Hospitality, Only A Pavement Away, Tim Bacon Foundation and UKHospitality.