Restaurant And Hospitality News – December 4, 2017
In news this week, Arby’s shakes up the restaurant world with its acquisition of Buffalo Wild Wings; and hoteliers can benefit from a new 10-point checklist to help them leverage mobile services to boost their bottom line.
Arby’s Buys Buffalo Wild Wings For $2.4 Billion
In a major restaurant shakeup, Arby’s Restaurant Group has announced plans to acquire Buffalo Wild Wings for $2.4 billion, according to USA Today. Arby’s is controlled by private equity firm the Roark Capital Group. The deal comes just as casual dining chains are feeling the pinch of Americans eating at home more frequently or having food delivered. Competition from fast-casual competitors and higher labor costs have also taken their bite out of the casual dining dollar.
Buffalo Wild Wings also recently felt pressure from rising chicken prices, which took a toll on its operating budgets. According to NPD Group restaurant industry analyst Bonnie Riggs, while Buffalo Wild Wings was a “star performer” in the sector for years, recently the chain “lost their value proposition to families with kids.”
Sally Smith, CEO of Buffalo Wild Wings, stated, “We are excited about this merger and confident Arby’s represents an excellent partner for Buffalo Wild Wings. This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchisees. We are confident that the strength of our two industry-leading brands, under the sponsorship of Roark Capital – an experienced restaurant and food service investor – will enable us to capitalize on significant growth opportunities in the years ahead.”
“What consumers are looking for is value,” Riggs explained. “It’s getting what you paid for. They want quality products. They want fresh, but they want it to be reasonably priced.”
Arby’s recently revamped its core identity using unique products, and now plans to apply that formula to Buffalo Wild Wings.
“Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” stated Arby’s CEO Paul Brown. “We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team. We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company.”
Buffalo Wild Wings has more than 1,250 locations in 10 countries, while Arby’s has more than 3,300 restaurants in seven countries.
How Hotels Can Leverage Mobile Service To Boost their Bottom Line
Hotels face unique challenges balancing meeting guest needs with increasing efficiency to improve their bottom line. Technology can help improve efficiency, but also carries a price tag for implementation and use. To help hoteliers achieve this difficult balance, mobile PMS technology company StayNTouch has released its latest hotel business growth resource – The 10-Point Checklist for Using Mobile Service to Boost your Hotel's Bottom Line in 2018.
Google Research has demonstrated that 72 percent of active consumers are demanding mobile-friendly sites and experiences, which underscores the need for mobile service to boost guest satisfaction and higher hotel revenues. In fact, Google found, 73 percent of travelers want to use mobile for check-in; 68 percent want access to concierge information via mobile; 64 percent want the ability to use mobile devices as room keys; and 62 percent want to order room service and other amenities via their mobile devices.
The StayNTouch checklist will help hoteliers meet these changing consumer demands to leverage mobile to deliver positive guest experiences.
Jos Schaap, CEO of StayNTouch, explained, “At a time when consumers have more choice than ever, a technology that engages guests, streamlines operations and drives loyalty, such as mobile, can give hoteliers a much-needed competitive advantage.” And while technology cannot be a substitute for ineffective guest services, poor marketing, an absence of best practices, or for proper execution of services, Schaap asserts, “Guests want a frictionless journey when they interact with your brand. They aren’t thinking about channels and devise. You need to future-proof your business against evolving guest expectations and the technology behind them.”
The checklist hits major segments of the hotel from back-of-the-house to guest-facing operations to ensure that they are optimized for success. Points on the checklist include: website, check-in/checkout, upgrades & add-ons, keys, front desk & concierge, housekeeping, ordering & guest request, marketing, data collection & access, and monitoring & reporting.
To download The 10-Point Checklist for Using Mobile Service to Boost your Hotel's Bottom Line in 2018, CLICK HERE.