Restaurant And Hospitality News – February 23, 2015
By Christine Kern, contributing writer
In news this week, what will the Walmart pay hike mean for QSRs? Also, security concerns continue to inhibit the adoption of mobile payments, and DineEquity is poised for international expansion of its brands. Also, Hotels are facing growing pressure to fill positions and are meeting that challenge with flexibility, while Denny’s continues to expand with its new fast-casual brand, The Den.
Will the Walmart Pay Hike Have An Impact On QSRs?
This article from the Nation’s Restaurant News examines the impact of Walmart’s recent announcement to raise wages for 500,000 employees on McDonald’s and other QSRs. Although the move by Walmart and other retailers could pressure quick-service operators to raise wages by increasing workers’ potential earning power, the issue is not that simple, according to the NRN, since operators won’t raise wages as long as they can fill jobs at the current rates. In the long run, however, QSRs must address the culture and not just wages, to hire and retain good workers.
Security Concerns Inhibiting Adoption Of Mobile Payments
According to PYMNTS.com, security is the chief inhibitor of mobile payment adoption at points-of-sale. In 2014 there were 783 data breaches in the U.S., affecting more than 85 million customers. And Bluefin Systems CEO John Perry reveals that the most significant number of attacks happen while data is in motion. EVM or not, Hackers are working to find a way in and intercept the information mid-payment. That means that EMV technology alone is not enough: for mobile payments to be most secure, they need to include EMV technology, tokenization, and point-to-point encryption.
Applebee’s and IHOP Both Positioned To Expand International Growth
According to The Nation’s Restaurant News, DineEquity Inc. is set to accelerate global expansion of its Applebee’s and IHOP brands. Daniel Del Olmo, president of international for DineEquity, stated that they now have a five-year strategic plan for international growth, in addition to strengthening existing infrastructure in targeted regions. The growth for both brands is focused on Latin America, the Middle East, and Southeast Asia. “In absolute terms, over the course of the next 20 years, international will be leading the agenda simply because there are only 225 restaurants overseas today,” Del Olmo said. “For international, last year was a record-breaking year, with 25 open, and in 2015 internationally, we believe we will exceed our pace with more openings than last year.
Hotels’ College Recruitment Strategies Go Beyond Hospitality Students
According to Skift, hotels are using college job fairs not just as a means to recruit hospitality majors, but also to transcend the major to attract business fields and market their brands across industries. In particular, hotels are using the events to “incentivize business students interested in hospitality careers” to demonstrate how those careers transgress a post at the front desk. Skift says that a potential hospitality talent gap could threaten the GDPs of the U.S. and other countries, and predictions already point to the selective nature of hotel hiring during the next decade with hotels having difficulty finding enough qualified and educated employees.
Denny’s To Grow Fast-Casual Concept, “The Den” To Appeal To Millennials
Denny’s Corp. plans to grow its fast-casual concept called The Den, company officials said in a Q4 2014 Earnings Call. Originally designed for college campuses, The Den has generated interest from traditional franchise operators, as well as contract foodservice providers, said John Miller, Denny’s president and CEO. The concept is described as offering a menu with flavors “liberated from daypart oppression” — breakfast is served all day — and a “cave man chic meets counter service” design, according to The Nation’s Restaurant News. The Den is one of a number of potential growth opportunities for Denny’s, which saw a Q4 2014 domestic system-wide same-store sales increase of 4.7 percent, its highest quarterly sales in eight years.