Restaurant And Hospitality News – November 30, 2015
By Christine Kern, contributing writer
In news this week, Hilton Worldwide confirmed a malware breach; consumer holiday spending will be hard to predict according to Cracker Barrel CEO Sandra Cochran; Dunkin’ Donuts is upping its game against challenger Starbucks with mobile ordering and delivery pilots; and Conrad Hotels & Resorts has launched its new “Stay Inspired” concierge service.
Hilton Worldwide Hit By Malware
Hilton Worldwide has identified and taken action to eradicate malware that targeted payment card information in some point-of-sale systems for the hotel chain. Hilton has launched an investigation and has strengthened its security systems, working closely with third-party forensic experts, law enforcement and the payment card companies. Affected information includes cardholder names, payment card numbers, security codes and expiration dates, but no addresses or personal identification numbers (PINs), according to a Hilton statement. In an email, Kevin Watson, CEO of Netsurion, a provider of remotely-managed security solutions for multi-location businesses, commented, “This news is unsettling, especially as millions of Americans are preparing to travel for the upcoming Thanksgiving holiday. It’s a harsh reminder that no business is immune to cyber criminals, and it’s especially important during the holiday season for merchants, retailers, hotels and hospitality businesses that process payment data to understand that they are lucrative targets. Therefore, it’s essential to take the necessary steps to protect customer data and ensure that stronger security measures are in place for their networks, payment systems and on premise Wi-Fi services. Making those areas a priority now will allow them to focus on the core business of providing customers with exceptional dining, lodging, event and travel experiences during the busy holiday travel period.”
Cracker Barrel CEO Says Holiday Spending Will Be Unpredictable
Sandra Cochran, CEO of Cracker Barrel Old Country Store Inc., cited a “very tough environment” in the first-quarter earnings call, stating that holiday consumer spending is very difficult to predict, according to the Nation’s Restaurant News. “It’s a very tough environment out there, and many competitors are responding to it by offering deals and by supporting those with a lot of media,” Sandra Cochran, CEO of the Lebanon, Tenn.-based family-dining and retail operator, told analysts Tuesday after the company released first-quarter earnings. “We certainly spend a lot of time here trying to understand the consumers, and they really are right now a bit of a mystery,” Cochran said. “It’s hard to completely understand what consumer spending is going to be like as we go into this really important holiday season,” Cochran said.
Cochran said the restaurant industry has reacted with increasingly competitive promotions and aggressive discounting, stating: “I don’t have any reason to believe it is going to abate. In the environment we are in — and we believe the industry is in — with a very challenged consumer, we certainly are all fighting for market share. We believe that in times like these what consumers are looking for are brands they trust, which we are one, and experiences that they can have confidence in, which another thing we think we do extremely well.”
Cracker Barrel reported that profit in the first quarter ended Oct. 30 rose 20.1 percent, to $40.9 million, or $1.70 per share, from $34 million, or $1.42 per share, in the prior year period. Revenue increased 2.8 percent, to $702.6 million, from $683.4 million in the same quarter last year. Same-store sales rose 2.5 percent, with a 3.2-percent increase in average check partially offset by a 0.7-percent drop in traffic.
Dunkin’ Donuts Tests Limited Mobile Ordering and Delivery Service
Dunkin’ Donuts has announced that it will begin piloting a new mobile ordering and payment option for loyalty club members in Portland, Maine and delivery services in Dallas, Texas, according to the Nation’s Restaurant News. With the new Dunkin’ Donuts On-the-Go Ordering app, customers in Portland can use their iOS smartphones to link their loyalty cards to payment options to place orders and accumulate rewards points. Once their orders have been placed, customers can go directly to a designated pick-up counter or drive thru to pick them up. Mobile ordering could possibly be rolled out nationwide in 2016. The service is helping Dunkin’ Donuts compete with Starbucks Corp, which already offers mobile ordering and payment at its 7,500 locations nationwide.
Dunkin’ Donuts also is using DoorDash to provide delivery service in the Dallas area, where it is available from 7am to10pm with delivery within 45 minutes from select locations. Scott Hudler, vice president of global consumer engagement of Dunkin’ Donuts, explained, “Our guests appreciate that we make our full menu available all day, and we are committed to seeking new ways to make our products even more accessible to our guests throughout the day. The ability to skip the line to order your favorite coffee, donut or sandwich any time of day, or to have Dunkin’ items delivered directly to you, are two things that our guests have been requesting for some time. We are excited to launch these two new tests, and we will continue to evaluate a possible national rollout for both programs in the future.”
“Whether it be coffee and a breakfast sandwich to start your day, or a latte and donut for an afternoon pick-me-up, Dunkin’ Donuts is the perfect delivery partner for DoorDash,” said Tony Xu, CEO of DoorDash. “Families around the country already know that DoorDash is the best way to get your favorite food delivered directly to your door. As DoorDash continues to expand to more markets, we’re excited to be adding Dunkin’ Donuts to our growing roster of top tier national partners.”
Conrad Hotels Launches New Concierge Service
Conrad Hotels & Resorts has announced that it has launched a new global, brand-wide concierge service, marking a cultural shift in hospitality and overhauling the way its team members are trained. The service, called Stay Inspired, offers guests a series of one, three, and five hour inspired experiences via its Conrad Concierge mobile app. Nilou Motamed is spearheading the initiative, and as the first ever director of Inspiration, he is responsible for developing and implementing the Stay Inspired vision. “Today’s luxury traveler wants to discover destinations where they can be truly inspired. “So we are shifting how not only our concierges communicate and connect with our guests, but all of our team members,” said John Vanderslice, global head, Conrad Hotels & Resorts. “Through our partnership with Nilou, we have trained our team members and empowered them to make thoughtful recommendations within our destinations, stepping away from the standard transactional relationship between a concierge and a guest. We now have become more like storytellers.”