by Patricia B. Mirasol

Restaurateurs have to rethink and change their managerial mindset in order to create a resilient food sector, said Carlos Martin-Rios, an associate professor of management at Ecole Hôtelière de Lausanne (EHL), in his presentation at Saladplate’s Food and Hotel Digital Week. “The past crises were a lost opportunity. Businesses went back to normal right away without much reflection.”

“What we see is a scenario where there is a slow recovery, unfortunately,” Mr. Martin-Rios shared in a talk aimed at independent restaurant and bar owners. “The way we run our businesses doesn’t give us time to reflect and rethink how we do business. This pandemic has given us a once-in-a-lifetime opportunity to do so. What are we doing right? What can we do better? Share these with stakeholders and ask for help.”

The consensus among academics and experts is that food service is big on tactics (the steps, actions, or tasks one must implement to achieve a goal) but light on strategy (an overarching plan or set of goals). Mr. Martin-Rios discussed how innovation, sustainability, and collaboration are vital for the industry to move forward.

INSPIRING INNOVATION

A crisis is always an opportunity for transformation. Here are three core activities restaurants and bars can do to inspire innovation, according to Mr. Martin-Rios:

•  Co-creation of brands — Customers are more important than marketers themselves when it comes to influencing a brand’s reputation. “The more time we spend on recreating our brand with our customers and our community, the higher the results that will come later on,” said Mr. Rios. “It doesn’t take much resources but it does take time and a clear mindset.”

•  Organization — Restaurant stakeholders should join forces to facilitate collaboration across existing departments and foster innovation. “Let’s open up communication channels. Every single individual has ideas and some are very useful.”

•  Personalization — Commit to data science and conduct forecasting and improve pricing by segment. “These tools are not necessarily expensive… We can work with local associations and use technology and software to learn how to position our brand.”

SUSTAINABILITY SUCCESS FACTORS

“Sustainability is more than the environment. It’s the present and the future of our business. It is not a market niche,” Mr. Martin-Rios said. “We can no longer afford a non-sustainable world—and this fact is clearly brought to the fore because of this pandemic.”

Restaurants and bars can make sustainability the core of their strategy by assessing their emissions and formulating a strategy to reduce their carbon footprint. “People care and they want to know what we’re doing to help the planet.” Establishments can also check their operational processes that take into account sustainability and the use of resources in a circular way. Empowering associates helps too: What skills do they need to thrive in this environment that they can put into practice later on in the workplace?

“The most important aspect of sustainability is leadership commitment… In the short-term, sustainability can be expensive. It the mid- to long-term, it really pays off. This is the message we need to convey. We need to work with the local community and farmers and develop agreements that are win-win,” said Mr. Martin-Rios.

MORE COLLABORATION NEEDED

Mr. Martin-Rios reiterated the need for collaboration in an industry known for being one of the least collaborative ones. “It is not good for us. This is something we really have to say out loud. Let’s develop better ties with the authorities and among restaurants. We are not lonely soldiers fighting only for our own restaurants.”

“We keep being one of the least profitable industries as well,” he added. “We are focused on costs, keeping prices down, and reducing profits. This thinking must be challenged. Food brings us culture. Restaurants are part of culture; they are not just a commodity. Pay a fair price for the experience we are giving you.”

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