Event Review

For our latest, highly anticipated #AskArena event, we welcomed leaders from around the globe to discuss the effects of COVID-19 pandemic.

Hosted by Robert Willock, Director of the Economist Corporate Network Dubai and former Group Editor of The Publican’s Morning Advertiser and M&C Report, the interactive event gave our members a fascinating insight into the contract catering market in the UK, thanks to Catherine Roe, CEO of Elior UK, the QSR market in the US, thanks to Barry Westrum, Chief Marketing officer of Taco John’s, Los Angeles and Naim Maadad, Founder and CEO of Gates Hospitality shared the challenges of running a hospitality business in an economy that is reliant on tourism and oil trade – Dubai.

Members attending the event were asked their views on key issues facing the industry, including the crippling effect of no-shows, that’s been widely reported in the media, spearheaded by Tom Kerridge.   A staggering 91% of the audience felt that consumers should pay a deposit when booking a table. 

After each of the three leaders gave an overview of how their businesses have been impacted and the pivots they’ve made over the last four months, these were a few of the key themes covered:

Discounting to attract customers

In the wake of the announcement of the UK’s ‘Eat Out to Help Out’ scheme, Robert asked the panellists if discounting has and will continue to play a role. (47% of attendees at the event thought that discounting could be used effectively as a carefully targeted part of the marketing mix.)

Barry confirmed that discounting has been used but at Taco John’s, it’s been very targeted and has been about offering value where the demand is. Prior to COVID-19, the core offer was single serve meals, but the demand has shifted to larger group sizes such as family bundles, fuelled by the closure of the casual dining market.

In Dubai, Naim has steered clear of discounting in a bid to protect the premium nature of the brands in the Gates Hospitality portfolio. Instead, he’s focused on added value and maintaining engagement with customers throughout the pandemic. 

At Elior UK, which spans several different marketplaces, discounting and offers can play a role in some channels, but the priority is creating safe and inviting environments that feel hospitable and not clinical. The workplace is, of course, a key focus and while ‘grab & go’ is a priority Catherine highlighted the opportunity to extend the workplace model to provide workers with food to take away, to the home.

Digital acceleration

All panellists agreed that the pandemic has accelerated the integration of digital.  Barry shared that online ordering has tripled during this period at Taco John’s and they’ve had to get “really good at digital marketing overnight”. 

At Gates Hospitality in Dubai, Naim explained how they’ve fast forwarded their approach to data and made it a priority to own their own, so they can engage directly with customers.  This has enabled them to maintain a strong presence and remain a valued part of the community throughout the pandemic.

Likewise, at Elior, digital transformation is an even bigger part of the plan now, particularly in relation to pre-ordering, which enables less dwell time for the consumer.

Is hospitality now different?

It’s the big question on everyone’s lips. According to our panellists, the answer is no. Catherine pointed out that generally people miss what they don’t have and it’s a question of being patient. 

On the other side of the pond, the fun and excitement of eating out will never be replaced by cooking at home, according to Barry.  He firmly believes it will return, across the board, as people look for great experiences.

Naim’s view is that dining out is part of living. His believes that as soon as a vaccine is introduced, we’ll see people going back to their old routines.

The Future

In terms of what’s next, the words agile, innovation and partnership are more important than they ever have been before in our industry. There’s no playbook for this one. But hopefully, a measured approach, listening to customer demand, great communication and a dose of patience will bring us back to the industry we all love.