Event Review

In its third sell-out event in a row, over 150 guests gathered for the Arena Spring Event at the Sofitel London St. James to network and hear from speakers on The Changing Landscape of Foodservice and Hospitality.

After coffee and networking, guests took their seats to hear the opening address from Jill Livesey, Managing Director of Lumina Intelligence on the growth opportunities in the food and drink sector. She took a look at where we are now and how things are looking in the future.

Where we are now

According to Ernst & Young, inflation is at 2.8% ahead of 2024 levels, with retail and hospitality feeling the heat, due to increased staff costs and consumer confidence is low at -20.  That said, transience and travel is on the rise, with figures sitting at 96% of what they were in 2019, meaning more people are out and about.  Inbound tourism was up 9% last year and according to National Rail, traffic in mainline stations is up 7% last year, helped by the removal of strikes.  The great British weather remains as unpredictable as ever, with 12 storms last year, but surprisingly warm temperatures.

Without a doubt, the game changers for the industry are the immersive venues that are bringing much needed traffic and spend into town centres.

‘Treatonomics’ is becoming an important word in the vocabulary of hospitality, with Taylor Swift’s Eras tour bringing £1bn to the economy.  Roll on Oasis…

Food-to-go is continuing to drive the market, with health-based concepts becoming the latest to join the fold, with a brilliant explosion of salad-led outlets such Atis, Farmer J’s, The Salad Project and Bewliehill, where you can buy a salad bowl for just £6.

The opportunities

Total hospitality will exceed £100bn this year, with a growth rate at just over 2%.  Hotels, pubs and restaurant groups account for £70bn of the market but still haven’t caught up to 2019 levels.  Contract Catering at £5bn is growing ahead of the market, moving in the right direction.  The rockstar of the show is retail, travel and leisure, creating opportunities for sandwiches, coffee and bakery.  The food-to-go market is set to open 1000 outlets a year for the next three years.

The pub sector continues to innovate with ‘eatonomics’ and ‘drinkonomics’, targeting themed events.  Despite some shrinkage, the sector is coming back, with operators like Bootlegger Bars creating points of differentiation with cocktail masterclasses and music events.

Operator spotlight

Jill also shared examples of operators leading the market with their innovation, from Pizza Express and its truly omnichannel offer and Sandwich, Sandwich, which has successfully elevated the humble sandwich to a £9-12 price point, through to use of AI by Gail’s to pinpoint new site locations.

Trends and concepts

Health is very much at the forefront but has evolved. From a focus on protein intake and gut health, there’s been a shift to personal health or ‘nuanced’ health.  Products are being added to offers to deliver health benefits and plant indexing (eating 30 plants a week) is becoming increasingly popular, supported by brands such as Itsu and Leon. Coffee operator Black Sheep, gives customers the opportunity to add a shot, such as collagen, helping to keep consumers in love with their coffee.

Sustainability is the second most important issue according to a recent leaders’ survey. And, from a consumer perspective, whilst there has been a growth in value seeking, quality is overtaking  value, creating opportunity for operators.

What’s keeping Jill awake at night?

The Neets - the 900,000 16-24 year olds who are not in employment, education or training; it’s  a concern for both industry and society.

Jill concluded her address with a nod to International Women’s Day citing a recent project with FWD and Women in Wholesale that identified that 44% said there are not enough female role models in our industry.

After a drinks and canapé reception and lunch, an all-female leadership panel took to the stage for our discussion chaired by Rachel House, Co-founder, Impetus Global.

The panellists:

Karen Bosher, best known for her 10 years as MD of Greene King, is now NED and Chair to Bootlegger Bars.  Prior to Greene King, she had a long career in retail, with leadership roles at JJB Sports, Mothercare & M&S.  She was European Diversity champion in 2022, on the Guardian Pride Power list for two years running, DIVA champion and British diversity champion.

Inspirational person in her career:

She’s worked with phenomenal leaders but one that stands out is Ben Gordon from Mothercare who spearheaded online retailing. As a massive advocate of sponsorship of women in the retail industry, he led to the business winning the Times Best Companies to Work for and set Karen on her diversity journey.

Joanna Aunon, Chief Impact Officer at WiHTL, a collaborative community across hospitality, leisure, travel and retail devoted to increasing equity, diversity and inclusion.

Inspirational person in her career:

One of the most inspirational people she’s worked with is David Michels of Hilton. He had a way with people that made every employee feel valued.  And, of course, Tea Colaianni who founded WiTHL.

Claire Morris, MD of Sodexo Live! for UK and Ireland and the lead for the global growth team which includes the sales, marketing and the digital function.  Prior to her 10 years at Sodexo, she’s worked in the industry for 18 years, including time at Compass.

Inspirational person in her career:

Claire highlighted two people in her career; Michelle Hanson who she worked with to centralise the marketing function at Sodexo, making a significant step change in the business and Sir Francis McKay, CEO at Compass, who asked her, age 24, to come and work for him.

Sally Hillman, MD for Restaurant Associates (international and national clients), part of Compass Group.  She started her career as a fitness instructor, working her way up the ranks until she became regional ops director for David Lloyd.  She met a recruiter and took a side step into catering, including a period as a consultant where Restaurant Associates remained a client.

Inspirational person in her career:

She flagged Nick Philips, then MD of David Lloyd for giving her, her first opportunity to step into an ops role. She was the first woman to do it in the organisation.  She also spoke of the merits of working with a leader who made it ok to have a life outside the office.

The discussion was a fascinating insight into the views, opinions and experiences of four inspirational female leaders.

Some of the key highlights/takeaways:

Most of the panellists felt their gender had served them well, but Karen pointed out that you need to be a “certain type of woman” to succeed in the industry.   

All panellists felt that the conversation aligned to age rather than gender and the reassurance that comes from age and experience.  Sally believes there were instances where she was overlooked for opportunities, but believes this to be a mix of age and gender.  However she also believes she was overlooked for one opportunity as she was of child-bearing age.  But then equally, she was given opportunities that she claimed she perhaps shouldn’t have got.

It was agreed that everyone has different stages in their career and people need different things at different times.   Organisations should have conversations with their teams to answer the simple question “What will help you thrive?”

Parity in the boardroom

It was highlighted that there needs to be parity in the boardroom.  Females are joining the industry, rising up the career ladder but dropping off before the boardroom, leading to a loss of talent.

Karen highlighted “Diverse thinking groups improves business outcomes.”

Sally added it was about understanding the value and improving opportunities for everyone.  “Understanding the value of diversity improves outcomes for everyone.”

There’s a clear correlation between the EDI maturity curve and where companies sit in profitability. 

In terms of making the change, all were in agreement that it’s a journey and it’s on the SLT to show the rest of the peer group that leadership is diverse, so that those coming up the ladder have role models, network and allies.  

Claire spoke of the culture at Sodexo where ‘we are the people in the communities we serve’ remains at the forefront.  They’ve worked hard on their employee value proposition and know, based on their own research, that a more productive team leads to a more profitable business.

Karen highlighted that womanhood isn’t linear.  Not every woman is focused on maternity leave, part-time and flexible working.  Businesses need to listen to what employees need, so they can provide a platform for them to thrive.

And, with the alarming stat about NEETs – how do we get people into the industry?

Changing landscape – key challenges

Sally advised that we must encourage people into the industry; it’s crucial to have throughput from the bottom-up. 

Karen talked about the need to educate on career paths and show the potential of the industry.  Going from bar to boardroom is achievable and we need to give people the tools and training to achieve those goals.  It’s necessary to coach and develop at a senior level.

Joanna advised that we need thoughtful leadership. She sees very little overt sexism.  Male leaders need to show up as their true authentic selves, just as women do.

Sally flagged there’s an education needed for all of us.  We need an open conversation and more confidence.

How do we help women get to the top?

With gender parity not expected until 2158, we won’t see it in our lifetimes, so how do we help women get to the top? Karen said we need to report on data and there needs to be more legislative quotas.  It was also agreed that women need to be a bit harder on themselves; at job interviews, interviewees should be asking just as many questions as the interviewer and taking responsibility for shaping their own paths.

Joanna pointed out that DEI is a strategic business lever.  It should be part of the DNA of our leaders and of the organisation. It’s crucial to invest in leaders; it’s not easy to lead a diverse team.

The discussion concluded with a top tip from each of the speakers.

Claire:  Focus on the culture, the DNA of the organisation you work for.  We need to be able to talk about young people and getting them through the industry, irrespective of gender. 

Sally: Vulnerability is a key point.  We need to open up those conversations that would never have been spoken about a few years ago.  We need to invest in education.

Jo: Invest in leadership and look at how you can instil confidence.  DEI is not about giving groups a bigger slice of the cake, it’s about having more forks to eat the cake.

Karen: everyone has the opportunity to be an ally.  One person can make a significant difference.  You just need a set of beliefs as a leader to set off a movement in an organisation.  Men are as trapped as women.

This good can benefit all of us.

The feedback from the event has been excellent.  One of our new members said:-

"It was a day filled with valuable insights, industry discussions, and great conversations with hospitality and foodservice leaders.  With an inspiring agenda covering market trends, leadership, growth opportunities, and diversity in the industry, it was an excellent opportunity to exchange ideas and connect with fellow professionals shaping the future of food and drink."

With thanks to all of Arena’s Headline Sponsorship partners for making these events possible -  Britvic for the soft drinks and mineral water, Unity Wines and Spirits for the prosecco and wines, La Compagnie des Desserts for the desserts served at lunch, Délifrance for the viennoiserie, bread rolls and focaccia, Nestlé Professional for the coffee and the team at HRC for their support.