FLOP OF THE YEAR: THE RUGBY WORLD CUP
When England achieved the impossible, and destroyed the indestructible All Blacks in the semi-finals of the Rugby World Cup, it looked like it was going to be a bumper day for hospitality on the day of the final.
The UK would wake up early and hit the pubs and bars first thing to watch England win the final, followed by trips to restaurants, followed by pubs, bars and clubs, before ending up slumped on the sofa trying to focus on the highlights and order a Deliveroo. All England had to do was win.
Sadly, it wasn’t to be, and rather than wake up early, get drunk, then hit the town to celebrate, thousands of rugby fans woke up, got drunk, and went home miserable. But it wasn’t just the damp squib of the final that meant the Rugby World Cup didn’t deliver a big boost in sales. Inevitably it was more to do with the early morning kick offs.
Thousands of incremental pints and breakfasts may have been served at unusually early times, but it was never going to deliver the same benefits as an early evening kick off that another big tournament might have, even if England had defeated South Africa and their intensely irritating little scrum half.
Never mind. It’s highly likely the upcoming Euro 2020 tournament will be far more profitable for eating and drinking out, and it’s taking place across Europe so kick off times will be perfectly suited for the industry. Better yet, it’s ending up with the semi-finals, and the final, at Wembley, so it’s all set to be a barnstorming period for hospitality.
Remember the vibe of Euro 96, the last time a tournament was held on home soil? It’s going to be massive.
And with England installed as 4/1 favourites, just ahead of France at 5/1, winning the tournament would more than make up for the underwhelming Rugby World Cup in terms of subsequent sales. And this time it might actually happen.
MCWHAT? OF THE YEAR
It was enough to make you drop your McMuffin. The news that Steve Easterbrook had been fired by McDonald’s as global CEO came out of nowhere early one morning in November and can only be considered disappointing for both parties.
Easterbrook had done exactly what he was hired to do four years previously and turned a slowing business into an accelerating one.
A week before his departure he revealed a 17th consecutive quarter of growth. He more than doubled McDonald’s share price during his time in charge.
He transformed the menu into something livelier and fresher and introduced exciting new technology to the business. His tenure was transformative.
The manner of his departure also felt at odds with the world of business.
Easterbrook had an entirely consensual relationship with a colleague which, in the average workplace, wouldn’t even be frowned upon, let alone be a sackable offence.
But it’s non-negotiable policy at McDonald’s. A sad way to go then, but his severance agreement, which includes stock awards and a final salary totalling around £37m, may have provided some comfort.
And a two year ban working for a lengthy list of rivals means an enforced, but well deserved, break. A highly respected operator, it will be very interesting to see where he goes next.
TREND OF THE YEAR: TECHY TO-GO
As in most areas of life, the growing role of technology in the hospitality industry shows no signs of slowing down.
Gone are the days of supplying your kids with endless 2p coins to roll down the spinning donation box while you wait in the long line at McDonalds. A maze of floor to ceiling self-ordering kiosks with iPad stations in every corner, Steve Jobs would have marvelled at the McDonalds of 2019.
Though people might hate to admit it, it stands that a cold, hard screen can get to know far more consumers, far better and more efficiently, than any member of staff ever could. With potential for personalised upselling and store to app integration, self-ordering kiosks offer the speed, personalisation and profitability that the food to go market depends on.
Trend-setter as it is, this year the creator of fast-food became the creator of faster-food.
In July, McDonalds opened its first to-go only format on London’s Fenchurch Street. The site offers a limited menu, at a higher price point, in a less consumer-friendly environment (am I selling it?).
But in September, Steve Easterbrook, former McDonalds CEO, said the concept was delivering encouraging results.
Quicker than you can say “do you want fries with that?” the idea spread down Fenchurch Street, the stomach of The City, with Wagamama launching their first to-go spin off – Mamago – in November.
In the same month, if slightly further afield, Greggs opened a ‘Greggs of the Future’ site in Glasgow, with self-ordering, self-serving and collection points aplenty. Itsu will install touchscreens in 75 stores in 2020.
According to the latest MCA Food to Go Tracker, average FTG frequency grew by 4.8% this year, outperforming the wider market growth of 1.3%. Food to go is on the rise, and slick and quick by nature – or design, really – tech is set to be the cornerstone of its success.
Luckily for McDonalds lovers everywhere, Easterbrook has said that its UK market has a “little bit of cash” to push the use of technology further.
Although considering that “Apply-thru” now exists – which allows jobseekers to apply via Alexa to work for the company – you wonder how much further it’s possible to go.
PROTEST OF THE YEAR: VEGANS
If you live in a city, if you commute, or if you have a working set of eyes, chances are you’ve witnessed a protest in one shape or another this year.
Soaking the Treasury in ‘blood’, blockading the Department of Business, balancing atop the DLR, and bringing cities to a standstill, Extinction Rebellion UK have had a busy 2019. Aimed at prompting a sufficient government response to the climate crisis, whilst its impact is yet to be assessed, the sheer scale of protest has to be commended.
For the hospitality industry, this is nothing new.
Twenty years on from the famous anti-American José Bové-led attack on McDonalds Millau, the brand continues to face the wrath of militant morals.
One McDonalds store in Brighton was the target of three Direct Action Everywhere (DxE) protests this year, causing several awkward and tense protester-security altercations.
But McDonalds is no stranger to protest, and altercations with security aren’t exactly rare. For (unintended) shock factor alone, protest of the year doesn’t include the golden arches, but a quiet Pizza Express site, where a goggle-eyed and extremely angry middle-aged man saw fit to punch a young woman.
In September this year, DxE stormed a Pizza Express in – you guessed it – Brighton, carrying ‘anti-speciesism’ signs and interrupting diners mid-Romana. In a contradiction to top all contradictions, one customer raged, “You’re scaring these people,” before punching a campaigner in the face.
Granted, the young woman goaded the man (“what are you gonna do?”), and I understand that “not your mum, not your milk” isn’t what anyone wants to hear as they’re chowing down a margherita, but throwing punches over pizza is not a good look.
Veganism is on the rise. Nearly 20% of consumers are following a meat-free, or partially meat-free diet, and whilst some cite health and the environment as their reason for ditching meat, animal welfare as a driving factor can’t be overstated.
When there is a moral high ground, there is a cause for protest.
Would you like a placard with your vegan sausage roll?
QUOTES OF THE YEAR
Will Shu, Deliveroo CEO
Steve Holmes, Azzurri CEO
Simon Wilkinson, CEO of Byron Burger
Ajith Jayawickrema, Turtle Bay founder
Richard Caring
Will Stratton-Morris, Caffe Nero CEO
Joe Grossman, Patty and Bun founder
Tim Martin, JD Wetherspoons Chairman
“If you start thinking the food’s done, you’re done.”
Zan Kaufman, Bleecker Burger founder
Precis
REVIEW OF THE YEAR - PART TWO
FLOP OF THE YEAR: THE RUGBY WORLD CUP
When England achieved the impossible, and destroyed the indestructible All Blacks in the semi-finals of the Rugby World Cup, it looked like it was going to be a bumper day for hospitality on the day of the final. The UK would wake up early and hit the pubs and bars first thing to watch England win the final, followed by trips to restaurants, followed by pubs, bars and clubs, before ending up slumped on the sofa trying to focus on the highlights and order a Deliveroo. All England had to do was win.
Sadly, it wasn’t to be, and rather than wake up early, get drunk, then hit the town to celebrate, thousands of rugby fans woke up, got drunk, and went home miserable. But it wasn’t just the damp squib of the final that meant the Rugby World Cup didn’t deliver a big boost in sales. Inevitably it was more to do with the early morning kick offs. Thousands of incremental pints and breakfasts may have been served at unusually early times, but it was never going to deliver the same benefits as an early evening kick off that another big tournament might have, even if England had defeated South Africa and their intensely irritating little scrum half.
Never mind. It’s highly likely the upcoming Euro 2020 tournament will be far more profitable for eating and drinking out, and it’s taking place across Europe so kick off times will be perfectly suited for the industry. Better yet, it’s ending up with the semi-finals, and the final, at Wembley, so it’s all set to be a barnstorming period for hospitality. Remember the vibe of Euro 96, the last time a tournament was held on home soil? It’s going to be massive. And with England installed as 4/1 favourites, just ahead of France at 5/1, winning the tournament would more than make up for the underwhelming Rugby World Cup in terms of subsequent sales. And this time it might actually happen.
MCWHAT? OF THE YEAR
It was enough to make you drop your McMuffin. The news that Steve Easterbrook had been fired by McDonald’s as global CEO came out of nowhere early one morning in November and can only be considered disappointing for both parties.
Easterbrook had done exactly what he was hired to do four years previously and turned a slowing business into an accelerating one. A week before his departure he revealed a 17th consecutive quarter of growth. He more than doubled McDonald’s share price during his time in charge. He transformed the menu into something livelier and fresher and introduced exciting new technology to the business. His tenure was transformative.
The manner of his departure also felt at odds with the world of business. Easterbrook had an entirely consensual relationship with a colleague which, in the average workplace, wouldn’t even be frowned upon, let alone be a sackable offence. But it’s non-negotiable policy at McDonald’s. A sad way to go then, but his severance agreement, which includes stock awards and a final salary totalling around £37m, may have provided some comfort. And a two year ban working for a lengthy list of rivals means an enforced, but well deserved, break. A highly respected operator, it will be very interesting to see where he goes next.
TREND OF THE YEAR: TECHY TO-GO
As in most areas of life, the growing role of technology in the hospitality industry shows no signs of slowing down.
Gone are the days of supplying your kids with endless 2p coins to roll down the spinning donation box while you wait in the long line at McDonalds. A maze of floor to ceiling self-ordering kiosks with iPad stations in every corner, Steve Jobs would have marvelled at the McDonalds of 2019.
Though people might hate to admit it, it stands that a cold, hard screen can get to know far more consumers, far better and more efficiently, than any member of staff ever could. With potential for personalised upselling and store to app integration, self-ordering kiosks offer the speed, personalisation and profitability that the food to go market depends on.
Trend-setter as it is, this year the creator of fast-food became the creator of faster-food. In July, McDonalds opened its first to-go only format on London’s Fenchurch Street. The site offers a limited menu, at a higher price point, in a less consumer-friendly environment (am I selling it?). But in September, Steve Easterbrook, former McDonalds CEO, said the concept was delivering encouraging results.
Quicker than you can say “do you want fries with that?” the idea spread down Fenchurch Street, the stomach of The City, with Wagamama launching their first to-go spin off – Mamago – in November. In the same month, if slightly further afield, Greggs opened a ‘Greggs of the Future’ site in Glasgow, with self-ordering, self-serving and collection points aplenty. Itsu will install touchscreens in 75 stores in 2020.
According to the latest MCA Food to Go Tracker, average FTG frequency grew by 4.8% this year, outperforming the wider market growth of 1.3%. Food to go is on the rise, and slick and quick by nature – or design, really – tech is set to be the cornerstone of its success.
Luckily for McDonalds lovers everywhere, Easterbrook has said that its UK market has a “little bit of cash” to push the use of technology further. Although considering that “Apply-thru” now exists – which allows jobseekers to apply via Alexa to work for the company – you wonder how much further it’s possible to go.
PROTEST OF THE YEAR: VEGANS
If you live in a city, if you commute, or if you have a working set of eyes, chances are you’ve witnessed a protest in one shape or another this year.
Soaking the Treasury in ‘blood’, blockading the Department of Business, balancing atop the DLR, and bringing cities to a standstill, Extinction Rebellion UK have had a busy 2019. Aimed at prompting a sufficient government response to the climate crisis, whilst its impact is yet to be assessed, the sheer scale of protest has to be commended.
For the hospitality industry, this is nothing new.
Twenty years on from the famous anti-American José Bové-led attack on McDonalds Millau, the brand continues to face the wrath of militant morals. One McDonalds store in Brighton was the target of three Direct Action Everywhere (DxE) protests this year, causing several awkward and tense protester-security altercations.
But McDonalds is no stranger to protest, and altercations with security aren’t exactly rare. For (unintended) shock factor alone, protest of the year doesn’t include the golden arches, but a quiet Pizza Express site, where a goggle-eyed and extremely angry middle-aged man saw fit to punch a young woman.
In September this year, DxE stormed a Pizza Express in – you guessed it – Brighton, carrying ‘anti-speciesism’ signs and interrupting diners mid-Romana. In a contradiction to top all contradictions, one customer raged, “You’re scaring these people,” before punching a campaigner in the face.
Granted, the young woman goaded the man (“what are you gonna do?”), and I understand that “not your mum, not your milk” isn’t what anyone wants to hear as they’re chowing down a margherita, but throwing punches over pizza is not a good look.
Veganism is on the rise. Nearly 20% of consumers are following a meat-free, or partially meat-free diet, and whilst some cite health and the environment as their reason for ditching meat, animal welfare as a driving factor can’t be overstated.
When there is a moral high ground, there is a cause for protest.
Would you like a placard with your vegan sausage roll?
QUOTES OF THE YEAR
“As Deliveroo seeks to become the definitive food company we want to be the partner of choice for restaurant partners, and that means offering these sorts of innovations to help them grow and develop, while widening choice for customers.”
Will Shu, Deliveroo CEO
“Customers are still very cautious. There have been winners and losers in casual dining. But there’s still a market for customers, people are still eating out. There’s still a business for people that provide a quality, relevant and interesting proposition to customers.”
Steve Holmes, Azzurri CEO
“I haven’t watched the news for three years. I have a saying in life, why worry about something you can’t influence? I have got absolutely no influence into what is going on, so until something happens I am not interested at all. Until we know what is happening it’s all speculation. Seriously, I haven’t watched the news or Question Time or anything for three years.”
Simon Wilkinson, CEO of Byron Burger
“I don’t do TV, I don’t do interviews, I don’t do books. I just focus on the job in hand, the main thing. I think restaurateurs need to focus on what happens in their four walls. That is where the game is won or lost. I sound like an old fart, don’t I?”
Ajith Jayawickrema, Turtle Bay founder:
“The way the world is looking at us right now, as far as continued investment in this country, there’s a big question mark over it, and I think that’s extremely sad. I think we have to go through a lot of pain before people realise really where we’re at. I don’t want pain for the country. I want people to eat drink and be merry. I don’t want the tomorrow we die part.”
Richard Caring
“I see us as the Waitrose of coffee – we’re accessible on a high street near you, and distinctly more premium and better quality – but not in a way that prices you out of the market.”
Will Stratton-Morris, Caffe Nero CEO
“Complacency is death in restaurants. You need to be constantly striving to improve. As the last few years have shown, little things can add up over time and before you know it you’re saying ‘what the fuck happened?’. These chains that are going bust are mainly run by suits who seem to have forgotten the need to focus on product quality.”
Joe Grossman, Patty and Bun founder
“[In December] I’ll have been doing it for 40 years, I’d like to do it another 40. That would make me 104. It might be optimistic, but that’s my plan. Why not?”
Tim Martin, JD Wetherspoons Chairman
“If you start thinking the food’s done, you’re done.”
Zan Kaufman, Bleecker Burger founder
