#CHARTtrainers Introductions Colby Hutchinson Donna Herbel - - PowerPoint PPT Presentation

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#CHARTtrainers Introductions Colby Hutchinson Donna Herbel - - PowerPoint PPT Presentation

Jan 30, 2023 3.31k likes •3.77k views

#CHARTtrainers Introductions Colby Hutchinson Donna Herbel Melissa Doolin-Koehne Best Western Hotels & Resorts Perkins & Marie Calendars TDn2K @donnaherbel @loverofguac Colby.Hutchinson@bestwestern.com Donna.Herbel@prkmc.com

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#CHARTtrainers

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#CHARTtrainers

Introductions

Melissa Doolin-Koehne

TDn2K @loverofguac

melissa.doolin-koehne@tdn2k.com

Donna Herbel

Perkins & Marie Calendars @donnaherbel

Donna.Herbel@prkmc.com

Colby Hutchinson

Best Western Hotels & Resorts

Colby.Hutchinson@bestwestern.com

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#CHARTtrainers

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#CHARTtrainers

  • The What
  • The Why
  • Industry Trends
  • Hiring & Retention
  • People Problems
  • Business Impact
  • Investments
  • Evolving Roles
  • Best Practices
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#CHARTtrainers

  • Hotel Economic look?

HOSPITALITY OUTLOOK

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#CHARTtrainers

  • 5.0%
  • 4.0%
  • 3.0%
  • 2.0%
  • 1.0%

0.0% 1.0% 2.0% 3.0% 4.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Comp sales Comp traffic Average guest check

Source: Black Box Intelligence

2014 2015 2016

Comp Sales Growth Slowing Down

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#CHARTtrainers

2016 Net Restaurant Unit Growth

2.1% 8.7% 2.9% 1.7% 1.2% 0.1%

  • 0.1%

Total Industry Fast Casual Fine Dining Quick ServiceFamily DiningCasual Dining Upscale Casual

Source: Black Box Intelligence Market Share Report

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#CHARTtrainers

Hourly Turnover

Management Turnover 2016 Comp Sales/Traffic

Top performers

101.4% 30.8% +2.9% / -.5%

Median performers

127.2% 44.4%

  • 1.1% / -3.6%

Bottom performers

150.5% 59.1%

  • 5.0% / -7.5%

What Is The Size Of The Prize?

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Food Beverage Service Ambiance Intent to Return Value Top performers 39.8% 34.4% 33.1% 36.3% 40.3% 37.2% Bottom performers 37.1% 31.3% 23.8% 28.6% 29.8% 31.1% Difference top vs. bottom +2.7 pp +3.1 pp +9.3 pp +7.7 pp +10.6 pp +6.0 pp

Customer Satisfaction: White Box Attributes

Net Positive Sentiment

Source: TDn2K

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#CHARTtrainers

Source: STR

  • f RevPAR Growth

All-time High

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#CHARTtrainers

2015 2014

Lodging Decline, Leads other Sectors ADR and Margins Recover Lodging Recovers Occupancy Declines, ADR Follows Long Run Occupancy Equilibrium ADR

Source: CBRE

End Of The Cycle?

Occupancy Recovers

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Source: STR, Jan. 2017

Smith Travel (STR) Chain Scale Forecast

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2017

High Med Low Overall Satisfaction 923 812 673 % Definitely Repurchase 77% 30% 5% % Definitely Recommend 83% 42% 10% # of Positive Recommendations 5.9 2.4 0.7

Source: JD Power, July 2017

Greeted with a smile?

‘Sometimes’

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872 847 845 835 805 742

650 700 750 800 850 900

Luxury Upper Upscale Upscale Upper Midscale Midscale Economy

Source: JD Power, July 2017

Satisfaction by Chain Scale

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#CHARTtrainers

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#CHARTtrainers

WORKFORCE TRENDS:

People Problems & Business Impact

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#CHARTtrainers

Workforce Index Q1 2017, People Report

50 60 70 80 90 100 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Recruiting Difficulty Index

22.6 Million Jobs- in Hospitality industry

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Source: People Report

Segment 2014 2017 YTD* Change QSR 130.2% 172.4% + 42.3% Fast Casual 111.3% 123.7% + 12.5% Family Dining 85.6% 105.6% + 19.9% Casual Dining 103.5% 118.6% + 15.1% Upscale Casual 76.8% 97.9% + 21.1%

* Rolling 12-months up to March 2017

Restaurant Hourly, Non-Management Turnover

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#CHARTtrainers

Source: People Report

Reasons for Voluntary Terminations

Rank FOH hourly BOH hourly

1 Job abandonment Higher compensation in job offer 2 Overall Job Satisfaction Overall Job Satisfaction 3 Higher compensation in job offer Job abandonment

Rank Management

1 Higher compensation in job offer 2 Poor work/life balance 3 Overall job satisfaction

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Source: People Report

39%t 42%t

35% of managers leave within the first year

Terminations Within 90 Days of Hire

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Source: People Report

Cost Of Turnover Per Restaurant Employee

FOH Hourly

$2,171

Management

$15,271

BOH Hourly

$2,809

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Age Group Composition of Restaurant Workforce 2007 2014 16 – 19 20.9% 16.6% 20 – 24 21.4% 24.2% 25 – 34 23.1% 23.7% 35 – 44 16.1% 15.4% 45 – 54 11.5% 11.1% 55 – 64 5.2% 6.8% 65 + 1.9% 2.1%

Teens Represent a Shrinking Workforce

Source: National Restaurant Assoc.

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The Changing Face of Hospitality

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Hourly Employees Are Getting Younger

Less than 18 18 to 24 25 and

  • lder

2014 13% 58% 29% 2017 YTD 19% 53% 28% Change +6%

  • 5%
  • 1%

% of hourly employees by age group for counter service

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80%

  • f counter service

brands offer incentives in difficult recruiting areas

Source: People Report

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Best Performers in Retention Have Higher Staffing

Managers per unit Best performers Worst performers Quick Service 5.5 4.9 Fast Casual 2.9 2.4 Casual Dining 4.1 3.8 Upscale Casual 6.9 5.9 Hourly employees per unit Best performers Worst performers Quick Service 21.4 17.6 Fast Casual 36.1 21.8 Casual Dining 63.8 52.5 Upscale Casual 108.1 78.3

Source: People Report

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Employee Satisfaction Overall Service Intent to Recommend Top 20% 94.2 81.2 79.0 Bottom 20% 78.3 73.9 70.7 Difference 15.9 7.3 8.3

$100K Revenue Lift

The Power of Engaged Associates

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Trends in Training:

Investments Evolving Roles Structure of Delivery

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Over a third of companies said the staffing of their training departments increased over the last year. Over half of companies said training expenses increased over the last year; most of it from rising labor costs.

Change in Training Expenses

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34% 25% 30% 7% 3% 31% 23% 38% 3% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Unit level FOH Unit level BOH Unit level management Multi-Unit Manager Corporate Office

Training Budget Allocation

Restaurants Hotels & Lodging

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What Department Does Training Report To?

Note: responses could include more than one department

President/CEO HR Operations Marketing

2017 31% 34% 51% 2% 2015 26% 40% 44% 0% Difference + 5%

  • %6

+7% +2%

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10% 27% 47% 17% 20% 30% 50% 0%

Increased Significantly Increased Slightly Stayed Same Decreased Slightly

% of companies

Change In # of People In Training Dept vs. Last Year

Restaurants Hotels & Lodging

11% 43% 26% 11% 20% 60% 20% 0%

Increased Significantly Increased Slightly Stayed Same Decreased Slightly

% of companies

Change In Total Training Expense vs. Last Year

Restaurants Hotels & Lodging

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#CHARTtrainers Restaurants

64%

Companies Increasing Spend For External Resources

Lodging

75%

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E-Learning On The Rise

76% of companies expect their E-learning training solution usage to increase in 2017

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Training and Development Matters

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#CHARTtrainers 94.2% 114.7%

Offer technology and systems training Do not offer technology and systems training Average hourly turnover

Ongoing Tech & Systems Training = Lower Turnover

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18.3% 31.2% 34.5%

20% or more 0-20% No e-learning

Average management turnover % of ongoing management training

  • ffered through E-Learning

Companies Offering a Larger % Of Ongoing training via E-Learning = Lower Management Turnover

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#CHARTtrainers 20% 29% 39%

More than 5% 1 to 5% No time spent on topic Management turnover % of unit level management training time

Supervisory Skills Training for Management Matters

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18.8% 30.4% 31.5% 10% or more Between 0 & 10% No training time spent Average management turnover

% of unit level manager training time Companies Offering More HR Training* To Managers = Lower Management Turnover

* Topics like harassment and diversity

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Final Thoughts

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Get information!

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THANK YOU!