In the Race, It's Survival of the Swiftest
Branded Critiques 'Winner-Takes-All' Mindset in Hospitality Industry
In his latest LinkedIn post, Gregg Majewski, Founder and CEO of Craveworthy Brands, critiques the 'winner-takes-all' ideology prevalent in the hospitality sector. Disagreeing with industry stalwart Ron Shaich, Majewski asserts that the hospitality industry can accommodate multiple winners, with room for second place and beyond to thrive.
In his post, Majewski gives high praise to industry pioneer Ron Shaich, the man behind Panera Bread and the current chairman of Cava. Despite the respect, Majewski expresses dissent with Shaich's 'winner-takes-all' ethos, arguing that such an approach overlooks the industry's potential for multiple success stories.
Majewski's critique is highlighted in his podcast "Room for Seconds," which has hosted numerous hospitality leaders for real discussions about the industry. The podcast's name, according to Majewski's LinkedIn post, seeks to emphasize that dominance doesn't necessarily require claiming the top spot; instead, it's about seizing one's own opportunities in the industry.
Throughout the week, Branded Hospitality Ventures has demonstrated a similar perspective in its collaboration with partners and portfolio companies. In a webinar with Big Chicken CEO Josh Halpern, the fierce competition in the chicken quick-serve restaurant (QSR) market was discussed. The 'chicken wars' in the US, while intense and far from new, showcase the strength and popularity of this market segment.
Chicken has been the American public's favorite protein since 1992, with consumption reaching an estimated 101.7 pounds per person in 2023. The popularity of chicken has been attributed to a 'Trifecta Effect'—its nutritional value, affordability, and reliability making it a top choice for consumers.
In the midst of these 'chicken wars,' KFC unveiled a new concept focused on sauces, emphasizing their integral role in consumer decision-making. KFC's Chief New Concept Officer, Christopher Poirier, believes that consumers are increasingly obsessed with sauces, with more-is-more being the trend. The new concept, called Saucy, offers a range of 11 sauces and 11 beverages, showcasing KFC's commitment to innovative food offerings in an evolving industry.
KFC's experimentation with a new concept underscores the importance of innovation in the hospitality sector. As KFC's US President, Arun Lal, noted in a statement, "We strongly believe that every brand must innovate. This is a time where innovation is key for every business and for every brand. We don't want to be left behind. We are pushing the boundaries of serving what we serve in KFC but in a different asset format and with a different experience."
The hospitality industry, with its numerous players and rapid innovation, creates a landscape where multiple winners can emerge. This perspective is shared by Branded, Big Chicken, Mr. Bing, and many other sector players who believe in the industry's potential for growth and success for many players.
The messaging from these companies echoes Majewski's assertion that success in the hospitality industry is not solely about being 'first.' Instead, it's about being bold, taking risks, building a community, and taking what's yours—an ethos that aligns with the spirit of the holiday season and emphasizes the potential for success for all who embrace it.
- Gregg Majewski, CEO of Craveworthy Brands, advocates for shared success in the hospitality industry in his podcast "Room for Seconds," where he discusses business strategies with industry leaders.
- In the tech-driven world of podcasts, Majewski highlights his belief that hospitality isn't merely about being the first; it's about seizing opportunities, innovating, and building a community to thrive.
- big Chicken, a portfolio company of Branded Hospitality Ventures, is immersed in the fiercely competitive chicken quick-service restaurant (QSR) market, often referred to as the 'chicken wars.'
- Innovation is a key factor in the hospitality industry, as demonstrated by KFC's new venture, Saucy, offering various sauces and beverages, a testament to the brand's dedication to food-and-drink diversity in a constantly evolving business landscape.
