#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 melissa.doolin-koehne@tdn2k.com #CHARTtrainers
#CHARTtrainers
• The What • The Why • Industry Trends • Hiring & Retention • People Problems • Business Impact • Investments • Evolving Roles • Best Practices #CHARTtrainers
• Hotel Economic look? HOSPITALITY OUTLOOK #CHARTtrainers
Comp Sales Growth Slowing Down Comp sales Comp traffic Average guest check 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 Source: Black Box Intelligence #CHARTtrainers
2016 Net Restaurant Unit Growth 8.7% 2.9% 2.1% 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 #CHARTtrainers
What Is The Size Of The Prize? Hourly Management 2016 Turnover Turnover Comp Sales/Traffic 101.4% 30.8% +2.9% / -.5% Top performers 127.2% 44.4% -1.1% / -3.6% Median performers 150.5% 59.1% -5.0% / -7.5% Bottom performers #CHARTtrainers
Customer Satisfaction: White Box Attributes Net Positive Sentiment Intent to Food Beverage Service Ambiance 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 Source: TDn2K #CHARTtrainers
of RevPAR Growth All-time High Source: STR #CHARTtrainers
End Of The Cycle? Lodging Decline, Leads other Sectors 2015 Long Run Occupancy 2014 ADR and Occupancy Margins Equilibrium Declines, Occupancy Recover ADR ADR Follows Recovers Lodging Recovers Source: CBRE #CHARTtrainers
Smith Travel (STR) Chain Scale Forecast Source: STR, Jan. 2017 #CHARTtrainers
2017 Greeted with a smile? High Med Low Overall Satisfaction 923 812 673 ‘Sometimes’ % Definitely Repurchase 77% 30% 5% % Definitely Recommend 83% 42% 10% # of Positive Recommendations 5.9 2.4 0.7 Source: JD Power, July 2017
Satisfaction by Chain Scale 650 700 750 800 850 900 Luxury 872 Upper Upscale 847 Upscale 845 Upper Midscale 835 Midscale 805 Economy 742 Source: JD Power, July 2017
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WORKFORCE TRENDS: People Problems & Business Impact #CHARTtrainers
Recruiting Difficulty Index 100 22.6 Million Jobs- in Hospitality industry 90 80 70 60 50 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 Workforce Index Q1 2017, People Report #CHARTtrainers
Restaurant Hourly, Non-Management Turnover 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 Source: People Report #CHARTtrainers
Reasons for Voluntary Terminations Rank FOH hourly BOH hourly Job abandonment Higher compensation in job offer 1 Overall Job Satisfaction Overall Job Satisfaction 2 Higher compensation in job offer Job abandonment 3 Rank Management Higher compensation in job offer 1 Poor work/life balance 2 3 Overall job satisfaction Source: People Report #CHARTtrainers
Terminations Within 90 Days of Hire 39% t 42% t 35% of managers leave within the first year Source: People Report #CHARTtrainers
Cost Of Turnover Per Restaurant Employee BOH FOH Hourly Hourly $2,809 $2,171 Management $15,271 Source: People Report #CHARTtrainers
Teens Represent a Shrinking Workforce Composition of Restaurant Age Group 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% Source: National Restaurant Assoc. #CHARTtrainers
The Changing Face of Hospitality #CHARTtrainers
Hourly Employees Are Getting Younger Less than 25 and 18 to 24 18 older 2014 13% 58% 29% 2017 YTD 19% 53% 28% Change +6% -5% -1% % of hourly employees by age group for counter service #CHARTtrainers
80% of counter service brands offer incentives in difficult recruiting areas Source: People Report #CHARTtrainers
Best Performers in Retention Have Higher Staffing Managers Best Worst per unit performers 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 Best Worst per unit performers 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 #CHARTtrainers
The Power of Engaged Associates Employee Overall Intent to Satisfaction Service Recommend Top 20% 94.2 81.2 79.0 Bottom 20% 78.3 73.9 70.7 7.3 8.3 Difference 15.9 $100K Revenue Lift #CHARTtrainers
Trends in Training: Investments Evolving Roles Structure of Delivery #CHARTtrainers
Change in Training Expenses Over half of companies said training expenses increased over the last year; most of it from rising labor costs. Over a third of companies said the staffing of their training departments increased over the last year. #CHARTtrainers
Training Budget Allocation Restaurants Hotels & Lodging 38% 40% 34% 35% 31% 30% 30% 25% 25% 23% 20% 15% 10% 7% 4% 5% 3% 3% 0% Unit level FOH Unit level BOH Unit level Multi-Unit Corporate Office management Manager #CHARTtrainers
What Department Does Training Report To? Operations Marketing President/CEO HR 2017 31% 34% 51% 2% 2015 26% 40% 44% 0% Difference + 5% -%6 +7% +2% Note: responses could include more than one department #CHARTtrainers
Change In # of People In Change In Total Training Training Dept vs. Last Year Expense vs. Last Year Restaurants Hotels & Lodging Restaurants Hotels & Lodging 60% 50% 47% % of companies % of companies 43% 30% 27% 26% 20% 17% 20% 20% 10% 11% 11% 0% 0% Increased Increased Stayed Decreased Increased Increased Stayed Decreased Significantly Slightly Same Slightly Significantly Slightly Same Slightly #CHARTtrainers
Companies Increasing Spend For External Resources Restaurants 64% Lodging 75% #CHARTtrainers
E-Learning On The Rise 76% of companies expect their E-learning training solution usage to increase in 2017 #CHARTtrainers
Training and Development Matters #CHARTtrainers
Ongoing Tech & Systems Training = Lower Turnover Average hourly turnover 114.7% 94.2% Offer technology and Do not offer technology systems training and systems training #CHARTtrainers
Companies Offering a Larger % Of Ongoing training via E-Learning = Lower Management Turnover Average management turnover 34.5% 31.2% 18.3% 20% or more 0-20% No e-learning % of ongoing management training offered through E-Learning #CHARTtrainers
Supervisory Skills Training for Management Matters 39% Management turnover 29% 20% More than 5% 1 to 5% No time spent on topic % of unit level management training time #CHARTtrainers
Companies Offering More HR Training* To Managers = Lower Management Turnover Average management turnover 31.5% 30.4% 18.8% 10% or more Between 0 & 10% No training time spent % of unit level manager training time * Topics like harassment and diversity #CHARTtrainers
Final Thoughts #CHARTtrainers
Get information! #CHARTtrainers
THANK YOU! #CHARTtrainers
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