Foodservice: Strategies to Control Costs and Maximize Profitability

4 min reading time

Published on 12/11/24 - Updated on 12/11/24

@HON

Organized by MKG Consulting and EquipHotel, the Brain Trust Foodservice workshop brought together industry experts from the hospitality and restaurant sectors to discuss current challenges and solutions for improving profitability and cost management. Among the speakers were Serge Trigano, former CEO of Club Med and founder of Mama Shelter, Olivia de Rohan Chabot, Brand Director of Orso Hotels and Marketing Director of SOHOMA, and Alban Ruggiero, founder of JOST and MELT, who shared their experiences and insights on the evolution of these sectors.

Find the full EquipHotel report here!

Serge Trigano, former CEO of Club Med and Founder of Mama Shelter: Strict Cost Management, Key to Profitability

Serge Trigano opened the discussion by emphasizing that, even when well-managed, restaurants can never achieve the same profit margins as the hotel industry. According to him, the volume generated by establishments like Mama Shelter doesn't make up for the weakness of the margins. "It's still a daily battle," he stated, stressing the importance of staff training in cost management to maintain profitability. For Trigano, it is essential to understand that small savings, "little tricks that save a few cents," are what help rebuild margins in an industry where profitability is often under pressure.

The former Mama Shelter CEO also highlighted the hidden realities behind the visible successes of some establishments. He pointed out that financiers are now more focused on margins than just revenue, which wasn’t always the case in the past. According to him, the key to the hotel model lies in productivity and meticulous management of the value chain, from service quality to cost optimization. He also emphasized the need to reinvent internal processes, including integrating new technologies and revising inventory management.

On the role of new technologies, Serge Trigano shared his experience with using artificial intelligence (AI) to optimize operations. He believes AI can provide significant operational gains, particularly in order management, billing, and upselling. These tools allow staff to focus more on customer service while driving better sales performance.

Olivia de Rohan Chabot, Brand Director of Orso Hotels & Marketing Director of SOHOMA: The Importance of Staff and a Differentiated Offering

Olivia de Rohan Chabot, Brand Director of Orso Hotels and Marketing Director of SOHOMA, discussed the importance of staff and differentiation in managing a hotel and restaurant establishment. She illustrated her point by referencing the opening of Hôtel Rouchechouard in Pigalle, a district that presents a challenge in attracting corporate clientele. According to her, in France, there is still hesitation to enter a hotel restaurant, which can limit the success of an establishment if the offering is not clearly differentiated.

She emphasized that to succeed, it is crucial not to try to please everyone but to create a strong and unique identity. "You must take a stance," she affirmed. This is what she aimed to achieve with Hôtel Rouchechouard by closing the restaurant at noon and revising pricing to target a younger, local clientele. She also introduced DJs in the evenings and a basement club to attract a dynamic and lively crowd, while adapting the offering to meet the neighborhood's expectations.

For Olivia de Rohan Chabot, the key to the success of such a project remains the team. "It's the staff that makes the difference," she insisted, emphasizing that staff cohesion and commitment are essential for delivering a high-quality customer experience. She also discussed the need to think of accommodation and dining as complementary to ensure the two sectors work hand in hand to maximize their potential.

Alban Ruggiero, Founder of JOST and MELT: The Importance of Atmosphere and Process Rigor

Alban Ruggiero, founder of JOST and MELT, shared his vision of the restaurant industry, which, according to him, is based on authenticity and flexibility. After starting in the restaurant business, he ventured into hospitality out of passion, particularly by creating the JOST brand, which stands out for its original and non-standardized approach. "At JOST, no two establishments are alike," he explained, highlighting the importance of adapting to the specifics of each location and each customer.

He also spoke about his experience in Le Havre, where he created the city’s first food court, combining dining and conviviality. Ruggiero emphasized that the key to profitability in the restaurant business lies in strict cost management, particularly food cost, which can no longer be as high as it was before the COVID crisis. "A food cost of 35% is no longer possible," he stated. He stressed the need to work with smart menus that help better manage costs while offering quality products.

Finally, Alban Ruggiero highlighted the importance of the atmosphere within the restaurant team. While group dynamics are essential, he clarified that this should not come at the expense of process rigor. "Strict rigor in processes is necessary," he concluded, emphasizing that the success of a restaurant depends on a balance between a pleasant atmosphere and strict cost management.

Mama Shelter

Mama Shelter

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  • Mama Shelter Europe
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