Restaurant365’s Restaurant Transformation Tour has reached new heights in its third year, gathering over 400 industry leaders in Music City. Missed the event? Here are the key takeaways from RTF Nashville to fill you in on what happened.
Restaurant365’s Restaurant Transformation Tour is in its second year, and it just keeps getting better. From August 11-13, the beautiful JW Marriott in Downtown Nashville hosted the three-day festival where over 400 restaurant leaders from all walks of the industry came together. Representing different regions, roles, and restaurant sizes, these industry experts reflected on the past year’s changes and exchanged ideas for future growth—no matter what challenges the industry brings. If you missed this stop on the tour, don’t worry! There’s still one more city on the list this year, so be sure to check out the Restaurant Transformation Tour hub for all the details.
Now let’s dive into some key takeaways from RTF Nashville:
R365 CEO Tony Smith kicked off the day with an intriguing lesson about dinosaurs. While it might sound unusual, the comparison holds a crucial lesson for the restaurant industry. Only 25% of dinosaurs survived the asteroid impact 66 million years ago by relying on key factors like preparedness, agility, intelligence, and visibility. These same qualities are essential for restaurants to thrive in today’s world. The pandemic was the restaurant industry’s asteroid, and while it felt like a massive challenge, the fact that only 10% of restaurants closed is a much better survival rate than the dinosaurs faced. It’s a reminder of how resilience and adaptability can help those in the industry weather even the toughest storms.
R365’s Senior Vice President of Product, Mark Calvillo, took the stage to address the biggest concerns facing restaurant operators today—such as managing sales volume, recruiting and retaining staff, and coping with labor and food costs. The focus was on how the R365 team is dedicated to helping operators tackle these challenges head-on. To support this effort, R365 is focusing on enhancing the platform’s workforce capabilities to train staff more efficiently, optimizing the mobile app to meet employees where they are, expanding the R365 data hub to streamline operations, and leveraging AI to supercharge your workforce.
The restaurant industry is currently facing a hefty 75% turnover rate, with each hourly employee costing an average of $6,000, or about $150,000 per location. But it doesn’t have to be this way. The key to fixing this? Start with the right hires and improve your hiring process. Employee Training feature helps onboard staff quickly with the skills they need to thrive. With 60% of today’s workforce under 25, they need to feel competent and confident to stick around. This tool is mobile-friendly, making it easier to fit into busy, on-the-go lives. Role-based assignments are set up automatically, with translations available in 85 languages. Plus, there’s a customizable library, AI-driven courses, over 300 options to choose from, and a newsfeed to keep everyone in the loop. Always remember this mantra: “A happy, well-trained staff is critical to your success.”
Earlier this summer, R365 surveyed restaurant owners and operators to understand their current challenges and plans for the rest of the year. Our very own Marc Cohen, Solutions Architect for R365, shared these insights at RTF Nashville, giving attendees a look at the latest industry trends. As expected, food costs have been on the rise throughout 2024, with 80% of respondents reporting increases and 65% seeing hikes of 1-5%. To manage these costs, 60% are raising menu prices, while 33% are adjusting their suppliers and tracking waste more closely. Labor costs and turnover are also major issues, with 65% noting increased labor expenses and 89% seeing a rise of 1-5%. Additionally, 34% face a turnover rate of 11-25%, leading 35% to focus on better staff incentives. There’s plenty more to uncover about the industry’s current state, so be sure to check out the full report and webinar to dive deeper.
Kevin McTigue, Manager of Solutions Engineering at R365, sat down with industry CFOs to discuss the top challenges they’re currently facing. Rising costs are a big concern, with increases in minimum wage, food, labor, rent, and utilities all putting pressure on margins. Supply chain issues are also a huge pain point, especially with severe droughts affecting water availability for livestock and reducing beef production. Insurance is another roadblock, with insurers pulling out of markets and making it tougher to get affordable property coverage, particularly in areas prone to natural disasters. Plus, there are questions about the value of delivery partners. As inflation and a potential recession impact customer behavior, there’s a growing worry that delivery customers may become more price-sensitive, shifting the focus from convenience to cost. Balancing in-store orders with delivery demands and finding ways to meet all customer needs are now critical for success.
Chris Yeh from Blitzscaling Ventures took the stage to show that AI isn’t something to fear but a powerful tool to help us work smarter, not harder. Even Pope Francis is exploring AI, proving that you don’t have to be an expert to take advantage of it. Though AI was first coined in 1957, its impact is as transformative as the industrial revolution, surpassing even mobile technology and the internet. But have no fear—for the restaurant industry, AI is an exciting opportunity rather than a threat. It can enhance the front of house (FOH) with features like voice ordering and interactive kiosks, while streamlining back of house (BOH) operations such as analytics, scheduling, inventory management, and supply chain processes. By handling these tasks, AI frees up time for humans to focus on elevating the dining experience and connecting with guests in other meaningful ways.
At the customer panel, “The Rush: The Right Tools, Right Time, Right Results,” attendees got a real sense of how R365 is driving success for its users. Stephanie Catoggio from Illegal Pete’s shared how the platform has saved her team hours each week by simplifying hot counts and inventory tracking for key items like protein and tequila. Anna Pool of Taco John’s talked about how the platform has been a game-changer for the brand as they expanded from 12 to 20 locations, making bank reconciliations a breeze and boosting her team’s efficiency. Rod Sanders from Marco’s Pizza revealed how the Employee Training tool has cut turnover by 22%, saving them $16 million a year and increasing average employee tenure from just six months to three years.
Rich Sweeney, Lead Solutions Engineer for R365, had a conversation with Ryan Medford, Owner of The Original Pancake House, and Brian Herskovets, Director of Franchise Operations at Angry Crab Shack, about the hurdles they’re currently facing. They talked about the escalating costs driven by inflation, including rising wages in certain states and the ongoing increase in food prices, all while navigating narrow profit margins. The aftermath of COVID is still a heavy burden, with the need to rebuild staff efficiency and restaff multiple locations with inexperienced employees adding to the challenge. They also discussed how to boost the work ethic of the new generation, improve workplace culture, and balance compensation for both FOH and BOH staff. On top of that, consumer behavior is shifting with people becoming more selective, restaurants need to find ways to stand out and deliver exceptional service to keep guests coming through the door.
To wrap up the festival, attendees were treated to a candid chat with Arnold Myint, owner of the International Market in Nashville and a familiar face from Top Chef. Arnold shared how he’s honoring his parents’ legacy, as they opened the restaurant back in 1975. He’s dedicated to preserving their spirit and continues to offer the flavors that made his mom’s cooking a beloved part of city’s food scene. In a city where ethnic cuisine has become an integral part of the food culture, Arnold discussed how he manages the busy demands of his personal and professional life. He leans on his dedicated staff, acknowledging he’s not always the easiest to work with but strives to build lasting relationships and a sense of family. He stated how much he values their contributions and celebrates their role in the restaurant’s continued success. To cap off the night, there was a raffle with some amazing prizes, including YETI coolers and custom Jordans, handed out to a few lucky folks who joined in on the vendor hall and social media activities.
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If there’s one thing the restaurant industry excels at, it’s celebrating in Music City. This year, the party rolled on at the legendary Whiskey River Saloon in Downtown Nashville, where the fun was nonstop. Attendees showed up in their best country western attire, ready to enjoy some music, Nashville hot chicken, networking opportunities, and the breathtaking city skyline views from the rooftop bar. The night was filled with great music and even better company, making it an unforgettable highlight of the festival.
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