News Briefs

Today at the American Hotel and Lodging Association’s The Hospitality Show being held in San Antonio, Texas, Agilysys, Inc., a leading global provider of hospitality software solutions and services, released the findings of its 2024 Global Hospitality Impact Study: Unlocking Revenue Beyond the Room.

This comprehensive survey of 489 hospitality executives and technology decision-makers across North America, Europe and APAC unveils critical insights into the industry's readiness to embrace Revenue per Available Guest (RevPAG) strategies, while highlighting significant challenges holding back adoption. 

The potential of adding RevPAG initiatives to traditional Revenue Per Available Room (RevPAR) measures is reflected in the current trend of travelers seeking personalized and unique experiences, with luxury properties already generating up to 40% of revenue from non-room sources. However, while 82% of hospitality executives are interested in proactively identifying and expanding revenue opportunities at the per-guest level, 56% believe they are unprepared technologically and operationally to do so.

"Properties have a compelling opportunity to lean into growing traveler desires to receive personalized offers and enjoy unique experiences curated just for them. However, technology equipped to identify and serve up these opportunities – whether in advance or real-time during a guest’s stay – is not pervasive,” said Terrie O'Hanlon, Senior Vice President at Agilysys.

"While there is overwhelming interest in capitalizing on RevPAG's potential to drive both revenue growth and guest loyalty, our research reveals a concerning readiness gap,” Ms. O’Hanlon continued. “Properties that fail to bridge this gap not only risk leaving substantial revenue on the table in a promising and expanding market, but also increase the probability they will fall behind new properties and others investing in technology, operating processes and cultural dynamics geared toward understanding revenue potential at the per-guest level,” she warned.

Key findings include: 

• Critical “Aspiration-Reality Gap”: While 82% of hospitality executives recognize the potential of optimizing RevPAG, 56% feel totally unprepared to do so. 
• Technology Transformation Considerations: To enable optimizing RevPAG, 72% of executives are willing to enhance current technology infrastructure, with two-thirds willing to consider switching PMS systems, providers or both. 
• Technology Review Gap: Only 12% of properties review their system capabilities against market innovations multiple times yearly, while 38% wait four or more years between doing so, contributing to blind spots with respect to leveraging new technology to optimize revenue at the per-guest level. 
• Dual Role of Technology: 68% of executives believe property technology must balance day-to-day operations with future innovation needs. 
• Priority Inertia: Most properties have traditional priorities at the head of their day-to-day operating mandates as opposed to having made a shift to putting the ability to identify and optimize per-guest revenue first. While “enhancing guest experiences” is the leading priority at 68%, doing so is not specifically revenue-per-guest focused. Acquiring new guests (67%) and increasing re-bookings (63%) round out the top priorities. While it is true that these advantages can result from optimizing per-guest revenue, cultures have not evolved to make RevPAG a property-wide focus even though there is high agreement (82%) about the value of doing so.

The 2024 Global Hospitality Impact Study highlights the advantages of expanding room-revenue-focused mindsets shaped by RevPAR and Average Daily Rate (ADR) metrics to broader, guest-centric revenue sensibilities. Adding RevPAG goals and capabilities to traditional performance expectations equips properties to capture the full spectrum of guest spending and the added revenue upside derived by tailoring offerings to individual guest desires.

"The path to High Return Hospitality – a state in which financial and emotional returns are optimized by perfectly aligning individual guest desires with property offerings and staff capabilities – becomes easier when hospitality executives broaden how they measure and create value," noted Ms. O'Hanlon. "RevPAG is not just another metric—it is a reimagining of how properties and brands relate to each guest and monetize the moments that matter most. Properties that undertake this transition will set new standards for delivering personal, profitable guest experiences and for elevating operating advantages," she concluded.

This study offers a roadmap for hospitality executives to optimize revenue at the per-guest level, elevate guest experiences and stay competitive in the evolving global hospitality market. To access the full report, please visit: https://info.agilysys.com/global-hospitality-impact-study-2024 

Encore, a global event technology and production services provider, confirmed today the launch of its pioneering ‘Overtime Savings Program’ in the United States, along with additional people-first programs to further support its ongoing workforce in a seasonal industry.

Powered by UKG’s payroll technology, this first-of-its-kind program aims to enhance financial wellness and stability for Encore’s frontline employees, many of whom work in markets that experience seasonal ebb and flow of business volumes.

With 12,000 team members providing event technology and production services at 2,200 hotels and conference venues in 20 countries, Encore faces the same challenges common in the hospitality industry. Seasonal fluctuations often result in workers’ hours varying from ample overtime during peak times to reduced schedules in off-season periods. This seasonality makes it difficult for workers to maintain consistent earnings and creates challenges for companies to retain talent in the off season.

“Encore has always believed its team members are the heart of our story. This people-first mindset motivates us to constantly evolve our team member experience and innovate around challenges, like the impact of seasonality, that the industry previously viewed as immutable,” said Ben Erwin, president and CEO of Encore.

In addition to the Overtime Savings Program, the company launched a Seasonal Leave of Absence Program, which offers team members the flexibility to take time off during slower seasons while retaining full benefits, accruing paid time off, and maintaining their tenure. This unique program enables employees to explore other work opportunities, pursue education, or focus on personal goals without sacrificing benefits or career progression. Both the Overtime Savings and Seasonal Leave of Absence Programs are active nationwide, with plans for global expansion.

“We established the program as another way to support our team members so that they can be at their best in delivering for our customers,” Erwin added. “With this innovation, they can better plan and save their premium overtime pay for periods of the year when they might not work as many hours. Providing this capability and funding a company-paid match for a portion of the savings should motivate financial wellness and enable them to continue to build their career with Encore. Team member reactions tell us we are onto something,” he said.

With a launch just after Labor Day, usage of the UKG Wallet™ increased tenfold compared to the prior year’s period. he company offered an initial savings match, similar to a 401k program incentive match, to reward healthy financial behavior.

“Financial stress is not a problem isolated to our industry, it’s a stressor for nearly everyone,” said Charlie Young, chief human resources officer at Encore. “Nearly 70% of Americans are living paycheck to paycheck¹ and Americans spent $9B in bank overdraft fees in 2023. The more we can do to reduce stress for our team members, the more focused they can be on our customers. We are successful in the event production business because of the unique combination of our technical expertise, hospitality mindset and ability to work under pressure and through challenges. Seasonal fluctuations are part of our business, but with a partner like UKG that understands every industry has unique challenges, we were able to innovate to support those unique needs to make our team members’ lives better.”

Cody Browne, a technical lead with five years of service for Encore in Las Vegas, said he will try the Overtime Savings program, in addition to accruing and saving his Paid Time Off, for the slow season in December in Las Vegas. He hopes the vacation time, in addition to the saved overtime funds, will afford him an out-of-state vacation to visit family. “I love that Encore is creating new opportunities, that’s one of the reasons I am interested in growing my career here,” he said.

Mark Shambura has joined Panera Bread as Chief Marketing Officer. Shambura will lead all aspects of marketing at Panera, including Brand Building, Digital & Loyalty, Product Strategy & Consumer Insights. An accomplished marketing leader with broad expertise in the restaurant industry, Mr. Shambura has previously held marketing leadership roles during pivotal growth periods for top brands including Chipotle, MOD Pizza, and most recently Papa Johns.

"Mark brings an impressive background building brands and leading marketing teams for fast-casual restaurants, and we’re thrilled to welcome him to Panera Bread,” said José Alberto Dueñas, Chief Executive Officer. “As Panera continues to evolve our brand, guided by listening to our guests, Mark’s depth of experience and ability will help drive our growth as a brand that serves great food you feel good about eating.”

Shambura previously served as CMO at Papa Johns, where he led a revitalization of the brand by enhancing its iconic “Better Ingredients, Better Pizza” platform, and developing a more modern, innovative omnichannel approach to transform how Papa Johns appealed to both new and loyal consumers. As Executive Director at Chipotle, Mr. Shambura guided the marketing function through periods of both sustained growth and transition, providing leadership over brand strategy, advertising, digital, social, events/sponsorships, promotions, and field marketing, including playing a key role in spearheading its “Real Ingredients” brand strategy.

“I’m proud to join the Panera Bread team and excited to build on the momentum of the brand's transformation as it continues to evolve in service of our guests,” Mr. Shambura said. “Panera propelled and cemented its position at the top of the fast casual restaurant segment through its promise of high-quality ingredients and freshly prepared food, and I’m thrilled to join a highly talented team to help shape its next chapter.”

Prior to his tenure in the restaurant industry, Mr. Shambura gained extensive marketing agency experience, working with a broad array of top global consumer brands for over a decade. Shambura will report directly to José Alberto Dueñas, Chief Executive Officer, and officially assumed the role of Chief Marketing Officer on July 29, 2024.

Noodles & Company has appointed Stephen Kennedy as Executive Vice President of Marketing, starting November 18, to lead the company's brand strategy and customer growth initiatives.

"Stephen is a transformational marketing leader with over two decades of experience driving growth for iconic brands," said Drew Madsen, CEO at Noodles & Company. "We're excited to add his expertise in digital innovation and customer engagement to our team as we deepen our brand relevance, capture new customers, and drive sustained, profitable growth."

Kennedy most recently served as Vice President of Growth and Strategy at Bounteous, where he spearheaded digital strategies that enhanced brand experiences. At Nestle USA, he led the Marketing Enablement and Consumer Experience teams, increasing media ROI, social engagement, and e-commerce sales through data-driven strategies and a digital-first marketing approach.

At Domino's, Kennedy was pivotal in helping drive record sales growth for the company. In various leadership roles, he guided the insights team on successful product launches and promotions, including Domino's Pan Pizza and the $5.99 Mix and Match deal. Kennedy also spearheaded the pilot, launch, and management of the award-winning Piece of the Pie Rewards program, overseeing all owned and paid digital marketing efforts.

Prior to his time at Domino's, Kennedy worked in brand strategy and insights at General Motors. He began his career in marketing at Borders Group Inc. where he managed CRM and loyalty marketing teams.

Kennedy's accomplishments have contributed to numerous awards from organizations such as Loyalty 360, The ARF David Ogilvy Awards, The Effie Awards, The American Advertising Federation, The In-House Agency Forum, Communication Arts, and Restaurant Business Tech Accelerator.

SoundHound AI, Inc. announced that the company’s AI phone ordering technology has crossed a milestone, processing over 100 million interactions with restaurant customers, including hundreds of millions of dollars’ worth of food orders.

SoundHound’s current roster of customers using its Smart Ordering AI service includes Chipotle, Jersey Mike’s, Applebee’s, Habit Burger, Noodles & Company, Beef O’Brady's, Casey’s General Stores, and many more.

This new data from SoundHound pertains to customer interactions handled by the company’s cutting-edge restaurant phone solutions, including those processed by AI phone ordering services developed by SYNQ3 (acquired by SoundHound in early 2024).

The company works with over ten thousand restaurant locations in the U.S. and beyond, with AI phone ordering expanding rapidly as a key channel for restaurants looking to drive revenue, support employees, and provide an accurate, consistent experience for their customers – particularly during busy periods.

“AI phone ordering is no longer just a 'nice to have;' it’s become a critical part of restaurant operations helping many of the best known brands in America deliver the kind of customer experience that they’re celebrated for,” said Steve Bigari, EVP, AI for Restaurants at SoundHound AI. “We’re proud to be the provider of choice for so many of them, and right now we’re rapidly deploying cutting-edge solutions so that restaurants can provide consistently excellent ordering and customer service across every channel.”

SoundHound’s Smart Ordering phone AI takes carryout, curbside, and delivery orders for restaurant operators – processing payment for orders, offering quick and convenient reorders, and integrating with point of sale and loyalty systems. The automated service is also able to provide customizable answers to customer FAQs on topics like opening times and parking.

Recently, SoundHound’s acquisition of Amelia has enabled the business to expand its comprehensive omnichannel solutions and offer marquee clients additional conversational AI support across IT, guest relations, catering, and more.

For more information about SoundHound AI’s restaurant solutions, visit www.soundhound.com.

The data shared in this release by SoundHound relates to interactions – including orders and other customer queries – handled exclusively by the company’s AI phone answering service since 2020.

Fiserv s empowering small business growth through an enhanced suite of industry-specific solutions from Clover. Built with small business owners in mind, these 'all-in-one' solutions combine flexible hardware with software that addresses the unique needs of individual businesses, providing restaurants, retailers, and service-based businesses with the vertical-specific capabilities they need to save time, make money and grow.

“Small business owners are engines of growth, creators of jobs, builders of communities, and drivers of innovation”

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Factors like rising costs, labor shortages, and the ongoing quest to attract and retain customers have led to a host of challenges for small businesses. As technology infiltrates the market to address these issues, small business owners are diverting their attention from their core mission of running their businesses efficiently to managing an assortment of complex systems. Recognizing the unique needs and pain points of today’s entrepreneur, Clover has invested to deliver small businesses with adaptable, vertically-integrated enhancements across three key verticals:

• Restaurants can seamlessly manage front- and back-of-house operations and access real-time kitchen reporting for actionable insights and enhanced operational efficiency.
• Service Businesses can implement a comprehensive appointment booking feature to operate and grow their business, manage employees, engage with customers, and take payments using a streamlined POS experience. In addition to appointment scheduling and employee management, the solution features a customizable website.
• Retailers can enhance their presence through an omnichannel integration with customizable websites and digital storefronts, giving customers an end-to-end e-commerce experience. Retail solutions also support variance management, Buy Online/Pick up In-store (BOPIS) options, and merchant delivery as fulfillment methods.

"Small business owners are engines of growth, creators of jobs, builders of communities, and drivers of innovation," said Jennifer LaClair, Head of Merchant Solutions at Fiserv. "An enhanced suite of industry-specific solutions allows small business owners across industries to transform challenges into opportunities and streamline processes so they can focus on what matters most – elevating their business."

Working in tandem with upgraded vertical solutions and industry-leading payments capabilities, the enhanced solution set includes:

• New hardware, like Clover Compact and Flex Pocket, that further build on the extensive Clover hardware suite, giving business owners more freedom to take payments and run their business how and where they want.
• Integrated capabilities, like employee management, payroll, customer loyalty programs, and gift cards, that are seamlessly built into vertical software to streamline operations.
• Flexible financial solutions, like cash discounting, cash advance and instant and same-day transfers, that provide small businesses with easy access to capital that facilitates growth.

For more information about Clover’s enhanced vertical solutions and products, please visit http://www.clover.com.