News Briefs

Artificial Intelligence has been around for decades but it is suddenly the most discussed, most important, common denominator technology on the planet due to newfound scale, speed and mass accessibility.   

A majority 73% of travel/hospitality IT decision makers said artificial intelligence/machine learning leads their IT/business strategy (vs. cybersecurity at 64% and cloud at 58%), a February 2023 Rackspace Technology survey revealed.  Two years ago, cloud, IoT, robotics and blockchain were said to be more important.   

AI Use is Accelerating Among Hospitality/Travel Professionals 

Thirty-seven percent of hospitality/travel IT decision makers said they began using AI/ML a year ago vs. 13% two years ago, 13% three years ago, 9% four years ago and 10% five years ago.  Most (63%) of them are using AI/ML for data analysis followed by 55% using it for product lifestyle management and 51% as a driver of innovation.  Intelligent search, document processing and customer engagement are growing fastest among their AI/ML initiatives.   A majority (67%) said they plan to use it to improve speed and efficiency, predict business performance (59%) and reduce risk (46%) in the future.   

The Question of Trust in AI 

The amount of data is said to double every two years emphasizing the need for AI but how much do hospitality/travel IT professionals trust what it finds?   

• Over a third (37%) said they slightly trust AI/ML results with 30% strongly trusting the results.   
• About as many (37%) slightly vs. 31% strongly think there are enough checks and balances in place to avoid the negative consequences of AI/ML.   
• 34% strongly vs. 32% slightly think there is sufficient governance in place to safeguard against any misuse of AI/ML.   

Over half (54%) of travel/hospitality IT decision-makers said they encountered pushback or scrutiny about the penetration of AI/ML in their organization.  

AI Benefits Are Already Huge with Room to Grow 

So far, 36% of hospitality/travel professionals said they have realized substantial benefits from AI/ML already with another 38% saying they’ve seen modest benefits and 26% said it’s too early to tell.  Travel/hospitality IT professionals listed those benefits as follows: 

• 74% increased understanding of business and customers 
• 73% increased revenue streams, personalized marketing 
• 72% risk reduction 
• 71% ability to hire/recruit new talent, reduced cost of new product development 
• 70% increased innovation, operation cost reduction 
• 69% improved customer satisfaction, increased sales 
• 67% increased productivity 
• 65% faster time to profitability 

Finding AI Talent is a Challenge 

A shortage of skilled talent was cited by 75% of skilled talent as the greatest challenge in their AI/ML adoption so far, followed by 64% citing algorithm/model failure and 51% who lack the technology infrastructure to support AI/ML.   86% of travel/hospitality professionals said they’ve grown their AI/ML workforce in the past 12 months with 57% saying the implementation of AI/ML has resulted in a reduction of their workforce.  

“As AI and machine learning mature and projects mature, we are seeing it expand out across the organization and become more ubiquitous, advancing in its importance, visibility, and usage,” said Jeff DeVerter, Chief Technology Evangelist, Rackspace Technology. “The fact that more respondents began their AI/ML journey within the past year is striking, and points to the fact that these technologies are seen as they key to driving efficiencies in uncertain economic times. At the same time, the research makes clear that many organizations are still struggling to understand or realize the technologies’ full benefits of AI/ML, and many face internal resistance to adoption.” 

“Organizations that are struggling with AI/ML also tend to be organizations that have immature data cultures, low levels of data literacy and poor data governance structures, because any AI/ML project is only as good as the data being used,” added Ben Blanquera, VP, Evangelist, and Senior Architect, Rackspace Technology. “For more projects to be successful and for organizations to derive long-term value, there needs to be a focus on data quality. For some companies, this may mean rethinking their entire data governance approach.” 

“Moving into an uncertain economic climate, IT and Business leaders are using AI/ML to improve business operations with low innovation,” said Nirmal Ranganathan, Chief Architect, Data & AI, Rackspace Technology. “We see customers use AI/ML to build intelligent search capabilities to improve employee efficiencies, reduce manual processes through the adoption of intelligent document processing and improve customer experience through customer engagement solutions. Innovation through AI/ML is rocket fueling the consumer space with mainstream adoption of Generative AI technologies.” 

Survey Methodology 

The survey was completed by Coleman Parkes Research in February 2023. Findings are based on the responses of 1,420 IT decision-makers across manufacturing/logistics, retail, hospitality/travel, energy, healthcare/pharma/biomedical, government, media/entertainment and financial service sectors in the Americas, Europe, Asia and the Middle East. Most of the companies/organizations polled have from 1,000 to 9,999 employees and an annual revenue between $50m and $1b. 

Up and coming QSR  Salad and Go  is expanding in Texas with three new locations opening in February in the Houston markets of Katy, Richmond and League City.

The Katy store located opened February 1, the Richmond location at  is set to open February 17, and the League City store plans to open its doors on February 22. These new locations will mark the start of rapid brand expansion across the Greater Houston area.

These suburbs were strategically selected as ideal markets for Salad and Go as some of the fastest growing communities in the region. Conveniently located in some of Houston's most popular suburbs, the new locations will provide fresh, high-quality meals with quick and easy convenience at an affordable price.

As Salad and Go continues growing its national presence with a strong focus on Arizona, Texas, Oklahoma, and Nevada, the brand's expansive growth has it on a positive trajectory to provide fresh and affordable food to communities in more than 125 locations by the end of 2023. Houston is the next step in the brand's expansion across Texas with plans to open additional stores in the market throughout the new year.

Salad and Go's chef-curated menu provides guests with food for any time of the day by offering a variety of delicious and healthy items including salads, wraps, breakfast burritos and soup as well as beverages including hand-crafted lemonades, teas and cold brew coffees.

Salad and Go ensures each meal contains fresh, quality ingredients while keeping prices low by vertically integrating operations and distribution, and sourcing ingredients directly from high-quality local farmers and suppliers whenever possible. The brand's mission to make fresh, nutritious food convenient and affordable for ALL extends beyond its stores and is demonstrated in the work the brand does to donate 4,000 meals every week to those in need, as well as in partnerships with nonprofits to support and fundraise for various worthy causes.

Focus Brands says dual branding is the future of QSR, and the parent company of Auntie Anne’s®, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s, is leading the charge. Today, the Focus Brands portfolio boasts 175-plus open dual branded units with at least 65 more in various stages of development across the country. 

Drive-Thru Convenience

The Focus Brands portfolio brands have signed agreements to open more than 50 dual and tri-brand locations in the coming year, many of which include drive-thrus for added convenience as interest in dual branded franchise opportunities continues to surge.

Flexible Store Formats

Focus Brands is among the brands introducing new store formats, including Krystal, Jack-in-the-Box and Panera Bread, which opened its Panera To Go, solely offering Rapid Pick-Up and Delivery shelves where guests and delivery drivers can easily pick up orders.  

Focus Brands has long pioneered the concept of dual branding, predominately in malls and non-traditional locations with Auntie Anne’s and Cinnabon. Now, the company’s portfolio brands have found new opportunities with streetside dual branded units, which is paving the way for immense franchise growth. 

“Dual branding is the future of our brands, especially on the specialty side of the business,” said Brian Krause, Chief Development Officer at Focus Brands. “There will always be a place in malls, but there is an immense amount of growth opportunity in streetside venues, and, by dual branding, there is more opportunity for enhanced revenue.”

The company invested heavily in consumer research to identify how to create combinations of its iconic brands to resonate with consumers and meet them where they want to be met.

Focus Brands has identified four dual-brand concepts:

• Auntie Anne’s/Cinnabon
• Auntie Anne’s/Cinnabon/Carvel
• Auntie Anne’s/Jamba
• Cinnabon/Carvel – Cinnabon Swirl. 

While key consumer benefits vary by dual-brand combination, one consistent benefit has been convenience. Having these brands together in one location makes them far more accessible than they are individually. This convenience also creates opportunity for franchisees, as co-branding leads to an expansive menu that drives enhanced unit-level volume. 

 

 Ecotrak and Therma, an IoT-powered equipment monitoring and analytics platform, formed a strategic partnership agreement that integrates Therma's Cooling Intelligence Platform with Ecotrak Facility Management Software.

Therma IoT sensors send temperature and humidity data directly into refrigeration and HVAC assets in Ecotrak, triggering real-time emergency alerts and intelligent workflows. Asset runtime hours and downtime events are also tracked and recorded, delivering sensor-driven insights on the lifecycle of the asset.

The collaboration enables Ecotrak and Therma customers to reduce food waste, carbon emissions, plus save time, energy, and maintenance costs.

Meyer Jabara Hotels emerged from the pandemic stronger than ever. The management and ownership group is coming off a record-setting year. To keep the company on this trajectory for financial stability and growth, MJH appointed 30+ year hotel finance veteran Jay Sarkar as Chief Financial Officer.

“In today’s economy, average daily rates and revenues are up; that’s the good news,” said MJH President Justin Jabara. “The bad news is the cost of goods, capital projects, interest, and labor are up too. To keep Meyer Jabara Hotels financially strong and growing, we brought in an expert in hotel finance. Jay is a results-driven, hands-on CFO who is known to develop corporate strategies and translate them into actionable financial plans that maximize profitability and performance. He is a forward-thinking leader with tactile foresight and demonstratable success capitalizing on growth opportunities, improving bottom-line performance, and optimizing organizational efficiencies. We are delighted to bring Jay on board and consider him a trusted advisor and partner to our stakeholders and executive team.”

In addition to managing the accounting processes for Meyer Jabara’s 31 individual hotels, Sarkar is tasked with planning the financial future of the management company. He will be working alongside the Chief Investment Officer, VP of Investments & Asset Management and the VP of Development to get more hotels into the portfolio.  

“While we wait for the economy to stabilize, we will focus on finetuning the finance department and making it a well-oiled, plug-and-play machine,” Sarkar said. “In addition, we will be creating a new reporting process built on accuracy and timeliness to make sure all financial data is consistent across all Meyer Jabara Hotels. Key to financial success will be adding more revenue from the management-company side of the business.”

Longevity in Hospitality

Hospitality is Sarkar’s passion. Prior to joining Meyer Jabara Hotels, Sarkar served as CFO for StepStone Hospitality in Providence, R.I., and prior to that held a CFO post at Alena Hospitality in Orlando. He also held regional controller and numerous finance positions with Pyramid Hotel Group in Oak Brook, Ill.; Adams Mark Hotels in Indianapolis and Northbrook, Ill.; and numerous Starwood Hotels & Resorts in New York. Sarkar is a licensed Certified Public Accountant. He received his Master of Business Administration degree from the University of Phoenix and Bachelor in Accounting degree from Mercy College in White Plains, NY.

“It is truly an honor to join a hospitality company whose success comes from 45 years in the hotel business,” Sarkar said. “You don’t see longevity like this in too many industries. The Meyer Jabara name – derived from the partnership of Bill Meyer and Richard Jabara – holds a lot of weight in our industry. I am proud to work for this multi-generational family venture now under the direction of Justin Jabara. The Journey Culture and tutelage behind the Meyer Jabara name is its real strength.”

QSR Krystal recently launched a new franchise website to further attract partners and continue their aggressive growth plans.

The site was developed by Hot Dish, a full-service, Franfocused and BrandFocused ad agency. The new site was built to support a lead conversion strategy and a speed to market approach.

"Krystal has a goal of reaching 500 units in the next few years and our franchise partners play a vital role in this endeavor. We're continually developing ways to better support our partners and to ensure our shared growth and success," said Casey Terrell, Chief Marketing Officer for Krystal Restaurants LLC. "With its more than 90-year history, Krystal has stood the test of time and is a proven concept that offers partners a winning business model. In addition to our legacy that is backed by our unique and highly craveable menu, we offer partners flexible store designs that fit their markets and extensive support from onboarding to opening and beyond to help them achieve their goals."

Industry Vet Moves to Krystal

The new franchise website comes on the heels of recent franchise deals that Krystal has inked with popular celebrities in music, media, and sports, as well as a notable multi-unit deal with seasoned restaurant professional Argus Wiley and his Red Door Foods. The Wiley deal includes the purchase of 21 existing Krystal restaurants and a development deal for 15 new locations. Krystal also recently expanded internationally with the opening of their first Puerto Rico location.

Krystal also recently opened a new U.S. prototype designed with off-prem in mind and has been posting breaking record sales.